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MAREI wins Awards of Excellence at National REIA Mid Year for 2nd Year in a Row!


   MID-AMERICA ASSOCIATION OF                                                 REAL ESTATE INVESTORS




   Investment News                           NETWORKING : EDUCATION : COMMUNITY : GOVERNMENT
                                                                                           September 2012

                                                 10
                                             e
                                         Pag




                   This Month at MAREI: FORECLOSURE
                      How it Works & When you Need It.
                           Tuesday September 11th, 2012
ten ts
         c on
         Page 3                     Page 10                    Page 18
         Business Members           Benefits at a Glance       Calendar of Events          Page 26
         Build your team with our                              Schedule Now                Help Wanted
         Service Providers & In-    Page 12                                                Volunteer at MARE
         dustry Partners            Bill Twyford               Page 20
                                    Building Instant Rapport   Local Market Condi-         Page 27
         Page 6                                                tions from Local Market     Investing Using NLP
         How I Did the Deal         Page 14                    Monitor                     with Bill and Dwan
                                    Welcome                                                Twyford
         Page 8                     New & Returning Members    Page 22
         September Speaker                                     For Sale                    Page 28
         Bud Whisler: Foreclo-      Page 16                    Member Properties           September Meeting
         sures                      Title Exceptions
                                    From Accurate Title        Page 24
         Page10                                                Show me the LIST!
         Foreclosures                                          Building Your Buyer’s ist
         Judicial vs Nonjudicial




                        2011                                         2012




Page 2                                                                                       MAREInet.com
BUSINESS MEMBERS
       MAREI Business Members are here to serve you in your Real Estate Business.
       They specialize in Real Estate Professionals and have joined our association as a
       Business. You can find out more about each of our Business Members at
       www.MAREInet.com/Services . Don’t see a service you need? Ask on the Forum!



        Foundations
                                                                            Insurance
   Cornerstone Foundation             Your Company Here
         Joe Williams                                                 www.APIAprotects.com
                                          $499 annual                     Lisa Goodner
        913-220-5253
  CornerstoneFoundationRe-             Or $135 a Quarter                 1-877-752-2742
                                                                    lgoodner@apiaprotects.com
      pair@yahoo.com
         Insurance
                                           Investors
   www.NREInsurance.com
                                  www.kcmoHomeBuyer.com
          Jim Jrolf
                                        The Tuckers
        913-915-3232
                                       816-200-2198
       1-888-741-8454
                                    kcmoHomeBuyer.com
    jj@nreinsurance.com
   Property Management
                                    Property Management
                                                                      Real Estate Brokerage
 www.JamiesonHomeTeam.com
       Kevin Jamieson          www.MyPremierleasing.com
                                                                   www.RealtyResourceKC.com
        816-503-4671                  Jeff Wood
                                                                          816-523-4400
           kevin-                   816-841-9500
                                                                  RealtyResourceKC@gmail.com
                             jwoods@mypremierleasing.com
jamieson@reeceandnichols.com

          Staging                    Suppliers: Building               Suppliers: Building
  www.ShowHomesKC.com               www.CabinetGiant.com               www.HomeDepot.com
       Michelle Davis                     Josh Burns
                                                                 Roger_L_Holyfield@HomeDepot.com
       913-449-3593                     1-877-484-4268
  mdavis@showhomes.com              info@CabinetGiant.com         George_R_Neal@HomeDepot.com

                                        Title Company                     Title Company
    Suppliers: Building            www.AccurateTitleCo.com           www.Coffeltlandtitle.com
  www.Sherwin-Williams.com       Jackie White / Mary Peterson              Bud Whisler
        Mike Steiner                    913-338-0100                      816-581-2299
  swrep4735@Sherwin.com           jwhite@accuratetitleco.com       bwhisler@coffeltlandtitle.com




Investment News                                                                            Page 3
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                                      Contact Information

                                      PO Box 8685, Prairie Village KS, 66208

                                      Phone: 913-815-0111



                                      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.



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Page 4                                                                                                          MAREInet.com
MAREI STAFF

                                                          & Volunteers
         Executive Director                                     Advisory Board / Membership Desk

         Kim Tucker                                             Scott Tucker

         kim@MAREInet.com                                       sTucker319@gmail.com

         Investor : Realtor                                     Realtor



         Advisory Board                                         Advisory Board / Membership Desk

         Donald Tucker                                          Dan Goodwin

         DonTuckerRE@gmail.com                                  DanGoodwin@kw.com

         Investor                                               Realtor : Short Sales
         Focus Group Leader: Blue Springs / Lees Suumit         Advisory Board / Membership Desk

         Debra Felderhoff                                       Shelda Goodwin

         superiorrental@gmail.com                               SheldaGoodwin@kw.com

         Landlord : Investor                                    Realtor : Short Sales
         Focus Group Leader: Weekly Wednesdays                  Focus Group: Eddie Speed Mentoring Students

         Michelle Winberry                                      L. Scott Ficinus

         mlwinberry@gmail.com                                   Scott@Ficinus.com

         Investor : Realtor                                     Realtor
         Focus Group Leader: Weekly Wednesdays                  Advisory Board / Membership Desk

         Brian Winberry                                         John Welchert

                                                                JWelchert@platinumrealtykc.com

         Investor :                                             Realtor : Investor : Landlord
         Focus Group Leader: IRA Investing                      Focus Group Leader: KC Note Buyers
         Coming Soon . . . Leader Located                       Coming Soon




         Focus Group Leaders: Transaction Engineers             Focus Group Leader: Commercial

         Leader Wanted                                          Leader Wanted




         Focus Group Leader: Women in Real Estate               Focus Group Leader: Advanced Investors

         Leader Wanted                                          Leader Wanted




Investment News                                                                                          Page 5
Netw orking f
                    or
                                                               ow I di d the
                                                            H
      Real Estate Dea
                      ls
                                                                   D EA L!
  More often that not with every deal I am looking          MeetUp.com. This is an online networking web-
 for four different things: (1) Something to purchase,      site that is a social networking website designed
 (2) a funding partner to pay for the deal (3) a buyer      to facilitate live meetings. Meetup is designed to
 for the deal or (4) some sort of service provider.         help you make live connections with people with
 We have been in business for over 12 years now             similar interests and there are meetups for just
 and one of the key activities we still participate in is   about every interest imaginable.
 networking to meet new people so we can do more
                                                            Anyway, Dave, the writer of the newsletter said
 deals.
                                                            “we were deciding on new means of networking
 At the recent Realty411 event here in Kansas City          we turned back to Meetup . . . I noticed that join-
 that I attended as vendor promoting MAREI, Don             ing a Meetup, . . ., expanded your network by
 my husband attended as the Real Estate Investor            usually at least 50 people that share a similar in-
 in the family. I can’t tell you how many times we          terest.”
 have heard presentations about Self Directed IRA
                                                            Then today I received a voice mail from a new
 investing or Insurance for real estate investors so
                                                            investor who was wanting to find out where he
 attending for us to listen to the speakers was not a
                                                            could get “the list” of wholesale buyers. My re-
 high priority, even though I got a few new ideas
                                                            sponse was to find a place where real estate in-
 from each and everyone of the speakers. There
                                                            vestors meet on a regular basis: like a MAREI or
 were few people who came for a few minutes and
                                                            KCIG meeting or a special event like the Realty
 left. When I asked them why later, they said that
                                                            411 event last week and to network his way into a
 they had already seen speakers on all these topics
                                                            quality list of not only wholesale buyers, but other
 and didn’t see any point in staying. I noted that the
                                                            wholesale sellers, service providers that would be
 people who did stay for the entire day were the
                                                            needed in all of his deals and potential funding
 highly experienced investors who could have taken
                                                            partners just in case he would rather buy the deal
 the place of most of the presenters for the day. So
                                                            instead of wholesale it.
 why would the investors who have been in this
 business for a year or less find the event a total         So this month, how did I do the deal? I did it by
 waste of time and the experienced people who               knowing someone. So I will see you at the MA-
 have done countless deals tell me the event was            REI meeting, doing a deal or being a part of
 excellent. The difference is the people who do             someone else’s deal.
 deals realize that they can always learn something         Deal provided by Kim Tucker, local real estate
 new in this industry because it is always changing         investor and MAREI Director. Kim and her hus-
 and that at large events there are a lot of new peo-       band Don have been investing in Kansas City
 ple to meet. Adding people to your database is key         since 2000. Find them online at kcmoHomeBuy-
 as they could be the next person to bring you a
                                                            er.com or GBIFunding.com.
 deal, fund a deal or buy a deal or be the service
 provider.
 Just last week I was reading a weekly email news-          Do you have a deal, we would love to hear about
 letter , “The Notebuyers Notebook” that was talk-          it. Email it to us at info@MAREInet.com
 ing about how their company is utilizing


Page 6                                                                                     MAREInet.com
Www.CoffeltLandTitle.com
                    Member                                     For title, escrow,
                                                             1031 & foreclosure.
                    Benefit
   Publish investment property opportuni-
   ties on our marketing page.
       Turn Key Rentals
       Wholesale Properties
       REO & Short Sale Listings
       Multi Family & Offices
   Review the Membership Package on
   the Resource tab for instructions on
   how to log in and post your properties
          MAREInet.com/Properties                                Bud Whisler
                                                                816-380-3441


For Investors By Investors
In this market, you want an agent on your side
       that has the knowledge, the ability,                    www.APIAProtects.com
                                                                 1(877) 752-2742
              the EXPERIENCE,                                      Lisa Goodner
       and the resources to help you!
                                                 Because APIA sells only Real Estate Owned
                                                 (REO) and Forced Lender insurance coverage,
                                                 we've become the industry leader in providing
                                                 comprehensive, affordable coverage to inves-
                                                 tors, financial institutions and mortgage compa-
                                                 nies.
                                                 Our company specializes in Real Estate Owned
                                                 (REO) and Forced Lender insurance coverage
                                                 for property investors, servicers, financial insti-
                                                 tutions and mortgage companies. Standard in-
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                      Realty Resource
                                                 vices.
                      8014 State Line Rd, #210

                      816-523-4400

    www.RealtyResourceKC.com



Investment News                                                                            Page 7
Judicial vs Nonjudicial
     Foreclosure happens when a borrower falls be-          states.
     hind on house payments and the lender uses
                                                            The lender sends a notice of intent to begin
     state procedures to the house that is the underly-
                                                            foreclosure. In many states, the lender sends
     ing collateral for the debt. Foreclosure works dif-
                                                            a ten-day notice of intent to begin foreclosure
     ferently in different states. In some states, like
                                                            proceedings. The notice informs that the pro-
     Kansas, the lender has to file a lawsuit to fore-
                                                            ceedings can be avoided if the missed payments
     close (judicial foreclosure), while in others, like
                                                            are made up, plus costs and interest.
     Missouri, it can foreclose without going to court
     (nonjudicial foreclosure).                             The lender files a lawsuit. If back payments
                                                            are not caught up, the lender will then go to
     Judicial Foreclosure
                                                            court and file a lawsuit.
     In a judicial foreclosure, the lender must go to
                                                            The lender gives notice of the lawsuit. The
     court to get the foreclosure started. A judicial
                                                            lender does this by delivering
     foreclosure typically takes several months or
                                                            a summons and complaint to the borrower
     more, giving the borrower time to look for anoth-
                                                            (called "serving " a summons and complaint in
     er place to live, and to save some money for the
                                                            legalese).
     future. Another advantage for the borrower is
     that they can raise in court any legal defenses        Chance to respond. The summons and com-
     they may have to the foreclosure (without having       plaint gives the borrower a period of time within
     to file a lawsuit).                                    which they must respond if they are going to
                                                            contest the lawsuit (usually between 15 and 30
     Here's how a typical judicial foreclosure might
                                                            days). Whether or not a response is filed is up
     proceed.
                                                            to the borrower. Either way, the lender will have
     Borrower gets behind in your mortgage pay-             the burden of proving to the judge that the fore-
     ments. A mortgage holder can begin foreclosure         closure is justified under the terms of the mort-
     procedures if just one payment is missed, but          gage.
     usually will wait longer -- much longer in many
                                                                 If no response, the chances are excellent


                                                                Don’t miss this event!


                              Monthly Meeting
                                    Details:                              Agenda
                                           Tuesday September 11                  5:30 pm Pre Meeting / Setup
                                           6:00 pm to 9:00 pm                    6:00 pm Registration
                                           Career Education Systems              6:00 pm Vendor Hall
Guest Speaker:                             Ward Parkway Shopping                 7:00 pm Speed Networking
      Business Member                      Center—8600 Ward Pkwy                 7:15 pm Presentation
      Bud Whisler with                     Kansas City Missouri                  8:30 pm Q & A / Networking
      Coffelt Land Title                   Top Floor                             9:00 pm Adjourn



Page 8                                                                                     MAREInet.com
that the foreclosure will go                                                 mortgage is not reinstated, the
through. The court will issue a        Nonjudicial Foreclosure Pro-          home will be sold at auction. As
default judgment that authorizes       cess                                  with judicial foreclosures, if no
the lender to sell the home.                                                 one meets the minimum bid, the
                                       State law sets out the specifics of
                                                                             property goes to the lender.
If there is a response, the bor-       the foreclosure procedure, in-
rower has the opportunity to tell      cluding how much notice is given,     Right to redeem. A few states
a judge just why they think they       how the property will be sold         give you some time after the
have a legal right to keep the         (typically at a public auction),      foreclosure auction to redeem the
house and that foreclosure is not      and what rights (if any) the bor-     property (to recover ownership of
warranted. The better the de-          rower has to reinstate the loan       the property by paying off the
fenses, the longer the process         before the foreclosure date or        successful bidder).
will drag out in court. Even if the    recover title to the property after
                                                                             Challenging a Nonjudicial
borrower wins, however, it may         it's sold.
                                                                             Foreclosure in Court
be a temporary victory if the
                                        Time may be short. Borrower’s
lender can fix whatever problem                                              Because the borrower does not
                                       must pay attention when a fore-
caused it to lose this time.                                                 have the opportunity to raise de-
                                       closure looms in a nonjudicial
The lender sends a notice of                                                 fenses to the foreclosure in a
                                       state because very little notice of
intent to sell. Once the judge                                               nonjudicial foreclosure, the bor-
                                       the foreclosure sale will be given,
issues a judgment, the lender                                                rower will have to file a lawsuit.
                                       and once it happens, the borrow-
typically will send a ten-day no-                                            When this happens, the borrower
                                       er may be permanently out of
tice of intent to sell the property.                                         is asking the court to temporarily
                                       luck.
At this point, in many states the                                            stop the foreclosure so that the
borrower can avoid the foreclo-        Notice of sale. In most states,       legal issues can be resolved in
sure sale if somehow they can          the first notice of the proceeding    court. In these lawsuits, the bor-
"redeem" the mortgage (pay it          will be the notice of sale. De-       rower typically asks the court for
off in full, as well as the foreclo-   pending on the state, this notice     three things, in the following or-
sure costs and attorney's fees).       will be either served on to the       der:
                                       borroewer, published in the local
The auction is held. If no one
                                       newspaper, posted in the court-         a temporary restraining order
buys the home at the auction,                                                (which lasts about ten days)
                                       house and on the property itself,
ownership goes to the lender. Up
                                       or by some combination of the            a preliminary injunction
to this point, the entire process,
                                       above.
from the first notice to the auc-                                            (which, in foreclosure actions,
tion, typically takes three and a      Notice of default and notice of       will last until the court decides
half months -- more, if a re-          sale. Some states provides the        the case), and
sponse to the summons and              borrower with two notices -- a
complaint is filed..                   formal written notice of default
                                                                               a permanent injunction
                                       (usually about 30 days, but              (which will be issued if the
Eviction If the borrower loses                                                  judge decides in your favor).
                                       sometimes more and sometimes
ownership of the home, most                                                  Next Steps
                                       less) and another formal notice
state laws don't require them to
                                       that thehouse will be sold at auc-    To learn more about the ins and
move out right away. The lender
                                       tion (again, usually about a
may just let the house sit, wait-                                            outs of foreclosure, both judicial
                                       month, but it can be as little as
ing for the market to improve                                                and nonjudicial, be sure to attend
                                       15 days).
and the borrower can remain in                                               the September MAREI meeting
the home payment-free until            Right to reinstate. Between the       when Business Member Bud
they get evicted.                      notice of default and notice of
                                                                             Whisler with Coffelt Land Title is
                                       sale, typically the borrower is al-
Statutory Foreclosure                                                        going to explain further how the
                                       lowed to reinstate the mortgage
If a non-judicial foreclosure          by paying off what is owed, plus      foreclosure process works in Kan-
state, the lender does not have        fees and costs (which can be          sas and Missouri and more im-
to go to court in order to fore-       very high). With a couple of ex-      portantly discusses when we as
close on a home. This means            ceptions, however, once the sale      investors need to conduct fore-
that the foreclosure can proceed       occurs, your house is gone.
                                                                             closures.
more quickly.
                                       The auction is held. If the


  Investment News                                                                                         Page 9
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Page 10                                                                                               MAREInet.com
Other Discounts                           Member Service


                                          We have several services as part
                                          of our website to help you grow
                                                                               MAREI’s Government Affairs ac-
                                                  your business.
                                                                               tively monitors national legisla-
                                                                                tion and rule-making that im-
                                                                              pacts the real estate industry and
                                                                              harnessing the strength of MAREI
 Nearly 70% of QuickBooks users say                                           members at the grassroots level.
that it makes their business more prof-
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  Buy at a 20% discount through Na-                                                            MAREI mem-
              tional REIA.                                                                     bers also re-
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  REAL ESTATE BOOKS                       Calendar of Events to stay up to
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 The nation’s largest provider of                                                              time for our
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 Special member discounts for                 and site visitors to browse.
 members at Avis, Budget, and
        Enterprise Rentals.


                                                                                          VISIT
                                                                                      ww.MAREInet.com

                                           The Member Library is packed            Look under Resources -

 The Local Market Monitor tracks           and ever growing with pdf ver-                 Discounts
 real estate sales and economic            sions of entire books, EBooks,
  trends nation wide. Offering            Articles, Forms, and Documents.
   25% Discount for Members.



  Investment News                                                                                     Page 11
Building Instant
                       Rapport
  . . . Bill Twyford                                   Do not wear sunglasses. Homeowners
 Every investor has heard how important it              can’t see your eyes and subconsciously
 is to build rapport with distressed home-              you seem suspicious.
 owners. What we never hear about is how               Never wear a hat, like a baseball
 to do it. What is it about someone that                cap. Again, homeowners can’t see your
 makes us instantly like or dislike                     eyes and are suspicious.
 them? We don’t really know what it is
                                                      Always have a clipboard in your hands
 about that person, we just know it’s some-
                                                       so that both of your hands are visible. If
 thing.
                                                       you tend to stand with your hands in
 Rapport is developed in the subcon-                   your pocket or behind you, the home-
 scious. We can’t quite pinpoint it, but               owners will think you have a gun and are
 there is something about that person that             going to rob or kill them and will not
 seems familiar and makes us feel comfort-             hear what you are saying.
 able around them.
                                                      Never wear cologne or perfume. I know
 So … how do you establish rapport? Let’s              this one seems strange, but let’s look at
 start with a few basic tips. When I am                it from the homeowners point of
 looking for distressed homeowners, I like             view. You’re a guy and you wear Eterni-
 to knock on doors. It is the fastest way to           ty. You show up at the door and a wom-
 get deals. If I knock on twenty doors over            an answers. Her husband used to wear
 a weekend, I will have several contracts              Eternity. He ran off with another woman
 by Sunday afternoon. I’d rather spend a               and she still hates him for it. You are
 day or two getting multiple deals instead             wearing what the ex-husband used to
 of waiting for my phone to ring hoping for            wear and subconsciously, you remind
 just one deal.                                        her of him. She now dislikes you with-
 Here are some dos and don’ts when you                 out knowing why. The same goes for
 knock on doors or meet a homeowner in                 the girls, too. You don’t want to remind
 person:                                               the homeowners of someone they now
                                                       dislike.
                                                       Be aware of what color your clothing
                                                       is. Green promotes trust, while red pro-
                                                       motes dominance. I like warm colors
                                                       like green, blue, pink, or brown. Stay
                                                       away from reds and blacks.
                                                       Dress casual, but professional … no
                                                       suits. Also, lose the jewelry. Homeown-


Page 12                                                                         MAREInet.com
Bill & Dwan Twyford will be teaching a 2 day work-
                     shop November 3rd & 4th on Communicating for
                     Better Profits based on their own Real Estate and
                     Short Sale Business. See Ad on Page 26 or go
                     online at www.MAREInet.com/NLP

    ers losing their home do not need to see           think that fast talkers are slick and un-
    that you own a Rolex.                              trustworthy. Is it true? No, it is a sub-
   Be aware of what you are driving. If you           conscious thought that most people are
    drive a Rolls Royce, you may want to               not aware of. When you follow the
    consider getting a middle-of-the-road car          homeowners’ rate of speech, you seem
    for meeting homeowners. Yes, home-                 familiar to them and, again, they like
    owners need to see that you are success-           you without knowing why.
    ful to feel confident that you can help           Ask them to share a little about their
    them. No, they do not need to see that             current situation and listen with respect
    you have become a millionaire from dis-            and empathy. Once you feel that they
    tressed properties. You never want them            have properly vented, begin to ask de-
    to wonder if you have taken advantage of           tails about their situation. Homeowners
    others and that is why you have so much            want to tell you what happened because
    stuff. People are leery to begin with,             they don’t want you to think that they
    don’t feed in to it.                               are losers. No one grows up with the
   Be certain you are speaking to the right           goal of being in foreclosure. Something
    person. Instead of blurting out why you            in their lives changed and they want to
    are there, ask if this is Mrs. Or Mr. so and       be certain you know what it is.
    so first. Once you are sure, continue             Make an appointment to view the prop-
    with your conversation.                            erty then call back to confirm the ap-
   Never use the “f” word … foreclo-                  pointment. During the second phone
    sure. State that you were doing some               call, ask more questions. Be certain
    research and see that they have a                  that everyone on the deed is home and
    “pending problem with their proper-                willing to put a deal together.
    ty” and that you would like to help               When on the phone, listen for the objec-
    them. This puts the blame on the prop-             tions you are going to get when you
    erty, not the person.                              meet in person. For example, “we don’t
Let’s look at establishing rapport over the            have to sign a deed, do we?” If they
       phone.                                          ask questions on the phone, be ready to
                                                       handle them in person.
   Speak at the same rate of speech as the
    homeowners. For example, if the person         So, you see folks, it’s not that difficult to
    who answers the phone speaks slowly, do        establish rapport. Take the time to be ap-
    the same. If they speak fast, do the           proachable, honest, and trustworthy and
    same. People who speak fast think that         business will follow. Better yet … just be
    people who speak slowly are stu-               that way naturally and you will reap what
    pid. Likewise, people who speak slowly         you sow.


    Investment News                                                                     Page 13
W   WELCOME NEW MEMBERS
          To the premier trade association representing
              Kansas City Area Real Estate professionals
                                               MAREI continues its growth with
                                               a total of 390 members to-date.
                                             JOIN NOW (MAREInet.com/join)



 New Members                                     Renewing
   ◎    Nick & Lorena Collier: Oak Grove, MO       ◎   Greg Billeisen: Kansas City, MO (Since 2011)


   ◎    Marilyn Dugan: Overland Park, KS           ◎   Carol Cutler: Kansas City, MO (Since 2011)


   ◎    Pat Edins: Liberty, MO                     ◎   Karl Dunivent: Liberty, MO (Since 2011)


   ◎    Stacey Holscher: Shawnee, KS               ◎   Kerry Eikenbary: Independence, MO (Since 2010)


   ◎    Debbie Olivarez: Independence, MO          ◎   Jeannie Estavez: Lees Summit, MO (Since 2011)


   ◎    Bruce Roberts: Prairie Village, KS         ◎   Jeffrey Forster: Independence, MO (Since 2011)


   ◎    Tom Scanlon: Overland Park, KS             ◎   Beatrice Gicharu: Kansas City, KS (Since 2010)


   ◎    Kelley Vince: Kansas City, MO              ◎   Kenneth Mabrie: Raytown, MO (Since 2006)


                                                   ◎   Joseph Schoonover: Liberty, MO (Since 2011)


                                                   ◎   Ray Strickland: Overland Park, KS (Since 2006)


                                                   ◎   Jamieson Home Team—Business Member


                                                   ◎   Premier Leasing—Business Member




Page 16                                                                               MAREInet.com
Invest In Kansas City

  with MAREI!

    Kansas City’s
    Resource for
    Successful Real Estate Businesses!
       Network Online & Offline
       Property Marketing
       Vendor Discounts
       Education & Support
       Active in Government Affairs
     JOIN
       NOW!               Whether you are local or from out of state, just
                  getting started or experienced professional . . . . . MA-
                  REI will assist you in reaching your goals.
                                 Call or go Online!


        Mid-America Association of Real Estate Investors
                  www.MAREInet.com : 913-815-0111
Investment News                                                           Page 15
sale that day and had moved out and needed his pro-
                                                                 ceeds to purchase another property. The adjacent
 The owner of a property called to inquire about his cov-
                                                                 owners could relinquish their rights, however one said
 erage for a "right of first refusal" built into the Homes
                                                                 they would not sign as they had never had to do that
 Association Declarations.
                                                                 before. So now the current owner had to wait 15 days
 One of the items almost all title insurance policies EX-        to sell. He was in jeopardy of losing the property he
 CEPT are the terms and conditions of the Restrictions           had contracted to purchase and he and his family
 and Protective Covenants and/or Homes Association               were living in a motel.All of this could have been
 Declarations. If you don't know what they are, ask for a        avoided had he read and understood either commit-
 copy and read it.                                               ment: the one when he bought it or the one he just
 In a few of the Home Association Restrictions or Cove-          received a few weeks ago.
 nants, most of which were created in the 60's and 70's,         He was pretty angry that he didn't have coverage for
 there is a right of first refusal for the adjoining land own-   the Homes Association restriction and that we did-
 ers to purchase the property if you sell. These re-             n't advise him about this clause out of 60 in the decla-
 strictions require that before you sell, you have to offer      rations of the subdivision. We explained that he
 the property at the same price and terms to your neigh-         should have read them or hired an attorney to advise
 bors. Depending upon the subdivision, it could be the           him. We can't practice law as a title insurance agent
 neighbors whose lots adjoin yours or any one of many            or escrow company and can't advise anyone. We are
 configurations. Some of these restrictions were an at-          a neutral third-party who follows instructions given us
 tempt to circumvent discrimination laws. Other typical          and federal and state laws.
 restrictions are prohibition of additional buildings, fenc-
                                                                 When looking at a Title Insurance Commitment be
 es and even sometimes basketball goals to just name a
                                                                 sure to read and understand SCHEDULE B, SEC-
 few.
                                                                 TION TWO, EXCEPTIONS. These are the things that
 Of course, the owner hadn't read it. Didn't do his due          are NOT covered. This is true for a Lender's Policy,
 diligence when he bought it nor did he read them any-           also. Typically, among other items, easements,
 time since he owned it. Nor did he read the current title       homes associations covenants and/or restrictions,
 commitment that was given to him upon the signing of            right of ways and sometimes items on recorded plats
 his existing contract to sell the property, which required      and surveys are excepted, although there can be oth-
 him to notify the property owners to the left and right of      er items as well. You need to do your due diligence on
 his property that they had 15 days to meet the offer or         all these items to make sure you can live with them. If
 their right expired. He was supposed to close on the            you don't understand them, hire an attorney to advise
                                                                 you so that you can make an informed decision and
                                                                 are aware of how these items might affect your own-
                                                                 ership or loan.
                                                                 Then it will not be a surprise that the EXCEPTIONS
                                                                 are items that are not covered.
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Page 18                                                                                            MAREInet.com
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Investment News                                                                        Page 19
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. Find it online at http://www.MAREInet.com/Calendar



   Sat Sept 1 , 2012: 4 pm SubGroup:          Sat Sept 15, 2012: 4 pm SubGroup:
   Blue Springs / Independence Investors      Blue Springs / Independence Investors
   Sun Sept 2, 2012: 9 am Sub-Group:          Where: 18800 E Us Highway 40, Indep.
   Lees Summit Real Estate Investors          Sun Sept 16, 2012: 9 am Sub-Group:
   Wed Sept 5, 2012: 9 am Weekly              Lees Summit Real Estate Investors
   Wednesdays - Sub Group Meeting             Mon Sept 17, 2012: 7 pm      Omaha
   Sat Sept 8, 2012: 4 pm SubGroup:           REIA Group—Omaha NE
   Blue Springs / Independence Investors
                                              Wed Sept 19, 2012: 9 am Weekly
   Sun Sept 9, 2012: 9 am Sub-Group:          Wednesdays - Sub Group Meeting
   Lees Summit Real Estate Investors          Thurs Sept 20, 2012: 7 pm am      KCIG
   Mon Sept 10, 2012: 5 pm Deadline to        Meeting—Roeland Park, KS
   reserve Vendor Table for MAREI meeting     Thurs Sept 20, 2012: 7 pm Shawnee
   Tues Sept 11, 2012: 6 pm Sub-Group:        County Landlords—Topeka, KS
   Lees Summit Real Estate Investors          Sat Sept 22, 2012: 4 pm SubGroup:
   Wed Sept 12, 2012: 9 am Weekly             Blue Springs / Independence Investors
   Wednesdays - Sub Group Meeting             Sun Sept 23, 2012: 9 am Sub-Group:
   Mon Sept 10, 2012: 5 pm Deadline to        Lees Summit Real Estate Investors
   reserve Vendor Table for MAREI meeting     Wed Sept 26, 2012: 9 am Weekly
   Tues Sept 11, 2012: 6 pm Sub-Group:        Wednesdays - Sub Group Meeting
   Lees Summit Real Estate Investors          See more online at
   Wed Sept 12, 2012: 9 am Weekly                www.MAREInet.com/Calendar
   Wednesdays - Sub Group Meeting


Page 18                                                               MAREInet.com
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Investment News                                                                      Page 23
Local Market Monitor
                                     on Kansas City
 This market has typical risks and returns for investors.
 The local economy is well diversified. Population growth has                                         Job Growth
 been slightly above average. Income is average. The housing
 boom was mild, with a 14 percent rise in prices followed by a 9
 percent drop. The recession was moderate, with jobs down 5
 percent.
 Home Price Change




                                                                          Home Price
                                                                          Home prices in this market peaked in Q2 2007 at
                                                                          $176,495. Since their peak, prices have fallen by 12%. In
                                                                          the last 12 months, prices have gone down by 2 percent.
                                                                          The average home price in this market is currently
                                                                          $154,765.
                                                                          Equilibrium Home Price
                                                                          The Equilibrium Home Price in this market is currently $196,496.
 Home Price Forecast
                                                                          The Equilibrium Home Price shows where home prices would be
 Home values for Kansas City are forecast to decrease by 1 per-           in the absence of market distortions. If actual home prices rise
 cent over the next 12 months. Nationally, prices are forecast to         well above the Equilibrium Prices, they ALWAYS eventually come
 remain constant.                                                         back down. This risk is part of the Local Market Risk Premium.
 In the second and third year, prices are forecast to increase 1%         The Equilibrium Price is often - but not always - the floor when
 and 5%, respectively.                                                    home prices fall.

 Local Market Risk Premium                                                Local Capitalization Rate

 The Risk Premium for investing in this market is currently 1.6 per-      The Local Capitalization Rate is used to price a rental
 cent.                                                                    property, based on the annual rent stream minus the an-
                                                                          nual operating expenses. The Cap Rate incorporates both
 The Local Market Risk Premium measures the risk of lower future
                                                                          national and local economic risk. The local Investment
 income from a property - due either to lower rents or higher va-
                                                                          Cap Rate is used to estimate the value of an apartment
 cancies - and the risk of lower future property value due to a fall in
 home prices.                                                             building or single-family rental. Proposed property prices
                                                                          that produce a sharply lower cap rate should be scruti-
 Job Growth                                                               nized very carefully.
 In the past 12 months, jobs in this market have grown by 0.8 per-        Population
 cent. This compares to a national increase of 1.4 percent.
                                                                          The population in this market grew less than 1% in 2011,
 Job growth is our most immediate guide to the demand for hous-           while the US population grew less than 1%.
 ing. New jobs spur population in-migration while jobs regained in a
 recovery create new households. Investments are riskier when job         Population growth - or the lack of it - has the strongest
 growth is falling, less risky when job growth is strong.                 effect on local demand for housing. Average population



Page 20                                                                                                           MAREInet.com
growth in the US is 1 percent per year. Investments are                    investment risks. An above-average concentration of jobs in
usually less risky in markets with above-average growth,                   construction, manufacturing, finance or tourism indicates a
though more risky in small markets with very high popula-                  greater vulnerability to economic cycles. But strong growth in
tion growth. Population data are always several years old,                 these sectors means the current situation is favorable. Large
but current job growth is a fair substitute.                               health-care or government sectors often mean more stability
                                                                           and lower risk - but not always. The Unemployment Rate
Migration                                                                  in July 2012 was 7.5% versus 8.2% last year.
In 2011, net population migration was 0.0%. While migra-                   Employment by Industry
tion tends to be small, it can have a large effect on demand
for real estate
Home Prices and Rents
Home prices and rents often move in cycles but not at the
same rate. Rents are more closely tied to local income,
while home prices more easily respond to relatively small
changes in supply and demand. Investments often are less
risky in markets where home prices and rents increase
slowly and steadily.

                       Home Price and Rent Change



                                                                           Financial Capitalization Rate
                                                                           The Financial Capitalization Rate shows the average
                                                                           return on investments with similar perceived risk as
                                                                           residential investment properties - such as BBB corpo-
                                                                           rate bonds - but without taking into consideration the
                                                                           special local risks measured by the Local Market Risk
                                                                           Premium.


                                                                                                 Financial Capitalization Rate


Rents
We forecast rents to increase 18 percent over the next three years
in this market, to an average of $889 per month, partly due to higher
inflation.
Rents rarely decrease, but sharp job losses and falling home prices
can push them down. Rents are closely related to local income.
Monthly rent on average is 2 percent of local per capita income, but
there is a lot of variation.
Housing Permits
Total housing permits in July 2012 were up 13 percent from
last year. Single family permits were up 40 percent.
                                                                           Forecast Accuracy
Vacancy Rates
                                                                           The Local Market Monitor forecast relies to a
The Rental Vacancy Rate rose to 12.1 percent in Q2 2012. The
Owner Vacancy Rate rose to 2.4 percent.
                                                                           large extent on recent price changes and the mo-
                                                                           mentum of price changes and expected changes
The survey technique used by the Census to get local vacancy rates         in local income and job growth.
for rentals relies heavily on large apartment landlords. It can't easily
capture homes that are available for rent. Large changes from quar-        Learn more about YOUR market online at
ter to quarter in some markets can be due to survey problems rather
than actual vacancies.                                                        http://localmarketmonitor.com

Employment                                                                    http://investors.localmarketmonitor.com
Jobs were up 0.3 percent in the past year, compared to the national
gain of 1.4 percent..                                                         MAREI members receive a 25% discounts on
                                                                               all report purchases.
The concentration of jobs in various industries can reveal special



  Investment News                                                                                                             Page 21
3343 Bellefontaine $34,500         3 Bed        Newly Rehabbed          Christoph Becker
                                             1 Bath       Kansas City Invest-     Blue Print Properties
          Kansas City, MO     Rental         Basement                             info@BluePrintProp.com
                                                          ment Property 20%
                                                                                  816-419-1165
                                                          Net ROI


          1459 N Martway Dr   $80,000        4 Bed        This JOCO Flip would    Makeba Hart
                                             2 Bath       be an easy sell. Make   Virtue Investments, LLC
          Olathe, KS          Rehab—to       1246 sq t    Me an Offer.            Makebashart2gmail.com
                              Flip                                                816-665-0491



          8409 E 103rd        $24,500        3 Bed        Raised Ranch, needs Beatirce Gicharu
                                             2 Bath       rehab finished. Esti- kcpropeties-
          Kansas City, MO     Rehab          1354 Sq      mated ARV $98,678 site@gmail.com
                                             Ft                                   816-974-8404


          1518 Poplar Ave     $13,500        3 Bed        Wholesale Price only    Christoph Becker
                                             1.5 Ba       $13,500. Most has       Blue Print Properties
          Kansas City, MO     Rehab          2 Story                              info@BluePrintProp.com
                                                          already been done to
                                                                                  816-419-1165
                              Rental                      this Solid 2 Story.

          6149 Harvard        $109,900       4 Bed        Live upstairs & rent    Scott Tucker
                                             3 Bath       out the basement.       Realty Resource
          Raytown, MO         Potential 2    2 Living                             Scott@GBIFunding.com
                                                          Excellent first home/
                              Family         Qtrs                                 913-620-7934
                                                          rental opportunity.

          2019 W 47th Tr      $159,000       3 Bed        One of a kind home      Paul Panos
                                             2 Bath       blocks from the         Building Freedom
          Westwood, KS        Custom         Full Bsmt                            816-786-3854
                                                          Country Club Plaza,
                              Home                                                Facebook.com/
                                                          Westport & KU Med
                                                                                  BuildingFreedomLLC

          26 Off Market       Bulk Package   26           Most tenant occu-       Christoph Becker
                                             Properties   pied, free and clear    Blue Print Properties
          Kansas City Pkg                                                         info@BluePrintProp.com
                                                          title, can break up.
                                                                                  816-419-1165
                                                          Sold as is.




Page 22                                                                               MAREInet.com
MAREI Member Properties


MAREInet.com/Properties
          237 N 15th St,      $35,000      3 Bed       Good rental or rehab       Steve Gardner
          Kansas City, KS                  1 Bath      opportunity. ARV of        Destination Properties
                              Rental       Basement                               913–461–0402
                                                       $48-50k. Needs a
                                           Carport
                              Rehab                    few repairs.


          7315 Nieman Rd      $95,000      3 Bed       JOCO house in Shaw-        Steve Gardner
                                           1.5 Bath    nee, new roof, founda-     Destination Properties
          Shawnee, KS         Rehab        Basement    tion and exterior paint.   Ste-
                                           2 Car Gar   Must move it. Bring any    ve.Gardner@homevestor
                                                       offer.                     s.com


          5809 W 70th St      $89,000      3 Bed       $30—$35k Rehab.            Steve Gardner
                                           1 Bath      Great Overland Park        Destination Properties
          Overland Park, KS   Rehab        Crawl                                  913–461–0402
                                                       ranch, good schools,
                              Rental                   strong resale value,
                                                       needs help
          4407 Genessee St    $99,000      3 Bed       Double Lot. West-          Steve Gardner
                                           1 Bath      port / Plaza. New          Destination Properties
          Kansas City, MO     Rehab        2 Car                                  Ste-
                                                       Roof, Repaired Foun-
                                                                                  ve.Gardner@homevestor
                                                       dation.
                                                                                  s.com

          2 Houses            Under $10K   3 Bed       Huge Discounts 2           Makeba Hart
                                           2 Bath      house for under 10k        Virtue Investments, LLC
          Kansas City, MO     Each—Need                                           Makebashart2gmail.com
                                                       Make me an offer!!!
                              Rehab                                               816-665-0491


          3829 Benton Blvd    $27,500      3 Bed       Excellent curb appeal      Christoph Becker
                                           1.5 Bath    – This 3/1.5 home is       Blue Print Properties
          Kansas City, MO     Rehab        Basement                               info@BluePrintProp.com
                                                       situated on the dis-
                                                                                  816-419-1165
                              Rental                   tinctive “Benton
                                                       Blvd” in KCMO



                              Your Property Here
       MAREI members can post investment properties online which are pushed out
       through our Social Media Pages, Email, and Printed at least once here in our
              Monthly Newsletter for our entire database of buyers to see.


Investment News                                                                                 Page 21
Show me


  We had a call this past week at
  the MAREI office from someone
  looking to find a copy of “the LIST”. They were new real        Craigslist is probably the next best place to work on.
  estate investors focusing on wholesale investing and            Here you need to do a little bit of reverse ad marketing.
  had learned enough to contact the local real estate in-         There are programs out there that will allow you to scan
  vestment association, but unfortunately their education         Classified sites for key words and kick out an email to
  source failed to explain that there is not a list available,    them with a generic email reply. The entire purpose to
  that they have to do a bit of work to create their own list.    get them to respond. These software programs work to
                                                                  a point, but if you do this to an investor who advertises a
  So where do you start? Well starting at the local REIA is
                                                                  lot, who is really doing the business, they get these
  a good start, but you need to do a few things to find the
                                                                  types of responses, know they are computer generated
  movers and shakers that will actually buy your houses.
                                                                  and just delete them.
  1. See if they do have a ready made list, doubtful, but
                                                                  So take this reverse ad marketing a step further. Using
     they might. Check their member forums, we have a
                                                                  any software, or the search engine for the classified site
     buyers list section on our forum that could potential-
                                                                  and search for key terms like for sale by owner, for rent
     ly grow into a magic list.
                                                                  by owner, we buy houses, we sell houses, seller financ-
  2. Network at meetings, that means talking to people,           ing and other key phrases. As you search through these
     collecting cards and following up via phone to drag          ads, build a list of names, emails if available, websites if
     contact information and buying criteria out of people.       available and most importantly - PHONE NUMBERS.
  3. Going to all the live events that are available and          Sift your report to remove duplicates and now, I want
     networking is a must. See deal article on page 6.            you to take a deep breath and CALL these people. Ask
                                                                  them if they can take two minutes to answer a few ques-
  Next I would take a look at places online where Investor        tions about what they buy and how you can bring them
  Buyers might be. There are a few places on all the ma-          deals to them.
  jor sites like Facebook, LinkedIn, and Yahoo that have
  groups that other investors have created to market their        Note, that as an investor who advertises on craigslist a
  properties. They have grown a HUGE buyer’s list by              lot, I get tons of emails wanting me to tell them what I
  allowing everyone to post their investment properties.          buy. These get put on the back burner for when I have
  They will let you post your properties on their groups,         more time, which is NEVER. But if they call, I will usual-
  but they are not going to give you their list. Do not cre-      ly talk to them and tell them what they want to know.
  ate your own page and invite their list to come like your       Another option takes a bit of money to buy a list or to
  list, this will get you kicked out                              take some time and sift through county records to find
  The best way I can describe my next step is to stalk buy-       cash buyers of properties in the area where you want to
  ers on social media. That means going through post              work. You want all the contact info you can find and
  after post after post till you find one that sparked a lot of   then you can send a postcard to all the cash buyers of-
  interest and buyers posting their contact information to        fering them some reason to go to your website for more
  find out more about deals. Build a list from these con-         information. The gurus will tell you to give away a free
  tacts and contact them to see if you could add them to          report, I would suggest having information about a
  your buyers list.                                               house for sale. You will have to test different postcards
                                                                  to see which ones work better.
  Take it a step further and note the postings that create a
  lot of response. Take the time to recreate similar posts        These are just a few ideas to get you started. There is
  of your own in an attempt to generate your own flurry of        no magic list, it just takes time and a bit of work and you
  replies.                                                        will soon have your own buyers list.



Page 24                                                                                              MAREInet.com
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Investment News                                                                                         Page 27
MAREI is looking for a few volunteers      to YouTube. If you like playing with
  to help in several areas. Volunteers       YouTube and have a digital camera,
  receive recognition online and in the      please apply.
  newsletter. Get your name in front of
                                             Moderators: Our Social Media pages
  all our members and guests:
                                             need moderators to not only contribute
  Blog Contributors: Are you an ex-          relevant conversation, but to also keep
  pert on title, real estate law, property   our social media pages clean, relevant
  management, home inspection, short         and free of spam. If you are an expert
  sales, wholesale, technology, market-      on one of the many social media and
  ing or any one of the many other real      stay current on real estate topics,
  estate industries and would be able to     please apply.
  contribute four articles or more a year,
                                             Trainers & Speakers: MAREI would
  please apply. All blog posts will in-
                                             like to revamp our Personal Housing
  clude your bio and links back to your
                                             Provider Courses this fall and winter
  designated website.
                                             and needs assistance assembling 1 to
  Official Photographer: MAREI needs         3 hour workshops to train members
  real estate photos for the website and     and to potentially take to other REIA
  newsletter of real estate out in the       groups. If you have ever thought you
  general public as well as shots taken at   could do what the GURU’s do, please
  official events. If you have an eye for    apply.
  a good shot and a digital camera,
                                             To apply, please send us your contact
  please apply.
                                             information, position you are interest-
  Official Videographer: MAREI needs         ed in and why you think you would be
  someone to make one or two short 2-3       a good fit to info@MAREInet.com.
  videos at monthly meetings and post


Page 26                                                               MAREInet.com
Learn How NLP is applied in all Areas of
Your Investing!
                                                                           MARK YOUR CALENDAR
Bill Twyford aka The King of Communication and author of “How to
                                                                            SATURDAY & SUNDAY
Sell a House When It’s Worth Less Than the Mortgage,” will be here
LIVE and IN PERSON, Nov.3rd & 4th, 2012. He will teach us how to            NOVEMBER 3RD & 4TH
get OUR DEALS ACCEPTED! Bill says that it all boils down to NLP!
                                                                                KANSAS CITY
Bill is an NLP specialist. He can teach you how to speak the language
of the banks, the homeowners, and the buyers…In other words:
He can make you wealthy!
You will learn:

      What to say to the banks to get your short sale package to the
       top of the heap
      What to say when the bank says no
      How to get the bank to work with you even when your home-
       owners are in bankruptcy
      How to get your homeowners to sign contracts on the first
       meeting
      What paperwork to use to make every deal “air tight”
      Learn the “little known” Bankruptcy Short Sale
      How to negotiate when buying notes
      How to automate your communication system
      And much, much more!

With everyone offering you the next, best, “make a million dollars while
you sleep” program – people have forgotten that this is a people busi-
ness and without the proper COMMUNICATION SKILLS you are
dead in the water!
Unless you are closing 75% or MORE of your short sales, you must
attend this TWO-DAY WORKSHOP. This is not a sell-a-thon, it is Bill Twyford teaching you for TWO SOLID
DAYS! Please bring a calculator, a good attitude, and come with an open mind. We guarantee that you will
learn more in these TWO DAYS than any other workshop you have ever attended!




                                        Register Today MAREInet.com/NLP
 Tons of Networking             Speed Networking
         MAREI’s
     September Meeting                Industry Partner Expo          Best Speaker Lineup

                                      Experienced Investors          And Much More!




                                 How Foreclosure Works in KS & MO

         Special Guest
                                     And When You Need to Foreclose
  Bud Whisler
    Coffelt Land Title, Inc.

                                         What Exactly is the Process of Completing a Foreclosure
                                    What is the Difference Between Judicial and Statutory Foreclosure
Location:
                                              What is a Redemption Period and How to Avoid
Career Education Systems                           Besides Foreclosing on a Mortgage,
Ward Parkway Shopping Center                       when would Foreclosure be Needed.
8600 Ward Parkway                   In today’s market, more and more investors are purchasing non-
Kansas City, MO                     performing mortgages and doing work outs, offering homes for
                                    sale on lease to own and contract for deed. When we get more
Times:                              creative in our investing, the need to understand the foreclosure
                                    process from the seller / lender side of the equation becomes
Tuesday September 11                much more important.
6pm to 9pm                          Bud Whisler with Coffelt Land Title, Inc. is an expert on Title and
                                    Foreclosure process in and he will be telling us what we need to
                                    know at the September Meeting.



Agenda for Tuesday September 11th                                         Cost
5:30 pm – Pre-Meeting & Set Up                                            Investor Member—No Charge
6:00pm - Focused Networking: Meet the Right People at the Right
                                                                          Business Member—No Charge
Time & bring business cards & flyers!
6:00pm — Industry Partner Tradeshow (reserve vendor table)                Internet Member—Guest Fee
6:30pm — New Member Orientation                                           Guest Fee
7:00pm – Main Meeting
   Deal Makers “Haves & Wants” Exchange: Quick Pitch Session for          $25 Per Person at the Door
Your Real Estate Deals!                                                   $15 Per Person on Web
  Industry Partner Introductions: Build Your Dream Team
                                                                          Go to
7:15pm — Special Guest: Local Title Expert: Bud
Whisler presents: Foreclosures                                               MAREInet.com/September
8:30pm — Adjourn: Speaker ends and offers one on one Q & A, plus               All Guest Fees Paid will
unstructured networking
                                                                           Be credited toward membership
– 9:00pm — Meeting Ends                                                     when you join at the Meeting.

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Newsletter september 2012

  • 1. MAREI wins Awards of Excellence at National REIA Mid Year for 2nd Year in a Row! MID-AMERICA ASSOCIATION OF REAL ESTATE INVESTORS Investment News NETWORKING : EDUCATION : COMMUNITY : GOVERNMENT September 2012 10 e Pag This Month at MAREI: FORECLOSURE How it Works & When you Need It. Tuesday September 11th, 2012
  • 2. ten ts c on Page 3 Page 10 Page 18 Business Members Benefits at a Glance Calendar of Events Page 26 Build your team with our Schedule Now Help Wanted Service Providers & In- Page 12 Volunteer at MARE dustry Partners Bill Twyford Page 20 Building Instant Rapport Local Market Condi- Page 27 Page 6 tions from Local Market Investing Using NLP How I Did the Deal Page 14 Monitor with Bill and Dwan Welcome Twyford Page 8 New & Returning Members Page 22 September Speaker For Sale Page 28 Bud Whisler: Foreclo- Page 16 Member Properties September Meeting sures Title Exceptions From Accurate Title Page 24 Page10 Show me the LIST! Foreclosures Building Your Buyer’s ist Judicial vs Nonjudicial 2011 2012 Page 2 MAREInet.com
  • 3. BUSINESS MEMBERS MAREI Business Members are here to serve you in your Real Estate Business. They specialize in Real Estate Professionals and have joined our association as a Business. You can find out more about each of our Business Members at www.MAREInet.com/Services . Don’t see a service you need? Ask on the Forum! Foundations Insurance Cornerstone Foundation Your Company Here Joe Williams www.APIAprotects.com $499 annual Lisa Goodner 913-220-5253 CornerstoneFoundationRe- Or $135 a Quarter 1-877-752-2742 lgoodner@apiaprotects.com pair@yahoo.com Insurance Investors www.NREInsurance.com www.kcmoHomeBuyer.com Jim Jrolf The Tuckers 913-915-3232 816-200-2198 1-888-741-8454 kcmoHomeBuyer.com jj@nreinsurance.com Property Management Property Management Real Estate Brokerage www.JamiesonHomeTeam.com Kevin Jamieson www.MyPremierleasing.com www.RealtyResourceKC.com 816-503-4671 Jeff Wood 816-523-4400 kevin- 816-841-9500 RealtyResourceKC@gmail.com jwoods@mypremierleasing.com jamieson@reeceandnichols.com Staging Suppliers: Building Suppliers: Building www.ShowHomesKC.com www.CabinetGiant.com www.HomeDepot.com Michelle Davis Josh Burns Roger_L_Holyfield@HomeDepot.com 913-449-3593 1-877-484-4268 mdavis@showhomes.com info@CabinetGiant.com George_R_Neal@HomeDepot.com Title Company Title Company Suppliers: Building www.AccurateTitleCo.com www.Coffeltlandtitle.com www.Sherwin-Williams.com Jackie White / Mary Peterson Bud Whisler Mike Steiner 913-338-0100 816-581-2299 swrep4735@Sherwin.com jwhite@accuratetitleco.com bwhisler@coffeltlandtitle.com Investment News Page 3
  • 4. read anytime Contact Information PO Box 8685, Prairie Village KS, 66208 Phone: 913-815-0111 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 Read the Investment News MAREI does not exist to render and does not give legal, tax, economic or investment advice and anywhere, anytime, on your 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 iPad, Mac and PC: his/her own counsel, accountant and other advisors as to legal, tax, economic, investment and related matters concerning real estate and other investments. MAREInet.com/Newsletter Content Disclaimer www.calameo.com 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. Search for “MAREI” Advertise in the Investment News To subscribe Rate Schedule Size Non-Member Member Business Associate Look for us Online Full Page $175 $140 $115 Search for 1/2 Page $145 $105 $85 “Kansas City Real Estate Investors” 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. Page 4 MAREInet.com
  • 5. MAREI STAFF & Volunteers Executive Director Advisory Board / Membership Desk Kim Tucker Scott Tucker kim@MAREInet.com sTucker319@gmail.com Investor : Realtor Realtor Advisory Board Advisory Board / Membership Desk Donald Tucker Dan Goodwin DonTuckerRE@gmail.com DanGoodwin@kw.com Investor Realtor : Short Sales Focus Group Leader: Blue Springs / Lees Suumit Advisory Board / Membership Desk Debra Felderhoff Shelda Goodwin superiorrental@gmail.com SheldaGoodwin@kw.com Landlord : Investor Realtor : Short Sales Focus Group Leader: Weekly Wednesdays Focus Group: Eddie Speed Mentoring Students Michelle Winberry L. Scott Ficinus mlwinberry@gmail.com Scott@Ficinus.com Investor : Realtor Realtor Focus Group Leader: Weekly Wednesdays Advisory Board / Membership Desk Brian Winberry John Welchert JWelchert@platinumrealtykc.com Investor : Realtor : Investor : Landlord Focus Group Leader: IRA Investing Focus Group Leader: KC Note Buyers Coming Soon . . . Leader Located Coming Soon Focus Group Leaders: Transaction Engineers Focus Group Leader: Commercial Leader Wanted Leader Wanted Focus Group Leader: Women in Real Estate Focus Group Leader: Advanced Investors Leader Wanted Leader Wanted Investment News Page 5
  • 6. Netw orking f or ow I di d the H Real Estate Dea ls D EA L! More often that not with every deal I am looking MeetUp.com. This is an online networking web- for four different things: (1) Something to purchase, site that is a social networking website designed (2) a funding partner to pay for the deal (3) a buyer to facilitate live meetings. Meetup is designed to for the deal or (4) some sort of service provider. help you make live connections with people with We have been in business for over 12 years now similar interests and there are meetups for just and one of the key activities we still participate in is about every interest imaginable. networking to meet new people so we can do more Anyway, Dave, the writer of the newsletter said deals. “we were deciding on new means of networking At the recent Realty411 event here in Kansas City we turned back to Meetup . . . I noticed that join- that I attended as vendor promoting MAREI, Don ing a Meetup, . . ., expanded your network by my husband attended as the Real Estate Investor usually at least 50 people that share a similar in- in the family. I can’t tell you how many times we terest.” have heard presentations about Self Directed IRA Then today I received a voice mail from a new investing or Insurance for real estate investors so investor who was wanting to find out where he attending for us to listen to the speakers was not a could get “the list” of wholesale buyers. My re- high priority, even though I got a few new ideas sponse was to find a place where real estate in- from each and everyone of the speakers. There vestors meet on a regular basis: like a MAREI or were few people who came for a few minutes and KCIG meeting or a special event like the Realty left. When I asked them why later, they said that 411 event last week and to network his way into a they had already seen speakers on all these topics quality list of not only wholesale buyers, but other and didn’t see any point in staying. I noted that the wholesale sellers, service providers that would be people who did stay for the entire day were the needed in all of his deals and potential funding highly experienced investors who could have taken partners just in case he would rather buy the deal the place of most of the presenters for the day. So instead of wholesale it. why would the investors who have been in this business for a year or less find the event a total So this month, how did I do the deal? I did it by waste of time and the experienced people who knowing someone. So I will see you at the MA- have done countless deals tell me the event was REI meeting, doing a deal or being a part of excellent. The difference is the people who do someone else’s deal. deals realize that they can always learn something Deal provided by Kim Tucker, local real estate new in this industry because it is always changing investor and MAREI Director. Kim and her hus- and that at large events there are a lot of new peo- band Don have been investing in Kansas City ple to meet. Adding people to your database is key since 2000. Find them online at kcmoHomeBuy- as they could be the next person to bring you a er.com or GBIFunding.com. deal, fund a deal or buy a deal or be the service provider. Just last week I was reading a weekly email news- Do you have a deal, we would love to hear about letter , “The Notebuyers Notebook” that was talk- it. Email it to us at info@MAREInet.com ing about how their company is utilizing Page 6 MAREInet.com
  • 7. Www.CoffeltLandTitle.com Member For title, escrow, 1031 & foreclosure. Benefit Publish investment property opportuni- ties on our marketing page.  Turn Key Rentals  Wholesale Properties  REO & Short Sale Listings  Multi Family & Offices Review the Membership Package on the Resource tab for instructions on how to log in and post your properties MAREInet.com/Properties Bud Whisler 816-380-3441 For Investors By Investors In this market, you want an agent on your side that has the knowledge, the ability, www.APIAProtects.com 1(877) 752-2742 the EXPERIENCE, Lisa Goodner and the resources to help you! Because APIA sells only Real Estate Owned (REO) and Forced Lender insurance coverage, we've become the industry leader in providing comprehensive, affordable coverage to inves- tors, financial institutions and mortgage compa- nies. Our company specializes in Real Estate Owned (REO) and Forced Lender insurance coverage for property investors, servicers, financial insti- tutions and mortgage companies. Standard in- surance companies also turn to us for our ser- Realty Resource vices. 8014 State Line Rd, #210 816-523-4400 www.RealtyResourceKC.com Investment News Page 7
  • 8. Judicial vs Nonjudicial Foreclosure happens when a borrower falls be- states. hind on house payments and the lender uses The lender sends a notice of intent to begin state procedures to the house that is the underly- foreclosure. In many states, the lender sends ing collateral for the debt. Foreclosure works dif- a ten-day notice of intent to begin foreclosure ferently in different states. In some states, like proceedings. The notice informs that the pro- Kansas, the lender has to file a lawsuit to fore- ceedings can be avoided if the missed payments close (judicial foreclosure), while in others, like are made up, plus costs and interest. Missouri, it can foreclose without going to court (nonjudicial foreclosure). The lender files a lawsuit. If back payments are not caught up, the lender will then go to Judicial Foreclosure court and file a lawsuit. In a judicial foreclosure, the lender must go to The lender gives notice of the lawsuit. The court to get the foreclosure started. A judicial lender does this by delivering foreclosure typically takes several months or a summons and complaint to the borrower more, giving the borrower time to look for anoth- (called "serving " a summons and complaint in er place to live, and to save some money for the legalese). future. Another advantage for the borrower is that they can raise in court any legal defenses Chance to respond. The summons and com- they may have to the foreclosure (without having plaint gives the borrower a period of time within to file a lawsuit). which they must respond if they are going to contest the lawsuit (usually between 15 and 30 Here's how a typical judicial foreclosure might days). Whether or not a response is filed is up proceed. to the borrower. Either way, the lender will have Borrower gets behind in your mortgage pay- the burden of proving to the judge that the fore- ments. A mortgage holder can begin foreclosure closure is justified under the terms of the mort- procedures if just one payment is missed, but gage. usually will wait longer -- much longer in many  If no response, the chances are excellent Don’t miss this event! Monthly Meeting Details: Agenda Tuesday September 11 5:30 pm Pre Meeting / Setup 6:00 pm to 9:00 pm 6:00 pm Registration Career Education Systems 6:00 pm Vendor Hall Guest Speaker: Ward Parkway Shopping 7:00 pm Speed Networking Business Member Center—8600 Ward Pkwy 7:15 pm Presentation Bud Whisler with Kansas City Missouri 8:30 pm Q & A / Networking Coffelt Land Title Top Floor 9:00 pm Adjourn Page 8 MAREInet.com
  • 9. that the foreclosure will go mortgage is not reinstated, the through. The court will issue a Nonjudicial Foreclosure Pro- home will be sold at auction. As default judgment that authorizes cess with judicial foreclosures, if no the lender to sell the home. one meets the minimum bid, the State law sets out the specifics of property goes to the lender. If there is a response, the bor- the foreclosure procedure, in- rower has the opportunity to tell cluding how much notice is given, Right to redeem. A few states a judge just why they think they how the property will be sold give you some time after the have a legal right to keep the (typically at a public auction), foreclosure auction to redeem the house and that foreclosure is not and what rights (if any) the bor- property (to recover ownership of warranted. The better the de- rower has to reinstate the loan the property by paying off the fenses, the longer the process before the foreclosure date or successful bidder). will drag out in court. Even if the recover title to the property after Challenging a Nonjudicial borrower wins, however, it may it's sold. Foreclosure in Court be a temporary victory if the Time may be short. Borrower’s lender can fix whatever problem Because the borrower does not must pay attention when a fore- caused it to lose this time. have the opportunity to raise de- closure looms in a nonjudicial The lender sends a notice of fenses to the foreclosure in a state because very little notice of intent to sell. Once the judge nonjudicial foreclosure, the bor- the foreclosure sale will be given, issues a judgment, the lender rower will have to file a lawsuit. and once it happens, the borrow- typically will send a ten-day no- When this happens, the borrower er may be permanently out of tice of intent to sell the property. is asking the court to temporarily luck. At this point, in many states the stop the foreclosure so that the borrower can avoid the foreclo- Notice of sale. In most states, legal issues can be resolved in sure sale if somehow they can the first notice of the proceeding court. In these lawsuits, the bor- "redeem" the mortgage (pay it will be the notice of sale. De- rower typically asks the court for off in full, as well as the foreclo- pending on the state, this notice three things, in the following or- sure costs and attorney's fees). will be either served on to the der: borroewer, published in the local The auction is held. If no one newspaper, posted in the court-  a temporary restraining order buys the home at the auction, (which lasts about ten days) house and on the property itself, ownership goes to the lender. Up or by some combination of the  a preliminary injunction to this point, the entire process, above. from the first notice to the auc- (which, in foreclosure actions, tion, typically takes three and a Notice of default and notice of will last until the court decides half months -- more, if a re- sale. Some states provides the the case), and sponse to the summons and borrower with two notices -- a complaint is filed.. formal written notice of default  a permanent injunction (usually about 30 days, but (which will be issued if the Eviction If the borrower loses judge decides in your favor). sometimes more and sometimes ownership of the home, most Next Steps less) and another formal notice state laws don't require them to that thehouse will be sold at auc- To learn more about the ins and move out right away. The lender tion (again, usually about a may just let the house sit, wait- outs of foreclosure, both judicial month, but it can be as little as ing for the market to improve and nonjudicial, be sure to attend 15 days). and the borrower can remain in the September MAREI meeting the home payment-free until Right to reinstate. Between the when Business Member Bud they get evicted. notice of default and notice of Whisler with Coffelt Land Title is sale, typically the borrower is al- Statutory Foreclosure going to explain further how the lowed to reinstate the mortgage If a non-judicial foreclosure by paying off what is owed, plus foreclosure process works in Kan- state, the lender does not have fees and costs (which can be sas and Missouri and more im- to go to court in order to fore- very high). With a couple of ex- portantly discusses when we as close on a home. This means ceptions, however, once the sale investors need to conduct fore- that the foreclosure can proceed occurs, your house is gone. closures. more quickly. The auction is held. If the Investment News Page 9
  • 10. MAREI’S MEMBER BENEFITS PROGRAM YOUR MEMBER BENEFITS AT-A-GLANCE USE THIS PAGE AS A GUIDE TO VALUE ADDED DISCOUNTS TOOLS AND SAVINGS CREATED JUST FOR YOU ON GOODS AND SERVICES YOU USE EVERY DAY. Landlord Services Suppliers Service Provider Screening for tenants & workers with 20% discount for members. Discount card for all members providing Learn how to save money at Home De- a 10% discount on all services.. pot and register for a 2% Rebate for all purchases & rentals across the US. Electronic collection for bounced Plus 20% Discount on Paint in Kansas rent checks. No charge to you. City. News & Information FORMS & DOCS Member Library is packed with forms and docs, plus 15 % discount at EZ Landlord Forms for premium forms. E-Update All members receive a discount card Our weekly email update with what’s to access our exclusive discounts up happening in real estate including to 40% off all paint, supplies, and flooring—nationwide. properties for sale, government af- Market your rentals on the nations top fairs and local market data. ranked rental site. Member discount is 20% off Regular Prices. Marketing Investment News The newsletter for Mid-America Associ- Office Solutions ation of Real Estate Investors: pub- lished monthly and distributed both in print at our meetings and digitally to our database of over 5000 people. Save on select FedEx Office copy and Websites for investors, landlords, and print services up to 20% and on Fed- other services. FREE trial. Ex Shipping up to 22%. Magazine for the real estate investor. Receive discounts up to 65% on over With discount subscriptions for MAREI Email and Social Media Marketing, Free members. 12,000 products you use the most online and in store. Trial and Discounts for paying in ad- vance. Continued . . . . Page 10 MAREInet.com
  • 11. Other Discounts Member Service We have several services as part of our website to help you grow MAREI’s Government Affairs ac- your business. tively monitors national legisla- tion and rule-making that im- pacts the real estate industry and harnessing the strength of MAREI Nearly 70% of QuickBooks users say members at the grassroots level. that it makes their business more prof- itable. Get your Accounting on track. Buy at a 20% discount through Na- MAREI mem- tional REIA. bers also re- ceive timely Calls to Action REAL ESTATE BOOKS Calendar of Events to stay up to when there is a date with all of our activities. The nation’s largest provider of time for our real estate training materi- members to als, DEARBORN is America’s take action on Premier Real Estate Publish- an important vote. er. Members receive up to 40% off. Members also have access to the latest Browse the member properties to in Market Da- find your next deal. Take the ta. time to post your investment op- portunities for other members Special member discounts for and site visitors to browse. members at Avis, Budget, and Enterprise Rentals. VISIT ww.MAREInet.com The Member Library is packed Look under Resources - The Local Market Monitor tracks and ever growing with pdf ver- Discounts real estate sales and economic sions of entire books, EBooks, trends nation wide. Offering Articles, Forms, and Documents. 25% Discount for Members. Investment News Page 11
  • 12. Building Instant Rapport . . . Bill Twyford  Do not wear sunglasses. Homeowners Every investor has heard how important it can’t see your eyes and subconsciously is to build rapport with distressed home- you seem suspicious. owners. What we never hear about is how  Never wear a hat, like a baseball to do it. What is it about someone that cap. Again, homeowners can’t see your makes us instantly like or dislike eyes and are suspicious. them? We don’t really know what it is  Always have a clipboard in your hands about that person, we just know it’s some- so that both of your hands are visible. If thing. you tend to stand with your hands in Rapport is developed in the subcon- your pocket or behind you, the home- scious. We can’t quite pinpoint it, but owners will think you have a gun and are there is something about that person that going to rob or kill them and will not seems familiar and makes us feel comfort- hear what you are saying. able around them.  Never wear cologne or perfume. I know So … how do you establish rapport? Let’s this one seems strange, but let’s look at start with a few basic tips. When I am it from the homeowners point of looking for distressed homeowners, I like view. You’re a guy and you wear Eterni- to knock on doors. It is the fastest way to ty. You show up at the door and a wom- get deals. If I knock on twenty doors over an answers. Her husband used to wear a weekend, I will have several contracts Eternity. He ran off with another woman by Sunday afternoon. I’d rather spend a and she still hates him for it. You are day or two getting multiple deals instead wearing what the ex-husband used to of waiting for my phone to ring hoping for wear and subconsciously, you remind just one deal. her of him. She now dislikes you with- Here are some dos and don’ts when you out knowing why. The same goes for knock on doors or meet a homeowner in the girls, too. You don’t want to remind person: the homeowners of someone they now dislike.  Be aware of what color your clothing is. Green promotes trust, while red pro- motes dominance. I like warm colors like green, blue, pink, or brown. Stay away from reds and blacks.  Dress casual, but professional … no suits. Also, lose the jewelry. Homeown- Page 12 MAREInet.com
  • 13. Bill & Dwan Twyford will be teaching a 2 day work- shop November 3rd & 4th on Communicating for Better Profits based on their own Real Estate and Short Sale Business. See Ad on Page 26 or go online at www.MAREInet.com/NLP ers losing their home do not need to see think that fast talkers are slick and un- that you own a Rolex. trustworthy. Is it true? No, it is a sub-  Be aware of what you are driving. If you conscious thought that most people are drive a Rolls Royce, you may want to not aware of. When you follow the consider getting a middle-of-the-road car homeowners’ rate of speech, you seem for meeting homeowners. Yes, home- familiar to them and, again, they like owners need to see that you are success- you without knowing why. ful to feel confident that you can help  Ask them to share a little about their them. No, they do not need to see that current situation and listen with respect you have become a millionaire from dis- and empathy. Once you feel that they tressed properties. You never want them have properly vented, begin to ask de- to wonder if you have taken advantage of tails about their situation. Homeowners others and that is why you have so much want to tell you what happened because stuff. People are leery to begin with, they don’t want you to think that they don’t feed in to it. are losers. No one grows up with the  Be certain you are speaking to the right goal of being in foreclosure. Something person. Instead of blurting out why you in their lives changed and they want to are there, ask if this is Mrs. Or Mr. so and be certain you know what it is. so first. Once you are sure, continue  Make an appointment to view the prop- with your conversation. erty then call back to confirm the ap-  Never use the “f” word … foreclo- pointment. During the second phone sure. State that you were doing some call, ask more questions. Be certain research and see that they have a that everyone on the deed is home and “pending problem with their proper- willing to put a deal together. ty” and that you would like to help  When on the phone, listen for the objec- them. This puts the blame on the prop- tions you are going to get when you erty, not the person. meet in person. For example, “we don’t Let’s look at establishing rapport over the have to sign a deed, do we?” If they phone. ask questions on the phone, be ready to handle them in person.  Speak at the same rate of speech as the homeowners. For example, if the person So, you see folks, it’s not that difficult to who answers the phone speaks slowly, do establish rapport. Take the time to be ap- the same. If they speak fast, do the proachable, honest, and trustworthy and same. People who speak fast think that business will follow. Better yet … just be people who speak slowly are stu- that way naturally and you will reap what pid. Likewise, people who speak slowly you sow. Investment News Page 13
  • 14. W WELCOME NEW MEMBERS To the premier trade association representing Kansas City Area Real Estate professionals MAREI continues its growth with a total of 390 members to-date. JOIN NOW (MAREInet.com/join) New Members Renewing ◎ Nick & Lorena Collier: Oak Grove, MO ◎ Greg Billeisen: Kansas City, MO (Since 2011) ◎ Marilyn Dugan: Overland Park, KS ◎ Carol Cutler: Kansas City, MO (Since 2011) ◎ Pat Edins: Liberty, MO ◎ Karl Dunivent: Liberty, MO (Since 2011) ◎ Stacey Holscher: Shawnee, KS ◎ Kerry Eikenbary: Independence, MO (Since 2010) ◎ Debbie Olivarez: Independence, MO ◎ Jeannie Estavez: Lees Summit, MO (Since 2011) ◎ Bruce Roberts: Prairie Village, KS ◎ Jeffrey Forster: Independence, MO (Since 2011) ◎ Tom Scanlon: Overland Park, KS ◎ Beatrice Gicharu: Kansas City, KS (Since 2010) ◎ Kelley Vince: Kansas City, MO ◎ Kenneth Mabrie: Raytown, MO (Since 2006) ◎ Joseph Schoonover: Liberty, MO (Since 2011) ◎ Ray Strickland: Overland Park, KS (Since 2006) ◎ Jamieson Home Team—Business Member ◎ Premier Leasing—Business Member Page 16 MAREInet.com
  • 15. Invest In Kansas City with MAREI! Kansas City’s Resource for Successful Real Estate Businesses!  Network Online & Offline  Property Marketing  Vendor Discounts  Education & Support  Active in Government Affairs JOIN NOW! Whether you are local or from out of state, just getting started or experienced professional . . . . . MA- REI will assist you in reaching your goals. Call or go Online! Mid-America Association of Real Estate Investors www.MAREInet.com : 913-815-0111 Investment News Page 15
  • 16. sale that day and had moved out and needed his pro- ceeds to purchase another property. The adjacent The owner of a property called to inquire about his cov- owners could relinquish their rights, however one said erage for a "right of first refusal" built into the Homes they would not sign as they had never had to do that Association Declarations. before. So now the current owner had to wait 15 days One of the items almost all title insurance policies EX- to sell. He was in jeopardy of losing the property he CEPT are the terms and conditions of the Restrictions had contracted to purchase and he and his family and Protective Covenants and/or Homes Association were living in a motel.All of this could have been Declarations. If you don't know what they are, ask for a avoided had he read and understood either commit- copy and read it. ment: the one when he bought it or the one he just In a few of the Home Association Restrictions or Cove- received a few weeks ago. nants, most of which were created in the 60's and 70's, He was pretty angry that he didn't have coverage for there is a right of first refusal for the adjoining land own- the Homes Association restriction and that we did- ers to purchase the property if you sell. These re- n't advise him about this clause out of 60 in the decla- strictions require that before you sell, you have to offer rations of the subdivision. We explained that he the property at the same price and terms to your neigh- should have read them or hired an attorney to advise bors. Depending upon the subdivision, it could be the him. We can't practice law as a title insurance agent neighbors whose lots adjoin yours or any one of many or escrow company and can't advise anyone. We are configurations. Some of these restrictions were an at- a neutral third-party who follows instructions given us tempt to circumvent discrimination laws. Other typical and federal and state laws. restrictions are prohibition of additional buildings, fenc- When looking at a Title Insurance Commitment be es and even sometimes basketball goals to just name a sure to read and understand SCHEDULE B, SEC- few. TION TWO, EXCEPTIONS. These are the things that Of course, the owner hadn't read it. Didn't do his due are NOT covered. This is true for a Lender's Policy, diligence when he bought it nor did he read them any- also. Typically, among other items, easements, time since he owned it. Nor did he read the current title homes associations covenants and/or restrictions, commitment that was given to him upon the signing of right of ways and sometimes items on recorded plats his existing contract to sell the property, which required and surveys are excepted, although there can be oth- him to notify the property owners to the left and right of er items as well. You need to do your due diligence on his property that they had 15 days to meet the offer or all these items to make sure you can live with them. If their right expired. He was supposed to close on the you don't understand them, hire an attorney to advise you so that you can make an informed decision and are aware of how these items might affect your own- ership or loan. Then it will not be a surprise that the EXCEPTIONS are items that are not covered. Article provided by Accurate Title Company, LLC is a full-service title insurance agency that is a new breed of title company with the expertise and ability to han- dle the most complex transactions along with the skill and responsiveness of a boutique firm. Find online at www.AccurateTitleCo.com or call 913-338-0100. Page 18 MAREInet.com
  • 17. HOUSES WANTED  Built After 1950 Minimum 3 Bed, 1.5 Bath On Demand Training Eastern Jackson County 30 Minute Segments MO or Johnson County KS Top Investor Trainers Retail Value $100k-$200k From the Comfort of Your own Internet Connection No Rental $39.00 Training Courses Local Cash Buyer Looking for 2 to 4 Houses a REO & Lease Option month to purchase, rehab and sell. Money Part- Creative Financing ners want their money placed quickly so they can Automated Investments turn their money fast and make a profit. Can’t do Auctions & Foreclosures that with out houses! Bring us a deal! Short Sales Wholesaling 101 Email: kcmoHomeBuyer@gmail.com Submit Online: kcmoHomeBuyer.com www.MAREIU.com accurate Accurate Closings: Smooth, Timely, Professional. Property Insurance for Title Services Provided for: Rental, Vacant & Construction  FSBO, Wholesale, & REO Transactions  New Construction Closings Residential & Commercial  Commercial Purchases and Refinance Pay-As-You-Go  All Types of Loan Closings  1031 Exchanges  FHA, VA, USDA, Conventional Loans, and Hard Money Loan Closings Jim Jrolf  Refinance & Reverse Mortgages Toll Free: 888-741-8454  Doc Prep, Prelim HUDS, Curing Issues  Short Sale Closing & Assistance Direct: 913-951-3232  100 Years of Combined Service! NREInsurnace.com www.AccurateTitleCo.com MAREInet.com/NREIG 913-338-0100 phone Investment News Page 19
  • 18. 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. Find it online at http://www.MAREInet.com/Calendar Sat Sept 1 , 2012: 4 pm SubGroup: Sat Sept 15, 2012: 4 pm SubGroup: Blue Springs / Independence Investors Blue Springs / Independence Investors Sun Sept 2, 2012: 9 am Sub-Group: Where: 18800 E Us Highway 40, Indep. Lees Summit Real Estate Investors Sun Sept 16, 2012: 9 am Sub-Group: Wed Sept 5, 2012: 9 am Weekly Lees Summit Real Estate Investors Wednesdays - Sub Group Meeting Mon Sept 17, 2012: 7 pm Omaha Sat Sept 8, 2012: 4 pm SubGroup: REIA Group—Omaha NE Blue Springs / Independence Investors Wed Sept 19, 2012: 9 am Weekly Sun Sept 9, 2012: 9 am Sub-Group: Wednesdays - Sub Group Meeting Lees Summit Real Estate Investors Thurs Sept 20, 2012: 7 pm am KCIG Mon Sept 10, 2012: 5 pm Deadline to Meeting—Roeland Park, KS reserve Vendor Table for MAREI meeting Thurs Sept 20, 2012: 7 pm Shawnee Tues Sept 11, 2012: 6 pm Sub-Group: County Landlords—Topeka, KS Lees Summit Real Estate Investors Sat Sept 22, 2012: 4 pm SubGroup: Wed Sept 12, 2012: 9 am Weekly Blue Springs / Independence Investors Wednesdays - Sub Group Meeting Sun Sept 23, 2012: 9 am Sub-Group: Mon Sept 10, 2012: 5 pm Deadline to Lees Summit Real Estate Investors reserve Vendor Table for MAREI meeting Wed Sept 26, 2012: 9 am Weekly Tues Sept 11, 2012: 6 pm Sub-Group: Wednesdays - Sub Group Meeting Lees Summit Real Estate Investors See more online at Wed Sept 12, 2012: 9 am Weekly www.MAREInet.com/Calendar Wednesdays - Sub Group Meeting Page 18 MAREInet.com
  • 19. Property Management Do the math. Your vacancy is costing you every day. Section 8 Housing Fill your vacancy faster and save money with Rentals.com! KC Metro Wide Discounts for MAREI Members: Jeff Woods Receive 20% off all Regular Broker Priced Advertising. Log into Member’s Area, click on Member www.MyPremierLeasing.com Discounts and look for MAREI’s 816-849500 Discount code! Cornerstone Foundation Repair Kansas Cities Real Estate Investor’s #1 Foundation Repair Contractor  Steel Push to Bedrock Piers @ $850 ea  Steel Wall Restraints Starting @ $180 ea  Crack Injection @ $25 per foot  Sump Pumps @ $800 each Property Management We are proud to say that we have become real estate investors 1st call for major foundation Rental Services repair issues. We offer 25 year and lifetime Kansas City Metro transferable warranties for piering only. Joe Williams www.JamiesonHomeTeam.com ConerstoneFoundationRepair@yahoo.com 913-220-5253 Kevin Jamieson Ask about our Investor Pricing 816-503-4671 Investment News Page 23
  • 20. Local Market Monitor on Kansas City This market has typical risks and returns for investors. The local economy is well diversified. Population growth has Job Growth been slightly above average. Income is average. The housing boom was mild, with a 14 percent rise in prices followed by a 9 percent drop. The recession was moderate, with jobs down 5 percent. Home Price Change Home Price Home prices in this market peaked in Q2 2007 at $176,495. Since their peak, prices have fallen by 12%. In the last 12 months, prices have gone down by 2 percent. The average home price in this market is currently $154,765. Equilibrium Home Price The Equilibrium Home Price in this market is currently $196,496. Home Price Forecast The Equilibrium Home Price shows where home prices would be Home values for Kansas City are forecast to decrease by 1 per- in the absence of market distortions. If actual home prices rise cent over the next 12 months. Nationally, prices are forecast to well above the Equilibrium Prices, they ALWAYS eventually come remain constant. back down. This risk is part of the Local Market Risk Premium. In the second and third year, prices are forecast to increase 1% The Equilibrium Price is often - but not always - the floor when and 5%, respectively. home prices fall. Local Market Risk Premium Local Capitalization Rate The Risk Premium for investing in this market is currently 1.6 per- The Local Capitalization Rate is used to price a rental cent. property, based on the annual rent stream minus the an- nual operating expenses. The Cap Rate incorporates both The Local Market Risk Premium measures the risk of lower future national and local economic risk. The local Investment income from a property - due either to lower rents or higher va- Cap Rate is used to estimate the value of an apartment cancies - and the risk of lower future property value due to a fall in home prices. building or single-family rental. Proposed property prices that produce a sharply lower cap rate should be scruti- Job Growth nized very carefully. In the past 12 months, jobs in this market have grown by 0.8 per- Population cent. This compares to a national increase of 1.4 percent. The population in this market grew less than 1% in 2011, Job growth is our most immediate guide to the demand for hous- while the US population grew less than 1%. ing. New jobs spur population in-migration while jobs regained in a recovery create new households. Investments are riskier when job Population growth - or the lack of it - has the strongest growth is falling, less risky when job growth is strong. effect on local demand for housing. Average population Page 20 MAREInet.com
  • 21. growth in the US is 1 percent per year. Investments are investment risks. An above-average concentration of jobs in usually less risky in markets with above-average growth, construction, manufacturing, finance or tourism indicates a though more risky in small markets with very high popula- greater vulnerability to economic cycles. But strong growth in tion growth. Population data are always several years old, these sectors means the current situation is favorable. Large but current job growth is a fair substitute. health-care or government sectors often mean more stability and lower risk - but not always. The Unemployment Rate Migration in July 2012 was 7.5% versus 8.2% last year. In 2011, net population migration was 0.0%. While migra- Employment by Industry tion tends to be small, it can have a large effect on demand for real estate Home Prices and Rents Home prices and rents often move in cycles but not at the same rate. Rents are more closely tied to local income, while home prices more easily respond to relatively small changes in supply and demand. Investments often are less risky in markets where home prices and rents increase slowly and steadily. Home Price and Rent Change Financial Capitalization Rate The Financial Capitalization Rate shows the average return on investments with similar perceived risk as residential investment properties - such as BBB corpo- rate bonds - but without taking into consideration the special local risks measured by the Local Market Risk Premium. Financial Capitalization Rate Rents We forecast rents to increase 18 percent over the next three years in this market, to an average of $889 per month, partly due to higher inflation. Rents rarely decrease, but sharp job losses and falling home prices can push them down. Rents are closely related to local income. Monthly rent on average is 2 percent of local per capita income, but there is a lot of variation. Housing Permits Total housing permits in July 2012 were up 13 percent from last year. Single family permits were up 40 percent. Forecast Accuracy Vacancy Rates The Local Market Monitor forecast relies to a The Rental Vacancy Rate rose to 12.1 percent in Q2 2012. The Owner Vacancy Rate rose to 2.4 percent. large extent on recent price changes and the mo- mentum of price changes and expected changes The survey technique used by the Census to get local vacancy rates in local income and job growth. for rentals relies heavily on large apartment landlords. It can't easily capture homes that are available for rent. Large changes from quar- Learn more about YOUR market online at ter to quarter in some markets can be due to survey problems rather than actual vacancies.  http://localmarketmonitor.com Employment  http://investors.localmarketmonitor.com Jobs were up 0.3 percent in the past year, compared to the national gain of 1.4 percent..  MAREI members receive a 25% discounts on all report purchases. The concentration of jobs in various industries can reveal special Investment News Page 21
  • 22. 3343 Bellefontaine $34,500 3 Bed Newly Rehabbed Christoph Becker 1 Bath Kansas City Invest- Blue Print Properties Kansas City, MO Rental Basement info@BluePrintProp.com ment Property 20% 816-419-1165 Net ROI 1459 N Martway Dr $80,000 4 Bed This JOCO Flip would Makeba Hart 2 Bath be an easy sell. Make Virtue Investments, LLC Olathe, KS Rehab—to 1246 sq t Me an Offer. Makebashart2gmail.com Flip 816-665-0491 8409 E 103rd $24,500 3 Bed Raised Ranch, needs Beatirce Gicharu 2 Bath rehab finished. Esti- kcpropeties- Kansas City, MO Rehab 1354 Sq mated ARV $98,678 site@gmail.com Ft 816-974-8404 1518 Poplar Ave $13,500 3 Bed Wholesale Price only Christoph Becker 1.5 Ba $13,500. Most has Blue Print Properties Kansas City, MO Rehab 2 Story info@BluePrintProp.com already been done to 816-419-1165 Rental this Solid 2 Story. 6149 Harvard $109,900 4 Bed Live upstairs & rent Scott Tucker 3 Bath out the basement. Realty Resource Raytown, MO Potential 2 2 Living Scott@GBIFunding.com Excellent first home/ Family Qtrs 913-620-7934 rental opportunity. 2019 W 47th Tr $159,000 3 Bed One of a kind home Paul Panos 2 Bath blocks from the Building Freedom Westwood, KS Custom Full Bsmt 816-786-3854 Country Club Plaza, Home Facebook.com/ Westport & KU Med BuildingFreedomLLC 26 Off Market Bulk Package 26 Most tenant occu- Christoph Becker Properties pied, free and clear Blue Print Properties Kansas City Pkg info@BluePrintProp.com title, can break up. 816-419-1165 Sold as is. Page 22 MAREInet.com
  • 23. MAREI Member Properties MAREInet.com/Properties 237 N 15th St, $35,000 3 Bed Good rental or rehab Steve Gardner Kansas City, KS 1 Bath opportunity. ARV of Destination Properties Rental Basement 913–461–0402 $48-50k. Needs a Carport Rehab few repairs. 7315 Nieman Rd $95,000 3 Bed JOCO house in Shaw- Steve Gardner 1.5 Bath nee, new roof, founda- Destination Properties Shawnee, KS Rehab Basement tion and exterior paint. Ste- 2 Car Gar Must move it. Bring any ve.Gardner@homevestor offer. s.com 5809 W 70th St $89,000 3 Bed $30—$35k Rehab. Steve Gardner 1 Bath Great Overland Park Destination Properties Overland Park, KS Rehab Crawl 913–461–0402 ranch, good schools, Rental strong resale value, needs help 4407 Genessee St $99,000 3 Bed Double Lot. West- Steve Gardner 1 Bath port / Plaza. New Destination Properties Kansas City, MO Rehab 2 Car Ste- Roof, Repaired Foun- ve.Gardner@homevestor dation. s.com 2 Houses Under $10K 3 Bed Huge Discounts 2 Makeba Hart 2 Bath house for under 10k Virtue Investments, LLC Kansas City, MO Each—Need Makebashart2gmail.com Make me an offer!!! Rehab 816-665-0491 3829 Benton Blvd $27,500 3 Bed Excellent curb appeal Christoph Becker 1.5 Bath – This 3/1.5 home is Blue Print Properties Kansas City, MO Rehab Basement info@BluePrintProp.com situated on the dis- 816-419-1165 Rental tinctive “Benton Blvd” in KCMO Your Property Here MAREI members can post investment properties online which are pushed out through our Social Media Pages, Email, and Printed at least once here in our Monthly Newsletter for our entire database of buyers to see. Investment News Page 21
  • 24. Show me We had a call this past week at the MAREI office from someone looking to find a copy of “the LIST”. They were new real Craigslist is probably the next best place to work on. estate investors focusing on wholesale investing and Here you need to do a little bit of reverse ad marketing. had learned enough to contact the local real estate in- There are programs out there that will allow you to scan vestment association, but unfortunately their education Classified sites for key words and kick out an email to source failed to explain that there is not a list available, them with a generic email reply. The entire purpose to that they have to do a bit of work to create their own list. get them to respond. These software programs work to a point, but if you do this to an investor who advertises a So where do you start? Well starting at the local REIA is lot, who is really doing the business, they get these a good start, but you need to do a few things to find the types of responses, know they are computer generated movers and shakers that will actually buy your houses. and just delete them. 1. See if they do have a ready made list, doubtful, but So take this reverse ad marketing a step further. Using they might. Check their member forums, we have a any software, or the search engine for the classified site buyers list section on our forum that could potential- and search for key terms like for sale by owner, for rent ly grow into a magic list. by owner, we buy houses, we sell houses, seller financ- 2. Network at meetings, that means talking to people, ing and other key phrases. As you search through these collecting cards and following up via phone to drag ads, build a list of names, emails if available, websites if contact information and buying criteria out of people. available and most importantly - PHONE NUMBERS. 3. Going to all the live events that are available and Sift your report to remove duplicates and now, I want networking is a must. See deal article on page 6. you to take a deep breath and CALL these people. Ask them if they can take two minutes to answer a few ques- Next I would take a look at places online where Investor tions about what they buy and how you can bring them Buyers might be. There are a few places on all the ma- deals to them. jor sites like Facebook, LinkedIn, and Yahoo that have groups that other investors have created to market their Note, that as an investor who advertises on craigslist a properties. They have grown a HUGE buyer’s list by lot, I get tons of emails wanting me to tell them what I allowing everyone to post their investment properties. buy. These get put on the back burner for when I have They will let you post your properties on their groups, more time, which is NEVER. But if they call, I will usual- but they are not going to give you their list. Do not cre- ly talk to them and tell them what they want to know. ate your own page and invite their list to come like your Another option takes a bit of money to buy a list or to list, this will get you kicked out take some time and sift through county records to find The best way I can describe my next step is to stalk buy- cash buyers of properties in the area where you want to ers on social media. That means going through post work. You want all the contact info you can find and after post after post till you find one that sparked a lot of then you can send a postcard to all the cash buyers of- interest and buyers posting their contact information to fering them some reason to go to your website for more find out more about deals. Build a list from these con- information. The gurus will tell you to give away a free tacts and contact them to see if you could add them to report, I would suggest having information about a your buyers list. house for sale. You will have to test different postcards to see which ones work better. Take it a step further and note the postings that create a lot of response. Take the time to recreate similar posts These are just a few ideas to get you started. There is of your own in an attempt to generate your own flurry of no magic list, it just takes time and a bit of work and you replies. will soon have your own buyers list. Page 24 MAREInet.com
  • 25. More Information . . . More Confidence The best place on the entire planet to buy kitchen cabinets. We Have The Best Prices Everything Is In Stock More Profits Tenant Screening We Ship Fast Pre Employment Screening Free Design Help Contractor Screening Collection Services www.CabinetGiant.com Discounts for MAREI Members Josh Burns www.AAAScreening.com 1-877-484-4268 816-436-0085 Selling on Terms? How? We transform vacant houses - often Need Cash Now? seen by buyers as stale, lifeless, unappealing - into fully-furnished, inviting, valued Showhomes. Now in our third decade of ser- We specialize in the purchase of owner financed vice to Homeowners and their Realtors, we've become America's premier home staging ser- notes and contracts from real estate investors vice coast-to-coast. across the nation. By selling on terms you create a Our professional home staging services can add note or contract which can be sold for cash. We thousands of dollars to your sale price -- and at the same time reduce the stress and expense of mar- can purchase all or part of your payments right at keting your property. the closing table to provide you with your profits in Sell Vacant Houses Faster cash now so you can move on to your next deal. and for more money! Request a Quote Today! ShowHomesKC.com Email us at info@GBIFunding.com Michelle Davis 913-449-3593 Investment News Page 27
  • 26. MAREI is looking for a few volunteers to YouTube. If you like playing with to help in several areas. Volunteers YouTube and have a digital camera, receive recognition online and in the please apply. newsletter. Get your name in front of Moderators: Our Social Media pages all our members and guests: need moderators to not only contribute Blog Contributors: Are you an ex- relevant conversation, but to also keep pert on title, real estate law, property our social media pages clean, relevant management, home inspection, short and free of spam. If you are an expert sales, wholesale, technology, market- on one of the many social media and ing or any one of the many other real stay current on real estate topics, estate industries and would be able to please apply. contribute four articles or more a year, Trainers & Speakers: MAREI would please apply. All blog posts will in- like to revamp our Personal Housing clude your bio and links back to your Provider Courses this fall and winter designated website. and needs assistance assembling 1 to Official Photographer: MAREI needs 3 hour workshops to train members real estate photos for the website and and to potentially take to other REIA newsletter of real estate out in the groups. If you have ever thought you general public as well as shots taken at could do what the GURU’s do, please official events. If you have an eye for apply. a good shot and a digital camera, To apply, please send us your contact please apply. information, position you are interest- Official Videographer: MAREI needs ed in and why you think you would be someone to make one or two short 2-3 a good fit to info@MAREInet.com. videos at monthly meetings and post Page 26 MAREInet.com
  • 27. Learn How NLP is applied in all Areas of Your Investing! MARK YOUR CALENDAR Bill Twyford aka The King of Communication and author of “How to SATURDAY & SUNDAY Sell a House When It’s Worth Less Than the Mortgage,” will be here LIVE and IN PERSON, Nov.3rd & 4th, 2012. He will teach us how to NOVEMBER 3RD & 4TH get OUR DEALS ACCEPTED! Bill says that it all boils down to NLP! KANSAS CITY Bill is an NLP specialist. He can teach you how to speak the language of the banks, the homeowners, and the buyers…In other words: He can make you wealthy! You will learn:  What to say to the banks to get your short sale package to the top of the heap  What to say when the bank says no  How to get the bank to work with you even when your home- owners are in bankruptcy  How to get your homeowners to sign contracts on the first meeting  What paperwork to use to make every deal “air tight”  Learn the “little known” Bankruptcy Short Sale  How to negotiate when buying notes  How to automate your communication system  And much, much more! With everyone offering you the next, best, “make a million dollars while you sleep” program – people have forgotten that this is a people busi- ness and without the proper COMMUNICATION SKILLS you are dead in the water! Unless you are closing 75% or MORE of your short sales, you must attend this TWO-DAY WORKSHOP. This is not a sell-a-thon, it is Bill Twyford teaching you for TWO SOLID DAYS! Please bring a calculator, a good attitude, and come with an open mind. We guarantee that you will learn more in these TWO DAYS than any other workshop you have ever attended! Register Today MAREInet.com/NLP
  • 28.  Tons of Networking  Speed Networking MAREI’s September Meeting  Industry Partner Expo  Best Speaker Lineup  Experienced Investors  And Much More! How Foreclosure Works in KS & MO Special Guest And When You Need to Foreclose Bud Whisler Coffelt Land Title, Inc. What Exactly is the Process of Completing a Foreclosure What is the Difference Between Judicial and Statutory Foreclosure Location: What is a Redemption Period and How to Avoid Career Education Systems Besides Foreclosing on a Mortgage, Ward Parkway Shopping Center when would Foreclosure be Needed. 8600 Ward Parkway In today’s market, more and more investors are purchasing non- Kansas City, MO performing mortgages and doing work outs, offering homes for sale on lease to own and contract for deed. When we get more Times: creative in our investing, the need to understand the foreclosure process from the seller / lender side of the equation becomes Tuesday September 11 much more important. 6pm to 9pm Bud Whisler with Coffelt Land Title, Inc. is an expert on Title and Foreclosure process in and he will be telling us what we need to know at the September Meeting. Agenda for Tuesday September 11th Cost 5:30 pm – Pre-Meeting & Set Up Investor Member—No Charge 6:00pm - Focused Networking: Meet the Right People at the Right Business Member—No Charge Time & bring business cards & flyers! 6:00pm — Industry Partner Tradeshow (reserve vendor table) Internet Member—Guest Fee 6:30pm — New Member Orientation Guest Fee 7:00pm – Main Meeting Deal Makers “Haves & Wants” Exchange: Quick Pitch Session for $25 Per Person at the Door Your Real Estate Deals! $15 Per Person on Web Industry Partner Introductions: Build Your Dream Team Go to 7:15pm — Special Guest: Local Title Expert: Bud Whisler presents: Foreclosures MAREInet.com/September 8:30pm — Adjourn: Speaker ends and offers one on one Q & A, plus All Guest Fees Paid will unstructured networking Be credited toward membership – 9:00pm — Meeting Ends when you join at the Meeting.