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2013 RE investment News
RE
investmentinvestmentinvestment
NEWSNEWSNEWSJune 2013June 2013June 2013
The RoadThe RoadThe Road
To SuccessTo SuccessTo Success
I s E a s yI s E a s yI s E a s y
The Top 9 MistakesThe Top 9 MistakesThe Top 9 Mistakes
R e a l E s t a t eR e a l E s t a t eR e a l E s t a t e
I n v e s t o r s M a k eI n v e s t o r s M a k eI n v e s t o r s M a k e
2 RE investment News 2013
The Mid-Wests Resource for
 Real Estate Investors
 Rental Property Owners
 Apartment Owners
 Industry Providers
Based in the Kansas City Metro
FAST IN AND OUT
Time is money — we’ll get you back to work quickly.
 Dedicated Pro Desk Associates.
 Two hour advance order pulling.
In Store Hands On—How To
Workshops
Want to learn How a project is completed. Check out our workshops.
 In store workshops each month, check out our website and your
local store.
 Access step by step video 24-7 on our website—look for our Pro-
ject Guide Library
10% Price Guarantee
If you find a lower price on identical in-stock item
 We will match the price & beat it by 10%.
 Excludes special orders & bid pricing and others—see website
for complete details.
GREAT PRICES JUST FOR PROS
We Offer everyday low prices, plus more ways to save on larger or-
ders.
 You can count on competitive pricing on everything in every de-
partment
 Volume pricing discounts available on purchases as low as
$2,500.
 Instant bulk price savings available 1000s of items.
MAREIMid-America Association of Real Estate Investors
A Real Estate Community
MAREI, through it’s partnership with the Home Depot, offers its
members a 2% Bi-Annual Rebate on top of any discounts you
already receive through the Home Depot & its Pro Desk.
Join MAREI Today, and start saving THOUSANDS TODAY . . .
Program is retroactive back to Jan 1, 2013
Visit MAREI at www.MAREInet.com for more information
on Membership Meetings, Discounts on Products and Ser-
vices, and education for Real Estate Investors, Landlords,
and Industry Service Providers.
PRO DESK
Get the job done with
Help from the Pro Desk.
2013 RE investment News 3
cover story
22
The Road
To Success
Is Easy
If you have a plan
And follow it.
8
Title Insurance
Is Misunderstood
26
The top 9
Mistakes
Real Estate Investors Make when
Dealing with Short Sales
CONTENTS
4 RE investment News 2013
CONTENTS
6
March Market Report
Is it a Flat Market?
6
5 Signs
You are Ready to Invest
In Real Estate
7
Mortgage Interest Tax
Deduction in KS In Jeopardy
7
KCMO Water Department
& Landlords: an Update
10
Appeal
Your Property Taxes & Save
14
Property Managers
Communicate Your Standards
16
Radon
Home Buyers & Sellers Should Test
20
Direct Mail
+ Social Media = Marketing Success
34
Wholesale Real Estate
Getting Started Investing
Regular Features
18
Member Benefits at a Glance
36
KCInvest Properties for Sale
38
Monthly Meetings & Events
June2013
PUBLISHER
Kim Tucker
ADVERTISING INFORMATION
913-815-0111
info@MAREInet.com
RE INVESTMENT NEWS IS PUBLISHED
IN ASSOCIATION WITH
MID-AMERICA ASSOCIATION
OF REAL ESTATE INVESTORS
P.O. Box 8685
Prairie Village, KS 66208
www.MAREInet.com
913-815-0111
DISCLAIMER
Mid-America Association of
Real Estate of Investors and
the RE Investment News 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 communica-
tions from or to its members,
officers, directors, employ-
ees and contractors. Each
individual should consult
his/her own counsel, account-
ant and other advisors as to
legal, tax, economic, invest-
ment and related matters con-
cerning real estate and other
investments.
The views and opinions ex-
pressed by authors of arti-
cles contributed to this
newsletter do not necessarily
reflect those of the associa-
tion, the board of directors
or the staff.
J uly Meetings
Northland Meeting
Is Canceled in J uly
As it Falls on
J uly 4th
Southland Meeting
To be Vendor Networking
Night.
2013 RE investment News 5
Welcome to
RE Investment News
CONTENTS
Welcome to the RE Investment News, the monthly publica-
tion of Mid-America Association of Real Estate Investors.
We are an organization of more than 392 local investor
members and service providers that are here to help each
other take advantage of the incredible opportunities offered
by real estate investments.
Property prices and investment cash flow potential have not
been this good in over a generation. A wise and educated
investor can purchase properties that can bring larger and
safer returns that bank deposits and many stock market in-
vestments. Smart investors also understand that catching a
real estate cycle at the bottom of the curve on its way up, is
the best place to start. Most experts agree we are in that
phase right now.
We meet several times a month for educational presenta-
tions, workshops and seminars. We also meet face to face
to facilitate networking so members can conduct business
with each other through real estate transactions, providing
services and mentoring each other through the business.
At meetings you will find both highly experienced investors
as well as beginners. People that wholesale, rehab, hold for
rental and flip. You will also find lenders, realtors, title peo-
ple, contractors and other service providers to help round
out your real estate investing team.
Remember, you can’t do this business all alone. We sug-
gest you seek out knowledge and contacts from our group
or a similar group in your area if you are not in Kansas City
so you can find people who are more than willing to share
their goals and success.
Last as we always remind our members to perform their
own due diligence in all transactions, you will find the re-
sources and connections included in membership a helpful
tool in your investment making decisions.
6 RE investment News 2013
Advocacy
1. Got Cash: You have funds availa-
ble to invest in a property.
2. Found Property: You have a
property with potential for profit.
3. Have Time: You have time to de-
vote to putting deals together.
4. Solid Team: You have assembled
your team of advisors.
5. Market: The Market is in your
favor.
Ready to Invest
Signs you are Ready to
Invest in Real Estate
5
April Real Estate Market Report
Sales Prices Up, Sales Up, Inventory Down
Kansas City Regional Association of REALTORS® reports that inventory is down and prices are up across the metro area.
Sale Price: All counties except Platte & Wyandotte experienced an increase in the average sale price of existing homes and
new homes were up all except Johnson Counties over last year. Overall both showed a 5 % increase over April 2012.
Home Sales: All counties experienced an increase in the total number of existing homes sold at 6 percent as well as new
homes at 23 percent with an over all increase of 8 percent this April over 2012.
Home Inventory: Existing home inventory is down by 15 percent and
new homes are down by 8 percent with an
overall decrease of 15 percent from April 2012.
Pending Sales: Existing home pending contracts are up 27 % over
April 2012, New Homes up 19% and Overall they are up 26% over last
year.
Supply of Homes: Supply of homes is the calculated by dividing in-
ventory by the 12 month average number of sales. A 5 to 6 months
supply is a “balanced” market. Existing homes have a 5.5 month supply
and new homes are at a 5.3 month supply with an over all 5.5 supply
compared with a 7.3 supply this time last year.
Read more about market data at www.KCRAR.com
2013 RE investment News 7
Advocacy
Mortgage Interest Tax Deduction
In Jeopardy in Kansas
Mortgage Interest Tax Deduction is still in danger of being reduced or eliminated in
Kansas. An earlier compromise in the state that would have tied reductions in
Mortgage Interest Tax Deductions to reductions in the state income tax is in jeop-
ardy.
A memo from the Wichita Area Builders Association President & CEO Wess
Galyon on May 23rd says: “Unfortunately, an effort is underway. . . To abandon
and revers the good-faith compromise reached earlier. . . . The latest proposal
from the Senate does nothing to eliminate the state income tax in the short-term
and could result in a massive tax increase on over 400,000 Kansas taxpayers who
currently have and want to protect their ability to reduce their tax burden by itemiz-
ing deductions such as the mortgage interest and property tax deductions.”
The vice president for governmental affairs, Luke Bell said that the proposal by the
Senate would make the phase out of the deduction more quickly that previously
agreed upon.
The senate wants all deductions, except for those for charities, phased out by
2018, but the state income tax would still be at 3.5 percent and have no guaran-
tees to take it lover.
Bell said the House still supports the original compromise that would reduce de-
ductions by 25% and be retroactive to this tax year and phase the reduction down
by 50% by 2018.
Reported by the Wichita Business Journal
“The competitor to be feared is one who never
bothers about you at all, but goes on making his
own business better all the time.”
- Henry Ford
“A business has to be involving, it has to be fun,
and it has to exercise your creative instincts.”
- Richard Branson
KCMO
Water Department
The Landlord Legal Defense Fund Continues
to raise money in an effort to stop bad billing
practices by the Kansas City Missouri Water
Department.
Case Filed: The attorney filed the court
case on March 19th in the 16th Judicial
Court of Jackson County. After assign-
ment of the judge, a motion was filed to
change judges.
City Attorney: Filed a motion to have the
case moved from the State Court to the
Federal Court. As this issue applies to
Missouri Constitutional Law, the LLDF
wants to keep this in a State Court
Dismissed Case: LLDF had the original
case dismissed and added two more
Landlords to the case, one with actual
damages of over $62,000 due to the Wa-
ter Department and their practices.
Refiled: The New case was refiled on
May 17th, attain in the 16th Circuit Court
for Jackson County Missouri.
The city is no doubt hoping the fund runs
out of money before the case ever gets to
court.
If you have property in Kansas City Mis-
souri, or are a fellow property owner in the
metro, please support the Kansas City
Property Owners by donating to the
Fund—go to LandlordLegalFund.org
8 RE investment News 2013
Title Insurance
Is Misunderstood
Title
One of the most misunderstood insurance policies is a title insur-
ance policy. Most consumers regard it as a waste of money and
just adding to the high closing fees on their purchase or sale.
This is far from true, as according to the American Land Title Asso-
ciation, about 25 percent of all residential real estate transactions
have issues with the title. Most are resolved prior to closing; how-
ever, some claims and challenges can crop up after you have be-
come the new owner. Examples include a mortgage which has
been paid off but never released or a deed without a marital staus.
There are two types of title insurance policies that you will be
offered at your closing. The Lenders’ Policy protects the bank
against possible title problems and you will be required to pur-
chase this policy if you are financing your home. It does not, how-
ever, protect your interests. For your protection you will need to
buy an Owner’s Policy.
Unlike other forms of insurance, title insurance covers what has
happened in the past instead of the future. The current owner is
liable for these past events through their equity and liability in the
property and an Owner’s Title Insurance Policy will protect you.
Title insurance is paid through a one-time premium, usually at
closing. Given the cost of insurance in general, this single premium
is relatively low cost while affording significant protection to the
property owner. If a title claim arises, merely consulting a lawyer to
defend the claim can cost a property owner more money than the
policy premium. The policy continues as long as you have any
interest in the property. This means if you warranty the title (file a
Warranty Deed as opposed to a Quit Claim Deed) to a future pur-
chaser, that Owners Policy covers you in the event that a previous
issue affects their ownership interest. Almost all title insurance
policies in the United States are issued on universal forms ap-
proved by the American Land Title Association, although some
states have modified them.
Following are items that a Basic Owner’s Title Policy would cover,
if not disclosed and listed as an exception:
 Documents recorded during the time period between title ex-
amination and closing
 Unrecorded documents that may give other individuals or enti-
ties an interest in the property
 Encroachments by fences, driveways or other structures
 Forged documents
 Invalid or fraudulent probate of wills and estates
 Improper foreclosure
 Incorrect marital status of owner
 Invalid or contested divorces
 Liens filed by contractors or others who have not been paid
for labor, materials or services provided on the property
 Previously undisclosed heirs with claims to the property
 Tax liens
 Transfer of the property by a minor or mental incompetent
 Property line disagreement
 Mistakes in the public records
If you don’t understand an exception, ask your title agent or your
attorney. Additional coverage may be negotiated for an additional
fee, but remember, title insurance only covers past issues that may
surface later. The title insurer has the right under the policy to ei-
ther provide legal defense or pay you the amount of your loss, up
to the amount of your policy, which should be the amount of your
purchase price. Owners Title insurance does not cover matters
that happen after you take title to the property or if you create the
issue to the title. Examples would be if you don’t pay your contrac-
tor and he files a Mechanics Lien or you don’t pay your taxes and
a tax lien is filed against you, title insurance will not cover actions
you created or agreed to. It does also not cover anything your
lender does as this event most likely occurred after you took title to
the property. Unlike most other forms of insurance, title insurance
is coverage for PAST matters.
A Lender’s policy which is sometimes called a loan policy is is-
sued only to mortgage lenders. Generally speaking, it follows the
8 RE investment News 2013
2013 RE investment News 9
SAVE THE DATE
Title Insurance
What You Don’t Know
Can Cost You
Saturday Workshop
From Accurate Title
June 8th : Register Now
www.MAREInet.com/Workshop
Title
assignment of the mortgage loan, meaning that
the policy benefits the purchaser of the loan if
the loan is sold. For this reason, these policies
greatly facilitate the sale of mortgages into the
secondary market. That market is made up of
high volume purchasers such as Fannie Mae
and the Federal Home Loan Mortgage Corpo-
ration as well as private institutions.
In general, the basic elements of insurance
they provide to the lender cover losses from
the following matters:
 The title to the property on which the mort-
gage is being made is either
 Not in the mortgage loan borrower,
 Subject to defects, liens or encum-
brances, or
 Unmarketable.
 There is no right of access to the land.
 The lien created by the mortgage:
 is invalid or unenforceable,
 is not prior to any other lien exist-
ing on the property on the date the
policy is written, or
 Is subject to mechanic’s liens un-
der certain circumstances.
As with all of the ALTA forms, the policy also
can cover the cost of defending insured mat-
ters against attack.
Elements 1 and 2 are important to the lender
because they cover its expectations of the title
it will receive if it must foreclose its mortgage.
Element 3 covers matters that will interfere
with its foreclosure.
Of course, all of the policies except or exclude
certain matters and are subject to various con-
ditions.
Additionally, one of the most important exclu-
sions is the policy excludes “matters agreed to
or suffered by the lender”.
A lender’s policy only covers the lender and an
owner is not covered which is why if you are
purchasing you should always make sure to
get an Owner’s Policy.
Most people don’t understand that you
have right to shop around for title insur-
ance (some states set the rates) and it is ille-
gal for someone to tell you that they will not
sell or give you the loan unless you use a spe-
cific title insurance company. In some areas
you can request a discount if you have a copy
of your recent title insurance policy.
It depends on what part of the country you are
purchasing property who would pay for either
title insurance policy. However, the final deter-
mination would be what you negotiate in your
contract. In the case of a refinance, the bor-
rower usually pays the premium but some
lenders have programs where they pay the
closing fees, including the cost of the Lender’s
title insurance policy.
If you feel you have a title insurance claim, be
sure to file it with o your title insurance compa-
ny, not that of the individual claiming the title to
your property. First, get your owner title insur-
ance policy in front of you. Make a copy of it to
submit with the claim. If you can’t find your
policy, make a copy of your HUD-1 Settlement
Statement. The HUD-1 is proof that you paid
for an owner policy.
Look for the name and address of the actual
title underwriter, not the agent. Some but not
all policy jackets will have this information
prominently posted, some will not. If you can’t
find it, look for a large office of the title under-
writer in the closest metropolitan area. You can
find it on-line if you Google their name. In
many cases the underwriter will have a form on
their web page to file a claim with explana-
tions. Included in a title insurance claim is a
written document explaining what your claim is
about, and forms provided by your insurance
company. Any additional information, such as
letters back and forth regarding the dispute,
receipts for the title to your property, and de-
mands for payment should be included with
your title insurance claim.
The company that ensures your title to proper-
ty will usually respond to you within a few days
of receiving your claim. Any further information
or instructions will be included in this response.
By law, title insurance companies are usually
required to respond to your claim in a timely
fashion, and issue an acceptance or denial of
your claim along with any appertaining infor-
mation. Many times, however, losses incurred
due to title disputes are not covered under title
insurance. If you feel as though your title insur-
ance claim did not adequately cover you in the
event of a title issue, you can contact a lawyer
who will advise you as to how to continue claim
proceedings.
The opinions stated in this blog are those of
the author, and should not be construed to be
a statement of fact or conclusion of law. Any
statements herein should not be relied upon in
any litigation, arbitration or mediation. State-
ments herein have not been approved by the
American Land Title Association, its officers or
members.
2013 RE investment News 8
The Team from Accurate Title will be sharing:
 How to READ a Title Report . . .
 What is an Issue in Title and What is no big deal. . .
 How can Issues be Fixed . . .
 So just Why do we NEED Title Insurance
 What Does Title Insurance Cover
 How much does everything COST
 Reviewing the Settlement Statement, can save you $1000’s
 What Everyone Needs to Bring to Closing
 How do we deal with Liens & Judgments
 Tax Sales, Foreclosure Issues and O & E
 What is a Double Closing and Why they are such
a BIG Deal
10 RE investment News 201310 RE investment News 2013
Jackson
County
Missouri
Informal Appeal
Deadline to Appeal
June 14th
If you are not satisfied with the 2013 market
value placed on your property or you feel
your reassessment notice is incorrect, you
may file an informal appeal with the Assess-
ment Department by calling (816) 881-4601
ppeal
our
roperty
Taxes
& ave
A
Y
P
s
2013 RE investment News 11
In Kansas City
2013 RE investment News 11
There is no “one-size-fits-all” strategy for successfully growing your self-directed IRA with real estate investing.
What will work well for you may not be the best option for someone else. The best strategy for you will de-
pend on your own personal situation and your own knowledge of how the various strategies work. Knowledge
of the various strategies will help you determine how best to move forward.
Real Estate
Tax Bill
Jackson County Tax Assessor Issued New Tax Bills
Update on How to Protest them
Donald J. Swartz, ASA
CBIZ MHM, LLC
State Tax Bills In Missouri
The State of Missouri authorizes counties to re-evaluate all real estate parcels as of January 1st
, every other year.
2013 is a re-appraisal year in Missouri and the news has been inundated with information regarding the significant
increases on several real estate parcels in Jackson county. Respective counties have been gathering sales data
since 2011 to determine if market values for all types of real estate (commercial, industrial, residential, vacant, ag,
etc.) have increased, decreased or remained flat since January 1, 2011.
Your Rights
As a property owner or as the person responsible for paying real property taxes, it is important to know your rights to
insure you aren’t paying more than your fair share of property taxes. The review you perform now will have an impact
for at least the next two years, so take the time to analyze your property valuations.
The process of reviewing and potentially appealing your valuations should not be a daunting or harrowing experi-
ence. Informal and formal opportunities exist for taxpayers to provide information to support a fair market value. Re-
member, Jackson County alone has over 160,000 parcels of real estate, so it is conceivable a notice of assessment
may be issued that is not reflective of market value of your property. Here are a few tips when deciding whether to
You have the right to appeal the 2013 market value
on your assessment to the Jackson County Board of
Equalization (BOE). Appeals to the BOE must be
filed on or before Monday, July 8, 2013. Hear-
ings will be scheduled after July 1 and thru August
31, 2013. The Board of Equalization may increase,
decrease, or maintain the current market value at
your hearing.
Formal
Appeal
Deadline
July 8th
Hearings
July 1 to August 31
12 RE investment News 2013
appeal your property in Missouri.
Deadlines
First, be aware of the deadlines. In
the greater Kansas City area, taxpay-
ers have until the 3rd
Monday in June,
June 17th
this year, to appeal their 2013
valuations to the respective County
Board of Equalization. This deadline
applies to Platte, Cass and Clay coun-
ties; however, Jackson County has
elected to use the same deadline as
2nd
Class Missouri counties or July 8,
2013. Several counties encourage
taxpayers to call the county asses-
sor’s office directly to discuss valua-
tion issues in an effort to minimize
disputes before the Board of Equali-
zation. This time frame varies by
county, but generally the next 2-3
weeks (May 15th
– June 7th
) is a great
time to discuss your valuation con-
cerns with a county appraiser.
Data
Next, gather the appropriate data
to support an appeal. If you believe
your current assessment is exces-
sive, it is important to research com-
parable sales between 1/1/11 –
12/31/12, to determine if your proper-
ty is in line with sales activity. For
single family residential properties,
this is the most important information
you can gather. Be sure to research
sales within a short radius of your
property, this provides you with a
guide to determine the value associ-
ated with comparable homes and
their selling value. This information
can be difficult to obtain, but there are
several residential real estate brokers
who may provide this information to
you upon request or for a small fee
for their time or use of the MLS real
estate service. After reviewing the
sales data, make sure the sales are
comparable to the subject property in
terms of age, number of bedrooms,
bathrooms, ½ baths, finished base-
ments, etc. If a county appraiser had
a $1.00 for every person who
marched in with the argument, “I’ll
sell it to you tomorrow for the value
you have on my property”, the county
appraiser would own a lot of property.
Comparable sales and making ad-
justments to the comparables will
give you your best chance for suc-
cess.
If you have commercial or industrial
property, other methods are also re-
viewed to determine if an appeal is
warranted. Income producing proper-
ties should be reviewed on an In-
come Approach to Value, so be pre-
pared to analyze and provide income
and expense information associated
with the property for at least the last
two years, along with current rent
rolls. One particular item to note re-
lating to income statements is the
analysis of debt service, depreciation
and amortization. Counties are only
interested in operational expenses
associated with the property. Ac-
counting and finance expenses such
as interest, depreciation, amortization
and debt service are not necessarily
relevant to the valuation of a property
for property tax purposes. When the-
se items are excluded from an in-
come statement, net operating in-
come can increase dramatically,
which in turn could significantly in-
crease the value of a property. Be
careful when analyzing all income
and expense information.
Consultation
Last, consider working with a prop-
erty tax consultant. Many taxpay-
ers find the use of a property tax con-
sultant to be the easiest and most
efficient way to protest values. While
most consultants focus on commer-
cial, industrial and multi-family prop-
erties, situations arise where consult-
ants may often help in single family
residence situations. There are sev-
eral reasons and advantages to using
12 RE investment News 2013
In Kansas City
Donald J.
Swartz, ASA
Managing Director
CBIZ MHM, LLC
Don is a Managing Director in the National
State and Local Tax Practice of CBIZ MHM,
LLC. With over 25 years of experience in prop-
erty tax appeals, he has worked with 1,000+ cli-
ents assisting in property tax reviews. You can
reach Don at (913) 234-1310 or via email,
dswartz@cbiz.com.
2013 RE investment News 13
consultants, but the single biggest
reason to engage a property tax con-
sultant is for their experience. Prop-
erty tax appeals and reviews are their
primary business. Consultants per-
form this service every day and have
familiarity with not only the process,
but also the various appraisers and
assessors. Most consultants have
the credibility and experience of
working with the local jurisdictions
and generally, consultants are effec-
tive in achieving results for their cli-
ents in an efficient and professional
manner. If you choose a consultant,
make sure that consultant under-
stands everything about your proper-
ty, so when representation occurs,
they are prepared for questions from
the Assessor’s Office and Board of
Equalization. The taxpayer and their
representative will be more familiar
with the property than the county. As
a result, the additional information
and knowledge should pay dividends
if an appeal is warranted.
Again, the review you perform on your
2013 valuation will have an impact for
at least the next two years, so take the
time to analyze your property valua-
tions and if you believe your valuations
are excessive, don’t be afraid to appeal
for an equitable and fair valuation.
What Can Taxpayers Do?
Pay attention to valuation notices received
Remember Time to Appeal is Usually Short
Go Online to Find Values
Look at Market Transactions for Like Kind Properties
Look at Market for Lease and Rental Rates
File an Appeal if you Believe Value is Excessive
Consult a Tax Professional
Remember: If you wait until you receive your tax bill
It’s generally too late!
Property Tax!
It may be the largest tax your company pays. There
are more than 80,000 different taxing jurisdictions in
the U.S. How many are you familiar with? This year,
most companies will overpay. Will you?
2013 RE investment News 13
In Kansas City
CBIZ (NYSE: CBZ) is a professional services
company, providing a comprehensive range of
business services, products and solutions that
help our clients grow and succeed by better
managing their finances and employees.
CBIZ
CBIZ is associated with
Mayer Hoffman McCann
P.C. (MHM)*, a national,
independent CPA firm.
14 RE investment News 201314 RE investment News 2013
Property Managers
Communicate Your Standards From MR Landlord.com
A long-distance landlord recently asked a question on LandlordingAdvice.com regarding the expectations and performance of
his property. Here was the question:
"I have hired a new Property Manager (PM) for some of my rentals
that are far from me and he has placed two residents in two rentals I
have recently. He kept the deposit in the company and I paid him
one month's rent to find the residents as usual. Problem is, both
residents are deadbeats, they have not paid rents for the last two
months they have been there, and they have not even transferred
utilities in their name like they were supposed to.
Now I have to evict them both and find new residents and re-do the
houses again. My question is, should the PM be charging me again
to find new residents? I think the PM failed in his job to find good
and paying residents. What would you do?"
Some landlords responded to the inquiry, but one response in par-
ticular is one I wanted to share that offered several excellent points
when working with Property Managers (locally or long-distance). The
following response was provided from one of our regular contribu-
tors to MrLandlord.com, and this contributor was also a prior work-
shop instructor at one of the MrLandlord.com National Conventions.
Thanks, Katherine (TX)!
I ran my properties in Missouri for about 5 years from Texas. Now I
am in MO (local to the properties) but I still use a PM because I trav-
el so much for business so I really still need one.
When I first started out with a PM I was very clear about require-
ments for my rentals. I specified credit scores, income requirements,
pet terms, criminal and credit checks, etc., etc., etc. I insisted on
these things in our contract although I only had 2 rentals at the
time.
The first PM I had got fed up with me because I required too much
time of hers (because she was not concerned about the quality of
the person she was placing, she just wanted the fees and to be able
to keep her crews busy cleaning and repairing other people's prop-
erty to her advantage.) Needless to say we parted ways quickly.
Now I have a PM who I've had for years. This brokerage gets all my
business, on the transaction side and the management side, and
they managed my apartment building for 2 years for FREE while I
did major rehab work. And when I had totally negative cashflow,
they put up with me for being very "hands-on" as far as resident
selection.
As a result my portfolio has grown nicely and the apartment now
mostly carries itself. I now have 23 rentals instead of 2. So their per-
centage each month I'm rented up has increased nicely as I have
grown my business.
There are some good PMs on this board. But the best PM out there
will never manage as tightly as an owner. Some do come close in
fairness, but that is part of the business.
Some PMs, like other service people, are great on the sales side,
but less great on the service side, so they may make promises they
don't keep. Only you know what sort you are dealing with, but to be
very honest with you - I am not surprised about your outcome be-
cause you did not set any boundaries about what was acceptable
insofar as your standards.
So what happens in a case like that is this: The PM places better
renters in houses where the landlord requires better renters. You did
not insist on certain standards but you are surprised when no stand-
ards were applied. Added to that might be that if you only have 1 or
2 rentals, you are not a top priority with the PM as someone who
has 10 or 20 rentals. Basic economics there. Your 1-2 rentals re-
quires as much management as 10-20, but the income your few
rentals generate is much less than the guy with 20 rentals, and a
vacancy at your rentals likewise affects his bottom line less than the
vacancies with a bigger client. Ask me how I know :)
I've been the little guy and I've become a bigger guy and so now I
enjoy higher priority at my PM. That's going to be true anywhere, but
in your case you have further placed yourself at a disadvantage by
not requiring standards. If I were you, here's what I'd do: Go to your
rentals and see them and talk in person to your PM. You may need
a new PM, you may not. If I were you I'd find someone else though
because this is going to be tough for your professional relationship
to recover from. You think he did a bad job, but really you didn't re-
quire any standards, so there is plenty of blame to go around.
If you do decide to stick with this guy, get your standards in a written
agreement and have some sort of repercussion if an eviction occurs
or if a resident gets behind, etc. in your updated agreement. If the
PM balks at this, you must find a new PM. Be matter of fact but dip-
lomatic.
If I were you I'd say, "Well it looks like this didn't work out as well as
we had hoped, I'm going to require some standards moving forward
to avoid this happening in the future, and here is the list of require-
ments and the fail-safe mechanisms to help us work together and to
keep the properties rented to responsible people", and then give him
your list of policies and requirements.
You'll need to pay for him to place additional residents if your con-
tract doesn't say otherwise, but going forward you can have a reme-
dy if this happens again after your standards are contractually in
place via a signed agreement.
If all this sounds too tough, then you might want to consider selling.
You have to be willing to draw these kinds of lines when you have
long-distance property. You have to be able to trust the PM, and
never forget that the PM is in a position to steal from you in several
different ways, including charging too much for repairs with their in-
house people or preferred vendors. You need a PM who respects
your bottom line. Not all of them do.
"Management tips provided by landlords on MrLandlord.com. To receive
a free Rental Owner newsletter, call 1-800-950-2250 or visit our na-
tionwide Q&A Forum, LandlordingAdvice.com, where you can ask land-
lording questions and seek the advice of other rental owners 24 hours a
day."
For Landlords
2013 RE investment News 15
Industry Services
16 RE investment News 2013
Radon
Home Buyers and Sellers Should Test
From the EPA’s Home Buyer’s and Seller’s Guide to Radon
You cannot see, smell, or taste radon. But it still may be a problem in your home. When you breathe air containing radon, you increase your
risk of getting lung cancer. In fact, the Surgeon General of the United States has warned that radon is the second leading cause of lung
cancer in the United States today. If you smoke and your home has high radon levels, your risk of lung cancer is especially high.
You Should Test for Radon
Testing is the only way to find out your home's radon levels. EPA and the Surgeon General recommend testing all homes below the third
floor for radon.
You Can Fix a Radon Problem
If you find that you have high radon levels, there are ways to fix a radon problem. Even very high levels can be reduced to acceptable lev-
els.
If You Are Selling a Home...
EPA recommends that you test your home before putting it on the market and, if necessary, lower your radon levels. Save the test results
and all information you have about steps that were taken to fix any problems. This could be a positive selling point.
If You Are Buying a Home...
 EPA recommends that you know what the indoor radon level is in any home you consider buying. Ask the seller for their radon test
results. If the home has a radon-reduction system, ask the seller for information they have about the system.
 If the home has not yet been tested, you should have the housed tested.
 If you are having a new home built, there are features that can be incorporated into your home during construction to reduce radon
levels.
The radon testing guidelines in this Guide have been developed specifically to deal with the time-sensitive nature of home purchases and
sales, and the potential for radon device interference. These guidelines are slightly different from the guidelines in other EPA publications
which provide radon testing and reduction information for non-real estate situations.
Contractor’s Corner
16 RE investment News 2013
2013 RE investment News 17
Industry Services
18 RE investment News 2013
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News & Information
2013 RE investment News 19
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20 RE investment News 201320 RE investment News 2013
Facebook has more than 1 billion registered users. People send 100,000 tweets every minute. Nearly 20% of
women who use the Internet also use Pinterest. Social media is here to stay, and it's become one of the best
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Rather than touching a customer once like you would with a single mailer, you become a part of their life when they connect with you on social
media. But that doesn't mean that there isn't a connection between social media and direct mail. If you're looking for ways to drive traffic to your
social media profiles, increase Facebook likes, and learn more about your customers, direct mail can help.
4 ways to combine direct mail with social media
Add social badges to each mail piece: This one is easy – make sure you include social media badges on each of your direct mail pieces.
That will let recipients know that you're present on those channels. After all, people won't follow you on Twitter or like your Facebook page if they
don't know it's there.
Create an interactive mailer: Use a QR code that directs recipients to your Facebook page when they scan it. Or include a link or QR to one of
your YouTube videos.
Make social media a part of your integrated mobile and direct mail efforts: Say you include a URL on a postcard that takes recipients to a
page on your mobile website that allows them to claim an offer. After they claim their offer, include links to your social media profiles on the
“Thank You” page. It will be easy for people to click through and connect with you on social media. Or, encourage people to “share” the offer
with friends, which can help build your social media presence exponentially, especially if the offer goes viral.
Include a call-to-action: Make it obvious that you want to build relationships with social media. Use direct mail to invite people to connect with
you on social, perhaps by offering an incentive, such as a coupon or free sample for people who “like” your Facebook page.
What can you do once people have connected with you on social media? The opportunities are nearly endless. You have an existing pool
of interested, engaged customers and prospects with whom you can share special deals, news and updates. You can enhance your relation-
ships with those people by offering quality content via social media (remember, don't just promote yourself or your business; instead offer infor-
mation that people can use).
Finally, social media offers access to a wealth of customer data, which you can use to better understand your customers and created targeted
marketing campaigns. Use social media to generate lists of qualified people to whom you can send your direct mail. Post status updates that
encourage people to sign up for your mailing lists. Make sure to explain the benefit of sharing their address, so they'll know they're getting some-
thing more than what they'd get on social media.
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2013 RE investment News 21
Industry Services
22 RE investment News 201322 RE investment News 2013
Photo from Doug Shaw from Carshalton, United Kingdom
2013 RE investment News 23
“I’m not suggesting that becoming successful requires no work
and that there are no struggles, but when I say that The Road to
Success is Easy, I’m suggesting that when someone has a plan
and they follow it, that success is attainable to all, and it can be
done in a relatively short period of time.”
Shaun McCloskey
The Road to Success
. . .Is Easy
Shaun McCloskey
When I hear someone say that success is easy, it always raises my BS sensors. It really concerns me when someone
says this, but then I have to look at myself because I say this as well. The difference is, I really mean it. But in order
for success to become easy, you’re going to have to play a different game than most.
I’m not suggesting that becoming successful requires no work and that there are no struggles, but when I say that The
Road to Success is Easy, I’m suggesting that when someone has a plan and they follow it, that success is attainable to
all, and it can be done in a relatively short period of time.
We live in a world in which we idolize success and as a result we pursue it with all that we have. As a culture we have
defined success as having a lot of money. We want it so badly that we look for shortcuts, we’ll compromise our values,
and we’ll tear down things that are important to us in order to attain it. We’ll go into debt. We’ll buy things we don’t
need to impress people we don’t care about. What we all really want is life. We want freedom. We want to be able to
spend time doing and experiencing the things in life that provide the most fulfillment, however, most of us today have
given up any hopes of this life in pursuit of the almighty dollar.
What we teach at Lifeonaire is that if we will simply follow a plan, that success is easy. It’s an easy road. What we
have found is that the world around us is pursuing success every other way, that what makes pursuing the path to suc-
cess difficult is that we have to go against the grain and do things differently than those around us. The path is easy,
but getting to the the right path and living and doing things differently than others around us is the challenge.
It’s a challenge for a number of reasons:
 The biggest reason it is a challenge is because we have few examples of people to follow. The masses are striving
for success, seeking to make more and more money. Money is the primary focus of many peoples lives today,
however, this seems to be the wrong path as evidenced by the results.
 How we define success may be different. Being successful at making a lot of money doesn’t guarantee us that
we’re going to live a great life. There is plenty of evidence around us that demonstrates this. Have you ever heard
of or known someone that has a lot of money and is still miserable? Their goal in life is to make money, not to live
life so they get exactly what they are pursuing.
Cover Story
2013 RE investment News 23
?
24 RE investment News 2013
Let’s be very honest for one mo-
ment. What does success mean to
you? To me it means having the free-
dom to live the life that I want to
live. To do what I want when I
want. To be free to experience rela-
tionships with those closest to
me. When I talk with others their defini-
tion of success tends to boil down to
something similar.
Take the time to imagine the life that
you want, and now think of everyone
that you know personally. How many
people do you know who are living the
life that you would like to live? If you
are like everyone else I know, you’re
struggling to come up with
names. Everyone is out there pursuing
this life, however, very few people ever
get there. This is evidence to me that
the reason success seems difficult is
because most people are on the wrong
path. If they were on the right path,
we’d be able to come up with a list of
names of people in our lives who are
experiencing that ultimate freedom that
everyone wants.
At Lifeonaire, we show you how easy it
is to achieve prosperity and success. It
starts with getting on the right path, and
then following a simple plan down that
path. It also starts with setting the
game up to win. That’s especially
tough for most people today since their
game is loaded up with a lot of obliga-
tions and no vision for what it is they
really want. Getting on the right path
means creating the vision for what you
want your life to look and then estab-
lishing a plan to get from where you are
to where you want to be. Sounds sim-
ple enough, however, the problem with
most of America today is that even if
they had a vision and a plan, most are
so bogged down with existing obliga-
tions that they don’t have the time to
pursue their vision even if it is clear.
Debt is one of the biggest obligations
people have which hinder them from
really living life. Most people mistak-
enly believe you can’t run a legitimate
real estate business without incurring
debt, but I’m here to tell you other-
wise. Because of this, get prepared to
learn new strategies that you can im-
plement as well at MAREI at the Short
Sale Wealth and Debt Free Investing
Seminar this coming Saturday June
15th. We’re going to pull back the cur-
tain on what it means to design a busi-
ness that has your life in mind
first. Most people design their busi-
nesses with how much money they’ll
make, but we’re going to teach you the
exact opposite of this. We’ll show you
how to get on the right path, and then
create a business that serves that path
and purpose. And the best part? We’ll
show you how to do that while being
100% debt free. I can’t wait to share
this with you and change your perspec-
tive forever. What you’re going to learn
absolutely changed my life just 4 years
ago, and I can’t wait for it to do the
same with you.
See you soon.
Sean McCloskey
COVER STORY
Shaun McCloskey & Jason Roberts relaxing on mission trip to Guatemala
2013 RE investment News 25
We will be showing you:
The Four Distinct Stages of financial prosperity and why 99.9% of in-
vestors are building their business in a way that guarantees failure.
How Shaun and his business partner eliminated a combined $5.5 million
dollars worth of debt in just a few short years
How to set your real estate business up to where you absolutely can not
lose. (Sounds simple but most investors have setup the game to be very
difficult to win. We’re going to show you how to set the game to win be-
cause you not only know the rules, you also know the perfect strategy to
win!)
How (and when) to leave your job feeling 100% secure in your decision,
knowing you can not fail.
How to run your entire real estate business without ever borrowing a sin-
gle dollar again.
How to get unlimited access to money for your real estate deals
without ever having to qualify at a bank.
Utilizing J oint Ventures
To Build Your Real Estate Business
Have you ever been told “ focus on your
strengths, the money will come?” Sounds
great, but how much of your current busi-
ness really focuses on ONLY your
strengths? What if you could wake up eve-
ry morning knowing that you’re only going
to do the things that you’re the most pas-
sionate about? Do you think you’d wake up
differently that you wake up now? What if
you could make more money by not doing
the things that you are not totally pumped
about, without costing any additional money
to hire others?
Join us at the Bonus Workshop at the
Northland MAREI meeting to Learn:
 How to start leveraging other peoples
time and expertise to help you make
more money that you ever thought pos-
sible.
 Four specific “game changer” Joint
Venture strategies that Shaun has per-
sonally implemented in his own busi-
ness.
 How to implement Joint Ventures in
your own business and to get unlimited
access to funds.
 How to create an entire real estate
business in literally ONE HOUR PER
 WEEK using joint ventures!
COVER STORY
See Saturday June 15th Seminar
Afternoon Session: Debt Free Investing
We’re going to show you how to build, run and manage you
entire real estate business without using any debt whatsoever.
As a matter of fact, if you have any debt whatsoever right now,
we’re going to show you how to eliminate all of it once and for all!
(even the debt you have on your rental properties!)
26 RE investment News 2013
COVER
Success Strategies
Regardless of whether you decide to pursue your education
in short sales through me or elsewhere, if I could offer you a
little bit of advice - make education a priority in your life.
The way I see it, if you’ re not growing, you’ re dying. And
I don’ t plan on dying anytime soon! D o you?
The TOP 9 Mistakes
Investors Make
R e g a r d i n g S h o r t S a l e s
Shaun McCloskey
MMISTAKE #1ISTAKE #1 -- Ineffective or Lack of MarketingIneffective or Lack of Marketing
First things first, without marketing your phone is not ringing.First things first, without marketing your phone is not ringing.
Without your phone ringing you have no deals. Marketing is the single most important aspect of your business. A combina-
tion of your message as well as how it's delivered will be the difference between zero phone calls a day and 10 phone calls a
day. Your marketing message should be consistent with what you're looking to accomplish.
If you're message is not to actually help other people, you're in the wrong business. The key to getting people to respond to
you is to give them all of the information they could ever ask for FIRST. The law of the universe states that in order to re-
ceive you must first give. Contrary to this, I look at most other investors marketing pieces and the message is completely
different. The message is more along the lines of, “what can I take from you?”
Understand that these people are going through some of theUnderstand that these people are going through some of the
toughest times of their entire lives.toughest times of their entire lives.
What most people facing foreclosure really want is peace of mind. They want to know what their options are. They get
15,000 letters from other investors saying the same thing over and over again, “We Buy Houses.” Who cares? The home-
owner doesn't care what you do. The homeowner only cares what you can do for them. So, our marketing messages very
simple. We simply show homeowners what their options are and invite them to speak what us with a free consultation.
In our consultation, we’ll custom tailor a solution depending on their exact situation. We also give them a ray of hope in the
sense that they actually do have options. Most of these people think they have only two options, either catch up on their
back payments, or lose the house to foreclosure. And the reality is that they actually have many other options. By being will-
ing to give first, we naturally get what we want: more short sale deals. Trust me, people call us every single day completely
willing to sign over the deed to their house to us with us barely even asking. There's no reason I can't offer help to the ones
that we may never make a dime on. The point is, they won't call you unless you're sending the right message. And it's cer-
tain that they won't call you if you don't even market to them in the first place.
I'm not suggesting that you have to start with a multimillion dollar marketing campaign. Marketing can be as simple as putting
up a few bandit signs per week at a cost of 99 cents per sign. Marketing can be as simple as knocking on a couple of doors,
or making a couple of phone calls, or networking with real estate agents, or handing out business cards. (Or if you’re really
smart… finding someone else to do all of this for you….) This stuff is not rocket science, but you need to make it consistent
in your business. Both the message and the manner in which you present that message must be consistent. This is the very
first, yet most important aspect of any facet of real estate, not just short sales. You skip out on this one, you will fail.
26 RE investment News 2013
2013 RE investment News 27
COVER STORY
2013 RE investment News 27
28 RE investment News 2013
MMISTAKE #2ISTAKE #2 -- Improperly Screening Seller CallsImproperly Screening Seller Calls
Going After Deals that Aren't DealsGoing After Deals that Aren't Deals
So many new investors call me with deals that they want to work on
with me. And usually after a series of only a couple questions, I can
very quickly determine whether or not the property is worth even going
after by breaking the deal down into two categories, the Seller and the
Property:
SellerSeller
 First and foremost, does the seller have a legitimate hardship?
Are they not able to pay their mortgage payment because they truly
can't? Or because they don't want to?
 Is the seller being cooperative with your ideas and suggestions, or
are they fighting you every step of the way?
Are these people that actually deserve your help? What do I mean
here? Well, in order for people to deserve your help, they must be
willing ready and able to assist you in helping them. It doesn't do any
good to try to convince anyone that you're their best option. Your job
is to give them their options and then let them decide. If you ever find
yourself in front of a seller, and you feel like you're talking them into
something, know that you are in front of the wrong seller.
PropertyProperty -- Is the house worthy of pursuing?Is the house worthy of pursuing?
Is the loan balance already significantly less than the house is worth?Is the loan balance already significantly less than the house is worth?
Here's an example that I hear from new investors from time to time. A
seller has a house that is in perfect condition. There’s a mortgage on
the property in the amount of $100,000. The house, in its current con-
dition, and in our current marketplace, is worth $200,000. Is this prop-
erty worth pursuing as a short sale? The answer is no. The house
can solve its own problem. There is already enough equity in the deal,
so a short sale is not needed. Why would a lender take a discount on
this property? They don't need to. The lender could foreclose on the
property, take it back into REO status, and then turn around and sell it
later on and actually make money on the deal. Why would they dis-
count their mortgage to you?
Enough time left before the sale date?Enough time left before the sale date?
Often times, I see investors go after deals, and call me as an absolute
emergency at the 11th hour. They'll call me and say, “Shaun, I need
your help. I have a short sale deal here that's a hot deal, and we need
to act fast, because the foreclosure sale date is in two days!!!”
Don't waste your time. There are exceptions to the rule, but if there is
not at least 10 days to the foreclosure sale date, you're wasting your
time. This varies from lender to lender but for right now think of 10
days as a guideline.
Do you have an effective exit strategy?Do you have an effective exit strategy?
It's great to go after properties and get huge discounts on loans, how-
ever, it doesn't do you any good to get that kind of a deal if you can't
turn around and sell the property later. I often see new investors go
after deals that are in complete and total war zones. Some of them
have been very successful in negotiating large discounts on these
deals. Here's the problem: who's going to buy that house later on?
Don't get me wrong, I have bought a ton of properties in lower income
neighborhoods, and you can make a lot of money in these types of
neighborhoods. But what I'm talking about here is the house that's in
that TOTAL war zone area. If you are afraid to go into this neighbor-
hood to go on the first appointment, how many buyers to you think are
going to qualify for a mortgage in that type of a neighborhood as well
as actually want to live in that neighborhood?
Does the house need a lot or repairs? Or is it perfect?Does the house need a lot or repairs? Or is it perfect?
Here's another one I see quite often. In newer investor comes to me
with the property that has a mortgage balance of $200,000. The
house is an absolutely perfect, pristine condition. Every single compa-
rable property in the neighborhood has sold for $200,000. The houses
in this neighborhood are also selling in less than 30 days because it's
a highly desirable neighborhood to live in. In this situation, the investor
calls me and based off of what he heard at a seminar or read in a
book, he thinks that he should be able to offer 70% of the current value
and it will be accepted. 70% of $200,000 would suggest making an
offer on this property in the amount of $140,000. Why would the lend-
er except an offer like this?
While it's true that it does cost money to foreclose, contrary to what
some other courses might teach you, it doesn't cost $60,000 to the
lender to foreclose. The lender would be better off to foreclose on the
Success Strategies
28 RE investment News 2013
2013 RE investment News 29
Success Strategies
property and then sell it later. This investor is
not thinking in terms of making his deals a win-
win-win situation. The only person that would
be winning in this deal is the investor… Not
the bank.
On the other hand, if this same house needed
a complete gut rehab, you would have much
more of a justification for coming in at a signifi-
cantly lower price.
Are there any other weird things about theAre there any other weird things about the
house that would affect its value?house that would affect its value?
Is there anything else that you can think of
about the house that might affect its value? Or
at least its perceived value? There is a differ-
ence, you know.
For example, are there railroad tracks running
right through the backyard? Is the house on a
busy street where it's difficult to raise children?
Are their airplanes flying 10 feet above the
house every six minutes because it’s only a
quarter-mile away from an international air-
port? Did there used to be beautiful green
grass fields around the house when the home-
owner bought it 10 years ago, but now there's
a Wal-Mart in the backyard? These are all
things that have a negative impact on either
value, or perceived value.
MMISTAKE #3ISTAKE #3 -- Not Giving Enough Justifi-Not Giving Enough Justifi-
cation for your Offercation for your Offer
Another huge mistake I see newer investors
make is that they don't give enough justifica-
tion as to why they're offering what they're
offering. If the property is now parked directly
in front of a Wal-Mart, that doesn't help you out
in any way unless the lender knows about it. If
the property needs a significant amount of
repairs, wouldn't it be a good idea to provide
repair estimates with your offer? If houses in
this neighborhood are taking on average six
months to sell, wouldn't it be a good idea to
include proof of that in your offer (or counterof-
fer) as well?
Think of it like when you were a little kid - re-
member this? When you're a kid, and you
want something really badly, isn't it true that
you try to convince your parents up all of the
reasons why you should have this one particu-
lar thing? Isn't it true that you'll bug them over
and over and over until they say yes? And
you'll continue to think of more and more rea-
sons why they should let you do or have this
one particular thing? (I’m sure you all know
what I’m talking about here…) Is it also true
that when you didn’t want to do something that
your parents have asked you to do that you
would kick and fight and scream and think of
every single reason why you shouldn't have to
do it? Didn't you come up with excuses as to
why it wasn't a good idea to do what they were
suggesting that you do? In a way, you're kind
of doing the same exact thing with the lender,
only in not quite as immature of away.
The point is… you must be able to justify yourThe point is… you must be able to justify your
offer to the lender.offer to the lender.
Justify it with repair costs. Justify it with infor-
mation about mold remediation. Do so with
pictures of the Wal-Mart in the backyard. And
remember, if you put yourself in the bank's
shoes, would the justification that you're relay-
ing to them be enough reason for you?
MMISTAKE #4ISTAKE #4 -- Not Attending the BPONot Attending the BPO
This is an absolutely critical part of the short
sale process. The BPO agents’ job is to go to
the property, take pictures of the property, and
give his or her best evaluation as to what the
property is worth in it as it is current condition.
If you're not there to provide your opinion and/
or justification on these issues, you may as
well not even try to do a short sale at all. This
is where 90% of investors who try short sales
fail right off the bat.
There are tactful, legal, and ethical ways toThere are tactful, legal, and ethical ways to
influence a BPO agents’ decision as to theinfluence a BPO agents’ decision as to the
value of the property.value of the property.
Remember, not only do you need to justify
your offer to the bank. The BPO agent is the
person is telling the bank how much the prop-
erty is worth. Wouldn't it be a good idea then
to relay the same justification information that
we talked about above to the BPO agent as
well?
MMISTAKE #5ISTAKE #5 -- Fear of Negotiating withFear of Negotiating with
Loss MitigatorLoss Mitigator
When I first got in this business, I was scared
of talking to the loss mitigation rep at the bank.
I was scared because I felt like I didn't know
enough to be able to talk the lingo required.
While it's true that you do need to have a solid
base of education to be able to have an intelli-
gent conversation with a loss mitigation rep,
they are just people too! Don't forget that.
To negotiate most effectively, you will do 95%
of your negotiations on paper before you ever
even have to pick up the phone.
So don't feel like you have to be some slick
salesperson to speak effectively to loss mitiga-
tor. All short sale offers are required to be
written offers, with specific paperwork, in a
specific order. The justification for your offer
2013 RE investment News 28
30 RE investment News 2013
Success Strategies
should be written down and included in the
offer letter. This means that the negotiations
can be well thought out in advance since you
can obviously take your time and really think
about what you're going to say when it's in writ-
ten format. There's no need to feel like you
have to be the slick salesperson with a quick
comeback for everything that a loss mitigator
says to you. For those of you that hate pushy
salespeople, don't worry, you don't need to be
one to be effective in this business.
MMISTAKE #6ISTAKE #6 -- Not Keeping ConstantNot Keeping Constant
Communications with the HomeownerCommunications with the Homeowner
and/or Making False Promisesand/or Making False Promises
Your seller needs to be informed of where
you’re at in the process throughout your negoti-
ations.
Without you keeping them informed, they will,
without a doubt, lose trust in you.
The entire short sale process is exactly that.
It's a process. And processes take time. So
during that time, your job is to keep the home-
owner informed and well educated as to what
to expect next.
We do this in our initial conversation with the
homeowner so there's no question about it later
on. We also let them know that there may not
be new information to relay to them each and
every single day, so we inform them that we’ll
call them to provide an update on their property
every Friday. This way, they’ll always know
exactly where they stand in the process.
This does a couple things:
First it lets the homeowner know that we will
keep them informed on a regular basis. This
builds trust.
Second, it frees up the rest of our week to do
other tasks, work on their deal, and go after
new deals. This one small change we made in
our business free up a con of our time through-
out the week.
Every Friday, we sit down and call each of the
homeowners for just a few minutes and let
them know where we're at. This sets the ex-
pectation upfront and frees up valuable time to
be spent on other aspects of your business.
MMISTAKE #7ISTAKE #7 -- Focusing on Money InsteadFocusing on Money Instead
of Changing Livesof Changing Lives
This is a lesson that I had to learn the hard
way. You've heard of motivated sellers? Well,
when I got started I was actually a motivated
buyer. Many brand-new investors are the
same exact way. This is very obvious to others
and comes across in the way you speak to
people, and in the way you negotiate. If you're
doing this just for the money, you may succeed
for a certain period of time, but the long run you
will fail.
Remember, when you're working with people
who are facing foreclosure, many times these
people are going through some of the toughest
times of their entire lives. You can either focus
on what you can take from them at this point,
or you can focus on how you can make a differ-
ence. YOU have an opportunity to influence
people's lives for the better. YOU have the
power to literally bring families back together
again. None of this can be accomplished by
focusing on the money you stand to make. I
chose to focus on short sales in the real estate
industry because this is the one aspect of real
estate were I feel that I can truly make a differ-
ence.
If there's one thing that you take away from this
section, understand this:
When you give other people what they wantWhen you give other people what they want
first, the money will come automatically.first, the money will come automatically.
True wealth (Short Sale Wealth!) in real estate
comes not only from money. It comes from the
quality of the relationships of people that you
touch each and every day. And you will be
able to sleep much better at night because of it.
MMISTAKE #8ISTAKE #8 –– Not having a system inNot having a system in
placeplace
Let's face the facts of this business. The real
estate game can be one of the most fun busi-
nesses that individuals can get into. This busi-
ness is a “little guy’s” business. Have you ever
noticed that there are no publicly traded resi-
dential real estate investment companies out
there? There’s a reason for this.
Real estate investing is a business that I’ve
seen individuals start with literally no money
and end up financially free within a few short
years. This business is one that just about
anyone with the will and determination to suc-
ceed can do. I met a gentleman recently that
makes over $500K per year consistently buying
residential real estate. Before he started this
business he was a janitor at a high school.
There’s no doubt that investing in real estate
can be rewarding. This business can also be
the worst nightmare of your life if you aren’t set
up properly.
The next time you go to McDonalds, take no-
tice of something. Isn’t the fryer always on the
left hand side of the restaurant? Isn’t the drive
thru always on the left also? Aren’t the bath-
rooms always in the rear right side of the build-
ing? (Are you picturing this in your head right
now?)
How about Sam’s Wholesale Club? Isn’t the
entrance always on the right hand side of the
building? Isn’t there always someone there
checking to make sure you have your Sam’s
card with you? Isn’t the electronics section the
very first thing you always see as you walk in
the front door and to the left is the customer
service department?
What about Walgreens? Imagine someone
blindfolding you and dropping you off right in
the middle of Walgreens. Isn’t it true that you
could open your eyes and immediately know
where you are?
Why do they do business like this?
The answer is simple. These companies have
a system. As simple as this sounds, it’s the
difference between a successful business and
one that never seems to get off the ground.
Having a system in place is fundamental to any
long term reward in any business. The way
McDonalds sees it, why reinvent the wheel
every time they build a new restaurant? Why
not just come up with a template, duplicate it
over and over again, and let the system take
care of the rest? The reason that McDonalds
became so successful selling franchises is not
because they have the best burger in the world.
Let’s face it… I’m no cook and even I can make
a better hamburger on the grill than I could get
at McDonalds. They are successful because
they have a system. They have a tested sys-
tem, and that system works.
It makes sense, doesn’t it? Why can’t we do
the same thing with residential real estate, you
ask? The answer is… now you can. There’s
no sense in reinventing the wheel every time
the phone rings with a prospective seller.
There’s no sense in changing what you do eve-
ry time you put a property on the market for
sale. You don’t have to take time figuring out
what paperwork goes where when you submit
an offer to a lender. This can all be a part of a
system that operates virtually identically every
time. Big companies do this all the time. It
seems like very few real estate investors un-
derstand this though. Not only does this make
your life much easier, but it also makes training
other people so much easier! Do you think the
CEO of Walgreens trains the cash register op-
erator at their stores? Heck no! Walgreens
has a training “system” in place that shows the
cash register operator exactly what to do and
what not do to in almost any situation that could
possibly present itself.
When you have a system, your business no
longer controls your life.
When you have a system, your business no
longer relies solely on you to continue to grow.
You can grow with your business rather than
have your business control your every move. I
have friends that are very successful in the real
estate business, but I also have friends that are
miserable and don’t understand why. When
you have a system, you can assign tasks to
others so that you can take time away from the
business and come back to have it operating
much the same as it was before you left. And
let’s get to the good stuff… when you have a
system, you can do more deals with less effort!
This equates to a bigger bottom line.
30 RE investment News 2013
2013 RE investment News 31
MMISTAKE #9ISTAKE #9 -- Lack of Continuing Educa-Lack of Continuing Educa-
tiontion
Let's be real here for a minute... you absolutely
MUST be dedicated to continuing education
regardless of what business you're in. Times
change, people change, the real estate industry
changes. I'm sure you know by now that if
you're doing real estate the same way you were
two years ago, you're going to have a very dif-
ferent result. Real estate, just like any other
business, has cycles.
You can make overwhelming sums of money in
both an up market and a down market if you
have the proper education.
Many new investors have come to me recently
worried about the economy, and worried about
what's going to happen in the real estate market
over the next 12 to 24 months. I couldn't be
more excited about real estate right now. The
truth is, if you're well educated, you can actually
make more money in a down market because
there's abundance of opportunity and less com-
petition. The only way you can do accomplish
this, however, is by being committed to your
education.
Think I'm kidding? In the past 12 months alone,
I have spent over $26,000 on continuing educa-
tion in real estate. This includes books, cours-
es, CDs, and live seminars I’ve attended. I
have a complete library of courses on real es-
tate, and I absolutely love it! I believe that
spending this money on education is nothing
more than an investment in myself and in my
family’s future.
Not only that, but isn't it just FUN when you
learn something new? Isn’t it FUN to learn one
new idea that takes your business (and life) to a
whole new level? It's kind of ironic that I was
the guy that absolutely hated school growing up.
I think the reason I hated it so much is because
I was learning about so many things that I was-
n't necessarily interested in. Learning how to
create win-win-win situations where I walk away
with a big check interests me though. Changing
lives interests me. Making a difference in the
lives of other people interests me…
Regardless of whether you decide to pursue
your education in short sales through me or
elsewhere, if I could offer you a little bit of ad-
vice –make education a priority in your life.
The way I see it, if you're not growing, you're
dying. And I don't plan on dying anytime soon!
Do you?
See you in June. . . .
Shaun McCloskey
SHORT SALE WEALTH SEMINAR
Dominate the Pre-Foreclosure Market
With or Without Your Own Money or Credit
HOW TO CAH IN on Short Sales
with NO Negotiation
NEVER PAY for Marketing Again
Learn from LIVE SELLER CALLS
Demystify DEAL EVALUATION
Effective NEGOTIATION TACTICS
that Work
Business Management Mastery
UNLIMITED Deal FUNDING
PLUS Bonus Session
DEBT FREE INVESTING
Shaun McCloskey & Jason Roberts
Saturday June 15th
Kansas City Missouri
Details at MAREInet.com/Seminar
Special Pricing thru June 6th Meeting
2013 RE investment News 31
32 RE investment News 2013
Saturday June 15th : 9:00 am - 4:00pm
Career Education Systems,
Ward Pkwy Shopping Center -
8600 Ward Pkwy, KCMO
The Right Topic at the Right Time
Here’s what you will learn:
Never pay for marketing again: How to generate all the
pre-foreclosure leads you’ll ever need—for the low, low cost
of ZERO dollars!
Pre-foreclosure deal finding strategies: Learn how to find
and pursue ONLY the best of the best short sale leads in
your area.
Deal evaluation demystified: Learn the 6 stratetegies to
quickly find (and pick) the lowest hanging fruit that equates to
the biggest possible paychecks.
Approved! Other structuring tactics designed to virtually
guarantee the biggest discounts and most approved short
sale offers.
Effective negotiation tactics that work: Learn specifically
how to structure your negotiations to maximize the discount
the lender is willing to accept.
Bank secrets revealed: Discover the #1 secret to uncover-
ing the lowest possible dollar amount that a lender will accept
as a short sale payoff. (This secret alone is worth thousands of
dollars in cash in your pocket).
Sell that house FAST! Discover the brand enw house sell-
ing strategy that virtually GUARANTEES you to sell any
house in any market in 7 days or less.
Business Management Mastery: How to set your real es-
tate business so that it runs on AUTOPILOT, allowing you to
put cash in your pocket in your spare time.
Unlimited deal funding: How to access all the cash you’ll
ever need to fund your real estate deals.
Bonus Session
Debt Free Investing
Lean how to build, run and manage your
entire real estate business without using any debt whatsoev-
er. As a matter of fact, if you have any debt right now, you
are going to learn how to eliminate all of it once and for all!
(even the debt you have on your rental properties)
Bonus Session Includes:
The four distanced stages of financial prosperity and why
99.9% of investors are building their business in a way that
guarantees failure.
How Shaun and his business partner eliminated a combined
$5.5 million dollars worth of debt in just a few short years.
How to set your real estate business up to where you ab-
solutely can not lose. (Sounds simple but most investors
have setup the game to be very difficult to win. We’re going
to show you how to set the game to win because you not only
know the rules, you also know the perfect strategy to win!)
How (and when) to leave your job feeling 100% secure in
your decision, knowing you can not fail.
Think it’s not possible to run a 100% debt free real estate
business if you’re a landlord? Think again! Find out step
by step how to build a 100% FREE AND CLEAR rental
portfolio of 12 - 15 properties in less than one year (NO
ONE is teaching this right now!)
How to run your entire real estate business and never bor-
row a single dollar again.
How to get unlimited access to money for your real estate
deals without ever having to qualify at a bank.
Short Sale Wealth Seminar
Dominate the Pre-Foreclosure Market with or without your own Money or Credit
Featuring Shaun McCloskey & J ason Roberts
Training
2013 RE investment News 33
Special Registration: Available thru the J une 6 th Meeting
Member Pricing  Short Sale Wealth $15  All Three Events $15
Non-Member  Short Sale Wealth $35  All Three Events $45
_______________________________________ ____________________________________
Attendee 1 Email
__________________________________ ____________________________________
Attendee 2 Email
__________________________________ ______________________________________
Address Phone
__________________________________ ___________
City State Zip Total Charge
__________________________________ ___________ ________
Credit Card Number Expire Security Code
_________________________________ Referred by: ___________________________
Signature
.
Shaun McCloskey has bought and
sold hundreds of investment proper-
ties. He has turned the art of the short
sale into a science that virtually any-
one can do by creating a system that
is foolproof. Using the Short Sale
Wealth system, Shaun has helped
thousands of homeowners and lend-
ers avoid foreclosures.
“Everyone says they want to be a millionaire, but what they
really want is LIFE! The American Dream says that more
money equates to a better life, however, I know a number
of people that have made millions of dollars and are also
miserable. I know because I was one of them. I want to
show you how to have both money and LIFE.”
Shaun is also teaching at the MAREI KC North Meeting on
June 6th: Shaun McCloskey has bought and sold hun-
dreds of investment properties. He has turned the art of
the short sale into a science that virtually anyone can do
by creating a system that is fool proof. And by combining
the short sale strategies with his Joint Venture Techniques
he can do more deals with less time and other peoples
Scan & Email to info@MAREInet.com
Call 913-815-0111
More Info: www.MAREInet.com/Seminar
Presented by:
Mid-America Association of Real Estate Investors
money. Join us on June 6th to find out how you too can do more with
less using joint ventures. See more online at www.MAREInet.com/
KCNorth.
———————————-
Jason Roberts is Shaun’s #1 Star Student. He is coming on the 15th
to teach with Shaun. He is also joining us at MAREI’s KC South
Meeting on June 11th.
In 2010 Jason was dead broke. He had just lost his mortgage busi-
ness, his cars had just been repossessed, and now he was going
through foreclosure on his own home, then to chapter 7 Bankruptcy
at the end of 2010.
He turned it all around in 2011 earning $3.6 MILLION DOL-
LARS HOUSES. We’ve all heard you can do real estate investing
with no money and no credit and Jason is going to show you step by
step exactly what he did to make it happen and how you can too.
See more online at www.MAREInet.com/KCSouth
Be sure to note we have special pricing to attend all 3 events—listed
below and posted online. Special Pricing Runs through the end of
the evening on Thursday June 6th.
Training
34 RE investment News 2013
Wholesale Real Estate
Learning Your Market
“I want to get into this real estate investing. Where should I start?”
This is a question that I often receive and while many factors should go into where you personally start like time and money, I quite
often recommend getting your start in this business by learning how to wholesale properties. It does not take a bunch of money to
wholesale a house and all the tasks needed in wholesaling should be learned in just about any other type of residential real estate in-
vesting.
In last months investment news we had a broad overview of
Wholesale Real Estate Investing, that is an essential compo-
nent of any type of real estate investing. If you can master
the art of finding deals, evaluating properties, solving prob-
lems for sellers, finding buyers, and selling the deal - the key
steps in Wholesaling, then you are ready to take on most real
estate transactions.
Today we are going to talk about the first step in wholesaling,
which is learning your market. When you first start investing
in real estate, any type of real estate or move to a new city,
you need to learn your market for two reasons. First you
need to be able to identify a good deal and Second you need
to know what buyers want so you can sell it to them..
First Steps?
So where do you start in learning your market?
We will break these down, but you need to do some market
research on the market as a whole.. Select the area where
you want to focus. Then get into more specific online re-
search of property values and rental ranges. Last is going to
look at houses.
Market Research: When you are wholesaling houses you
want to find a market where houses are bought and sold. If
you focus on a subdivision where people want to live and no
one ever moves,, if you get a deal there, you probably have a
killer deal But because everyone loves where they live and
you basically have to wait for someone to go to the retirement
home to be able to buy a house, you might of wasting a lot of
time and money trying to find a deal that would work for an
investor because houses will be very easy to sell.
On the other end of the spectrum is an area where no one
wants to live. Here in Kansas City this might be an urban
core area where there are a lot of vacant and boarded up
homes, very few owner occupied properties and a high num-
ber of rental properties.
The ideal area for wholesaling will be an area where there is
a good mix of owners and renters, where houses sell to both
landlords and homeowners..
You will find when wholesaling that the number one buyer of
your homes is other investors and you will want to do a bit of
market research on what other investors are buying. Here in
our office we have investors who are looking for turn key rent-
al properties and properties that can be turn key rentals, but
in areas where people do what to live. We also see investors
buying in areas that are a bit better than renal neighborhood
where they have several options with the house from renting
it out, offering it on lease option, to potentially selling it to an
owner occupant. Our last buyer is the rehabber who is look-
ing for a house that they can fix up, list on MLS and sell to an
end buyer.
Other things to consider would be the availability of jobs in
the area. The quality of the schools in the area. Access to
amenities and transportation. If any of these attributes are
negative, you may want to focus on a bit better area.
Selecting Your Farm Area: After researching the various
areas in your city, next is to pick the areas you want to focus
on first. You can’t learn the entire city at once. By picking
one area and learning in well, you will be better able to talk to
buyers and sellers about properties. You can always learn
one area, deploy your marketing and then add in a new farm
area.
Just what is a “farm area”? This is the area where you will
focus your marketing and community outreach. You will be
sowing your seeds so to speak to grow a potential deal and in
real estate focusing your efforts on a specific area is called
farming.
Online Research: After researching your area and selecting
your farm area. Spend some time researching the values of
homes in the area. One good way is to ask a Realtor friend
Wholesale
2013 RE investment News 35
to set you up with an automatic search
of mls (the realtor listing service) and
have it send you every houses that
gets listed, goes under contract and
sells so over time you can learn values.
You can also spend a lot of time on for
sale by owner sites and Zillow.com to
see what houses look like, what a typi-
cal houses is and what they are selling
for and also average rents.
As you are researching your farm area
you will notice that most areas have
three price zones:
 Low or Bank Owned Sales Prices
 Average Home Owner Prices
 All Renovated Updated Prices
So depending on how you intend to sell
your potential deal you have the blow it
out, fixer upper value. The average
homeowner price or if it is a rental mar-
ket, the average rental home price.
And last the value of homes that are
renovated and selling retail to home-
owners.
Looking at Houses: Now you have
your area and know roughly where you
want to market and the average values.
Now you need to get out in the field
and start looking a houses.
You may hit open houses, go see for
sale by owner houses, and possibly
hire an agent to go show you houses
for the day. And as you market for moti-
vated sellers, as you are first getting
started, you might want to go look at
everything, just to get a feel for houses.
So what are you looking at as you look
at these houses?
First you want to learn just what makes
up a typical houses. What are the
home styles. How many bedrooms and
bathrooms do they have. Are they on
crawl space or do they have base-
ments. Hardwood floors or tile. Formi-
ca or Granite.
When estimating repairs, you want to
make your average house look as good
or a bit better than all the other houses.
And when you come across a weird
duck, you want to know it’s an odd
house.
An odd house is not the typical cookie
cutter house in your neighborhood. It
may be that all the other houses have
hardwood and the one you are looking
at does not, you need to figure some-
one is going to have to put in hardwood
floors. If all the other houses have
basements and 2 car garages, and
your subject house does not, well then
it’s going to have to be a lot cheaper
than all the other houses.
Second you want to look at the neigh-
borhood itself. Where are different
things that could be potential selling
points or detractors located. And over
all just become familiar with an area so
you can use it in building rapport with a
seller. Knowing the school is just down
the block or something similar on an
initial phone call can be very helpful.
See you in our next installment we will
learn how to build a buyers list.
Don’t Toss another Seller Lead for Lack of Buyers!
Let Us Review Your Lead . . .
Assign to us or partner with us.
kcmoHomeBuyer.com
816-200-2198
 Rehab and Retail Houses
 Turn Key Rental Properties
 Fixer Uppers & Multi Family
 Non-MLS Preferred
Call and speak with Don or Scott
Submit Through Website
Houses & Seller Financed Notes
Wanted
Wholesale
36 RE investment News 2013
4234 Wyoming,
Kansas City, MO 64111
$179,900 4 Bed
1.5 Bath
Modern Midtown Gem
with Google Fiber
Scott Tucker
RealtyResource
913-620-7934
stucker319@gmail.com
8803 E. 49th St.
Kansas City, MO 64129
$37,500 3 Bed
1Bath
Completely Rehabbed
Kansas City Investment
Property – Raytown
Schools Estimated NET
ROI = 19%!
Christoph Becker
Blueprint Properties Inc
816–419–1165
info@blueprintprop.com
4025 Paseo Blvd.
Kansas City, MO 64110
$19,500 4 Bed
2 Bath
Wholesale Deal!
Up and Down Duplex!
Christoph Becker
Blueprint Properties Inc
816–419–1165
info@blueprintprop.com
4522 Forest Ave
Kansas City, Mo 64110
$10,000 3 Bed
1.5 Bath
This home does need
some work, but has
LOTS of potential!
Christoph Becker
Blueprint Properties Inc
816–419–1165
info@blueprintprop.com
3015 Indiana Ave
Kansas City, MO 64128
$27,000 4 Bed
1.5 Bath
Livable condition and
would make a perfect
Cash Flowing Invest-
ment Property
Christoph Becker
Blueprint Properties Inc
816–419–1165
info@blueprintprop.com
3128 Waverly Ave
Kansas City, KS 66104
$23,000 2 Bed
1 Bath
FreshlyRehabbed Bargain
Home
Christoph Becker
Blueprint Properties Inc
816–419–1165
info@blueprintprop.com
4146 Agnes Ave
Kansas City, MO 64130
$16,500
3 Bed
1.5 Bath
Wholesale Deal with 2
car Detached Garage
Christoph Becker
Blueprint Properties Inc
816–419–1165
info@blueprintprop.com
10211 Drury Ave
Kansas City, MO 64137
$38,000 3 Bed
1 Bath
This Home is located in the
Hickman Mills School
District!
Christoph Becker
Blueprint Properties Inc
816–419–1165
info@blueprintprop.com
4123 Bellefontaine Ave
Kansas City, MO 64130
$18,000 3 Bed
1 Bath
A Lot for the Money!
SOLID Mid Town Cash
Cow.
Christoph Becker
Blueprint Properties, Inc
BlueprintPropertySoltions.com
(816) 419-1165
KCInvest
MAREInet.com/ Properties
Properties
36 RE investment News 2013
2013 RE investment News 372013 RE investment News 37
MAREIMid-America Association
of Real Estate Investors
Member Digital Library
Members can Learn about a
Wealth of Real Estate Topics
Through the MAREI website
 Forms & Documents: log in to the
member library to access all kinds of
forms, sales and rental contracts to use
in your real estate business
 Special Reports: MAREI as been col-
lecting E-Books for 10 years and adding
all of them with real educational content
to the library.
 Digital Books: We have a small but
growing archive of books that have
been converted to PDF for you to read
on your reader or print out.
 Audio & Video: Members also have ac-
cess to 100s of hours of training
through pre-recoreded webinars and
teleconferences saved in the Member
Library.
 All hosted on Google Drive.
 Benefit included in all Membership
Plans - Join Today!
38 RE investment News 2013
Monthly
Meetings
There’s not a better investment in
yourself that you could make!
At our monthly meetings we host guest speakers, panels and
roundtable discussions with industry experts providing insightful and
current information for attendees. MAREI meetings are an essential
tool for building a comprehensive team for real estate professionals.
MAREI works to keep its members up-to-date with the latest infor-
mation on the real estate industry. MAREI has built relationships with
members and the community at large who provide our members with
information they need to be successful in today’s world.
We are the place to go for the information you need from the novice to
the experienced Real Estate Investor. Monthly meetings are the best
place to connect and build relationships with like-minded people and
learn a thing or two along the way.
MAREI MEMBERSHIP
MEETINGS HELD AT:
Northland
(1st Thursday of the Month)
North Kansas City Community Center
1999 Iron Street
North Kansas City, MO
(816) 300-0433
MAREInet.com/KCNorth
Southland
(2nd Tuesday of the Month)
Career Education Systems/ In Mall
8600 Ward Parkway, Ste 2080
Kansas City, MO
(816) 444-7277
MAREInet.com/KCSouth
Upcoming D ates
June 6th Meeting: Joint Ventures: Learn how to grow your real estate business or any business for that matter
with Joint Ventures from our guest speaker Shaun McCloskey. Plus networking 6 to 6:50
June 8th Workshop: Title Services from ordering title to closing the transaction, learn the process from start to
finish with the team from Accurate Title. 8:30 to Noon
June 11th Meeting: Flipping Short Sales: Guest Jason Roberts went from broke mortgage lender in 2010 to
earning millions in 2011 by flipping short sales . Plus Networking from 6 to 6:50
June 15th Seminar: Short Sale Wealth Seminar. Learn how to profit from PreForeclosures. Plus bonus ses-
sion on Debt Free Investing. Guest Trainers Shaun McCloskey and Jason Roberts. All Day.
MAREIMid-AmericaAssociation
ofRealEstateInvestors
ARealEstateCommunity
GUEST PASS
Name: ______________________________
Date: _______________________________
Email: _______________________________
Source: ______________________________
For first time guest to visit meeting.
GuestPassisavailableforfirst
timeattendeestoMAREI.Ifyou
haveattendedbefore,explore
membershipoptionsorpay
guestfee.
Events
More Education & Networking Opportunities
MAREInet.com/Calendar
2013 RE investment News 39
I nvestment News Page 5
LET US HELP
KEEP PROPERTIES MARKETABLE
Keep Costs Under Control & Meet Tight Deadlines
Dedicated to your Success, With Solutions for Every Surface & All the Essentials
EXCLUSIVE MEMBER DISCOUNT
MAREI as a member of National REIA is able to bring our
members the exclusive Sherwin William Discount Card that
offers unbeatable savings on paint, applicators, floorcovering,
paint sundries, wall covering, spray equipment, and even window
treatments!
Members look for your discount card in your members Benefit Pack-
age or download from the Member’s Discount Section of the MA-
REI Member Library.
National Account Services
Our strategic account teams can simplify
processes and maximize efficiencies with
centralized account management.
LEED® & VOC Coatings
Download the latest guide on our prod-
ucts that meet LEED® and low VOC
specs.
Color Services
Find out about our color design services
for properties and read about the latest
color trends.
Flooring Products & Installa-
tion
Wide variety of name brands, 24-hour
turnaround and reliable installation.
Commercial Wallpaper
Sherwin-Williams is your one-stop
source for commercial wall covering.
Over 5,000 residential and commercial
wallpaper collections available.
Commercial Floor Coverings
From carpeting to sheet vinyl, select the
right floorcovering specific to your
needs. Fully stocked national network,
fast turnaround and reliable service.
HomeScapes®
Enhance curb appeal and make selection
easier with pre-selected exterior color
schemes.
Finishing Touch™ Builder Support
Program
Comprehensive Program for your Home
Buyers: Welcome Kits, Discount Cards,
and Model Home Programs.
ASK SHERWIN WILLIAMS
Find out more about all these products and ser-
vices offered by Sherwin Williams plus their
Chip It Online Color Matcher, ColorSnap Studio
for iPad and their Paint Pro Alerts by Text at
www.Sherwin-Williams.com .
EXCLUSIVE MEMBER DISCOUNT
MAREI as a member of National REIA is able to bring
our members the exclusive Sherwin William Discount
Card that offers unbeatable savings on paint, applicators,
floorcovering, paint sundries, wall covering, spray equip-
ment, and even window treatments!
Members look for your discount card in your members
Benefit Package or download from the Member’s Dis-
count Section of the MAREI Member Library.
MAREI Newsletter June 2013

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MAREI Newsletter June 2013

  • 1. 2013 RE investment News RE investmentinvestmentinvestment NEWSNEWSNEWSJune 2013June 2013June 2013 The RoadThe RoadThe Road To SuccessTo SuccessTo Success I s E a s yI s E a s yI s E a s y The Top 9 MistakesThe Top 9 MistakesThe Top 9 Mistakes R e a l E s t a t eR e a l E s t a t eR e a l E s t a t e I n v e s t o r s M a k eI n v e s t o r s M a k eI n v e s t o r s M a k e
  • 2. 2 RE investment News 2013 The Mid-Wests Resource for  Real Estate Investors  Rental Property Owners  Apartment Owners  Industry Providers Based in the Kansas City Metro FAST IN AND OUT Time is money — we’ll get you back to work quickly.  Dedicated Pro Desk Associates.  Two hour advance order pulling. In Store Hands On—How To Workshops Want to learn How a project is completed. Check out our workshops.  In store workshops each month, check out our website and your local store.  Access step by step video 24-7 on our website—look for our Pro- ject Guide Library 10% Price Guarantee If you find a lower price on identical in-stock item  We will match the price & beat it by 10%.  Excludes special orders & bid pricing and others—see website for complete details. GREAT PRICES JUST FOR PROS We Offer everyday low prices, plus more ways to save on larger or- ders.  You can count on competitive pricing on everything in every de- partment  Volume pricing discounts available on purchases as low as $2,500.  Instant bulk price savings available 1000s of items. MAREIMid-America Association of Real Estate Investors A Real Estate Community MAREI, through it’s partnership with the Home Depot, offers its members a 2% Bi-Annual Rebate on top of any discounts you already receive through the Home Depot & its Pro Desk. Join MAREI Today, and start saving THOUSANDS TODAY . . . Program is retroactive back to Jan 1, 2013 Visit MAREI at www.MAREInet.com for more information on Membership Meetings, Discounts on Products and Ser- vices, and education for Real Estate Investors, Landlords, and Industry Service Providers. PRO DESK Get the job done with Help from the Pro Desk.
  • 3. 2013 RE investment News 3 cover story 22 The Road To Success Is Easy If you have a plan And follow it. 8 Title Insurance Is Misunderstood 26 The top 9 Mistakes Real Estate Investors Make when Dealing with Short Sales CONTENTS
  • 4. 4 RE investment News 2013 CONTENTS 6 March Market Report Is it a Flat Market? 6 5 Signs You are Ready to Invest In Real Estate 7 Mortgage Interest Tax Deduction in KS In Jeopardy 7 KCMO Water Department & Landlords: an Update 10 Appeal Your Property Taxes & Save 14 Property Managers Communicate Your Standards 16 Radon Home Buyers & Sellers Should Test 20 Direct Mail + Social Media = Marketing Success 34 Wholesale Real Estate Getting Started Investing Regular Features 18 Member Benefits at a Glance 36 KCInvest Properties for Sale 38 Monthly Meetings & Events June2013 PUBLISHER Kim Tucker ADVERTISING INFORMATION 913-815-0111 info@MAREInet.com RE INVESTMENT NEWS IS PUBLISHED IN ASSOCIATION WITH MID-AMERICA ASSOCIATION OF REAL ESTATE INVESTORS P.O. Box 8685 Prairie Village, KS 66208 www.MAREInet.com 913-815-0111 DISCLAIMER Mid-America Association of Real Estate of Investors and the RE Investment News 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 communica- tions from or to its members, officers, directors, employ- ees and contractors. Each individual should consult his/her own counsel, account- ant and other advisors as to legal, tax, economic, invest- ment and related matters con- cerning real estate and other investments. The views and opinions ex- pressed by authors of arti- cles contributed to this newsletter do not necessarily reflect those of the associa- tion, the board of directors or the staff. J uly Meetings Northland Meeting Is Canceled in J uly As it Falls on J uly 4th Southland Meeting To be Vendor Networking Night.
  • 5. 2013 RE investment News 5 Welcome to RE Investment News CONTENTS Welcome to the RE Investment News, the monthly publica- tion of Mid-America Association of Real Estate Investors. We are an organization of more than 392 local investor members and service providers that are here to help each other take advantage of the incredible opportunities offered by real estate investments. Property prices and investment cash flow potential have not been this good in over a generation. A wise and educated investor can purchase properties that can bring larger and safer returns that bank deposits and many stock market in- vestments. Smart investors also understand that catching a real estate cycle at the bottom of the curve on its way up, is the best place to start. Most experts agree we are in that phase right now. We meet several times a month for educational presenta- tions, workshops and seminars. We also meet face to face to facilitate networking so members can conduct business with each other through real estate transactions, providing services and mentoring each other through the business. At meetings you will find both highly experienced investors as well as beginners. People that wholesale, rehab, hold for rental and flip. You will also find lenders, realtors, title peo- ple, contractors and other service providers to help round out your real estate investing team. Remember, you can’t do this business all alone. We sug- gest you seek out knowledge and contacts from our group or a similar group in your area if you are not in Kansas City so you can find people who are more than willing to share their goals and success. Last as we always remind our members to perform their own due diligence in all transactions, you will find the re- sources and connections included in membership a helpful tool in your investment making decisions.
  • 6. 6 RE investment News 2013 Advocacy 1. Got Cash: You have funds availa- ble to invest in a property. 2. Found Property: You have a property with potential for profit. 3. Have Time: You have time to de- vote to putting deals together. 4. Solid Team: You have assembled your team of advisors. 5. Market: The Market is in your favor. Ready to Invest Signs you are Ready to Invest in Real Estate 5 April Real Estate Market Report Sales Prices Up, Sales Up, Inventory Down Kansas City Regional Association of REALTORS® reports that inventory is down and prices are up across the metro area. Sale Price: All counties except Platte & Wyandotte experienced an increase in the average sale price of existing homes and new homes were up all except Johnson Counties over last year. Overall both showed a 5 % increase over April 2012. Home Sales: All counties experienced an increase in the total number of existing homes sold at 6 percent as well as new homes at 23 percent with an over all increase of 8 percent this April over 2012. Home Inventory: Existing home inventory is down by 15 percent and new homes are down by 8 percent with an overall decrease of 15 percent from April 2012. Pending Sales: Existing home pending contracts are up 27 % over April 2012, New Homes up 19% and Overall they are up 26% over last year. Supply of Homes: Supply of homes is the calculated by dividing in- ventory by the 12 month average number of sales. A 5 to 6 months supply is a “balanced” market. Existing homes have a 5.5 month supply and new homes are at a 5.3 month supply with an over all 5.5 supply compared with a 7.3 supply this time last year. Read more about market data at www.KCRAR.com
  • 7. 2013 RE investment News 7 Advocacy Mortgage Interest Tax Deduction In Jeopardy in Kansas Mortgage Interest Tax Deduction is still in danger of being reduced or eliminated in Kansas. An earlier compromise in the state that would have tied reductions in Mortgage Interest Tax Deductions to reductions in the state income tax is in jeop- ardy. A memo from the Wichita Area Builders Association President & CEO Wess Galyon on May 23rd says: “Unfortunately, an effort is underway. . . To abandon and revers the good-faith compromise reached earlier. . . . The latest proposal from the Senate does nothing to eliminate the state income tax in the short-term and could result in a massive tax increase on over 400,000 Kansas taxpayers who currently have and want to protect their ability to reduce their tax burden by itemiz- ing deductions such as the mortgage interest and property tax deductions.” The vice president for governmental affairs, Luke Bell said that the proposal by the Senate would make the phase out of the deduction more quickly that previously agreed upon. The senate wants all deductions, except for those for charities, phased out by 2018, but the state income tax would still be at 3.5 percent and have no guaran- tees to take it lover. Bell said the House still supports the original compromise that would reduce de- ductions by 25% and be retroactive to this tax year and phase the reduction down by 50% by 2018. Reported by the Wichita Business Journal “The competitor to be feared is one who never bothers about you at all, but goes on making his own business better all the time.” - Henry Ford “A business has to be involving, it has to be fun, and it has to exercise your creative instincts.” - Richard Branson KCMO Water Department The Landlord Legal Defense Fund Continues to raise money in an effort to stop bad billing practices by the Kansas City Missouri Water Department. Case Filed: The attorney filed the court case on March 19th in the 16th Judicial Court of Jackson County. After assign- ment of the judge, a motion was filed to change judges. City Attorney: Filed a motion to have the case moved from the State Court to the Federal Court. As this issue applies to Missouri Constitutional Law, the LLDF wants to keep this in a State Court Dismissed Case: LLDF had the original case dismissed and added two more Landlords to the case, one with actual damages of over $62,000 due to the Wa- ter Department and their practices. Refiled: The New case was refiled on May 17th, attain in the 16th Circuit Court for Jackson County Missouri. The city is no doubt hoping the fund runs out of money before the case ever gets to court. If you have property in Kansas City Mis- souri, or are a fellow property owner in the metro, please support the Kansas City Property Owners by donating to the Fund—go to LandlordLegalFund.org
  • 8. 8 RE investment News 2013 Title Insurance Is Misunderstood Title One of the most misunderstood insurance policies is a title insur- ance policy. Most consumers regard it as a waste of money and just adding to the high closing fees on their purchase or sale. This is far from true, as according to the American Land Title Asso- ciation, about 25 percent of all residential real estate transactions have issues with the title. Most are resolved prior to closing; how- ever, some claims and challenges can crop up after you have be- come the new owner. Examples include a mortgage which has been paid off but never released or a deed without a marital staus. There are two types of title insurance policies that you will be offered at your closing. The Lenders’ Policy protects the bank against possible title problems and you will be required to pur- chase this policy if you are financing your home. It does not, how- ever, protect your interests. For your protection you will need to buy an Owner’s Policy. Unlike other forms of insurance, title insurance covers what has happened in the past instead of the future. The current owner is liable for these past events through their equity and liability in the property and an Owner’s Title Insurance Policy will protect you. Title insurance is paid through a one-time premium, usually at closing. Given the cost of insurance in general, this single premium is relatively low cost while affording significant protection to the property owner. If a title claim arises, merely consulting a lawyer to defend the claim can cost a property owner more money than the policy premium. The policy continues as long as you have any interest in the property. This means if you warranty the title (file a Warranty Deed as opposed to a Quit Claim Deed) to a future pur- chaser, that Owners Policy covers you in the event that a previous issue affects their ownership interest. Almost all title insurance policies in the United States are issued on universal forms ap- proved by the American Land Title Association, although some states have modified them. Following are items that a Basic Owner’s Title Policy would cover, if not disclosed and listed as an exception:  Documents recorded during the time period between title ex- amination and closing  Unrecorded documents that may give other individuals or enti- ties an interest in the property  Encroachments by fences, driveways or other structures  Forged documents  Invalid or fraudulent probate of wills and estates  Improper foreclosure  Incorrect marital status of owner  Invalid or contested divorces  Liens filed by contractors or others who have not been paid for labor, materials or services provided on the property  Previously undisclosed heirs with claims to the property  Tax liens  Transfer of the property by a minor or mental incompetent  Property line disagreement  Mistakes in the public records If you don’t understand an exception, ask your title agent or your attorney. Additional coverage may be negotiated for an additional fee, but remember, title insurance only covers past issues that may surface later. The title insurer has the right under the policy to ei- ther provide legal defense or pay you the amount of your loss, up to the amount of your policy, which should be the amount of your purchase price. Owners Title insurance does not cover matters that happen after you take title to the property or if you create the issue to the title. Examples would be if you don’t pay your contrac- tor and he files a Mechanics Lien or you don’t pay your taxes and a tax lien is filed against you, title insurance will not cover actions you created or agreed to. It does also not cover anything your lender does as this event most likely occurred after you took title to the property. Unlike most other forms of insurance, title insurance is coverage for PAST matters. A Lender’s policy which is sometimes called a loan policy is is- sued only to mortgage lenders. Generally speaking, it follows the 8 RE investment News 2013
  • 9. 2013 RE investment News 9 SAVE THE DATE Title Insurance What You Don’t Know Can Cost You Saturday Workshop From Accurate Title June 8th : Register Now www.MAREInet.com/Workshop Title assignment of the mortgage loan, meaning that the policy benefits the purchaser of the loan if the loan is sold. For this reason, these policies greatly facilitate the sale of mortgages into the secondary market. That market is made up of high volume purchasers such as Fannie Mae and the Federal Home Loan Mortgage Corpo- ration as well as private institutions. In general, the basic elements of insurance they provide to the lender cover losses from the following matters:  The title to the property on which the mort- gage is being made is either  Not in the mortgage loan borrower,  Subject to defects, liens or encum- brances, or  Unmarketable.  There is no right of access to the land.  The lien created by the mortgage:  is invalid or unenforceable,  is not prior to any other lien exist- ing on the property on the date the policy is written, or  Is subject to mechanic’s liens un- der certain circumstances. As with all of the ALTA forms, the policy also can cover the cost of defending insured mat- ters against attack. Elements 1 and 2 are important to the lender because they cover its expectations of the title it will receive if it must foreclose its mortgage. Element 3 covers matters that will interfere with its foreclosure. Of course, all of the policies except or exclude certain matters and are subject to various con- ditions. Additionally, one of the most important exclu- sions is the policy excludes “matters agreed to or suffered by the lender”. A lender’s policy only covers the lender and an owner is not covered which is why if you are purchasing you should always make sure to get an Owner’s Policy. Most people don’t understand that you have right to shop around for title insur- ance (some states set the rates) and it is ille- gal for someone to tell you that they will not sell or give you the loan unless you use a spe- cific title insurance company. In some areas you can request a discount if you have a copy of your recent title insurance policy. It depends on what part of the country you are purchasing property who would pay for either title insurance policy. However, the final deter- mination would be what you negotiate in your contract. In the case of a refinance, the bor- rower usually pays the premium but some lenders have programs where they pay the closing fees, including the cost of the Lender’s title insurance policy. If you feel you have a title insurance claim, be sure to file it with o your title insurance compa- ny, not that of the individual claiming the title to your property. First, get your owner title insur- ance policy in front of you. Make a copy of it to submit with the claim. If you can’t find your policy, make a copy of your HUD-1 Settlement Statement. The HUD-1 is proof that you paid for an owner policy. Look for the name and address of the actual title underwriter, not the agent. Some but not all policy jackets will have this information prominently posted, some will not. If you can’t find it, look for a large office of the title under- writer in the closest metropolitan area. You can find it on-line if you Google their name. In many cases the underwriter will have a form on their web page to file a claim with explana- tions. Included in a title insurance claim is a written document explaining what your claim is about, and forms provided by your insurance company. Any additional information, such as letters back and forth regarding the dispute, receipts for the title to your property, and de- mands for payment should be included with your title insurance claim. The company that ensures your title to proper- ty will usually respond to you within a few days of receiving your claim. Any further information or instructions will be included in this response. By law, title insurance companies are usually required to respond to your claim in a timely fashion, and issue an acceptance or denial of your claim along with any appertaining infor- mation. Many times, however, losses incurred due to title disputes are not covered under title insurance. If you feel as though your title insur- ance claim did not adequately cover you in the event of a title issue, you can contact a lawyer who will advise you as to how to continue claim proceedings. The opinions stated in this blog are those of the author, and should not be construed to be a statement of fact or conclusion of law. Any statements herein should not be relied upon in any litigation, arbitration or mediation. State- ments herein have not been approved by the American Land Title Association, its officers or members. 2013 RE investment News 8 The Team from Accurate Title will be sharing:  How to READ a Title Report . . .  What is an Issue in Title and What is no big deal. . .  How can Issues be Fixed . . .  So just Why do we NEED Title Insurance  What Does Title Insurance Cover  How much does everything COST  Reviewing the Settlement Statement, can save you $1000’s  What Everyone Needs to Bring to Closing  How do we deal with Liens & Judgments  Tax Sales, Foreclosure Issues and O & E  What is a Double Closing and Why they are such a BIG Deal
  • 10. 10 RE investment News 201310 RE investment News 2013 Jackson County Missouri Informal Appeal Deadline to Appeal June 14th If you are not satisfied with the 2013 market value placed on your property or you feel your reassessment notice is incorrect, you may file an informal appeal with the Assess- ment Department by calling (816) 881-4601 ppeal our roperty Taxes & ave A Y P s
  • 11. 2013 RE investment News 11 In Kansas City 2013 RE investment News 11 There is no “one-size-fits-all” strategy for successfully growing your self-directed IRA with real estate investing. What will work well for you may not be the best option for someone else. The best strategy for you will de- pend on your own personal situation and your own knowledge of how the various strategies work. Knowledge of the various strategies will help you determine how best to move forward. Real Estate Tax Bill Jackson County Tax Assessor Issued New Tax Bills Update on How to Protest them Donald J. Swartz, ASA CBIZ MHM, LLC State Tax Bills In Missouri The State of Missouri authorizes counties to re-evaluate all real estate parcels as of January 1st , every other year. 2013 is a re-appraisal year in Missouri and the news has been inundated with information regarding the significant increases on several real estate parcels in Jackson county. Respective counties have been gathering sales data since 2011 to determine if market values for all types of real estate (commercial, industrial, residential, vacant, ag, etc.) have increased, decreased or remained flat since January 1, 2011. Your Rights As a property owner or as the person responsible for paying real property taxes, it is important to know your rights to insure you aren’t paying more than your fair share of property taxes. The review you perform now will have an impact for at least the next two years, so take the time to analyze your property valuations. The process of reviewing and potentially appealing your valuations should not be a daunting or harrowing experi- ence. Informal and formal opportunities exist for taxpayers to provide information to support a fair market value. Re- member, Jackson County alone has over 160,000 parcels of real estate, so it is conceivable a notice of assessment may be issued that is not reflective of market value of your property. Here are a few tips when deciding whether to You have the right to appeal the 2013 market value on your assessment to the Jackson County Board of Equalization (BOE). Appeals to the BOE must be filed on or before Monday, July 8, 2013. Hear- ings will be scheduled after July 1 and thru August 31, 2013. The Board of Equalization may increase, decrease, or maintain the current market value at your hearing. Formal Appeal Deadline July 8th Hearings July 1 to August 31
  • 12. 12 RE investment News 2013 appeal your property in Missouri. Deadlines First, be aware of the deadlines. In the greater Kansas City area, taxpay- ers have until the 3rd Monday in June, June 17th this year, to appeal their 2013 valuations to the respective County Board of Equalization. This deadline applies to Platte, Cass and Clay coun- ties; however, Jackson County has elected to use the same deadline as 2nd Class Missouri counties or July 8, 2013. Several counties encourage taxpayers to call the county asses- sor’s office directly to discuss valua- tion issues in an effort to minimize disputes before the Board of Equali- zation. This time frame varies by county, but generally the next 2-3 weeks (May 15th – June 7th ) is a great time to discuss your valuation con- cerns with a county appraiser. Data Next, gather the appropriate data to support an appeal. If you believe your current assessment is exces- sive, it is important to research com- parable sales between 1/1/11 – 12/31/12, to determine if your proper- ty is in line with sales activity. For single family residential properties, this is the most important information you can gather. Be sure to research sales within a short radius of your property, this provides you with a guide to determine the value associ- ated with comparable homes and their selling value. This information can be difficult to obtain, but there are several residential real estate brokers who may provide this information to you upon request or for a small fee for their time or use of the MLS real estate service. After reviewing the sales data, make sure the sales are comparable to the subject property in terms of age, number of bedrooms, bathrooms, ½ baths, finished base- ments, etc. If a county appraiser had a $1.00 for every person who marched in with the argument, “I’ll sell it to you tomorrow for the value you have on my property”, the county appraiser would own a lot of property. Comparable sales and making ad- justments to the comparables will give you your best chance for suc- cess. If you have commercial or industrial property, other methods are also re- viewed to determine if an appeal is warranted. Income producing proper- ties should be reviewed on an In- come Approach to Value, so be pre- pared to analyze and provide income and expense information associated with the property for at least the last two years, along with current rent rolls. One particular item to note re- lating to income statements is the analysis of debt service, depreciation and amortization. Counties are only interested in operational expenses associated with the property. Ac- counting and finance expenses such as interest, depreciation, amortization and debt service are not necessarily relevant to the valuation of a property for property tax purposes. When the- se items are excluded from an in- come statement, net operating in- come can increase dramatically, which in turn could significantly in- crease the value of a property. Be careful when analyzing all income and expense information. Consultation Last, consider working with a prop- erty tax consultant. Many taxpay- ers find the use of a property tax con- sultant to be the easiest and most efficient way to protest values. While most consultants focus on commer- cial, industrial and multi-family prop- erties, situations arise where consult- ants may often help in single family residence situations. There are sev- eral reasons and advantages to using 12 RE investment News 2013 In Kansas City Donald J. Swartz, ASA Managing Director CBIZ MHM, LLC Don is a Managing Director in the National State and Local Tax Practice of CBIZ MHM, LLC. With over 25 years of experience in prop- erty tax appeals, he has worked with 1,000+ cli- ents assisting in property tax reviews. You can reach Don at (913) 234-1310 or via email, dswartz@cbiz.com.
  • 13. 2013 RE investment News 13 consultants, but the single biggest reason to engage a property tax con- sultant is for their experience. Prop- erty tax appeals and reviews are their primary business. Consultants per- form this service every day and have familiarity with not only the process, but also the various appraisers and assessors. Most consultants have the credibility and experience of working with the local jurisdictions and generally, consultants are effec- tive in achieving results for their cli- ents in an efficient and professional manner. If you choose a consultant, make sure that consultant under- stands everything about your proper- ty, so when representation occurs, they are prepared for questions from the Assessor’s Office and Board of Equalization. The taxpayer and their representative will be more familiar with the property than the county. As a result, the additional information and knowledge should pay dividends if an appeal is warranted. Again, the review you perform on your 2013 valuation will have an impact for at least the next two years, so take the time to analyze your property valua- tions and if you believe your valuations are excessive, don’t be afraid to appeal for an equitable and fair valuation. What Can Taxpayers Do? Pay attention to valuation notices received Remember Time to Appeal is Usually Short Go Online to Find Values Look at Market Transactions for Like Kind Properties Look at Market for Lease and Rental Rates File an Appeal if you Believe Value is Excessive Consult a Tax Professional Remember: If you wait until you receive your tax bill It’s generally too late! Property Tax! It may be the largest tax your company pays. There are more than 80,000 different taxing jurisdictions in the U.S. How many are you familiar with? This year, most companies will overpay. Will you? 2013 RE investment News 13 In Kansas City CBIZ (NYSE: CBZ) is a professional services company, providing a comprehensive range of business services, products and solutions that help our clients grow and succeed by better managing their finances and employees. CBIZ CBIZ is associated with Mayer Hoffman McCann P.C. (MHM)*, a national, independent CPA firm.
  • 14. 14 RE investment News 201314 RE investment News 2013 Property Managers Communicate Your Standards From MR Landlord.com A long-distance landlord recently asked a question on LandlordingAdvice.com regarding the expectations and performance of his property. Here was the question: "I have hired a new Property Manager (PM) for some of my rentals that are far from me and he has placed two residents in two rentals I have recently. He kept the deposit in the company and I paid him one month's rent to find the residents as usual. Problem is, both residents are deadbeats, they have not paid rents for the last two months they have been there, and they have not even transferred utilities in their name like they were supposed to. Now I have to evict them both and find new residents and re-do the houses again. My question is, should the PM be charging me again to find new residents? I think the PM failed in his job to find good and paying residents. What would you do?" Some landlords responded to the inquiry, but one response in par- ticular is one I wanted to share that offered several excellent points when working with Property Managers (locally or long-distance). The following response was provided from one of our regular contribu- tors to MrLandlord.com, and this contributor was also a prior work- shop instructor at one of the MrLandlord.com National Conventions. Thanks, Katherine (TX)! I ran my properties in Missouri for about 5 years from Texas. Now I am in MO (local to the properties) but I still use a PM because I trav- el so much for business so I really still need one. When I first started out with a PM I was very clear about require- ments for my rentals. I specified credit scores, income requirements, pet terms, criminal and credit checks, etc., etc., etc. I insisted on these things in our contract although I only had 2 rentals at the time. The first PM I had got fed up with me because I required too much time of hers (because she was not concerned about the quality of the person she was placing, she just wanted the fees and to be able to keep her crews busy cleaning and repairing other people's prop- erty to her advantage.) Needless to say we parted ways quickly. Now I have a PM who I've had for years. This brokerage gets all my business, on the transaction side and the management side, and they managed my apartment building for 2 years for FREE while I did major rehab work. And when I had totally negative cashflow, they put up with me for being very "hands-on" as far as resident selection. As a result my portfolio has grown nicely and the apartment now mostly carries itself. I now have 23 rentals instead of 2. So their per- centage each month I'm rented up has increased nicely as I have grown my business. There are some good PMs on this board. But the best PM out there will never manage as tightly as an owner. Some do come close in fairness, but that is part of the business. Some PMs, like other service people, are great on the sales side, but less great on the service side, so they may make promises they don't keep. Only you know what sort you are dealing with, but to be very honest with you - I am not surprised about your outcome be- cause you did not set any boundaries about what was acceptable insofar as your standards. So what happens in a case like that is this: The PM places better renters in houses where the landlord requires better renters. You did not insist on certain standards but you are surprised when no stand- ards were applied. Added to that might be that if you only have 1 or 2 rentals, you are not a top priority with the PM as someone who has 10 or 20 rentals. Basic economics there. Your 1-2 rentals re- quires as much management as 10-20, but the income your few rentals generate is much less than the guy with 20 rentals, and a vacancy at your rentals likewise affects his bottom line less than the vacancies with a bigger client. Ask me how I know :) I've been the little guy and I've become a bigger guy and so now I enjoy higher priority at my PM. That's going to be true anywhere, but in your case you have further placed yourself at a disadvantage by not requiring standards. If I were you, here's what I'd do: Go to your rentals and see them and talk in person to your PM. You may need a new PM, you may not. If I were you I'd find someone else though because this is going to be tough for your professional relationship to recover from. You think he did a bad job, but really you didn't re- quire any standards, so there is plenty of blame to go around. If you do decide to stick with this guy, get your standards in a written agreement and have some sort of repercussion if an eviction occurs or if a resident gets behind, etc. in your updated agreement. If the PM balks at this, you must find a new PM. Be matter of fact but dip- lomatic. If I were you I'd say, "Well it looks like this didn't work out as well as we had hoped, I'm going to require some standards moving forward to avoid this happening in the future, and here is the list of require- ments and the fail-safe mechanisms to help us work together and to keep the properties rented to responsible people", and then give him your list of policies and requirements. You'll need to pay for him to place additional residents if your con- tract doesn't say otherwise, but going forward you can have a reme- dy if this happens again after your standards are contractually in place via a signed agreement. If all this sounds too tough, then you might want to consider selling. You have to be willing to draw these kinds of lines when you have long-distance property. You have to be able to trust the PM, and never forget that the PM is in a position to steal from you in several different ways, including charging too much for repairs with their in- house people or preferred vendors. You need a PM who respects your bottom line. Not all of them do. "Management tips provided by landlords on MrLandlord.com. To receive a free Rental Owner newsletter, call 1-800-950-2250 or visit our na- tionwide Q&A Forum, LandlordingAdvice.com, where you can ask land- lording questions and seek the advice of other rental owners 24 hours a day." For Landlords
  • 15. 2013 RE investment News 15 Industry Services
  • 16. 16 RE investment News 2013 Radon Home Buyers and Sellers Should Test From the EPA’s Home Buyer’s and Seller’s Guide to Radon You cannot see, smell, or taste radon. But it still may be a problem in your home. When you breathe air containing radon, you increase your risk of getting lung cancer. In fact, the Surgeon General of the United States has warned that radon is the second leading cause of lung cancer in the United States today. If you smoke and your home has high radon levels, your risk of lung cancer is especially high. You Should Test for Radon Testing is the only way to find out your home's radon levels. EPA and the Surgeon General recommend testing all homes below the third floor for radon. You Can Fix a Radon Problem If you find that you have high radon levels, there are ways to fix a radon problem. Even very high levels can be reduced to acceptable lev- els. If You Are Selling a Home... EPA recommends that you test your home before putting it on the market and, if necessary, lower your radon levels. Save the test results and all information you have about steps that were taken to fix any problems. This could be a positive selling point. If You Are Buying a Home...  EPA recommends that you know what the indoor radon level is in any home you consider buying. Ask the seller for their radon test results. If the home has a radon-reduction system, ask the seller for information they have about the system.  If the home has not yet been tested, you should have the housed tested.  If you are having a new home built, there are features that can be incorporated into your home during construction to reduce radon levels. The radon testing guidelines in this Guide have been developed specifically to deal with the time-sensitive nature of home purchases and sales, and the potential for radon device interference. These guidelines are slightly different from the guidelines in other EPA publications which provide radon testing and reduction information for non-real estate situations. Contractor’s Corner 16 RE investment News 2013
  • 17. 2013 RE investment News 17 Industry Services
  • 18. 18 RE investment News 2013 Learn how to save money at Home De- pot and register for a 2% Rebate for all purchases & rentals across the US. Plus 20% Discount on Paint in Kansas City. And coming in 2013 the New Home Depot App for iPad exclusively for Chapter Members to use in project esti- mation on home repair and remodel. All members receive a discount card to access our exclusive discounts up to 40% off all paint, supplies, and flooring—nationwide. Websites for investors, landlords, and other services. FREE trial. Email and Social Media Marketing, Free Trial and Discounts for paying in ad- vance. Screening for tenants & workers with 20% discount for members. FORMS & DOCS Member Library is packed with forms and docs, plus 15 % discount at EZ Landlord Forms for premium forms. Market your rentals on the nations top ranked rental site. Member discount is 20% off Regular Prices. Save on select FedEx Office copy and print services up to 20% and on Fed- Ex Shipping up to 22%. Receive discounts up to 65% on over 12,000 products you use the most online and in store. MAREI’S MEMBER BENEFITS PROGRAM YOUR MEMBER BENEFITS AT-A-GLANCEUSE THIS PAGE AS A GUIDE TO VALUE ADDED DISCOUNTS TOOLS AND SAVINGS CREATED JUST FOR YOU ON GOODS AND SERVICES YOU USE EVERY DAY. E-Update MAREI’s award winning weekly email update with what’s happening in real estate including properties for sale, gov- ernment affairs and local market data. Investment News The award winning newsletter for Mid- America Association of Real Estate In- vestors: published monthly and distrib- uted both in print at our meetings and digitally to our database of over 5000 people. One of the best ways to get your message in front of a targeted group of real estate professionals. Free issues of both magazines available at the monthly meetings of MAREI. Landlord Services Office Solutions Suppliers Marketing News & Information
  • 19. 2013 RE investment News 19 We have several services as part of our website to help you grow your business. Calendar of Events to stay up to date with all of our activities. Browse the member properties to find your next deal. Take the time to post your investment opportunities for other mem- bers and site visitors to browse. The Member Library is packed and ever growing with pdf versions of entire books, EBooks, Articles, Forms, and Documents. Nearly 70% of QuickBooks users say that it makes their business more prof- itable. Get your Accounting on track. Buy at a 20% discount our special links from the MAREI Web Site. REAL ESTATE BOOKS The nation’s largest provider of real estate training materials, DEARBORN is America’s Premier Real Estate Publish- er. Members receive up to 40% off. Special member discounts for members at Avis, Budget, and Enterprise Rentals. The Local Market Monitor tracks real estate sales and economic trends nation wide. Offering 25% Discount for Mem- bers. MAREI’s Political Advocacy Group ac- tively monitors national legislation and rule-making that impacts the real estate industry and harnessing the strength of MAREI members at the grassroots level. MAREI members also receive timely Calls to Action when there is a time for our mem- bers to take action on an important vote. Members also have access to the latest in Market Data. Other Discounts VISIT www.MAREInet.com Look under Resources & Members Only Member Service
  • 20. 20 RE investment News 201320 RE investment News 2013 Facebook has more than 1 billion registered users. People send 100,000 tweets every minute. Nearly 20% of women who use the Internet also use Pinterest. Social media is here to stay, and it's become one of the best ways for businesses both large and small to connect with customers and prospects, especially since social media is all about relationships and community building. Benefits of social media marketing include:  More exposure for your business  Increased traffic to your website  More qualified leads  Better search engine rankings  “Stickier” relationships with prospects and customers Rather than touching a customer once like you would with a single mailer, you become a part of their life when they connect with you on social media. But that doesn't mean that there isn't a connection between social media and direct mail. If you're looking for ways to drive traffic to your social media profiles, increase Facebook likes, and learn more about your customers, direct mail can help. 4 ways to combine direct mail with social media Add social badges to each mail piece: This one is easy – make sure you include social media badges on each of your direct mail pieces. That will let recipients know that you're present on those channels. After all, people won't follow you on Twitter or like your Facebook page if they don't know it's there. Create an interactive mailer: Use a QR code that directs recipients to your Facebook page when they scan it. Or include a link or QR to one of your YouTube videos. Make social media a part of your integrated mobile and direct mail efforts: Say you include a URL on a postcard that takes recipients to a page on your mobile website that allows them to claim an offer. After they claim their offer, include links to your social media profiles on the “Thank You” page. It will be easy for people to click through and connect with you on social media. Or, encourage people to “share” the offer with friends, which can help build your social media presence exponentially, especially if the offer goes viral. Include a call-to-action: Make it obvious that you want to build relationships with social media. Use direct mail to invite people to connect with you on social, perhaps by offering an incentive, such as a coupon or free sample for people who “like” your Facebook page. What can you do once people have connected with you on social media? The opportunities are nearly endless. You have an existing pool of interested, engaged customers and prospects with whom you can share special deals, news and updates. You can enhance your relation- ships with those people by offering quality content via social media (remember, don't just promote yourself or your business; instead offer infor- mation that people can use). Finally, social media offers access to a wealth of customer data, which you can use to better understand your customers and created targeted marketing campaigns. Use social media to generate lists of qualified people to whom you can send your direct mail. Post status updates that encourage people to sign up for your mailing lists. Make sure to explain the benefit of sharing their address, so they'll know they're getting some- thing more than what they'd get on social media. Do you have questions about adding personalization to your direct mail campaign? Our customer support team is always happy to help you out so that you can create the most effective direct mail campaign for you. Drop us a line at support@click2mail.com or give us a call at 866-665-2787. We're here Mon-Fri, 9AM to 8PM Eastern Time, and we're always eager to answer your questions. From Click2Mail Direct Mail Marketing Social Media Marketing Success =
  • 21. 2013 RE investment News 21 Industry Services
  • 22. 22 RE investment News 201322 RE investment News 2013 Photo from Doug Shaw from Carshalton, United Kingdom
  • 23. 2013 RE investment News 23 “I’m not suggesting that becoming successful requires no work and that there are no struggles, but when I say that The Road to Success is Easy, I’m suggesting that when someone has a plan and they follow it, that success is attainable to all, and it can be done in a relatively short period of time.” Shaun McCloskey The Road to Success . . .Is Easy Shaun McCloskey When I hear someone say that success is easy, it always raises my BS sensors. It really concerns me when someone says this, but then I have to look at myself because I say this as well. The difference is, I really mean it. But in order for success to become easy, you’re going to have to play a different game than most. I’m not suggesting that becoming successful requires no work and that there are no struggles, but when I say that The Road to Success is Easy, I’m suggesting that when someone has a plan and they follow it, that success is attainable to all, and it can be done in a relatively short period of time. We live in a world in which we idolize success and as a result we pursue it with all that we have. As a culture we have defined success as having a lot of money. We want it so badly that we look for shortcuts, we’ll compromise our values, and we’ll tear down things that are important to us in order to attain it. We’ll go into debt. We’ll buy things we don’t need to impress people we don’t care about. What we all really want is life. We want freedom. We want to be able to spend time doing and experiencing the things in life that provide the most fulfillment, however, most of us today have given up any hopes of this life in pursuit of the almighty dollar. What we teach at Lifeonaire is that if we will simply follow a plan, that success is easy. It’s an easy road. What we have found is that the world around us is pursuing success every other way, that what makes pursuing the path to suc- cess difficult is that we have to go against the grain and do things differently than those around us. The path is easy, but getting to the the right path and living and doing things differently than others around us is the challenge. It’s a challenge for a number of reasons:  The biggest reason it is a challenge is because we have few examples of people to follow. The masses are striving for success, seeking to make more and more money. Money is the primary focus of many peoples lives today, however, this seems to be the wrong path as evidenced by the results.  How we define success may be different. Being successful at making a lot of money doesn’t guarantee us that we’re going to live a great life. There is plenty of evidence around us that demonstrates this. Have you ever heard of or known someone that has a lot of money and is still miserable? Their goal in life is to make money, not to live life so they get exactly what they are pursuing. Cover Story 2013 RE investment News 23 ?
  • 24. 24 RE investment News 2013 Let’s be very honest for one mo- ment. What does success mean to you? To me it means having the free- dom to live the life that I want to live. To do what I want when I want. To be free to experience rela- tionships with those closest to me. When I talk with others their defini- tion of success tends to boil down to something similar. Take the time to imagine the life that you want, and now think of everyone that you know personally. How many people do you know who are living the life that you would like to live? If you are like everyone else I know, you’re struggling to come up with names. Everyone is out there pursuing this life, however, very few people ever get there. This is evidence to me that the reason success seems difficult is because most people are on the wrong path. If they were on the right path, we’d be able to come up with a list of names of people in our lives who are experiencing that ultimate freedom that everyone wants. At Lifeonaire, we show you how easy it is to achieve prosperity and success. It starts with getting on the right path, and then following a simple plan down that path. It also starts with setting the game up to win. That’s especially tough for most people today since their game is loaded up with a lot of obliga- tions and no vision for what it is they really want. Getting on the right path means creating the vision for what you want your life to look and then estab- lishing a plan to get from where you are to where you want to be. Sounds sim- ple enough, however, the problem with most of America today is that even if they had a vision and a plan, most are so bogged down with existing obliga- tions that they don’t have the time to pursue their vision even if it is clear. Debt is one of the biggest obligations people have which hinder them from really living life. Most people mistak- enly believe you can’t run a legitimate real estate business without incurring debt, but I’m here to tell you other- wise. Because of this, get prepared to learn new strategies that you can im- plement as well at MAREI at the Short Sale Wealth and Debt Free Investing Seminar this coming Saturday June 15th. We’re going to pull back the cur- tain on what it means to design a busi- ness that has your life in mind first. Most people design their busi- nesses with how much money they’ll make, but we’re going to teach you the exact opposite of this. We’ll show you how to get on the right path, and then create a business that serves that path and purpose. And the best part? We’ll show you how to do that while being 100% debt free. I can’t wait to share this with you and change your perspec- tive forever. What you’re going to learn absolutely changed my life just 4 years ago, and I can’t wait for it to do the same with you. See you soon. Sean McCloskey COVER STORY Shaun McCloskey & Jason Roberts relaxing on mission trip to Guatemala
  • 25. 2013 RE investment News 25 We will be showing you: The Four Distinct Stages of financial prosperity and why 99.9% of in- vestors are building their business in a way that guarantees failure. How Shaun and his business partner eliminated a combined $5.5 million dollars worth of debt in just a few short years How to set your real estate business up to where you absolutely can not lose. (Sounds simple but most investors have setup the game to be very difficult to win. We’re going to show you how to set the game to win be- cause you not only know the rules, you also know the perfect strategy to win!) How (and when) to leave your job feeling 100% secure in your decision, knowing you can not fail. How to run your entire real estate business without ever borrowing a sin- gle dollar again. How to get unlimited access to money for your real estate deals without ever having to qualify at a bank. Utilizing J oint Ventures To Build Your Real Estate Business Have you ever been told “ focus on your strengths, the money will come?” Sounds great, but how much of your current busi- ness really focuses on ONLY your strengths? What if you could wake up eve- ry morning knowing that you’re only going to do the things that you’re the most pas- sionate about? Do you think you’d wake up differently that you wake up now? What if you could make more money by not doing the things that you are not totally pumped about, without costing any additional money to hire others? Join us at the Bonus Workshop at the Northland MAREI meeting to Learn:  How to start leveraging other peoples time and expertise to help you make more money that you ever thought pos- sible.  Four specific “game changer” Joint Venture strategies that Shaun has per- sonally implemented in his own busi- ness.  How to implement Joint Ventures in your own business and to get unlimited access to funds.  How to create an entire real estate business in literally ONE HOUR PER  WEEK using joint ventures! COVER STORY See Saturday June 15th Seminar Afternoon Session: Debt Free Investing We’re going to show you how to build, run and manage you entire real estate business without using any debt whatsoever. As a matter of fact, if you have any debt whatsoever right now, we’re going to show you how to eliminate all of it once and for all! (even the debt you have on your rental properties!)
  • 26. 26 RE investment News 2013 COVER Success Strategies Regardless of whether you decide to pursue your education in short sales through me or elsewhere, if I could offer you a little bit of advice - make education a priority in your life. The way I see it, if you’ re not growing, you’ re dying. And I don’ t plan on dying anytime soon! D o you? The TOP 9 Mistakes Investors Make R e g a r d i n g S h o r t S a l e s Shaun McCloskey MMISTAKE #1ISTAKE #1 -- Ineffective or Lack of MarketingIneffective or Lack of Marketing First things first, without marketing your phone is not ringing.First things first, without marketing your phone is not ringing. Without your phone ringing you have no deals. Marketing is the single most important aspect of your business. A combina- tion of your message as well as how it's delivered will be the difference between zero phone calls a day and 10 phone calls a day. Your marketing message should be consistent with what you're looking to accomplish. If you're message is not to actually help other people, you're in the wrong business. The key to getting people to respond to you is to give them all of the information they could ever ask for FIRST. The law of the universe states that in order to re- ceive you must first give. Contrary to this, I look at most other investors marketing pieces and the message is completely different. The message is more along the lines of, “what can I take from you?” Understand that these people are going through some of theUnderstand that these people are going through some of the toughest times of their entire lives.toughest times of their entire lives. What most people facing foreclosure really want is peace of mind. They want to know what their options are. They get 15,000 letters from other investors saying the same thing over and over again, “We Buy Houses.” Who cares? The home- owner doesn't care what you do. The homeowner only cares what you can do for them. So, our marketing messages very simple. We simply show homeowners what their options are and invite them to speak what us with a free consultation. In our consultation, we’ll custom tailor a solution depending on their exact situation. We also give them a ray of hope in the sense that they actually do have options. Most of these people think they have only two options, either catch up on their back payments, or lose the house to foreclosure. And the reality is that they actually have many other options. By being will- ing to give first, we naturally get what we want: more short sale deals. Trust me, people call us every single day completely willing to sign over the deed to their house to us with us barely even asking. There's no reason I can't offer help to the ones that we may never make a dime on. The point is, they won't call you unless you're sending the right message. And it's cer- tain that they won't call you if you don't even market to them in the first place. I'm not suggesting that you have to start with a multimillion dollar marketing campaign. Marketing can be as simple as putting up a few bandit signs per week at a cost of 99 cents per sign. Marketing can be as simple as knocking on a couple of doors, or making a couple of phone calls, or networking with real estate agents, or handing out business cards. (Or if you’re really smart… finding someone else to do all of this for you….) This stuff is not rocket science, but you need to make it consistent in your business. Both the message and the manner in which you present that message must be consistent. This is the very first, yet most important aspect of any facet of real estate, not just short sales. You skip out on this one, you will fail. 26 RE investment News 2013
  • 27. 2013 RE investment News 27 COVER STORY 2013 RE investment News 27
  • 28. 28 RE investment News 2013 MMISTAKE #2ISTAKE #2 -- Improperly Screening Seller CallsImproperly Screening Seller Calls Going After Deals that Aren't DealsGoing After Deals that Aren't Deals So many new investors call me with deals that they want to work on with me. And usually after a series of only a couple questions, I can very quickly determine whether or not the property is worth even going after by breaking the deal down into two categories, the Seller and the Property: SellerSeller  First and foremost, does the seller have a legitimate hardship? Are they not able to pay their mortgage payment because they truly can't? Or because they don't want to?  Is the seller being cooperative with your ideas and suggestions, or are they fighting you every step of the way? Are these people that actually deserve your help? What do I mean here? Well, in order for people to deserve your help, they must be willing ready and able to assist you in helping them. It doesn't do any good to try to convince anyone that you're their best option. Your job is to give them their options and then let them decide. If you ever find yourself in front of a seller, and you feel like you're talking them into something, know that you are in front of the wrong seller. PropertyProperty -- Is the house worthy of pursuing?Is the house worthy of pursuing? Is the loan balance already significantly less than the house is worth?Is the loan balance already significantly less than the house is worth? Here's an example that I hear from new investors from time to time. A seller has a house that is in perfect condition. There’s a mortgage on the property in the amount of $100,000. The house, in its current con- dition, and in our current marketplace, is worth $200,000. Is this prop- erty worth pursuing as a short sale? The answer is no. The house can solve its own problem. There is already enough equity in the deal, so a short sale is not needed. Why would a lender take a discount on this property? They don't need to. The lender could foreclose on the property, take it back into REO status, and then turn around and sell it later on and actually make money on the deal. Why would they dis- count their mortgage to you? Enough time left before the sale date?Enough time left before the sale date? Often times, I see investors go after deals, and call me as an absolute emergency at the 11th hour. They'll call me and say, “Shaun, I need your help. I have a short sale deal here that's a hot deal, and we need to act fast, because the foreclosure sale date is in two days!!!” Don't waste your time. There are exceptions to the rule, but if there is not at least 10 days to the foreclosure sale date, you're wasting your time. This varies from lender to lender but for right now think of 10 days as a guideline. Do you have an effective exit strategy?Do you have an effective exit strategy? It's great to go after properties and get huge discounts on loans, how- ever, it doesn't do you any good to get that kind of a deal if you can't turn around and sell the property later. I often see new investors go after deals that are in complete and total war zones. Some of them have been very successful in negotiating large discounts on these deals. Here's the problem: who's going to buy that house later on? Don't get me wrong, I have bought a ton of properties in lower income neighborhoods, and you can make a lot of money in these types of neighborhoods. But what I'm talking about here is the house that's in that TOTAL war zone area. If you are afraid to go into this neighbor- hood to go on the first appointment, how many buyers to you think are going to qualify for a mortgage in that type of a neighborhood as well as actually want to live in that neighborhood? Does the house need a lot or repairs? Or is it perfect?Does the house need a lot or repairs? Or is it perfect? Here's another one I see quite often. In newer investor comes to me with the property that has a mortgage balance of $200,000. The house is an absolutely perfect, pristine condition. Every single compa- rable property in the neighborhood has sold for $200,000. The houses in this neighborhood are also selling in less than 30 days because it's a highly desirable neighborhood to live in. In this situation, the investor calls me and based off of what he heard at a seminar or read in a book, he thinks that he should be able to offer 70% of the current value and it will be accepted. 70% of $200,000 would suggest making an offer on this property in the amount of $140,000. Why would the lend- er except an offer like this? While it's true that it does cost money to foreclose, contrary to what some other courses might teach you, it doesn't cost $60,000 to the lender to foreclose. The lender would be better off to foreclose on the Success Strategies 28 RE investment News 2013
  • 29. 2013 RE investment News 29 Success Strategies property and then sell it later. This investor is not thinking in terms of making his deals a win- win-win situation. The only person that would be winning in this deal is the investor… Not the bank. On the other hand, if this same house needed a complete gut rehab, you would have much more of a justification for coming in at a signifi- cantly lower price. Are there any other weird things about theAre there any other weird things about the house that would affect its value?house that would affect its value? Is there anything else that you can think of about the house that might affect its value? Or at least its perceived value? There is a differ- ence, you know. For example, are there railroad tracks running right through the backyard? Is the house on a busy street where it's difficult to raise children? Are their airplanes flying 10 feet above the house every six minutes because it’s only a quarter-mile away from an international air- port? Did there used to be beautiful green grass fields around the house when the home- owner bought it 10 years ago, but now there's a Wal-Mart in the backyard? These are all things that have a negative impact on either value, or perceived value. MMISTAKE #3ISTAKE #3 -- Not Giving Enough Justifi-Not Giving Enough Justifi- cation for your Offercation for your Offer Another huge mistake I see newer investors make is that they don't give enough justifica- tion as to why they're offering what they're offering. If the property is now parked directly in front of a Wal-Mart, that doesn't help you out in any way unless the lender knows about it. If the property needs a significant amount of repairs, wouldn't it be a good idea to provide repair estimates with your offer? If houses in this neighborhood are taking on average six months to sell, wouldn't it be a good idea to include proof of that in your offer (or counterof- fer) as well? Think of it like when you were a little kid - re- member this? When you're a kid, and you want something really badly, isn't it true that you try to convince your parents up all of the reasons why you should have this one particu- lar thing? Isn't it true that you'll bug them over and over and over until they say yes? And you'll continue to think of more and more rea- sons why they should let you do or have this one particular thing? (I’m sure you all know what I’m talking about here…) Is it also true that when you didn’t want to do something that your parents have asked you to do that you would kick and fight and scream and think of every single reason why you shouldn't have to do it? Didn't you come up with excuses as to why it wasn't a good idea to do what they were suggesting that you do? In a way, you're kind of doing the same exact thing with the lender, only in not quite as immature of away. The point is… you must be able to justify yourThe point is… you must be able to justify your offer to the lender.offer to the lender. Justify it with repair costs. Justify it with infor- mation about mold remediation. Do so with pictures of the Wal-Mart in the backyard. And remember, if you put yourself in the bank's shoes, would the justification that you're relay- ing to them be enough reason for you? MMISTAKE #4ISTAKE #4 -- Not Attending the BPONot Attending the BPO This is an absolutely critical part of the short sale process. The BPO agents’ job is to go to the property, take pictures of the property, and give his or her best evaluation as to what the property is worth in it as it is current condition. If you're not there to provide your opinion and/ or justification on these issues, you may as well not even try to do a short sale at all. This is where 90% of investors who try short sales fail right off the bat. There are tactful, legal, and ethical ways toThere are tactful, legal, and ethical ways to influence a BPO agents’ decision as to theinfluence a BPO agents’ decision as to the value of the property.value of the property. Remember, not only do you need to justify your offer to the bank. The BPO agent is the person is telling the bank how much the prop- erty is worth. Wouldn't it be a good idea then to relay the same justification information that we talked about above to the BPO agent as well? MMISTAKE #5ISTAKE #5 -- Fear of Negotiating withFear of Negotiating with Loss MitigatorLoss Mitigator When I first got in this business, I was scared of talking to the loss mitigation rep at the bank. I was scared because I felt like I didn't know enough to be able to talk the lingo required. While it's true that you do need to have a solid base of education to be able to have an intelli- gent conversation with a loss mitigation rep, they are just people too! Don't forget that. To negotiate most effectively, you will do 95% of your negotiations on paper before you ever even have to pick up the phone. So don't feel like you have to be some slick salesperson to speak effectively to loss mitiga- tor. All short sale offers are required to be written offers, with specific paperwork, in a specific order. The justification for your offer 2013 RE investment News 28
  • 30. 30 RE investment News 2013 Success Strategies should be written down and included in the offer letter. This means that the negotiations can be well thought out in advance since you can obviously take your time and really think about what you're going to say when it's in writ- ten format. There's no need to feel like you have to be the slick salesperson with a quick comeback for everything that a loss mitigator says to you. For those of you that hate pushy salespeople, don't worry, you don't need to be one to be effective in this business. MMISTAKE #6ISTAKE #6 -- Not Keeping ConstantNot Keeping Constant Communications with the HomeownerCommunications with the Homeowner and/or Making False Promisesand/or Making False Promises Your seller needs to be informed of where you’re at in the process throughout your negoti- ations. Without you keeping them informed, they will, without a doubt, lose trust in you. The entire short sale process is exactly that. It's a process. And processes take time. So during that time, your job is to keep the home- owner informed and well educated as to what to expect next. We do this in our initial conversation with the homeowner so there's no question about it later on. We also let them know that there may not be new information to relay to them each and every single day, so we inform them that we’ll call them to provide an update on their property every Friday. This way, they’ll always know exactly where they stand in the process. This does a couple things: First it lets the homeowner know that we will keep them informed on a regular basis. This builds trust. Second, it frees up the rest of our week to do other tasks, work on their deal, and go after new deals. This one small change we made in our business free up a con of our time through- out the week. Every Friday, we sit down and call each of the homeowners for just a few minutes and let them know where we're at. This sets the ex- pectation upfront and frees up valuable time to be spent on other aspects of your business. MMISTAKE #7ISTAKE #7 -- Focusing on Money InsteadFocusing on Money Instead of Changing Livesof Changing Lives This is a lesson that I had to learn the hard way. You've heard of motivated sellers? Well, when I got started I was actually a motivated buyer. Many brand-new investors are the same exact way. This is very obvious to others and comes across in the way you speak to people, and in the way you negotiate. If you're doing this just for the money, you may succeed for a certain period of time, but the long run you will fail. Remember, when you're working with people who are facing foreclosure, many times these people are going through some of the toughest times of their entire lives. You can either focus on what you can take from them at this point, or you can focus on how you can make a differ- ence. YOU have an opportunity to influence people's lives for the better. YOU have the power to literally bring families back together again. None of this can be accomplished by focusing on the money you stand to make. I chose to focus on short sales in the real estate industry because this is the one aspect of real estate were I feel that I can truly make a differ- ence. If there's one thing that you take away from this section, understand this: When you give other people what they wantWhen you give other people what they want first, the money will come automatically.first, the money will come automatically. True wealth (Short Sale Wealth!) in real estate comes not only from money. It comes from the quality of the relationships of people that you touch each and every day. And you will be able to sleep much better at night because of it. MMISTAKE #8ISTAKE #8 –– Not having a system inNot having a system in placeplace Let's face the facts of this business. The real estate game can be one of the most fun busi- nesses that individuals can get into. This busi- ness is a “little guy’s” business. Have you ever noticed that there are no publicly traded resi- dential real estate investment companies out there? There’s a reason for this. Real estate investing is a business that I’ve seen individuals start with literally no money and end up financially free within a few short years. This business is one that just about anyone with the will and determination to suc- ceed can do. I met a gentleman recently that makes over $500K per year consistently buying residential real estate. Before he started this business he was a janitor at a high school. There’s no doubt that investing in real estate can be rewarding. This business can also be the worst nightmare of your life if you aren’t set up properly. The next time you go to McDonalds, take no- tice of something. Isn’t the fryer always on the left hand side of the restaurant? Isn’t the drive thru always on the left also? Aren’t the bath- rooms always in the rear right side of the build- ing? (Are you picturing this in your head right now?) How about Sam’s Wholesale Club? Isn’t the entrance always on the right hand side of the building? Isn’t there always someone there checking to make sure you have your Sam’s card with you? Isn’t the electronics section the very first thing you always see as you walk in the front door and to the left is the customer service department? What about Walgreens? Imagine someone blindfolding you and dropping you off right in the middle of Walgreens. Isn’t it true that you could open your eyes and immediately know where you are? Why do they do business like this? The answer is simple. These companies have a system. As simple as this sounds, it’s the difference between a successful business and one that never seems to get off the ground. Having a system in place is fundamental to any long term reward in any business. The way McDonalds sees it, why reinvent the wheel every time they build a new restaurant? Why not just come up with a template, duplicate it over and over again, and let the system take care of the rest? The reason that McDonalds became so successful selling franchises is not because they have the best burger in the world. Let’s face it… I’m no cook and even I can make a better hamburger on the grill than I could get at McDonalds. They are successful because they have a system. They have a tested sys- tem, and that system works. It makes sense, doesn’t it? Why can’t we do the same thing with residential real estate, you ask? The answer is… now you can. There’s no sense in reinventing the wheel every time the phone rings with a prospective seller. There’s no sense in changing what you do eve- ry time you put a property on the market for sale. You don’t have to take time figuring out what paperwork goes where when you submit an offer to a lender. This can all be a part of a system that operates virtually identically every time. Big companies do this all the time. It seems like very few real estate investors un- derstand this though. Not only does this make your life much easier, but it also makes training other people so much easier! Do you think the CEO of Walgreens trains the cash register op- erator at their stores? Heck no! Walgreens has a training “system” in place that shows the cash register operator exactly what to do and what not do to in almost any situation that could possibly present itself. When you have a system, your business no longer controls your life. When you have a system, your business no longer relies solely on you to continue to grow. You can grow with your business rather than have your business control your every move. I have friends that are very successful in the real estate business, but I also have friends that are miserable and don’t understand why. When you have a system, you can assign tasks to others so that you can take time away from the business and come back to have it operating much the same as it was before you left. And let’s get to the good stuff… when you have a system, you can do more deals with less effort! This equates to a bigger bottom line. 30 RE investment News 2013
  • 31. 2013 RE investment News 31 MMISTAKE #9ISTAKE #9 -- Lack of Continuing Educa-Lack of Continuing Educa- tiontion Let's be real here for a minute... you absolutely MUST be dedicated to continuing education regardless of what business you're in. Times change, people change, the real estate industry changes. I'm sure you know by now that if you're doing real estate the same way you were two years ago, you're going to have a very dif- ferent result. Real estate, just like any other business, has cycles. You can make overwhelming sums of money in both an up market and a down market if you have the proper education. Many new investors have come to me recently worried about the economy, and worried about what's going to happen in the real estate market over the next 12 to 24 months. I couldn't be more excited about real estate right now. The truth is, if you're well educated, you can actually make more money in a down market because there's abundance of opportunity and less com- petition. The only way you can do accomplish this, however, is by being committed to your education. Think I'm kidding? In the past 12 months alone, I have spent over $26,000 on continuing educa- tion in real estate. This includes books, cours- es, CDs, and live seminars I’ve attended. I have a complete library of courses on real es- tate, and I absolutely love it! I believe that spending this money on education is nothing more than an investment in myself and in my family’s future. Not only that, but isn't it just FUN when you learn something new? Isn’t it FUN to learn one new idea that takes your business (and life) to a whole new level? It's kind of ironic that I was the guy that absolutely hated school growing up. I think the reason I hated it so much is because I was learning about so many things that I was- n't necessarily interested in. Learning how to create win-win-win situations where I walk away with a big check interests me though. Changing lives interests me. Making a difference in the lives of other people interests me… Regardless of whether you decide to pursue your education in short sales through me or elsewhere, if I could offer you a little bit of ad- vice –make education a priority in your life. The way I see it, if you're not growing, you're dying. And I don't plan on dying anytime soon! Do you? See you in June. . . . Shaun McCloskey SHORT SALE WEALTH SEMINAR Dominate the Pre-Foreclosure Market With or Without Your Own Money or Credit HOW TO CAH IN on Short Sales with NO Negotiation NEVER PAY for Marketing Again Learn from LIVE SELLER CALLS Demystify DEAL EVALUATION Effective NEGOTIATION TACTICS that Work Business Management Mastery UNLIMITED Deal FUNDING PLUS Bonus Session DEBT FREE INVESTING Shaun McCloskey & Jason Roberts Saturday June 15th Kansas City Missouri Details at MAREInet.com/Seminar Special Pricing thru June 6th Meeting 2013 RE investment News 31
  • 32. 32 RE investment News 2013 Saturday June 15th : 9:00 am - 4:00pm Career Education Systems, Ward Pkwy Shopping Center - 8600 Ward Pkwy, KCMO The Right Topic at the Right Time Here’s what you will learn: Never pay for marketing again: How to generate all the pre-foreclosure leads you’ll ever need—for the low, low cost of ZERO dollars! Pre-foreclosure deal finding strategies: Learn how to find and pursue ONLY the best of the best short sale leads in your area. Deal evaluation demystified: Learn the 6 stratetegies to quickly find (and pick) the lowest hanging fruit that equates to the biggest possible paychecks. Approved! Other structuring tactics designed to virtually guarantee the biggest discounts and most approved short sale offers. Effective negotiation tactics that work: Learn specifically how to structure your negotiations to maximize the discount the lender is willing to accept. Bank secrets revealed: Discover the #1 secret to uncover- ing the lowest possible dollar amount that a lender will accept as a short sale payoff. (This secret alone is worth thousands of dollars in cash in your pocket). Sell that house FAST! Discover the brand enw house sell- ing strategy that virtually GUARANTEES you to sell any house in any market in 7 days or less. Business Management Mastery: How to set your real es- tate business so that it runs on AUTOPILOT, allowing you to put cash in your pocket in your spare time. Unlimited deal funding: How to access all the cash you’ll ever need to fund your real estate deals. Bonus Session Debt Free Investing Lean how to build, run and manage your entire real estate business without using any debt whatsoev- er. As a matter of fact, if you have any debt right now, you are going to learn how to eliminate all of it once and for all! (even the debt you have on your rental properties) Bonus Session Includes: The four distanced stages of financial prosperity and why 99.9% of investors are building their business in a way that guarantees failure. How Shaun and his business partner eliminated a combined $5.5 million dollars worth of debt in just a few short years. How to set your real estate business up to where you ab- solutely can not lose. (Sounds simple but most investors have setup the game to be very difficult to win. We’re going to show you how to set the game to win because you not only know the rules, you also know the perfect strategy to win!) How (and when) to leave your job feeling 100% secure in your decision, knowing you can not fail. Think it’s not possible to run a 100% debt free real estate business if you’re a landlord? Think again! Find out step by step how to build a 100% FREE AND CLEAR rental portfolio of 12 - 15 properties in less than one year (NO ONE is teaching this right now!) How to run your entire real estate business and never bor- row a single dollar again. How to get unlimited access to money for your real estate deals without ever having to qualify at a bank. Short Sale Wealth Seminar Dominate the Pre-Foreclosure Market with or without your own Money or Credit Featuring Shaun McCloskey & J ason Roberts Training
  • 33. 2013 RE investment News 33 Special Registration: Available thru the J une 6 th Meeting Member Pricing  Short Sale Wealth $15  All Three Events $15 Non-Member  Short Sale Wealth $35  All Three Events $45 _______________________________________ ____________________________________ Attendee 1 Email __________________________________ ____________________________________ Attendee 2 Email __________________________________ ______________________________________ Address Phone __________________________________ ___________ City State Zip Total Charge __________________________________ ___________ ________ Credit Card Number Expire Security Code _________________________________ Referred by: ___________________________ Signature . Shaun McCloskey has bought and sold hundreds of investment proper- ties. He has turned the art of the short sale into a science that virtually any- one can do by creating a system that is foolproof. Using the Short Sale Wealth system, Shaun has helped thousands of homeowners and lend- ers avoid foreclosures. “Everyone says they want to be a millionaire, but what they really want is LIFE! The American Dream says that more money equates to a better life, however, I know a number of people that have made millions of dollars and are also miserable. I know because I was one of them. I want to show you how to have both money and LIFE.” Shaun is also teaching at the MAREI KC North Meeting on June 6th: Shaun McCloskey has bought and sold hun- dreds of investment properties. He has turned the art of the short sale into a science that virtually anyone can do by creating a system that is fool proof. And by combining the short sale strategies with his Joint Venture Techniques he can do more deals with less time and other peoples Scan & Email to info@MAREInet.com Call 913-815-0111 More Info: www.MAREInet.com/Seminar Presented by: Mid-America Association of Real Estate Investors money. Join us on June 6th to find out how you too can do more with less using joint ventures. See more online at www.MAREInet.com/ KCNorth. ———————————- Jason Roberts is Shaun’s #1 Star Student. He is coming on the 15th to teach with Shaun. He is also joining us at MAREI’s KC South Meeting on June 11th. In 2010 Jason was dead broke. He had just lost his mortgage busi- ness, his cars had just been repossessed, and now he was going through foreclosure on his own home, then to chapter 7 Bankruptcy at the end of 2010. He turned it all around in 2011 earning $3.6 MILLION DOL- LARS HOUSES. We’ve all heard you can do real estate investing with no money and no credit and Jason is going to show you step by step exactly what he did to make it happen and how you can too. See more online at www.MAREInet.com/KCSouth Be sure to note we have special pricing to attend all 3 events—listed below and posted online. Special Pricing Runs through the end of the evening on Thursday June 6th. Training
  • 34. 34 RE investment News 2013 Wholesale Real Estate Learning Your Market “I want to get into this real estate investing. Where should I start?” This is a question that I often receive and while many factors should go into where you personally start like time and money, I quite often recommend getting your start in this business by learning how to wholesale properties. It does not take a bunch of money to wholesale a house and all the tasks needed in wholesaling should be learned in just about any other type of residential real estate in- vesting. In last months investment news we had a broad overview of Wholesale Real Estate Investing, that is an essential compo- nent of any type of real estate investing. If you can master the art of finding deals, evaluating properties, solving prob- lems for sellers, finding buyers, and selling the deal - the key steps in Wholesaling, then you are ready to take on most real estate transactions. Today we are going to talk about the first step in wholesaling, which is learning your market. When you first start investing in real estate, any type of real estate or move to a new city, you need to learn your market for two reasons. First you need to be able to identify a good deal and Second you need to know what buyers want so you can sell it to them.. First Steps? So where do you start in learning your market? We will break these down, but you need to do some market research on the market as a whole.. Select the area where you want to focus. Then get into more specific online re- search of property values and rental ranges. Last is going to look at houses. Market Research: When you are wholesaling houses you want to find a market where houses are bought and sold. If you focus on a subdivision where people want to live and no one ever moves,, if you get a deal there, you probably have a killer deal But because everyone loves where they live and you basically have to wait for someone to go to the retirement home to be able to buy a house, you might of wasting a lot of time and money trying to find a deal that would work for an investor because houses will be very easy to sell. On the other end of the spectrum is an area where no one wants to live. Here in Kansas City this might be an urban core area where there are a lot of vacant and boarded up homes, very few owner occupied properties and a high num- ber of rental properties. The ideal area for wholesaling will be an area where there is a good mix of owners and renters, where houses sell to both landlords and homeowners.. You will find when wholesaling that the number one buyer of your homes is other investors and you will want to do a bit of market research on what other investors are buying. Here in our office we have investors who are looking for turn key rent- al properties and properties that can be turn key rentals, but in areas where people do what to live. We also see investors buying in areas that are a bit better than renal neighborhood where they have several options with the house from renting it out, offering it on lease option, to potentially selling it to an owner occupant. Our last buyer is the rehabber who is look- ing for a house that they can fix up, list on MLS and sell to an end buyer. Other things to consider would be the availability of jobs in the area. The quality of the schools in the area. Access to amenities and transportation. If any of these attributes are negative, you may want to focus on a bit better area. Selecting Your Farm Area: After researching the various areas in your city, next is to pick the areas you want to focus on first. You can’t learn the entire city at once. By picking one area and learning in well, you will be better able to talk to buyers and sellers about properties. You can always learn one area, deploy your marketing and then add in a new farm area. Just what is a “farm area”? This is the area where you will focus your marketing and community outreach. You will be sowing your seeds so to speak to grow a potential deal and in real estate focusing your efforts on a specific area is called farming. Online Research: After researching your area and selecting your farm area. Spend some time researching the values of homes in the area. One good way is to ask a Realtor friend Wholesale
  • 35. 2013 RE investment News 35 to set you up with an automatic search of mls (the realtor listing service) and have it send you every houses that gets listed, goes under contract and sells so over time you can learn values. You can also spend a lot of time on for sale by owner sites and Zillow.com to see what houses look like, what a typi- cal houses is and what they are selling for and also average rents. As you are researching your farm area you will notice that most areas have three price zones:  Low or Bank Owned Sales Prices  Average Home Owner Prices  All Renovated Updated Prices So depending on how you intend to sell your potential deal you have the blow it out, fixer upper value. The average homeowner price or if it is a rental mar- ket, the average rental home price. And last the value of homes that are renovated and selling retail to home- owners. Looking at Houses: Now you have your area and know roughly where you want to market and the average values. Now you need to get out in the field and start looking a houses. You may hit open houses, go see for sale by owner houses, and possibly hire an agent to go show you houses for the day. And as you market for moti- vated sellers, as you are first getting started, you might want to go look at everything, just to get a feel for houses. So what are you looking at as you look at these houses? First you want to learn just what makes up a typical houses. What are the home styles. How many bedrooms and bathrooms do they have. Are they on crawl space or do they have base- ments. Hardwood floors or tile. Formi- ca or Granite. When estimating repairs, you want to make your average house look as good or a bit better than all the other houses. And when you come across a weird duck, you want to know it’s an odd house. An odd house is not the typical cookie cutter house in your neighborhood. It may be that all the other houses have hardwood and the one you are looking at does not, you need to figure some- one is going to have to put in hardwood floors. If all the other houses have basements and 2 car garages, and your subject house does not, well then it’s going to have to be a lot cheaper than all the other houses. Second you want to look at the neigh- borhood itself. Where are different things that could be potential selling points or detractors located. And over all just become familiar with an area so you can use it in building rapport with a seller. Knowing the school is just down the block or something similar on an initial phone call can be very helpful. See you in our next installment we will learn how to build a buyers list. Don’t Toss another Seller Lead for Lack of Buyers! Let Us Review Your Lead . . . Assign to us or partner with us. kcmoHomeBuyer.com 816-200-2198  Rehab and Retail Houses  Turn Key Rental Properties  Fixer Uppers & Multi Family  Non-MLS Preferred Call and speak with Don or Scott Submit Through Website Houses & Seller Financed Notes Wanted Wholesale
  • 36. 36 RE investment News 2013 4234 Wyoming, Kansas City, MO 64111 $179,900 4 Bed 1.5 Bath Modern Midtown Gem with Google Fiber Scott Tucker RealtyResource 913-620-7934 stucker319@gmail.com 8803 E. 49th St. Kansas City, MO 64129 $37,500 3 Bed 1Bath Completely Rehabbed Kansas City Investment Property – Raytown Schools Estimated NET ROI = 19%! Christoph Becker Blueprint Properties Inc 816–419–1165 info@blueprintprop.com 4025 Paseo Blvd. Kansas City, MO 64110 $19,500 4 Bed 2 Bath Wholesale Deal! Up and Down Duplex! Christoph Becker Blueprint Properties Inc 816–419–1165 info@blueprintprop.com 4522 Forest Ave Kansas City, Mo 64110 $10,000 3 Bed 1.5 Bath This home does need some work, but has LOTS of potential! Christoph Becker Blueprint Properties Inc 816–419–1165 info@blueprintprop.com 3015 Indiana Ave Kansas City, MO 64128 $27,000 4 Bed 1.5 Bath Livable condition and would make a perfect Cash Flowing Invest- ment Property Christoph Becker Blueprint Properties Inc 816–419–1165 info@blueprintprop.com 3128 Waverly Ave Kansas City, KS 66104 $23,000 2 Bed 1 Bath FreshlyRehabbed Bargain Home Christoph Becker Blueprint Properties Inc 816–419–1165 info@blueprintprop.com 4146 Agnes Ave Kansas City, MO 64130 $16,500 3 Bed 1.5 Bath Wholesale Deal with 2 car Detached Garage Christoph Becker Blueprint Properties Inc 816–419–1165 info@blueprintprop.com 10211 Drury Ave Kansas City, MO 64137 $38,000 3 Bed 1 Bath This Home is located in the Hickman Mills School District! Christoph Becker Blueprint Properties Inc 816–419–1165 info@blueprintprop.com 4123 Bellefontaine Ave Kansas City, MO 64130 $18,000 3 Bed 1 Bath A Lot for the Money! SOLID Mid Town Cash Cow. Christoph Becker Blueprint Properties, Inc BlueprintPropertySoltions.com (816) 419-1165 KCInvest MAREInet.com/ Properties Properties 36 RE investment News 2013
  • 37. 2013 RE investment News 372013 RE investment News 37 MAREIMid-America Association of Real Estate Investors Member Digital Library Members can Learn about a Wealth of Real Estate Topics Through the MAREI website  Forms & Documents: log in to the member library to access all kinds of forms, sales and rental contracts to use in your real estate business  Special Reports: MAREI as been col- lecting E-Books for 10 years and adding all of them with real educational content to the library.  Digital Books: We have a small but growing archive of books that have been converted to PDF for you to read on your reader or print out.  Audio & Video: Members also have ac- cess to 100s of hours of training through pre-recoreded webinars and teleconferences saved in the Member Library.  All hosted on Google Drive.  Benefit included in all Membership Plans - Join Today!
  • 38. 38 RE investment News 2013 Monthly Meetings There’s not a better investment in yourself that you could make! At our monthly meetings we host guest speakers, panels and roundtable discussions with industry experts providing insightful and current information for attendees. MAREI meetings are an essential tool for building a comprehensive team for real estate professionals. MAREI works to keep its members up-to-date with the latest infor- mation on the real estate industry. MAREI has built relationships with members and the community at large who provide our members with information they need to be successful in today’s world. We are the place to go for the information you need from the novice to the experienced Real Estate Investor. Monthly meetings are the best place to connect and build relationships with like-minded people and learn a thing or two along the way. MAREI MEMBERSHIP MEETINGS HELD AT: Northland (1st Thursday of the Month) North Kansas City Community Center 1999 Iron Street North Kansas City, MO (816) 300-0433 MAREInet.com/KCNorth Southland (2nd Tuesday of the Month) Career Education Systems/ In Mall 8600 Ward Parkway, Ste 2080 Kansas City, MO (816) 444-7277 MAREInet.com/KCSouth Upcoming D ates June 6th Meeting: Joint Ventures: Learn how to grow your real estate business or any business for that matter with Joint Ventures from our guest speaker Shaun McCloskey. Plus networking 6 to 6:50 June 8th Workshop: Title Services from ordering title to closing the transaction, learn the process from start to finish with the team from Accurate Title. 8:30 to Noon June 11th Meeting: Flipping Short Sales: Guest Jason Roberts went from broke mortgage lender in 2010 to earning millions in 2011 by flipping short sales . Plus Networking from 6 to 6:50 June 15th Seminar: Short Sale Wealth Seminar. Learn how to profit from PreForeclosures. Plus bonus ses- sion on Debt Free Investing. Guest Trainers Shaun McCloskey and Jason Roberts. All Day. MAREIMid-AmericaAssociation ofRealEstateInvestors ARealEstateCommunity GUEST PASS Name: ______________________________ Date: _______________________________ Email: _______________________________ Source: ______________________________ For first time guest to visit meeting. GuestPassisavailableforfirst timeattendeestoMAREI.Ifyou haveattendedbefore,explore membershipoptionsorpay guestfee. Events More Education & Networking Opportunities MAREInet.com/Calendar
  • 39. 2013 RE investment News 39 I nvestment News Page 5 LET US HELP KEEP PROPERTIES MARKETABLE Keep Costs Under Control & Meet Tight Deadlines Dedicated to your Success, With Solutions for Every Surface & All the Essentials EXCLUSIVE MEMBER DISCOUNT MAREI as a member of National REIA is able to bring our members the exclusive Sherwin William Discount Card that offers unbeatable savings on paint, applicators, floorcovering, paint sundries, wall covering, spray equipment, and even window treatments! Members look for your discount card in your members Benefit Pack- age or download from the Member’s Discount Section of the MA- REI Member Library. National Account Services Our strategic account teams can simplify processes and maximize efficiencies with centralized account management. LEED® & VOC Coatings Download the latest guide on our prod- ucts that meet LEED® and low VOC specs. Color Services Find out about our color design services for properties and read about the latest color trends. Flooring Products & Installa- tion Wide variety of name brands, 24-hour turnaround and reliable installation. Commercial Wallpaper Sherwin-Williams is your one-stop source for commercial wall covering. Over 5,000 residential and commercial wallpaper collections available. Commercial Floor Coverings From carpeting to sheet vinyl, select the right floorcovering specific to your needs. Fully stocked national network, fast turnaround and reliable service. HomeScapes® Enhance curb appeal and make selection easier with pre-selected exterior color schemes. Finishing Touch™ Builder Support Program Comprehensive Program for your Home Buyers: Welcome Kits, Discount Cards, and Model Home Programs. ASK SHERWIN WILLIAMS Find out more about all these products and ser- vices offered by Sherwin Williams plus their Chip It Online Color Matcher, ColorSnap Studio for iPad and their Paint Pro Alerts by Text at www.Sherwin-Williams.com . EXCLUSIVE MEMBER DISCOUNT MAREI as a member of National REIA is able to bring our members the exclusive Sherwin William Discount Card that offers unbeatable savings on paint, applicators, floorcovering, paint sundries, wall covering, spray equip- ment, and even window treatments! Members look for your discount card in your members Benefit Package or download from the Member’s Dis- count Section of the MAREI Member Library.