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M I D - A M E R I C A A S S O C I A T I O N O F R E A L E S T A T E I N V E S T O R S
Mid-West Real Estate Expo from Realty 411—April 20th, at time of printing 160 people registered! Page 27.
Investment News
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NETWORKING : EDUCATION : COMMUNITY : GOVERNMENT
April 2013
Page 2 MAREInet.com
FREE Gift for APRIL
Meeting Attendees
Personal Real E state
Investor Magazine
March / April 2013
Special Feature Section
NoteWorthy Guide to
Profitable Investing in
Real Estate Notes
@
Check out our Website
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In This Issue
Multi Family
6
Fundamentals—
Do Not Face a Cliff
The Real Estate Industry
8 Has Seriously Dropped the Ball
Audio Postcards
10 Grab Attention & Increase Leads
Self Storage
14
Market Your Self Storage Facility
at Maximum Velocity
Getting Established
18 Your Business Resume
20 Case Study
Real Estate Investing Food
for Thought
24 Funding Your Deals
8 Step Process
Every Issue
12 Benefits at a Glance
18 Membership
22 Investment Opportunities
28 Monthly Calendar
Investment News Page 3
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Page 4 MAREInet.com
Mid-America Association of
Real Estate Investors
The only National REIA Chapter
in the Tri State Region
Serving KS, MO & NE
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Investment News Page 5
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2014, so that 2013 figures hover closer to 130,000
units—not far off from the pre-recession 10-year av-
erage. The “bubble” now shows up in 2014, but if
economic growth ramps up by then (Moody’s Econo-
my.com is projecting GDP growth of over 4 percent
in 2014, up significantly from 2.0 percent in 2012 and
2.9 percent in 2013), the additional supply will most
likely be absorbed relatively painlessly.
This is not to say that certain metros will not be at
risk. Washington, D.C. and suburban Maryland, for
instance, both face historically high inventory growth
prospects over the next couple of years; these met-
ros cannot rely on solid demand drivers like strong
employment growth in certain sectors such as tech
to push demand for rentals like Austin, Texas or Se-
attle.
While the single-family housing market finally ap-
pears to be on the mend, this does not automatically
mean less demand for multifamily. Jay Lybik, vice
president for market research at Equity Residential,
(Continued on page 7)
Nov 13, 2012 11:59 AM, By Victor Calanog, NREI Contributing Columnist
Much has been written recently about potential
risks to overbuilding in multifamily—in fact, I com-
mented on this issue last April in my NREI column,
but I noted that analyzing the supply side is not
enough. Demand for apartments will remain strong,
and will rise further if economic growth quickens.
Apartment fundamentals have bounced back robust-
ly since the recession ended in June 2009. Despite
middling economic growth, the national vacancy rate
dropped sharply from a peak of 8.0 percent at the
end of 2009 to 4.6 percent in the third quarter of
2012. Vacancy rates that are this low have not been
observed since late 2001.
Asking and effective rents have risen for 11 consec-
utive quarters and in many areas have surpassed
previous peaks achieved in the third quarter of 2008,
before the fall of Lehman Brothers. Landlords face
little pressure to offer concessions given how tight
rental markets are in most places.
Construction also remains tight, with less
than 37,000 units coming online over the
last three quarters of 2012. An additional
18,000 units are expected to open their
doors in the fourth quarter; that adds up to
about 55,000 units for the year, a slight
increase from 2011 but well below the
125,000 annual average from 2000 to
2009.
GRADUAL RETURN TO NORMALCY
Earlier in 2012, there were signs that con-
struction would spike in 2013, in the order
of 150,000 to 200,000 units. Developers
have since postponed many projects to
Investment News Page 7
www.CoffeltLandTitle.com
For title, escrow,
1031 & foreclosure.
Bud Whisler
816-380-3441
a Chicago-based REIT, tracks
move-outs very closely every
quarter and has witnessed little to
no change in the number of resi-
dents leaving to buy a home. Data
from the National Association of
Realtors also shows first-time
home-buyers percentage of sales
flat after spiking due to the Home
Buyer Tax Credit, which expired in
2010. Single-family homes that are
(Continued on page 26)
APARTMENT HOUSE
INVESTING
MAREI April 4th Monthly Meeting
With Worcester Investments
6:00 pm Networking
7:00 Announcements
7:15 Presentation
Investor & Business Members No Charge
Non-Members / Internet Members Fee
More info at MAREInet.com/KCNorth
The Trusted Name in Kansas City
Apartment Investing
www.Worcester-Investments.com
ASSET PROTECTION
INSURANCE AGENCY
 REO Insurance
 Forced Place
 Vacant Property
 One Policy All
Properties
 Monthly Billing
The Real Estate Industry has seriously
dropped the ball! And this is not a recent
occurrence….
The big winner through the past few dec-
ades has been the financial services indus-
try. People have to invest their money
somewhere, and when real estate agents,
brokers, property managers made it FAR
TOO complicated to invest in houses, they
turned to the sophisticated and finely tuned
model of the stock market. This well-oiled
machine has done a great job of catering
to those in their wealth accumulating
phase of life. And it seemed that only
those real estate investors
that were ‘hands on’ with
their investments were the
ones able to buy and properly
manage rental property.
The fact that Financial Advisors have in-
grained themselves in American culture to
the point that anyone wanting to put some
money aside for retirement is naturally go-
ing to do it through mutual funds or stock
investments says a lot about their customer
service!
Not that investing in the stock market is a
bad thing! Not at all…..but by comparison,
the fact that the RE industry has languished
behind in allowing the average John Doe an
a v e n u e t o i n v e s t h i s h a r d
earned money in Real Estate is a real
shame.
Now dawns a new age of investing . . .
where geography and physical presence
mean nothing. In the same way that you
don’t need to drive to Atlanta and tour the
Coca Cola plant to feel comfortable invest-
ing in Coca Cola stock, SBD Housing’s de-
tailed 9-page Investment Prospectus more
than prepares an investor to make an in-
formed buying decision. SBD Housing So-
lutions is a Kansas City based operation but
(Continued on page 9)
The Real Estate Industry
Has Seriously Dropped the
Ball!
Page 8 MAREInet.com
Although I am not naïve
enough to think I can change
an industry single handedly,
I believe that we in the Real
Estate services industry can
all do our part to bring some
credibility back to the sound
investment option that
is…..housing.
Marck de Lautour, BBA MBA
SBD Housing Solutions
ing properties, the acquisi-
tion, utilities, construction
estimates, project manage-
ment, remodel, bill payment,
leasing and property man-
agement. Our clients know
that the ‘value added’ is in
the details. Being able to in-
vest in Real Estate with the
same ease as the stock mar-
ket has always been the
goal.
has clients from as far as
Brazil, the U.K., Australia,
South Africa and Hong Kong.
Most have never seen the
assets that they own, and
yet are cashing the monthly
rental checks every month
like clockwork.
As an all-inclusive real estate
investment firm, we special-
ize in building wealth for our
clients. Taking a leaf from
the Financial Planners book,
we actually take the time to
sit and discuss a plan of ac-
tion with our clients; where
do they want to invest, what
cash do they have available,
do they plan on leveraging
their assets, when will they
be looking to use the cash
flow as an income source for
retirement, all of which are
just pieces of a very personal
and unique puzzle.
At SBD Housing Solutions we
handle the entire operation
for our clients. From target-
(Continued from page 8)
Investment News Page 9
Building Wealth
Through Real Estate
www.SBDHousing.com
816-994-9401
C AS E S T UD IE S
DUE DILIGENCE
MAREI April 9th Monthly Meeting
With Marck de Lautour
6:00 pm Networking
7:00 Announcements
7:15 Presentation
Investor & Business Members No Charge
Non-Members / Internet Members Fee
More info at www.MAREInet.com/KCSouth
W hy Bu y Now In
Kansas City
Realty 411’s
Mid-West Real Estate
Investing Expo
Saturday April 20th
No Charge
Register
MAREInet.com/Realty411
Buying Bus Tour
Sunday April 21st
Page 10 MAREInet.com
Audio Postcards will bring leads faster working
FSBO's
Listen to my Sample:
http://www.MAREINet.com/Audio-Gen
This is such a great marketing method. On our FSBO mar-
keting we do, we get nearly 30% calling us back. That is
phenomenal. Below is the audio I used in the postcard as a
sample for you to listen to.
MakingOfferswithaudiopostcards
The strategy I use is quite simple for making offers. I will
set up searches on sites:
www.fsbo.com
www.forsalebyowner.com
www.owners.com
www.4salebyownerusa.com
www.topfsbo.com
www.buyowner.com
I set up the search to
display results: All
houses within 10 miles
of ZIPCODE with 3
bedroom, 2 bath , gar-
age.
Then I will view each property the search returns to me.
Then I go to the contact information section. In the email
reply form, I simply cut and past the code
from AudioGenerator to the form and press submit.
Voila. Offer is done. I direct them back to my website and
then I collect only the motivated seller leads.
This is also a great way to post your customers audio
testimonial right on your website. I also recommend us-
ing these postcard to make generic house offers to open
the door to negotiations. This simple postcard took all of
about 5 minutes to create.
Think of the impact this type of product could make on a
promotional campaign. You could announce your house
buying program to motivated FSBO sellers, talk about a
new property you just listed, send a thank you note. The
ways you can use this are plentiful. Best of all the pro-
cess is very simple doesn't require the listener to down-
load any software or plug ins.
On first thought, they may seem like a a cutesy-gimmicky
Duncan Wierman
Real Estate Investor & Internet Marketer
Article from Duncan Wierman at www.DuncanWierman.com
How I Use Audio Postcards to
Grab Attention and Increase
Leads from FSBO’s.
Investment News Page 11
www.APIA Protects.com
ProSource of KC West
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Offering a range of flooring
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solution but not many people are using this techniques
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HARNESS THE INTERNET AND EXPLODE
YOUR REAL ESTATE BUSINESS
WITH DUNCAN WIERMAN
SPEAKING AT THE REALTY411
MID-WEST REAL ESTATE EXPO
www.MAREInet.com/Realty411
www.AccurateTitleCo.com
913-338-0100 phone
Title Services Provided for:
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Learn how to save money at Home De-
pot and register for a 2% Rebate for all
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City. And coming in 2013 the New
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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
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meetings of MAREI.
Landlord Services
Office Solutions
Suppliers
Marketing
News & Information
Page 12
Member Benefits
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 op-
portunities for other members
and site visitors to browse.
The Member Library is packed
and ever growing with pdf ver-
sions 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 materi-
als, 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
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MAREI’s Political Advocacy Group
actively monitors national legisla-
tion and rule-making that im-
pacts the real estate industry and
harnessing the strength of MAREI
members at the grassroots level.
MAREI mem-
bers also re-
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when there is a
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members to
take action on
an important vote.
Members also
have access
to the latest
in Market Da-
ta.
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VISIT
ww.MAREInet.com
Look under Resources &
Members Only
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Page 13
Page 14 MAREInet.com
First impressions are always the BEST! Customer service,
that’s a huge key to success in this industry. We go through
a checklist in our training, it goes something like this:
• Find out the needs: large vs. small, long term vs. short
term
• Why do they need self storage? Then appeal to them on
that level: moving, business, divorce, downsizing, college
student.
•Have you told them about the discounts, perks and added
advantages you offer? 24 hour security, easy rental pay-
ment, temperature controlled units.
• Don’t forget to tell them about how they can save money:
referrals, upgrading, first month free, savings for auto pay.
• Let them know about extended services: need a truck?
How about a business center? Boxes? No problem we offer
those here. Let them know everything that they can do in
your one stop location.
•Have them fill out a visitor’s card and the show them
around, let them know the units available in the size they
want.
**Extra tip: follow up with them if they leave and reach out
asking if they found what they needed. If not you are still
there to help.
You can bet that “in the day of the life” of a self storage
owner or manager, it will rarely be a dull one. It takes pa-
tience and the outstanding ability to communicate well with
both agencies, your staff and your tenants.
Your potential hinges on happy tenants. With the right tools
and the right education or coaching, your experience as a
Self Storage Owner or Manager can be the start of a re-
warding career in the self storage industry.
Author: Kevin Rollings, CSSM© is the owner and CEO of
Alcatraz Storage, Hoosiers Self Storage, and Self Storage
Facility Management. He will have a booth at the Real-
ty411 Mid-West Real Estate Investor Expo.
Whatever the situation is Kevin and his team have the an-
swers! Visit online at:
www.selfstoragefacilitymanagement.com
and get your 30 minute evaluation FREE!
Wow, you have the keys! NOW WHAT?
You are at YOUR self storage facility. Even though occu-
pancy is lower than you want it to be, suddenly you feel
your excitement level building. Why? This is your dream,
you are an entrepreneur now. You see the future, your
dream and are ready to make it happen.
What does the average renter think about when they think
self storage? Downsizing? De-clutter? Too much stuff,
but want to keep it?
Think about how often you see self storage facilities. It
must be a busy business with people storing their treas-
ures, because self storage is everywhere.
It would be nice if those of us in self storage had a magical
self storage wand to wave and “Voila, we have 100% oc-
cupancy!”.
Unfortunately the average is 76% occupancy. Why? Be-
cause we do not use everything available to us. So, how
do I promote my facility. What will make my place stand
out and above the rest?
Owning or managing a self storage facility will allow you to
get to know the customer service industry up and close
and personal. BUT, it goes beyond that!!!
How do you spread the word about your facility? Do
you do any of these?
• What is your web presence? Do you have a website? Is
it accurate? Does it do what you want? Have you tried
local advertising? Flyers, newspapers and signs.
• Community sponsorship; i.e., churches, community
sports, parades...
• Media: do you have a Facebook or Twitter account? Air
spot on the radio, TV news commercial?
•Your current clients: Did you let them know that there was
a change in management, have you asked them to tell
friends? Have you let them know you appreciate them?
• Are you promoting it: car wash, free dump day, customer
appreciation day? Typically when visiting a self storage
unit facility, you will be greeted by the self storage manag-
er or owner.
Market Your Self Storage Facility
At
MAXIMUM VELOCITY
Investment News Page 15
SHOWHOMESADDSVALUETO
VACANTHOUSESBY:
 Transforming vacant houses into valuable, cared-for homes
that buyers respond to.
 Keeping each home in show-to-sell condition seven days a
week.
 Employing a professional decorator to decorate each home
using proven staging techniques, maximizing its appeal to
buyers.
 Hiring carefully screened and qualified Home Managers to live
in and manage each home throughout the sales process.
www.ShowHomesKansasCity.com
913-227-4364
 Residential
 Commercial
 Renovation
 Demolition
 Flatwork
 Foundations
Full service construc-
tion company offering
upgrades, curb ap-
peal, remodel, or
complete renovation.
Call for References!
Robert Massey
Building Trades
816-868-1817
Property Management
Section 8 Housing
KC Metro Wide
Jeff Woods
Broker
www.MyPremierLeasing.com
816-849500
Page 16 MAREInet.com
Renewing
Albert Abraham (since 2009): Shawnee, KS
Josephine Abraham (since 2009): Shawnee, KS
Jerry Blair (since 2010): Weston, MO
Jeffrey Bonner (since 2010): St Joseph, MO
Larry Christensen (since 2008): Weatherby Lake, MO
Jennifer Crouch (since 2011): Overland Park, KS
Chris Elliott (since 2009): Leawood, KS
Ed Ethington (since 2008): Kansas City, MO
Mark Fortin (since 2010): Raytown, MO
Eric Gentry (since 2013)
David Klein (since 2011): Kansas City, KS
Dick Klein (since 2011): Kansas City, KS
Sharon Klein (since 2011): Kansas City, KS
My Le-Tam (since 2008): Grain Valley, MO
Nan Li (since 2010): St Joseph, MO
Rod Longanecker (since 2010): Osage Beach, MO
Joyce Myer (since 2009): Kansas City, MO
Marilyn Mai (since 2007): Salina, KS
David Nachman (since 2004): Kansas City, MO
James New (since 2007): Kansas City, MO
Tom Novacek (since 2012): Grandview, MO
Dena Odom (since 2011): Prairie Village, KS
Ben Rao (since 2011): Lee’s Summit, MO
Kathleen Stegman (since 2007): Leawood, KS
Steven Swanson ( since 2007): Lee’s Summit, MO
Bob Van Cleave (since 2008): Basehor, KS
Business Members
KC Show Homes: Kent Welch & Michelle Davis
New Members
Brant Asbell: DeSoto, KS
Daniel Ashley: Oak Grove, MO
Kevin Baird: Independence, MO
Albert Becorra: Shawnee, KS
Charles Buk: Harrisonville, MO
Lonnie Clark: Grain Valley, MO
Brennan Cribbs: Lenexa, KS
Bog Docman: Kansas City, KS
Brian Fletcher: Olathe, KS
Kevin Flippin: St Joseph, MO
Robyn Flippin: St Joseph, MO
Kamal Fuleihan: Olathe, KS
Roberto Gonzalez: Kansas City, MO
Courtney Hollars: Olathe, KS
Zack Kern: Overland Park, KS
Kara Knisely: Peculiar, MO
Travis Knisely: Peculiar, MO
George McMillian: Platte City, MO
Marjorie Mudari:
Gene Ormsby: Liberty, MO
Phillip Syrios: Kansas City, MO
George Verdugo: Kansas City, KS
Marc Willis: Blue Springs, MO
Investment News Page 17
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This article was adapted from an article written by W. Eddie
Speed for the training of buyers and sellers of mortgage
notes, but the concepts are valid for all forms of Real Es-
tate and for finding private lenders.
One of the most important tools for success is presentation
of your company. In the beginning a company needs to
make a statement about itself. This can be accomplished in
the name you select and any logo or design that you create
and becomes your signature. This signature becomes your
identity and makes a clear statement of your business.
Your signature needs to appear everywhere, and every
time you do business. it should be attached to each of your
emails on your signature line, on your letterhead, on your
fax cover sheet, on your business cards, on your bid
sheets. Your company name, your logo, your signature is
your statement you are ready to do business. It makes you
powerful.
Consider the clientele when you select your operating
name or DBA, Doing Business As; FBN, Fictitious Business
Name; LLC, Limited Liability Corporation; INC, Incorpora-
tion. You will be knocking the doors of Financial Business-
es and Corporations. From your very first introduction you
want to lay the ground work to be taken serious in this very
serious business. When notices are sent to the mortgagors,
attorney’s, Bankruptcy trustees, you will want your signa-
ture to make a short and powerful statement.
So if you were to select KC Home Buyers, LLC or ABC LLC
would be a better choice that Super Cool Real Estate In-
vestors.
Credentials
Building a resume, remember your resume is a business
resume not a personal one. Of course you are your busi-
ness, but at the same time they are not so much interested
in the jobs you had in the past 10 years but in the
knowledge you have acquired from those jobs. They want
to see an establishment worthy of doing business with and
the leaders of that establishment. It is important how you
present yourself. If they do
not know you they will need
to have some tangible evi-
dence of your stability, so a
good resume with practicing
knowledge of what you are doing is good also.
“I have been in the note buying business for 5 years and
have traded notes with ABC lender, Colonial Finance,
etc… Something that says you did not wake up this morn-
ing and decide I want to buy something… ahh, notes
sound good! They do not have time to teach you. In addi-
tions you will need some reputable references. Your bank
President, if you do not know him well enough to put him
on your resume shame on you! Two bank presidents,
even better. Officers of Civic groups, references that say
you are in good standing and well known and respected in
your community and business world.
Remember you are going to be collecting notes that had
their company name on them, they do not want to risk sell-
ing them to inexperienced, potential problem makers, they
cannot afford to risk their reputation. Join the Chamber of
Commerce. Let everyone you know, know you buy de-
faulted notes. Carry your business cards and pass them
out frequently. You never know who has a connection with
which bank or lender who would perhaps be interested in
something you have purchased.
If you are looking for private funding, your credentials will
come into play as it does in note investing, and can also
be helpful in other areas of real estate.
ChamberMember
Belonging to your local Chamber of Commerce and at-
tending their weekly meetings are a good habit to get into.
There is usually a representative from each local bank at
the meeting. In fact, there is a wide variety of businesses
at each meeting. it is a wonderful place to become com-
fortable in introducing yourself, explaining what you do,
Establish Your
Business RESUME
Investment News
Page 19
WHY EVERY
REAL ESTATE INVESTOR
MUST LEARN NOTES
See Eddie Speed Live
St Louis Missouri
Saturday April 27th
Sign Up At
www.StreetREIA.com
W. Eddie Speed is Founder
of NoteSchool. Since 1980,
Eddie has dedicated his
career to the science of
buying both Performing
and Non-performing Notes.
12 MILLION
DELINQUENT
MORTGAGES
< 500,000 REO’S
IN USA MARKET
who you would like to do business
with and what you may have to offer
or gain. The Chamber is always a full
house of businesses who want to talk
about themselves and listen to you
talk about yourself; a great place to
become proficient in your favorite sub-
ject, your business. Listen to what
people have to say about themselves
and tailor your speech by picking up
good habits you hear, not repeating
bad habits.
Financial Ability
You are going to be doing business
with corporations, lenders, banks, and
mortgage companies. All of these in-
stitutions are governed by lending
laws. They will want to know as much
as possible about who they are selling
their loans to. You will want to build a
good report with the institutions you
want to do business with. You will
want them to be so confident in you
that they will come to depend on you
as the person who will be reliable to
make a quick solid purchase of the
notes they have to sell.
Most of these companies will not be
local to you so in order to “meet” them
you will be making a phone call and
you will want to have a resume with
good credentials and references. You
want them to feel confident in your
ability to purchase the notes and to
handle them under the same legal
guidelines they must.
NameandOrganization
The process of setting up your busi-
ness offers a wise variety of choices
with each has pros and cons. Listed
below some web sites that have easy
to follow guidelines and helpful infor-
mation. If setting up a corporation or
LLC is more that you want to take on
at the moment filling a DBA may be
better suited for you. One fabulous
certainty, we live in a time when there
is an overabundance of information
on the web if you look. Some good
websites to explore if you are attempt-
ing to establish a new company your-
self:
www.activefilings.com/resources
www.entrepreneur.com
www.mycorporation.com
Creating youowndomainname
If you would like to create an email
address and include your company
name there are many avenues to ac-
complish the task. Depending on who
you are getting your email service
from will drive the selection choices
for your email address.
These are some of the many free
email services:
www.hotmail.com
www.yahoo.com
www.google.com
With free web mail services you can
create a name like:
cweaver@hotmail.com
colonialfunding@hotmail.com
Or you can purchase your own do-
main and create versions like:
Page 20 MAREInet.com
I recently attended a training event and was exposed to an
interesting real estate investing model that I wanted to
share to get feedback from everyone who reads this arti-
cle.
This model involves finding motivated sellers, using a bird
dog, seller financing and buying and selling notes.
At the start of the scenario the person in charge of every-
thing is the Facilitator. The Facilitator has been working on
coaching a group of bird dogs on how to go out and find
highly motivated sellers in lower end priced neighborhoods
that retail around $50,000.
In the process one Bird Dog finds a motivated seller who
wants to sell their property for $20,000. The Facilitator
helps the bird dog figure out what areas to approach, how
to connect with sellers, how to talk to sellers and then
sends the Bird Dog out to start looking for properties and
the Facilitator helps in the negotiation of the purchase con-
tract.
The Bird Dog then goes out and finds and end buyer who
wants to purchase the home to live in for $50,000. The
buyer is going to put $3,500 in down payment money and
the remaining purchase price would be in the form of a
seller financed mortgage for $46,500.
Are you with me so far, house for sale for $20k to the Bird
Dog who is then selling to Happy Family for $50,000.
Happy Family has $3,500 to put down and are going to
sign on seller financed note for $46,500. Sounds great so
far, but where is the money coming from? That was my
question.
The Facilitator is going to be the one with the money. He
is going to buy the mortgage note for a discount from the
Bird Dog. What he pays will depend on what the Bird Dog
is to get paid. So if the Bird Dog is to get paid $1000 and
the Motivated seller wants $20,000, the title company is
going to want about $1000 in fees and the Happy Family is
bringing $3,500 to the table, then the Facilitator needs to
bring $18,500 to the closing table to purchase the note and
fund the deal.
Motivated Seller wants: $20,000
Bird Dog gets paid: $ 1,000
Title Company Fees: $ 1,000
Total Needed: $22,000
Less Down Payment: $ 3,500
Cash from Facilitator: $18,500
So at the end of the transaction:
The Motivated Seller got paid $20,00
The Bird Dog Got Paid $1,000
Happy Family Got a New House for only $3,500
down
And the Facilitator holds a $46,500 Note with only
$18,500 into the deal.
Case Study
Kim Tucker
$20k
$50k
$3,500
46,500
$18,500
Bird Dog Makes $1k
Investment News Page 21
Now, assuming everyone does their
homework and paperwork correctly
and the Happy Family Buyer is
screened properly, this is a very prof-
itable deal for everyone involved.
But with a bit of work, it can be even
more interesting.
One option for this case study is for
the Facilitator to do this deal directly
from a Self Directed IRA Account and
then the Facilitator’s SDIRA is receiv-
ing payments on the note instead of
taking profit for his own use.
In the workshop I attended, the Facili-
tator wants to offer the house at a
price a bit under market, with an inter-
est rate and amortization time frame
that will allow the monthly principle,
interest, taxes and insurance to be
significantly LESS than what market
rent is in the area. So if market rent is
$750 a month, then he wants the pay-
ment to be about $650. So it would
cost the home buyer more to default
on the loan and go rent the house
across the street. On the opposite
side of the coin, the low interest rate,
keeps them in the seller financed note
rather than refinancing to a traditional
lender as their credit improves be-
cause their seller financed interest
rate is not too much higher than what
banks are offering.
So what does this $46,500 note look
like if we put some numbers to it?
Remember the goal is to have princi-
ple, interest, taxes and insurance at
less than monthly rent. So in this ex-
ample the loan is amortized over 10
years or 120 months and the interest
rate for Happy Family is 5%. This
makes the P & I payment $493.20.
Add $120.00 for taxes and insurance,
and their total payment is about $620.
Now, this is where it really gets inter-
esting. The Facilitator can sell the
first 1/2 of the loan to another Inves-
tor who does not have the time or
inclination to go out and do real es-
tate deals, but who want to get better
returns on their money that they are
currently receiving from the bank or
the stock market. In the scenario I
saw, the Facilitator could sell the first
1/2 of the $46,500 note for $20,000.
So if the Investor were to purchase
the first 60 months of payments they
would be scheduled to receive
$29,592 in principle and interest pay-
ments. Then after 5 years the Facili-
tator gets the note back and the right
to the last 60 months of $493.20 pay-
ments.
(Continued on page 26)
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Page 22 MAREInet.com
3709 E 36th St
Kansas City, MO
$2,950 3 bed
1 bath
Dirt Cheap House for
Sale $2,950. Make
me an offer I can’t
refuse.
Larry Myer
kcRealEstate1@gmail.com
ICRRealEstateServices.com
12002 E Alberta St
Sugar Creek, MO
$26,500 3 bed
1 Bath
Hottest Deal –12002 E
Alberta St—Newly Re-
habbed, Quite Area
Beatrice Gicharu
kcPropertiesSite@gmail.com
816-974-8404
7806 E 113th St
Kansas City, MO
$39,900 4 Bed
1.5 Bath
Ruskin Ranch, Turn Key
4 Bed, 1.5 Bath, Rented
$650 a month, ask about
Package Pricing.
Donald Tucker
GBIFunding.com
Don@GBIFunding.com
816-523-4400
14115 Merrywood Dr
Grandview, MO
$39,900
Townhouse
3 Bed
1.5 Bath
Turn Key Grandview
Townhome. Rented for
$700 a month.
Donald Tucker
GBIFunding.com
Don@GBIFunding.com
816-523-4400
2 Houses Near
Ft Leavenworth
$120,000 3 Bed
1 Bath
Each
2 Great Properties, 1
Great Price near Ft Leav-
enworth Base. 1 duplex
& house. 650 –700 / unit
Stephen Davies
DCHomeINvestors.Webs.com
816-756-2186
3342 Bellefontaine
Kansas City, MO
$30,000 4-5 Bed
2 Bath
Recently Renovated.
2251 sq ft. $30k Or
best offer.
Stephen Davies
DCHomeINvestors.Webs.com
816-756-6735
913 NE 44th ST
Kansas City, MO
$60,000 3 Bed
1 Bath
Newly Renovated
Home with 20K po-
tential Profit
Stephen Davies
DCHomeINvestors.Webs.com
816-756-6735
15400 Johnson Dr
Shawnee, KS
$275,000 4 Bed
3.5 Bath
Deeply Discounted!!
Shawnee Home
Needs your Special
Touch.
Makeba Hart
Virtue Investments, LLC
Makeba@Virtue-
Investments.com
816-665-0491
4220 Brooklyn Av
Kansas City, MO
$39,500 4 Bed
2 Bath
Turn-Key with 2 Car
Garage. $800 /
month Rent 20$ Net
ROI
Christoph Becker
Blueprint Properties, Inc
BlueprintPropertySoltions.com
(816) 419-1165
Investment News Page 23
MAREI Member Properties
MAREInet.com/Properties
2421 Stewart Av
Kansas City, KS
$14,000 2 Bed
1 Bath
Cash Cow! Livable Home
in Kansas City
Christoph Becker
Blueprint Properties, Inc
BlueprintPropertySoltions.com
(816) 419-1165
2903 NB 74th St
Kansas City, KS
$29,500 2 Bed
1 Bath
KCK Property in 66109
zip. Steel Siding, Good
Windows
Christoph Becker
Blueprint Properties, Inc
BlueprintPropertySoltions.com
(816) 875-6226
2019 E 82nd Tr
Kansas City, MO
$12,000 2 Bed
1 Bath
Fixer Upper, KCMO.
Mechanicals are pre-
sent and working order
Christoph Becker
Blueprint Properties, Inc
BlueprintPropertySoltions.com
(816) 875-6226
8080 W 51st
Mission, KS
$79,900 3 Bed
3.5 Bath
Walk
Out
Cheap 2 Story Mission
House on Acreage.
ARV $150k.
Chad Bartlett
HomeRemedyKC.com
HomeRemedyKC@gmail.com
913-735-5598
2212 E 70th St
Kansas City, MO
$22,000 2 Bed,
1 Bath
Turn Key Rental Prop-
erty in KCMO. Rented
for 550 moth
Donald Tucker
GBIFunding.com
Don@GBIFunding.com
816-523-4400
2203 E 70th ST
Kansas City, MO
$22,000 3 Bed
1 Bath
Turn Key Rental Prop-
erty in KCMO. Rented
$779 / mo Section 8.
Donald Tucker
GBIFunding.com
Don@GBIFunding.com
816-523-4400
805 NE Lindberg Dr
Kansas City, MO
$79,000 3 Bed
2 Bath
Excellent Investment -
Fully Rehabbed - Move
in Ready
Christoph Becker
Blueprint Properties, Inc
BlueprintPropertySoltions.com
(816) 875-6226
3028 NE 53rd St
Kansas City, MO
$59,000 3 Bed
2 Bath
Bsmt
Gar
Excellent Investment
or Retail Flip—80%
Rehabbed in North-
land. Multiple Exits
Christoph Becker
Blueprint Properties, Inc
BlueprintPropertySoltions.com
(816) 419-1165
2 Properties
Independence,
MO
$19,500 2 Bed
2 Bath
2 Houses for the Price
of 1. 2220 & 2222 S
Arlington.
Christoph Becker
Blueprint Properties, Inc
BlueprintPropertySoltions.com
(816) 419-1165
Page 24 MAREInet.com
Did you find a great deal? If you
can't factually support a great deal
to your potential investors, then it will be hard to raise mon-
ey. It's the most critical thing you need in your arsenal
when approaching investors for money.
With a great deal, using this 8-Step process will almost
guarantee your fund raising success.
Raising money is a process and it gets easier every time
you do a deal because you are planting seeds with poten-
tial investors. Some investors may not invest in your first
deal, but will invest on other deals.
The best source of future equity is from your existing inves-
tors. Happy investors want to invest more, and the best
part, they spread the word and bring in other investors. It's
like a snowball going downhill; the longer it goes down the
hill, the bigger the snowball gets. I want to help you start
building your snowball.
8-Step Process to Finding and Closing Investors
I have created an 8-Step process to raising equity for your
great deals that will allow you to get your snowball rolling
downhill. The most important thing to stay focused on when
using this system is that raising money is a process not an
event. You have to stay focused on working each and eve-
ry step, as outlined below. is the 8-Step Process:
1. Develop a Pitch Book: Create a unique business plan
and investment strategy to capitalize on today's great buy-
ing opportunity. What's your strategy to make money in-
vesting in real estate? Package your plan up in a short 6 –
8 page pitch book.
2. Develop a Potential Investor List: Make a list of poten-
tial people that may have an interest in investing in real
estate. The best place to start is friends and family. This list
outlines some of the best places to find investors for your
list:
1. Business associates
2. Accountants who have clients who want to invest in
real estate
3. Financial planners
4. Attorneys who have clients who want to invest in real
estate
5. Real estate agents know potential investors
6. Insurance agents who have wealthy clients
7. Property owners who invest in real estate
This list will be your starting point. Make sure you ask peo-
ple on your list if they know anyone else that might have an
interest in investing in real estate. You'll be amazed at how
many people will refer others.
3. Conduct Investor Meetings: Make breakfast or lunch
meetings with people on your list. Review your pitch book
during your meeting and determine if there is interest. Dur-
ing this meeting you are not selling anything, you are only
finding out if an interest exits with your potential investor.
The most important element coming out of these meetings
is new relationships.
4. Build Investor Database: Potential investors who have
an interest in your plan are added to your database. Your
goal is to build as many potential new investors in your da-
tabase. Stay in contact with potential investors in your data-
base by sending them articles, stories, stats, and so forth
relative to real estate investing and your business plan.
8 Step Process for Finding and
Closing Investors for Deals
By Craig Haskell.
Craig Haskell is author of, The Inside Game to Real Estate Value Investing, and founder of an invest-
ing site, ValueHoundAcademy.com, that brings together a community of opportunistic and value
minded real estate investors who are serious about learning new approaches to capitalizing on to-
day's "Once in a lifetime" buying opportunity.
Investment News Page 25
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5. Investor Documentation: Investor
documentation is created using pro-
fessional assistance. Your attorney
will prepare the legal documents re-
quired to approach potential investors.
Don't skip this step because you are
afraid to spend money. When you
close on the deal, the legal fees will
be paid from the partnership entity
you created and raised money for.
6. Deal Fund Raising: Now that you
have the proper documentation, you
can approach potential investors in
your database to raise money for the
great deal you have uncovered. Why
is it so important to find a great deal?
Because potential investors will see
the fantastic profit potential, taking
much of the spot light off of you, the
new sponsor. Also, having a great
deal will get you excited, and that ex-
citement, will show during your com-
munication with potential investors.
Investors who are not suitable for your
deal must not be accepted. Carefully
review the investor documentation to
make sure investors are qualified and
have correctly completed the infor-
mation.
7. Close the Deal: You are ready to
close the deal using the funds you
have raised from your investors. In-
vestor funds should be deposited into
the partnership entity. Once all the
investor funds are deposited into the
partnership account and ready for
closing, the sponsor (you) will wire
funds from the partnership account to
the closing agent. When the deal clos-
es, you should communicate to your
investor that the deal closed.
8. Investor Management: Since one
of the best sources of raising new eq-
uity is from exiting investors, manag-
ing and communicating with your in-
vestors is critical to your long term
success. Make sure each investor
gets your personal attention. They will
become a great equity source for fu-
ture deals.
If you find a great deal that you and
your investors can get excited about
and follow this 8-step process I've just
outlined above, you will have much
success raising money for your deals.
Remember, raising money is a pro-
cess not an event. Investing your time
and money in the 8-step process will
help you become a success at finding
and closing investors for your deals.
While I have only covered the surface
on this 8-step process, you have the
framework to put it into action.
Start small and stay focused on the
8-steps. Make it a point to begin
setting up you process today.
It's never too early to begin, so get
started now!
Property Management
Rental Services
Kansas City Metro
www.JamiesonHomeTeam.com
Kevin Jamieson
913-384-8331
Article Reprinted with permission
from Craig Haskell, Val-
ueHoundAcademy.com and
REIClub.com
being purchased by investors for rent
cater to different household types than
investment-grade multifamily proper-
ties. Single-family rentals see house-
holds with children as their largest
household type compared to invest-
ment-grade multifamily properties in
which singles dominate, especially in
urban locations.
THE NEAR FUTURE
Apartment fundamentals do not face a
cliff, given the rise in new completions.
Construction activity has been so de-
pressed over the last two years that
even new units coming on line only
represent a return to recent average
inventory growth rates.
However, that does not mean that
apartment vacancies will continue to
crater more than 100 basis points per
year, since current levels are already
so tight. Reis projects vacancies to
remain in the low 4 percentages
through 2015, not much lower than its
current 4.6 percent. Landlords recog-
nize this, and have shifted their focus
from improving occupancy to raising
rents to meet revenue goals.
There is a limit to how much landlords
can raise rents as well, given that
household income levels have re-
mained relatively stagnant. But if GDP
growth improves and the economic
pie starts growing at a faster rate,
apartment properties are poised to
share in the benefits as well.
As such, apartment investors are like-
ly to do well in the foreseeable future.
Certain transactions with going-in cap
rates below 3 percent will encounter
significant exit challenges if and when
interest rates rise, but market partici-
pants with realistic expectations will
find it difficult to pick a sector with pro-
spects as sound as multifamily.
Victor Calanog is head of research and economics for
NewYork-based research firm Reis. Reprinted from
http://nreionline.com/distressedinventory/
multifamily_fundamentals_no_cliff_11132012/
(Continued from page 7) Multi Family
cweaver@customlending.net
espeed@firstfunds.com
www.efax.com
With eFax you can receive your faxes
anywhere you can check email, they
are received just like email. You do
not need to have a fax machine to
receive eFax. In the event you want a
paper copy of the fax you simply print
one. This will save you money on pa-
per and ink and allow you to only print
the faxes you want. It will allow you to
forward a fax onto someone else after
you have reviewed it simply be send-
ing an email.
800Number
Another nice tool is an 800 number.
Although certainly not necessary,
sometimes a plus to have. The de-
faulted notes may still have original
mortgagors in place and often it will
be necessary to contact them. As with
any phone call made, contacting them
on the first call is more than likely not
to happen. An 800 number makes it
easier for a debtor to return your call.
www.800number.org
www.instant1800.com
We hope you have found a few helpful
tidbits in this article. They are vital
tidbits for the Note Business. Eddie
will be traveling to St Louis for an all
day training presented by Street
REIA. This is an excellent opportunity
to reach a new facet of the real estate
investing business.
(Continued from page 19) Resume
Or the Facilitator could borrow the
$18,500 from the Investor and pay
the Investor back over 5 years and
offer the investor an 8% return for a
monthly payment of $375.11 and
pocket the difference of $118.09 for the
first five years and then have a free and
clear investment for the last 60 months
and then pocket $493.20 a month.
Again remember the Facilitator can do
this within a Self Directed IRA or outside
of the IRA for income to live on.
So why would the Investor buy a part of
the note? Well in this scenario the Fa-
cilitator is a well respected investor in
his market and known for offering rent-
als and seller financing and doing what
he says he is going to do. He agrees to
step in and deal with issues should the
Happy Family Borrower default and
assist with foreclosure and then renting
or selling the house again for the Inves-
tor.
The other important point to remember
is that the Investor is more than likely
someone who we know who is a bit
older and has money in a retirement
account earning a few percent in inter-
est at the bank or maybe a bit more if
they have it invested in conservative
stock market investments who want to
make a better return on their invest-
ment.
Now some may say, but the Bird Dog
found the deal and only got $1000. Fair
enough, we could pay the Bird Dog a bit
more. But for the most part, the Bird
Dog is finding the deal and then the
Facilitator is stepping in to assist with
the contract and potentially bring the
end buyer and all the money require to
make the deal happen.
It may also be able to bring in a second
Bird Dog to find the buyer. Or the Bird
Dog position could be taken by a Real-
tor who gets paid a commission for rep-
resenting the motivated seller, the Facil-
itator or the Happy Family Buyer. Play
with it and let me know what you think
of this case study. Email me at
Kim@GBIFuding.com
(Continued from page 21) Case Study
Page 26 MAREInet.com
RealtyRealtyRealty411411411
MidMidMid---WestWestWest ExpoExpoExpo
EXPO: Saturday, April 20th, 2013
Holiday Inn, Overland Park West
No Charge for General Admission if
You Pre-Register
VIP Seats $10
Register:
MAREInet.com/Realty411
VENDOR BOOTHS STILL AVAILABLE
√ SAVE THE DATE
√ REGISTER
√ BUSINESS CARDS
√ INVITE A FREIND
Real Estate Investing is has become one of the hottest
trends for entrepreneurs to make money. Attendance at
real estate associations meetings is way up. Many of the
Richest People in the Country, earned their wealth
through Real Estate. Find out the reasons for this at the
Expo.
Join 200 or more local, national and international Inves-
tors at one of the Biggest Events in the Mid-West to
learn:
 How to Harness the Internet to Explode Business
with Duncan Wierman, Internet Marketer Turned Real Estate
Investor
 The “Power of Zero” for True Wealth with Chris
McClatchey, Veteran Real Estate Investor & Coach
 Why NOW is the Time to Invest in Kansas City Properties
with Marck de Lautour, local Kansas City Investor
 The Self-Storage NICHE is STILL one of
the Best Investments and Kevin Rollings
with Self Storage Facility Management CAN
help you Compete with the Big Guys
 Meet Tim Herriage, Top Investor, Wholesal-
er and National Development Agent for
HomeVestors®
 Leverage your Available Investment
Capital and Close Quickly on your
Rehabs and Flips with Hard Money
Loans from Longhorn Investments
 Find out about the California Market and
Markets from Around the Country from
our host, the Linda Pliagas, Investor and
Publisher of Realty 411, reWealth and
CashFlow Express Magazines
 Build YOUR Kansas City Team and
Portfolio while supporting the Real Estate
Investing Industry with Mid-America Associ-
ation of Real Estate Investors
REGISTER NOW
www.MAREInet.com/411
Network. Learn.
Build Your Team
KC Area Foreclosure Bus Tour: Sunday April 21st
Learn about the Local Market - Visit Properties
Observe Local Rehabs - Meet Property Managers
Hosted by SBD Housing Solutions
After Party
Unwind After the Big Event
Further your new connections over a quick Bite and a
Game of Pool at an Establishment Near the Hotel.
Currently over 160 LOCAL, NATIONAL and INTERNATIONAL Investors
registered to attend this event. Only 300 seats available, so if you
have not registered yet, get your seat reserved today!
Subscribe & Sync
MAREInet.com/Calendar
The MAREI calendar is hosted on Google Calendars. This allows you to subscribe
to our calendar and sync it with your own Google Calendar, Mobile Calendar, or
Outlook Calendars. Check calendar for times and locations.
April 2013
Sun Mon Tue Wed Thu Fri Sat
1
Northland Investors
Weekly Networking
2 3
Deadline: Vendor
Table KC North
4
KC Northland Mtg
Lake Ozarks REIA
5
Connected Investors
6
Wichita REIA Meets
7
Lees Summit Inves-
tors Networking Meets
Weekly
8
Northland Investors
Weekly Networking
Deadline: Vendor
Tables for KC South
9
KC Metro South Mtg
Webinar: Leverage
Your Real Estate IRA
10 11
Webinar: Real Estate
Lending using your
Self Directed IRA
12 13
Lake Ozark—Creative
Finance Training—All
Day Workshop
14
Lees Summit Inves-
tors Networking
15
Northland Investors
Weekly Networking
Omaha 1 REIA
16
Deadline: Newsletter
ads & articles for
March
17
Crime FREE America
8 Hour Training FREE
Northland Investor
Quarterly Lunch
18
KCIG
Shawnee County Land-
lords
19
KC Area Absolute Real
Estate Auction
20
Mid-West Real Estate
Expo & Networking
21
Mid-West Bus Tour
22
Omaha REIA
Northland Investors
Weekly Networking
23 24
Northland Investors
Weekly Networking
25 26 27
St Louis: The Note
Business with Eddie
Speed
28
Lees Summit Inves-
tors Networking
29
Northland Investors
Weekly Networking
30 1 May
Deadline: Vendor
Tables for KC North
2
KC Northland Mtg
Self Directed IRA
Topics
3
SG: Connected Inves-
tors
4
Blue Springs / Inde-
pendence Inv. Meets
Weekly
5
Lees Summit Inves-
tors Networking
6
Northland Investors
Weekly Networking
7
KC Metro South w/
Self Directed IRA
Topics
8
Weekly Wed. Master
Mind
9 10 11

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The RE Investment News: April 2013

  • 1. M I D - A M E R I C A A S S O C I A T I O N O F R E A L E S T A T E I N V E S T O R S Mid-West Real Estate Expo from Realty 411—April 20th, at time of printing 160 people registered! Page 27. Investment News M A R E I’S M E M B E R B E N E FIT S P R O G R A M Y O U R M E M B E R B E N E F IT S A T -A -G L A N C E P a ge 12 NETWORKING : EDUCATION : COMMUNITY : GOVERNMENT April 2013
  • 2. Page 2 MAREInet.com FREE Gift for APRIL Meeting Attendees Personal Real E state Investor Magazine March / April 2013 Special Feature Section NoteWorthy Guide to Profitable Investing in Real Estate Notes @ Check out our Website MAREInet.com Contact us by Phone 913-815-0111 Email US info@MAREInet.com Join The Conversation MAREInet.com/Blog Join Association MAREInet.com/Membership In This Issue Multi Family 6 Fundamentals— Do Not Face a Cliff The Real Estate Industry 8 Has Seriously Dropped the Ball Audio Postcards 10 Grab Attention & Increase Leads Self Storage 14 Market Your Self Storage Facility at Maximum Velocity Getting Established 18 Your Business Resume 20 Case Study Real Estate Investing Food for Thought 24 Funding Your Deals 8 Step Process Every Issue 12 Benefits at a Glance 18 Membership 22 Investment Opportunities 28 Monthly Calendar
  • 3. Investment News Page 3 SERVICES THAT PUT PROS AND INVESTORS FIRST With our FIRST for Pro initiative, The Home Depot is taking Even better care of our best customers. 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 Project 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 orders.  You can count on competitive pricing on everything in every department  Volume pricing discounts available on purchases as low as $2,500.  Instant bulk price savings available 1000s of items. SPECIAL DISCOUNTS FOR MAREI MAREI members receive special discounts at The Home Depot nationwide.  Two percent rebate paid twice a year on all purchases made through all registered accounts.  Twenty percent discount on selected paint brands.  Exclusive to members of National REIA. EXCLUSIVE PROJECT ESTIMATOR APP Coming in 2013, the Home Depot Project Estimator App for iPad, a business changing tool for National REIA Chapter members nationwide. Watch your local REIA Chapter for more information.
  • 4. Page 4 MAREInet.com Mid-America Association of Real Estate Investors The only National REIA Chapter in the Tri State Region Serving KS, MO & NE Honor’s of Merritt Winner National REIA Awards of Excellence 2011 & 2012 Read Newsletter Online Anytime MAREInet.com/Newsletter Connect with us Online LinkedIn Group: Kansas City Real Estate Investors Facebook Page: Kansas City Real Estate Investing Facebook.com/Groups Kansas City Real Estate: /kcrei/ Mid-Missouri Real Estate: /MidMo/ Omaha Real Estate: /OmahaRE/ Topeka Real Estate: /TopekaRE/ Wichita Real Estate: /WichitaRE/ Special Groups Facebook KCMO Water Dept Issues: /badbilling/ MO Creative Finance Legislation Find us on Twitter @MAREInet Tweet #KCREI Contact Information PO Box 8685, Prairie Village KS, 66208 Phone: 913-815-0111 Email: info@MAREInet.com Our Mission Statement Mid-America Association of Real Estate Investors is dedicated to promoting ethical real estate investing and to protect and promote the best interest of our membership through educational and networking opportunities as well as community, legislative and public relations. Legal Disclaimer MAREI does not exist to render and does not give legal, tax, economic or investment advice and disclaims all liability for the action or inaction taken or not as a result of communications from or to its members, officers, directors, employees and contractors. Each individual should consult his/her own counsel, accountant and other advisors as to legal, tax, economic, investment and related matters concerning real estate and other investments. Content Disclaimer The views and opinions expressed by authors of articles contributed to this newsletter do not necessarily reflect those of the association, the board of directors or the staff. Advertise in the Investment News Rate Schedule Size Non-Member Member Business Associate Full Page $175 $140 $115 1/2 Page $145 $105 $85 1/4 Page $75 $65 $50 1/8 Page $55 $35 $25 A 10% discount is given on ads pre-paid for 6-12 months. Any changes to a pre-paid ad will incur a minimum charge of $20. The deadline to submit ad copy is the 1st of each month. All ads must be prepaid. Contact to verify ad format can be accepted. PDF preferred. There is an additional charge of $25 to typeset a business card ad or 1/4 page ad layout, $60 for a 1/2 page or full page lay-out. Opportunities also exist for advertising on www.MAREInet.com. Call 913-815-0111 for more information. Email ad copy to info@MAREInet.com. Mail payment to MAREI, PO Box 8685, Prairie Village, KS 66208 or request an online payment for to use credit or debit card.
  • 5. Investment 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, floorcov- ering, paint sundries, wall covering, spray equipment, 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. 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 products 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 & Installation 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 services offered by Sherwin Wil- liams plus their Chip It Online Color Matcher, ColorSnap Studio for iPad and their Paint Pro Alerts by Text at www.Sherwin-Williams.com .
  • 6. Page 6 MAREInet.com 2014, so that 2013 figures hover closer to 130,000 units—not far off from the pre-recession 10-year av- erage. The “bubble” now shows up in 2014, but if economic growth ramps up by then (Moody’s Econo- my.com is projecting GDP growth of over 4 percent in 2014, up significantly from 2.0 percent in 2012 and 2.9 percent in 2013), the additional supply will most likely be absorbed relatively painlessly. This is not to say that certain metros will not be at risk. Washington, D.C. and suburban Maryland, for instance, both face historically high inventory growth prospects over the next couple of years; these met- ros cannot rely on solid demand drivers like strong employment growth in certain sectors such as tech to push demand for rentals like Austin, Texas or Se- attle. While the single-family housing market finally ap- pears to be on the mend, this does not automatically mean less demand for multifamily. Jay Lybik, vice president for market research at Equity Residential, (Continued on page 7) Nov 13, 2012 11:59 AM, By Victor Calanog, NREI Contributing Columnist Much has been written recently about potential risks to overbuilding in multifamily—in fact, I com- mented on this issue last April in my NREI column, but I noted that analyzing the supply side is not enough. Demand for apartments will remain strong, and will rise further if economic growth quickens. Apartment fundamentals have bounced back robust- ly since the recession ended in June 2009. Despite middling economic growth, the national vacancy rate dropped sharply from a peak of 8.0 percent at the end of 2009 to 4.6 percent in the third quarter of 2012. Vacancy rates that are this low have not been observed since late 2001. Asking and effective rents have risen for 11 consec- utive quarters and in many areas have surpassed previous peaks achieved in the third quarter of 2008, before the fall of Lehman Brothers. Landlords face little pressure to offer concessions given how tight rental markets are in most places. Construction also remains tight, with less than 37,000 units coming online over the last three quarters of 2012. An additional 18,000 units are expected to open their doors in the fourth quarter; that adds up to about 55,000 units for the year, a slight increase from 2011 but well below the 125,000 annual average from 2000 to 2009. GRADUAL RETURN TO NORMALCY Earlier in 2012, there were signs that con- struction would spike in 2013, in the order of 150,000 to 200,000 units. Developers have since postponed many projects to
  • 7. Investment News Page 7 www.CoffeltLandTitle.com For title, escrow, 1031 & foreclosure. Bud Whisler 816-380-3441 a Chicago-based REIT, tracks move-outs very closely every quarter and has witnessed little to no change in the number of resi- dents leaving to buy a home. Data from the National Association of Realtors also shows first-time home-buyers percentage of sales flat after spiking due to the Home Buyer Tax Credit, which expired in 2010. Single-family homes that are (Continued on page 26) APARTMENT HOUSE INVESTING MAREI April 4th Monthly Meeting With Worcester Investments 6:00 pm Networking 7:00 Announcements 7:15 Presentation Investor & Business Members No Charge Non-Members / Internet Members Fee More info at MAREInet.com/KCNorth The Trusted Name in Kansas City Apartment Investing www.Worcester-Investments.com ASSET PROTECTION INSURANCE AGENCY  REO Insurance  Forced Place  Vacant Property  One Policy All Properties  Monthly Billing
  • 8. The Real Estate Industry has seriously dropped the ball! And this is not a recent occurrence…. The big winner through the past few dec- ades has been the financial services indus- try. People have to invest their money somewhere, and when real estate agents, brokers, property managers made it FAR TOO complicated to invest in houses, they turned to the sophisticated and finely tuned model of the stock market. This well-oiled machine has done a great job of catering to those in their wealth accumulating phase of life. And it seemed that only those real estate investors that were ‘hands on’ with their investments were the ones able to buy and properly manage rental property. The fact that Financial Advisors have in- grained themselves in American culture to the point that anyone wanting to put some money aside for retirement is naturally go- ing to do it through mutual funds or stock investments says a lot about their customer service! Not that investing in the stock market is a bad thing! Not at all…..but by comparison, the fact that the RE industry has languished behind in allowing the average John Doe an a v e n u e t o i n v e s t h i s h a r d earned money in Real Estate is a real shame. Now dawns a new age of investing . . . where geography and physical presence mean nothing. In the same way that you don’t need to drive to Atlanta and tour the Coca Cola plant to feel comfortable invest- ing in Coca Cola stock, SBD Housing’s de- tailed 9-page Investment Prospectus more than prepares an investor to make an in- formed buying decision. SBD Housing So- lutions is a Kansas City based operation but (Continued on page 9) The Real Estate Industry Has Seriously Dropped the Ball! Page 8 MAREInet.com
  • 9. Although I am not naïve enough to think I can change an industry single handedly, I believe that we in the Real Estate services industry can all do our part to bring some credibility back to the sound investment option that is…..housing. Marck de Lautour, BBA MBA SBD Housing Solutions ing properties, the acquisi- tion, utilities, construction estimates, project manage- ment, remodel, bill payment, leasing and property man- agement. Our clients know that the ‘value added’ is in the details. Being able to in- vest in Real Estate with the same ease as the stock mar- ket has always been the goal. has clients from as far as Brazil, the U.K., Australia, South Africa and Hong Kong. Most have never seen the assets that they own, and yet are cashing the monthly rental checks every month like clockwork. As an all-inclusive real estate investment firm, we special- ize in building wealth for our clients. Taking a leaf from the Financial Planners book, we actually take the time to sit and discuss a plan of ac- tion with our clients; where do they want to invest, what cash do they have available, do they plan on leveraging their assets, when will they be looking to use the cash flow as an income source for retirement, all of which are just pieces of a very personal and unique puzzle. At SBD Housing Solutions we handle the entire operation for our clients. From target- (Continued from page 8) Investment News Page 9 Building Wealth Through Real Estate www.SBDHousing.com 816-994-9401 C AS E S T UD IE S DUE DILIGENCE MAREI April 9th Monthly Meeting With Marck de Lautour 6:00 pm Networking 7:00 Announcements 7:15 Presentation Investor & Business Members No Charge Non-Members / Internet Members Fee More info at www.MAREInet.com/KCSouth W hy Bu y Now In Kansas City Realty 411’s Mid-West Real Estate Investing Expo Saturday April 20th No Charge Register MAREInet.com/Realty411 Buying Bus Tour Sunday April 21st
  • 10. Page 10 MAREInet.com Audio Postcards will bring leads faster working FSBO's Listen to my Sample: http://www.MAREINet.com/Audio-Gen This is such a great marketing method. On our FSBO mar- keting we do, we get nearly 30% calling us back. That is phenomenal. Below is the audio I used in the postcard as a sample for you to listen to. MakingOfferswithaudiopostcards The strategy I use is quite simple for making offers. I will set up searches on sites: www.fsbo.com www.forsalebyowner.com www.owners.com www.4salebyownerusa.com www.topfsbo.com www.buyowner.com I set up the search to display results: All houses within 10 miles of ZIPCODE with 3 bedroom, 2 bath , gar- age. Then I will view each property the search returns to me. Then I go to the contact information section. In the email reply form, I simply cut and past the code from AudioGenerator to the form and press submit. Voila. Offer is done. I direct them back to my website and then I collect only the motivated seller leads. This is also a great way to post your customers audio testimonial right on your website. I also recommend us- ing these postcard to make generic house offers to open the door to negotiations. This simple postcard took all of about 5 minutes to create. Think of the impact this type of product could make on a promotional campaign. You could announce your house buying program to motivated FSBO sellers, talk about a new property you just listed, send a thank you note. The ways you can use this are plentiful. Best of all the pro- cess is very simple doesn't require the listener to down- load any software or plug ins. On first thought, they may seem like a a cutesy-gimmicky Duncan Wierman Real Estate Investor & Internet Marketer Article from Duncan Wierman at www.DuncanWierman.com How I Use Audio Postcards to Grab Attention and Increase Leads from FSBO’s.
  • 11. Investment News Page 11 www.APIA Protects.com ProSource of KC West 7228 W. Frontage Road Overland Park, KS 66203 913-599-4488 Offering a range of flooring options to give wholesale pricing and discounts to trade professionals. solution but not many people are using this techniques to bring them deals. Try it! AudioGenerator created a great service! HARNESS THE INTERNET AND EXPLODE YOUR REAL ESTATE BUSINESS WITH DUNCAN WIERMAN SPEAKING AT THE REALTY411 MID-WEST REAL ESTATE EXPO www.MAREInet.com/Realty411 www.AccurateTitleCo.com 913-338-0100 phone Title Services Provided for:  FSBO, Wholesale, & REO Transactions  New Construction Closings  Commercial Purchases and Refinance  All Types of Loan Closings  1031 Exchanges  FHA, VA, USDA, Conventional Loans, and Hard Money Loan Closings  Refinance & Reverse Mortgages  Doc Prep, Prelim HUDS, Curing Issues  Short Sale Closing & Assistance  100 Years of Combined Service! accurate Accurate Closings: Smooth, Timely, Professional.
  • 12. MAREInet.com 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 Page 12
  • 13. Member Benefits 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 op- portunities for other members and site visitors to browse. The Member Library is packed and ever growing with pdf ver- sions 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 materi- als, 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 Members. MAREI’s Political Advocacy Group actively monitors national legisla- tion and rule-making that im- pacts the real estate industry and harnessing the strength of MAREI members at the grassroots level. MAREI mem- bers also re- ceive timely Calls to Action when there is a time for our members to take action on an important vote. Members also have access to the latest in Market Da- ta. Other Discounts VISIT ww.MAREInet.com Look under Resources & Members Only Member Service Page 13
  • 14. Page 14 MAREInet.com First impressions are always the BEST! Customer service, that’s a huge key to success in this industry. We go through a checklist in our training, it goes something like this: • Find out the needs: large vs. small, long term vs. short term • Why do they need self storage? Then appeal to them on that level: moving, business, divorce, downsizing, college student. •Have you told them about the discounts, perks and added advantages you offer? 24 hour security, easy rental pay- ment, temperature controlled units. • Don’t forget to tell them about how they can save money: referrals, upgrading, first month free, savings for auto pay. • Let them know about extended services: need a truck? How about a business center? Boxes? No problem we offer those here. Let them know everything that they can do in your one stop location. •Have them fill out a visitor’s card and the show them around, let them know the units available in the size they want. **Extra tip: follow up with them if they leave and reach out asking if they found what they needed. If not you are still there to help. You can bet that “in the day of the life” of a self storage owner or manager, it will rarely be a dull one. It takes pa- tience and the outstanding ability to communicate well with both agencies, your staff and your tenants. Your potential hinges on happy tenants. With the right tools and the right education or coaching, your experience as a Self Storage Owner or Manager can be the start of a re- warding career in the self storage industry. Author: Kevin Rollings, CSSM© is the owner and CEO of Alcatraz Storage, Hoosiers Self Storage, and Self Storage Facility Management. He will have a booth at the Real- ty411 Mid-West Real Estate Investor Expo. Whatever the situation is Kevin and his team have the an- swers! Visit online at: www.selfstoragefacilitymanagement.com and get your 30 minute evaluation FREE! Wow, you have the keys! NOW WHAT? You are at YOUR self storage facility. Even though occu- pancy is lower than you want it to be, suddenly you feel your excitement level building. Why? This is your dream, you are an entrepreneur now. You see the future, your dream and are ready to make it happen. What does the average renter think about when they think self storage? Downsizing? De-clutter? Too much stuff, but want to keep it? Think about how often you see self storage facilities. It must be a busy business with people storing their treas- ures, because self storage is everywhere. It would be nice if those of us in self storage had a magical self storage wand to wave and “Voila, we have 100% oc- cupancy!”. Unfortunately the average is 76% occupancy. Why? Be- cause we do not use everything available to us. So, how do I promote my facility. What will make my place stand out and above the rest? Owning or managing a self storage facility will allow you to get to know the customer service industry up and close and personal. BUT, it goes beyond that!!! How do you spread the word about your facility? Do you do any of these? • What is your web presence? Do you have a website? Is it accurate? Does it do what you want? Have you tried local advertising? Flyers, newspapers and signs. • Community sponsorship; i.e., churches, community sports, parades... • Media: do you have a Facebook or Twitter account? Air spot on the radio, TV news commercial? •Your current clients: Did you let them know that there was a change in management, have you asked them to tell friends? Have you let them know you appreciate them? • Are you promoting it: car wash, free dump day, customer appreciation day? Typically when visiting a self storage unit facility, you will be greeted by the self storage manag- er or owner. Market Your Self Storage Facility At MAXIMUM VELOCITY
  • 15. Investment News Page 15 SHOWHOMESADDSVALUETO VACANTHOUSESBY:  Transforming vacant houses into valuable, cared-for homes that buyers respond to.  Keeping each home in show-to-sell condition seven days a week.  Employing a professional decorator to decorate each home using proven staging techniques, maximizing its appeal to buyers.  Hiring carefully screened and qualified Home Managers to live in and manage each home throughout the sales process. www.ShowHomesKansasCity.com 913-227-4364  Residential  Commercial  Renovation  Demolition  Flatwork  Foundations Full service construc- tion company offering upgrades, curb ap- peal, remodel, or complete renovation. Call for References! Robert Massey Building Trades 816-868-1817 Property Management Section 8 Housing KC Metro Wide Jeff Woods Broker www.MyPremierLeasing.com 816-849500
  • 16. Page 16 MAREInet.com Renewing Albert Abraham (since 2009): Shawnee, KS Josephine Abraham (since 2009): Shawnee, KS Jerry Blair (since 2010): Weston, MO Jeffrey Bonner (since 2010): St Joseph, MO Larry Christensen (since 2008): Weatherby Lake, MO Jennifer Crouch (since 2011): Overland Park, KS Chris Elliott (since 2009): Leawood, KS Ed Ethington (since 2008): Kansas City, MO Mark Fortin (since 2010): Raytown, MO Eric Gentry (since 2013) David Klein (since 2011): Kansas City, KS Dick Klein (since 2011): Kansas City, KS Sharon Klein (since 2011): Kansas City, KS My Le-Tam (since 2008): Grain Valley, MO Nan Li (since 2010): St Joseph, MO Rod Longanecker (since 2010): Osage Beach, MO Joyce Myer (since 2009): Kansas City, MO Marilyn Mai (since 2007): Salina, KS David Nachman (since 2004): Kansas City, MO James New (since 2007): Kansas City, MO Tom Novacek (since 2012): Grandview, MO Dena Odom (since 2011): Prairie Village, KS Ben Rao (since 2011): Lee’s Summit, MO Kathleen Stegman (since 2007): Leawood, KS Steven Swanson ( since 2007): Lee’s Summit, MO Bob Van Cleave (since 2008): Basehor, KS Business Members KC Show Homes: Kent Welch & Michelle Davis New Members Brant Asbell: DeSoto, KS Daniel Ashley: Oak Grove, MO Kevin Baird: Independence, MO Albert Becorra: Shawnee, KS Charles Buk: Harrisonville, MO Lonnie Clark: Grain Valley, MO Brennan Cribbs: Lenexa, KS Bog Docman: Kansas City, KS Brian Fletcher: Olathe, KS Kevin Flippin: St Joseph, MO Robyn Flippin: St Joseph, MO Kamal Fuleihan: Olathe, KS Roberto Gonzalez: Kansas City, MO Courtney Hollars: Olathe, KS Zack Kern: Overland Park, KS Kara Knisely: Peculiar, MO Travis Knisely: Peculiar, MO George McMillian: Platte City, MO Marjorie Mudari: Gene Ormsby: Liberty, MO Phillip Syrios: Kansas City, MO George Verdugo: Kansas City, KS Marc Willis: Blue Springs, MO
  • 17. Investment News Page 17 INTERNET MEMBER INVESTOR MEMBER BUSINESS MEMBER MAREI Member Forum    Online Member Library    Post Properties    Submit Blog Posts    Reduced Entrance Fees    Complimentary Monthly Mtg   Discounts (See list pg 10 & 11)    Member’ s Included 1 1 2 Add Additional Members $50 $50 Pricing $50 Annual $99 Annual $499 Annual Auto Renewal* $45 $90 $450 Quarterly Pricing NA   Monthly Pricing  Service Provider Listing  Ad in Monthly Newsletter  3 Vendor Tables **  * Credit or Debit Card Required for Auto Renewal Discounts, ** 3 Vendor Tables with Annual Payment MEMBERSHIP OPTIONS join now MAREInet.com/JOIN
  • 18. Page 18 MAREInet.com This article was adapted from an article written by W. Eddie Speed for the training of buyers and sellers of mortgage notes, but the concepts are valid for all forms of Real Es- tate and for finding private lenders. One of the most important tools for success is presentation of your company. In the beginning a company needs to make a statement about itself. This can be accomplished in the name you select and any logo or design that you create and becomes your signature. This signature becomes your identity and makes a clear statement of your business. Your signature needs to appear everywhere, and every time you do business. it should be attached to each of your emails on your signature line, on your letterhead, on your fax cover sheet, on your business cards, on your bid sheets. Your company name, your logo, your signature is your statement you are ready to do business. It makes you powerful. Consider the clientele when you select your operating name or DBA, Doing Business As; FBN, Fictitious Business Name; LLC, Limited Liability Corporation; INC, Incorpora- tion. You will be knocking the doors of Financial Business- es and Corporations. From your very first introduction you want to lay the ground work to be taken serious in this very serious business. When notices are sent to the mortgagors, attorney’s, Bankruptcy trustees, you will want your signa- ture to make a short and powerful statement. So if you were to select KC Home Buyers, LLC or ABC LLC would be a better choice that Super Cool Real Estate In- vestors. Credentials Building a resume, remember your resume is a business resume not a personal one. Of course you are your busi- ness, but at the same time they are not so much interested in the jobs you had in the past 10 years but in the knowledge you have acquired from those jobs. They want to see an establishment worthy of doing business with and the leaders of that establishment. It is important how you present yourself. If they do not know you they will need to have some tangible evi- dence of your stability, so a good resume with practicing knowledge of what you are doing is good also. “I have been in the note buying business for 5 years and have traded notes with ABC lender, Colonial Finance, etc… Something that says you did not wake up this morn- ing and decide I want to buy something… ahh, notes sound good! They do not have time to teach you. In addi- tions you will need some reputable references. Your bank President, if you do not know him well enough to put him on your resume shame on you! Two bank presidents, even better. Officers of Civic groups, references that say you are in good standing and well known and respected in your community and business world. Remember you are going to be collecting notes that had their company name on them, they do not want to risk sell- ing them to inexperienced, potential problem makers, they cannot afford to risk their reputation. Join the Chamber of Commerce. Let everyone you know, know you buy de- faulted notes. Carry your business cards and pass them out frequently. You never know who has a connection with which bank or lender who would perhaps be interested in something you have purchased. If you are looking for private funding, your credentials will come into play as it does in note investing, and can also be helpful in other areas of real estate. ChamberMember Belonging to your local Chamber of Commerce and at- tending their weekly meetings are a good habit to get into. There is usually a representative from each local bank at the meeting. In fact, there is a wide variety of businesses at each meeting. it is a wonderful place to become com- fortable in introducing yourself, explaining what you do, Establish Your Business RESUME
  • 19. Investment News Page 19 WHY EVERY REAL ESTATE INVESTOR MUST LEARN NOTES See Eddie Speed Live St Louis Missouri Saturday April 27th Sign Up At www.StreetREIA.com W. Eddie Speed is Founder of NoteSchool. Since 1980, Eddie has dedicated his career to the science of buying both Performing and Non-performing Notes. 12 MILLION DELINQUENT MORTGAGES < 500,000 REO’S IN USA MARKET who you would like to do business with and what you may have to offer or gain. The Chamber is always a full house of businesses who want to talk about themselves and listen to you talk about yourself; a great place to become proficient in your favorite sub- ject, your business. Listen to what people have to say about themselves and tailor your speech by picking up good habits you hear, not repeating bad habits. Financial Ability You are going to be doing business with corporations, lenders, banks, and mortgage companies. All of these in- stitutions are governed by lending laws. They will want to know as much as possible about who they are selling their loans to. You will want to build a good report with the institutions you want to do business with. You will want them to be so confident in you that they will come to depend on you as the person who will be reliable to make a quick solid purchase of the notes they have to sell. Most of these companies will not be local to you so in order to “meet” them you will be making a phone call and you will want to have a resume with good credentials and references. You want them to feel confident in your ability to purchase the notes and to handle them under the same legal guidelines they must. NameandOrganization The process of setting up your busi- ness offers a wise variety of choices with each has pros and cons. Listed below some web sites that have easy to follow guidelines and helpful infor- mation. If setting up a corporation or LLC is more that you want to take on at the moment filling a DBA may be better suited for you. One fabulous certainty, we live in a time when there is an overabundance of information on the web if you look. Some good websites to explore if you are attempt- ing to establish a new company your- self: www.activefilings.com/resources www.entrepreneur.com www.mycorporation.com Creating youowndomainname If you would like to create an email address and include your company name there are many avenues to ac- complish the task. Depending on who you are getting your email service from will drive the selection choices for your email address. These are some of the many free email services: www.hotmail.com www.yahoo.com www.google.com With free web mail services you can create a name like: cweaver@hotmail.com colonialfunding@hotmail.com Or you can purchase your own do- main and create versions like:
  • 20. Page 20 MAREInet.com I recently attended a training event and was exposed to an interesting real estate investing model that I wanted to share to get feedback from everyone who reads this arti- cle. This model involves finding motivated sellers, using a bird dog, seller financing and buying and selling notes. At the start of the scenario the person in charge of every- thing is the Facilitator. The Facilitator has been working on coaching a group of bird dogs on how to go out and find highly motivated sellers in lower end priced neighborhoods that retail around $50,000. In the process one Bird Dog finds a motivated seller who wants to sell their property for $20,000. The Facilitator helps the bird dog figure out what areas to approach, how to connect with sellers, how to talk to sellers and then sends the Bird Dog out to start looking for properties and the Facilitator helps in the negotiation of the purchase con- tract. The Bird Dog then goes out and finds and end buyer who wants to purchase the home to live in for $50,000. The buyer is going to put $3,500 in down payment money and the remaining purchase price would be in the form of a seller financed mortgage for $46,500. Are you with me so far, house for sale for $20k to the Bird Dog who is then selling to Happy Family for $50,000. Happy Family has $3,500 to put down and are going to sign on seller financed note for $46,500. Sounds great so far, but where is the money coming from? That was my question. The Facilitator is going to be the one with the money. He is going to buy the mortgage note for a discount from the Bird Dog. What he pays will depend on what the Bird Dog is to get paid. So if the Bird Dog is to get paid $1000 and the Motivated seller wants $20,000, the title company is going to want about $1000 in fees and the Happy Family is bringing $3,500 to the table, then the Facilitator needs to bring $18,500 to the closing table to purchase the note and fund the deal. Motivated Seller wants: $20,000 Bird Dog gets paid: $ 1,000 Title Company Fees: $ 1,000 Total Needed: $22,000 Less Down Payment: $ 3,500 Cash from Facilitator: $18,500 So at the end of the transaction: The Motivated Seller got paid $20,00 The Bird Dog Got Paid $1,000 Happy Family Got a New House for only $3,500 down And the Facilitator holds a $46,500 Note with only $18,500 into the deal. Case Study Kim Tucker $20k $50k $3,500 46,500 $18,500 Bird Dog Makes $1k
  • 21. Investment News Page 21 Now, assuming everyone does their homework and paperwork correctly and the Happy Family Buyer is screened properly, this is a very prof- itable deal for everyone involved. But with a bit of work, it can be even more interesting. One option for this case study is for the Facilitator to do this deal directly from a Self Directed IRA Account and then the Facilitator’s SDIRA is receiv- ing payments on the note instead of taking profit for his own use. In the workshop I attended, the Facili- tator wants to offer the house at a price a bit under market, with an inter- est rate and amortization time frame that will allow the monthly principle, interest, taxes and insurance to be significantly LESS than what market rent is in the area. So if market rent is $750 a month, then he wants the pay- ment to be about $650. So it would cost the home buyer more to default on the loan and go rent the house across the street. On the opposite side of the coin, the low interest rate, keeps them in the seller financed note rather than refinancing to a traditional lender as their credit improves be- cause their seller financed interest rate is not too much higher than what banks are offering. So what does this $46,500 note look like if we put some numbers to it? Remember the goal is to have princi- ple, interest, taxes and insurance at less than monthly rent. So in this ex- ample the loan is amortized over 10 years or 120 months and the interest rate for Happy Family is 5%. This makes the P & I payment $493.20. Add $120.00 for taxes and insurance, and their total payment is about $620. Now, this is where it really gets inter- esting. The Facilitator can sell the first 1/2 of the loan to another Inves- tor who does not have the time or inclination to go out and do real es- tate deals, but who want to get better returns on their money that they are currently receiving from the bank or the stock market. In the scenario I saw, the Facilitator could sell the first 1/2 of the $46,500 note for $20,000. So if the Investor were to purchase the first 60 months of payments they would be scheduled to receive $29,592 in principle and interest pay- ments. Then after 5 years the Facili- tator gets the note back and the right to the last 60 months of $493.20 pay- ments. (Continued on page 26) Hard Money is the Answer . . . .  Leverage available investment capital and triple your cash on cash returns.  Have the ability to close in 2 - 5 days.  Take down investment properties FAST.  Get feedback from an experienced lender who did over 150 deals last year.  Build cash-flow quickly and simply through real estate.  Diversify your capital across multiple properties and spread your risk. Private Funding for Serious Real Estate Investors 1 Point Discount for MAREI Members www.LonghornInvestments.com Mike Friedl 913-634-6386 Insurance for Vacant Properties Rehab Properties Renter Insurance for Your Tenants Business Insurance Umbrella Liability Health Insurance Life Insurance www.MOFB.com Stephanie Cunliff 816-781-4370
  • 22. Page 22 MAREInet.com 3709 E 36th St Kansas City, MO $2,950 3 bed 1 bath Dirt Cheap House for Sale $2,950. Make me an offer I can’t refuse. Larry Myer kcRealEstate1@gmail.com ICRRealEstateServices.com 12002 E Alberta St Sugar Creek, MO $26,500 3 bed 1 Bath Hottest Deal –12002 E Alberta St—Newly Re- habbed, Quite Area Beatrice Gicharu kcPropertiesSite@gmail.com 816-974-8404 7806 E 113th St Kansas City, MO $39,900 4 Bed 1.5 Bath Ruskin Ranch, Turn Key 4 Bed, 1.5 Bath, Rented $650 a month, ask about Package Pricing. Donald Tucker GBIFunding.com Don@GBIFunding.com 816-523-4400 14115 Merrywood Dr Grandview, MO $39,900 Townhouse 3 Bed 1.5 Bath Turn Key Grandview Townhome. Rented for $700 a month. Donald Tucker GBIFunding.com Don@GBIFunding.com 816-523-4400 2 Houses Near Ft Leavenworth $120,000 3 Bed 1 Bath Each 2 Great Properties, 1 Great Price near Ft Leav- enworth Base. 1 duplex & house. 650 –700 / unit Stephen Davies DCHomeINvestors.Webs.com 816-756-2186 3342 Bellefontaine Kansas City, MO $30,000 4-5 Bed 2 Bath Recently Renovated. 2251 sq ft. $30k Or best offer. Stephen Davies DCHomeINvestors.Webs.com 816-756-6735 913 NE 44th ST Kansas City, MO $60,000 3 Bed 1 Bath Newly Renovated Home with 20K po- tential Profit Stephen Davies DCHomeINvestors.Webs.com 816-756-6735 15400 Johnson Dr Shawnee, KS $275,000 4 Bed 3.5 Bath Deeply Discounted!! Shawnee Home Needs your Special Touch. Makeba Hart Virtue Investments, LLC Makeba@Virtue- Investments.com 816-665-0491 4220 Brooklyn Av Kansas City, MO $39,500 4 Bed 2 Bath Turn-Key with 2 Car Garage. $800 / month Rent 20$ Net ROI Christoph Becker Blueprint Properties, Inc BlueprintPropertySoltions.com (816) 419-1165
  • 23. Investment News Page 23 MAREI Member Properties MAREInet.com/Properties 2421 Stewart Av Kansas City, KS $14,000 2 Bed 1 Bath Cash Cow! Livable Home in Kansas City Christoph Becker Blueprint Properties, Inc BlueprintPropertySoltions.com (816) 419-1165 2903 NB 74th St Kansas City, KS $29,500 2 Bed 1 Bath KCK Property in 66109 zip. Steel Siding, Good Windows Christoph Becker Blueprint Properties, Inc BlueprintPropertySoltions.com (816) 875-6226 2019 E 82nd Tr Kansas City, MO $12,000 2 Bed 1 Bath Fixer Upper, KCMO. Mechanicals are pre- sent and working order Christoph Becker Blueprint Properties, Inc BlueprintPropertySoltions.com (816) 875-6226 8080 W 51st Mission, KS $79,900 3 Bed 3.5 Bath Walk Out Cheap 2 Story Mission House on Acreage. ARV $150k. Chad Bartlett HomeRemedyKC.com HomeRemedyKC@gmail.com 913-735-5598 2212 E 70th St Kansas City, MO $22,000 2 Bed, 1 Bath Turn Key Rental Prop- erty in KCMO. Rented for 550 moth Donald Tucker GBIFunding.com Don@GBIFunding.com 816-523-4400 2203 E 70th ST Kansas City, MO $22,000 3 Bed 1 Bath Turn Key Rental Prop- erty in KCMO. Rented $779 / mo Section 8. Donald Tucker GBIFunding.com Don@GBIFunding.com 816-523-4400 805 NE Lindberg Dr Kansas City, MO $79,000 3 Bed 2 Bath Excellent Investment - Fully Rehabbed - Move in Ready Christoph Becker Blueprint Properties, Inc BlueprintPropertySoltions.com (816) 875-6226 3028 NE 53rd St Kansas City, MO $59,000 3 Bed 2 Bath Bsmt Gar Excellent Investment or Retail Flip—80% Rehabbed in North- land. Multiple Exits Christoph Becker Blueprint Properties, Inc BlueprintPropertySoltions.com (816) 419-1165 2 Properties Independence, MO $19,500 2 Bed 2 Bath 2 Houses for the Price of 1. 2220 & 2222 S Arlington. Christoph Becker Blueprint Properties, Inc BlueprintPropertySoltions.com (816) 419-1165
  • 24. Page 24 MAREInet.com Did you find a great deal? If you can't factually support a great deal to your potential investors, then it will be hard to raise mon- ey. It's the most critical thing you need in your arsenal when approaching investors for money. With a great deal, using this 8-Step process will almost guarantee your fund raising success. Raising money is a process and it gets easier every time you do a deal because you are planting seeds with poten- tial investors. Some investors may not invest in your first deal, but will invest on other deals. The best source of future equity is from your existing inves- tors. Happy investors want to invest more, and the best part, they spread the word and bring in other investors. It's like a snowball going downhill; the longer it goes down the hill, the bigger the snowball gets. I want to help you start building your snowball. 8-Step Process to Finding and Closing Investors I have created an 8-Step process to raising equity for your great deals that will allow you to get your snowball rolling downhill. The most important thing to stay focused on when using this system is that raising money is a process not an event. You have to stay focused on working each and eve- ry step, as outlined below. is the 8-Step Process: 1. Develop a Pitch Book: Create a unique business plan and investment strategy to capitalize on today's great buy- ing opportunity. What's your strategy to make money in- vesting in real estate? Package your plan up in a short 6 – 8 page pitch book. 2. Develop a Potential Investor List: Make a list of poten- tial people that may have an interest in investing in real estate. The best place to start is friends and family. This list outlines some of the best places to find investors for your list: 1. Business associates 2. Accountants who have clients who want to invest in real estate 3. Financial planners 4. Attorneys who have clients who want to invest in real estate 5. Real estate agents know potential investors 6. Insurance agents who have wealthy clients 7. Property owners who invest in real estate This list will be your starting point. Make sure you ask peo- ple on your list if they know anyone else that might have an interest in investing in real estate. You'll be amazed at how many people will refer others. 3. Conduct Investor Meetings: Make breakfast or lunch meetings with people on your list. Review your pitch book during your meeting and determine if there is interest. Dur- ing this meeting you are not selling anything, you are only finding out if an interest exits with your potential investor. The most important element coming out of these meetings is new relationships. 4. Build Investor Database: Potential investors who have an interest in your plan are added to your database. Your goal is to build as many potential new investors in your da- tabase. Stay in contact with potential investors in your data- base by sending them articles, stories, stats, and so forth relative to real estate investing and your business plan. 8 Step Process for Finding and Closing Investors for Deals By Craig Haskell. Craig Haskell is author of, The Inside Game to Real Estate Value Investing, and founder of an invest- ing site, ValueHoundAcademy.com, that brings together a community of opportunistic and value minded real estate investors who are serious about learning new approaches to capitalizing on to- day's "Once in a lifetime" buying opportunity.
  • 25. Investment News Page 25 The best place on the entire planet to buy kitchen cabinets. We Have The Best Prices Everything Is In Stock We Ship Fast Free Design Help www.CabinetGiant.com Josh Burns 1-877-484-4268 5. Investor Documentation: Investor documentation is created using pro- fessional assistance. Your attorney will prepare the legal documents re- quired to approach potential investors. Don't skip this step because you are afraid to spend money. When you close on the deal, the legal fees will be paid from the partnership entity you created and raised money for. 6. Deal Fund Raising: Now that you have the proper documentation, you can approach potential investors in your database to raise money for the great deal you have uncovered. Why is it so important to find a great deal? Because potential investors will see the fantastic profit potential, taking much of the spot light off of you, the new sponsor. Also, having a great deal will get you excited, and that ex- citement, will show during your com- munication with potential investors. Investors who are not suitable for your deal must not be accepted. Carefully review the investor documentation to make sure investors are qualified and have correctly completed the infor- mation. 7. Close the Deal: You are ready to close the deal using the funds you have raised from your investors. In- vestor funds should be deposited into the partnership entity. Once all the investor funds are deposited into the partnership account and ready for closing, the sponsor (you) will wire funds from the partnership account to the closing agent. When the deal clos- es, you should communicate to your investor that the deal closed. 8. Investor Management: Since one of the best sources of raising new eq- uity is from exiting investors, manag- ing and communicating with your in- vestors is critical to your long term success. Make sure each investor gets your personal attention. They will become a great equity source for fu- ture deals. If you find a great deal that you and your investors can get excited about and follow this 8-step process I've just outlined above, you will have much success raising money for your deals. Remember, raising money is a pro- cess not an event. Investing your time and money in the 8-step process will help you become a success at finding and closing investors for your deals. While I have only covered the surface on this 8-step process, you have the framework to put it into action. Start small and stay focused on the 8-steps. Make it a point to begin setting up you process today. It's never too early to begin, so get started now! Property Management Rental Services Kansas City Metro www.JamiesonHomeTeam.com Kevin Jamieson 913-384-8331 Article Reprinted with permission from Craig Haskell, Val- ueHoundAcademy.com and REIClub.com
  • 26. being purchased by investors for rent cater to different household types than investment-grade multifamily proper- ties. Single-family rentals see house- holds with children as their largest household type compared to invest- ment-grade multifamily properties in which singles dominate, especially in urban locations. THE NEAR FUTURE Apartment fundamentals do not face a cliff, given the rise in new completions. Construction activity has been so de- pressed over the last two years that even new units coming on line only represent a return to recent average inventory growth rates. However, that does not mean that apartment vacancies will continue to crater more than 100 basis points per year, since current levels are already so tight. Reis projects vacancies to remain in the low 4 percentages through 2015, not much lower than its current 4.6 percent. Landlords recog- nize this, and have shifted their focus from improving occupancy to raising rents to meet revenue goals. There is a limit to how much landlords can raise rents as well, given that household income levels have re- mained relatively stagnant. But if GDP growth improves and the economic pie starts growing at a faster rate, apartment properties are poised to share in the benefits as well. As such, apartment investors are like- ly to do well in the foreseeable future. Certain transactions with going-in cap rates below 3 percent will encounter significant exit challenges if and when interest rates rise, but market partici- pants with realistic expectations will find it difficult to pick a sector with pro- spects as sound as multifamily. Victor Calanog is head of research and economics for NewYork-based research firm Reis. Reprinted from http://nreionline.com/distressedinventory/ multifamily_fundamentals_no_cliff_11132012/ (Continued from page 7) Multi Family cweaver@customlending.net espeed@firstfunds.com www.efax.com With eFax you can receive your faxes anywhere you can check email, they are received just like email. You do not need to have a fax machine to receive eFax. In the event you want a paper copy of the fax you simply print one. This will save you money on pa- per and ink and allow you to only print the faxes you want. It will allow you to forward a fax onto someone else after you have reviewed it simply be send- ing an email. 800Number Another nice tool is an 800 number. Although certainly not necessary, sometimes a plus to have. The de- faulted notes may still have original mortgagors in place and often it will be necessary to contact them. As with any phone call made, contacting them on the first call is more than likely not to happen. An 800 number makes it easier for a debtor to return your call. www.800number.org www.instant1800.com We hope you have found a few helpful tidbits in this article. They are vital tidbits for the Note Business. Eddie will be traveling to St Louis for an all day training presented by Street REIA. This is an excellent opportunity to reach a new facet of the real estate investing business. (Continued from page 19) Resume Or the Facilitator could borrow the $18,500 from the Investor and pay the Investor back over 5 years and offer the investor an 8% return for a monthly payment of $375.11 and pocket the difference of $118.09 for the first five years and then have a free and clear investment for the last 60 months and then pocket $493.20 a month. Again remember the Facilitator can do this within a Self Directed IRA or outside of the IRA for income to live on. So why would the Investor buy a part of the note? Well in this scenario the Fa- cilitator is a well respected investor in his market and known for offering rent- als and seller financing and doing what he says he is going to do. He agrees to step in and deal with issues should the Happy Family Borrower default and assist with foreclosure and then renting or selling the house again for the Inves- tor. The other important point to remember is that the Investor is more than likely someone who we know who is a bit older and has money in a retirement account earning a few percent in inter- est at the bank or maybe a bit more if they have it invested in conservative stock market investments who want to make a better return on their invest- ment. Now some may say, but the Bird Dog found the deal and only got $1000. Fair enough, we could pay the Bird Dog a bit more. But for the most part, the Bird Dog is finding the deal and then the Facilitator is stepping in to assist with the contract and potentially bring the end buyer and all the money require to make the deal happen. It may also be able to bring in a second Bird Dog to find the buyer. Or the Bird Dog position could be taken by a Real- tor who gets paid a commission for rep- resenting the motivated seller, the Facil- itator or the Happy Family Buyer. Play with it and let me know what you think of this case study. Email me at Kim@GBIFuding.com (Continued from page 21) Case Study Page 26 MAREInet.com
  • 27. RealtyRealtyRealty411411411 MidMidMid---WestWestWest ExpoExpoExpo EXPO: Saturday, April 20th, 2013 Holiday Inn, Overland Park West No Charge for General Admission if You Pre-Register VIP Seats $10 Register: MAREInet.com/Realty411 VENDOR BOOTHS STILL AVAILABLE √ SAVE THE DATE √ REGISTER √ BUSINESS CARDS √ INVITE A FREIND Real Estate Investing is has become one of the hottest trends for entrepreneurs to make money. Attendance at real estate associations meetings is way up. Many of the Richest People in the Country, earned their wealth through Real Estate. Find out the reasons for this at the Expo. Join 200 or more local, national and international Inves- tors at one of the Biggest Events in the Mid-West to learn:  How to Harness the Internet to Explode Business with Duncan Wierman, Internet Marketer Turned Real Estate Investor  The “Power of Zero” for True Wealth with Chris McClatchey, Veteran Real Estate Investor & Coach  Why NOW is the Time to Invest in Kansas City Properties with Marck de Lautour, local Kansas City Investor  The Self-Storage NICHE is STILL one of the Best Investments and Kevin Rollings with Self Storage Facility Management CAN help you Compete with the Big Guys  Meet Tim Herriage, Top Investor, Wholesal- er and National Development Agent for HomeVestors®  Leverage your Available Investment Capital and Close Quickly on your Rehabs and Flips with Hard Money Loans from Longhorn Investments  Find out about the California Market and Markets from Around the Country from our host, the Linda Pliagas, Investor and Publisher of Realty 411, reWealth and CashFlow Express Magazines  Build YOUR Kansas City Team and Portfolio while supporting the Real Estate Investing Industry with Mid-America Associ- ation of Real Estate Investors REGISTER NOW www.MAREInet.com/411 Network. Learn. Build Your Team KC Area Foreclosure Bus Tour: Sunday April 21st Learn about the Local Market - Visit Properties Observe Local Rehabs - Meet Property Managers Hosted by SBD Housing Solutions After Party Unwind After the Big Event Further your new connections over a quick Bite and a Game of Pool at an Establishment Near the Hotel. Currently over 160 LOCAL, NATIONAL and INTERNATIONAL Investors registered to attend this event. Only 300 seats available, so if you have not registered yet, get your seat reserved today!
  • 28. Subscribe & Sync MAREInet.com/Calendar The MAREI calendar is hosted on Google Calendars. This allows you to subscribe to our calendar and sync it with your own Google Calendar, Mobile Calendar, or Outlook Calendars. Check calendar for times and locations. April 2013 Sun Mon Tue Wed Thu Fri Sat 1 Northland Investors Weekly Networking 2 3 Deadline: Vendor Table KC North 4 KC Northland Mtg Lake Ozarks REIA 5 Connected Investors 6 Wichita REIA Meets 7 Lees Summit Inves- tors Networking Meets Weekly 8 Northland Investors Weekly Networking Deadline: Vendor Tables for KC South 9 KC Metro South Mtg Webinar: Leverage Your Real Estate IRA 10 11 Webinar: Real Estate Lending using your Self Directed IRA 12 13 Lake Ozark—Creative Finance Training—All Day Workshop 14 Lees Summit Inves- tors Networking 15 Northland Investors Weekly Networking Omaha 1 REIA 16 Deadline: Newsletter ads & articles for March 17 Crime FREE America 8 Hour Training FREE Northland Investor Quarterly Lunch 18 KCIG Shawnee County Land- lords 19 KC Area Absolute Real Estate Auction 20 Mid-West Real Estate Expo & Networking 21 Mid-West Bus Tour 22 Omaha REIA Northland Investors Weekly Networking 23 24 Northland Investors Weekly Networking 25 26 27 St Louis: The Note Business with Eddie Speed 28 Lees Summit Inves- tors Networking 29 Northland Investors Weekly Networking 30 1 May Deadline: Vendor Tables for KC North 2 KC Northland Mtg Self Directed IRA Topics 3 SG: Connected Inves- tors 4 Blue Springs / Inde- pendence Inv. Meets Weekly 5 Lees Summit Inves- tors Networking 6 Northland Investors Weekly Networking 7 KC Metro South w/ Self Directed IRA Topics 8 Weekly Wed. Master Mind 9 10 11