RE Investment News: February 2018

N E W S L E T T E R O F M I D - A M E R I C A A S S O C I A T I O N
O F R E A L E S T A T E I N V E S T O R S
RE
FEBRUARY 2018
T H I S I S S U E
MAREI Member Library
Stupid Wholesalers
Understanding Private Lending
Why You Can't Sell to Every Buyer
Challenges to Affordability
Member Directory
R E A L E S T A T E N E W S
Affordable Housing in KC
Rental Applications
Saving Money
Evictions
Healthy Housing
Rent Control
National REIA
Awards of
Excellence
Winner
2017
N E W S
INVESTMENT
M A R E I . O R G
BRIAN &
MICHELLE
WINBERRY IN FEB
BRIAN &
MICHELLE
WINBERRY IN FEB
REAL LIFE REAL ESTATE DEALS -
HOW DEALS WORK IN REAL LIFE

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You will find a list of other groups complete with links to details that
meet through out the Kansas City Metro area listed at
MAREI.org/Calendar/Other-Groups
FEBRUARY
FROM OTHER GROUPS >
THE CALENDAR
M A R E I . O R G / C A L E N D A R
See full day
workshop
page 5
REAL LIFE REAL ESTATE
WITH THE WINBERRYS
AGENDA
NEW MEETING FORMAT
This month we are excited to host Brian & Michelle Winberry with a few case
studies of recent deals. With over 20 years of real estate experience, the
Winberry's have been hosting their own group meeting since 2009. We have
invited them to share their knowledge at MAREI on February 13th.
Monthly meetings are held at the Holiday Inn at 8787 Reeder Road, Overland Park,
KS. MAREI Members & First Time Guests who Pre-Register at MAREI.org attend
free - all others pay $25 at the door or $15 online. As always there will be the
Business Hall, the Deal Table and Networking from 6 to 7pm. Starting at 7, the
presentation kicks off with Ten Minutes on Private Lending and The Winberry's
take the stage about 7:20
VENA JONES COX
WHOLESALING
MARCH
Vena Jones Cox, real estate investor, trainer and REIA leader from Ohio is
joining us in March. On the 13th at the MAREI meeting, she will be outlining
how to make $5 to $10k in the next 30 days by Wholesaling. And on the 24th,
she will dig into the mechanics of wholesaling with a huge focus on
marketing. Get the details at www.MAREI.org.
03RE INVESTMENT NEWS
Mailing Address:
6709 W 119th #332
Overland Park, KS 66209
Phone: 913-815-0111
Web: MAREI.org
Web: MAREIMember.com
Email: Kim@MAREI.org
Views and advertising expressed in the
RE Investment News are not necessarily
endorsed by Mid-America Association of
Real Estate Investors. The information
contained within should not be
construed as a recommendation for any
course of action regarding financial,
legal, or accounting maters by Mid-
America Association of REal Estate
Investors.
Email to inquire about advertising
oportunties or membership.
Networking Hour: As always we will have our Vendor Hall, Our Business Card and
Deal Table and General Networking from 6 to 7 pm. Come early, bring a flyer for
the deal table, talk to the vendors and network.
Speed Table: This is in the planning stages and we hope to have a couple of tables
and 12 chairs. We hope to have 2 15 minute speed rounds, but we do need a
coordinator.
Ten Minute Topic: We are adding a 10-minute topic to the beginning of the
meeting at 7 pm, This month we will be focusing on member websites.
Announcements: MAREI & Vendors Announcements at 7:10
Speaker: Robyn Thompson will start at 7:30 and run till 9:00

04 RE INVESTMENT NEWS WWW.MAREI.ORG
DOWNTOWN AFFORDABILITY
real
estate
news
exchange for keeping rents lower. As these tax
credits expire, expect rents that are currently $500
to $700 a month to rise to market rents of $1000 to
$1100 a month.
Read more at MAREI.org/affordable
Attom Data Solution took a look at metros across
the country to determine if it was more affordable to
buy a median-priced home or to rent a 3 bedroom
home. In Cities across Missouri, the results show
that it is more affordable to buy a house than it is to
rent. Kansas was not reporting.
In most U.S. housing markets it was more
affordable to buy, but they did note that housing
prices were outpacing rental growth in most areas
and we may be faced with more areas being more
affordable to rent.
Check out their interactive map at MAREI.org/Attom
AFFORDABILITY
The number of affordable housing units available in
downtown Kansas City are expected to decrease
over the next 5 years. This is due to the expiration
of tax credits used to develop the housing in the
first place. Many of the buildings in downtown KC
were developed before 2008 received tax credits in
RENTAL APPLICATIONS
City Councilman Jermaine Reed proposed a new
ordinance that would prevent employers and
landlords in Kansas City from having the question
on your applications about felony convictions.
You would still be able to do a background check,
you just would not be able to ask the question.
This passed the Infrastructure Committee
unanimously and will go before the city council in
February.

004RE INVESTMENT NEWS
Whether you are rehabbing a whole house or you
have a lot of regular routine maintenance, you can
save a bundle on materials at the Home Depot.
Be sure to make a complete list of all materials
needed for your rehab or that you might need for a
month of maintenance. Take this list to the Pro-
Desk at your local Home Depot and ask them to
Quote You a Volume Discount Price. This can save
you from 10 to 15%.
Then combine the Volume Discount Pricing with
our 2% Rebate on all purchase, 20% Discount on
Paint and Coupon on Hampton Bay Cabinets and
you will save $1000s annually.
Learn more at www.MAREI.org/HDBid
If you only count the cases that end up in court, on
average 42 eviction cases are filed in Jackson
Count every day.
The researchers from www.EvictionKC.org say that
"Most low-income renters in Kansas City—and,
increasingly, some with moderate incomes—
struggle to pay rent. Poor renters often occupy
housing that costs more than they can afford,
which can result in evictions and homelessness."
So what can we as landlords do to help?
Here at MAREI we have several suggestions for
members.
1. Have a good rental application to ask the right,
legal questions.
2. Screen Tenants well using a good service like
RentPerfect.com.
3. Have a well-written policy on who you will and
will not accept and follow it.
We urge all members to visit the website
www.EvictionKC.org
SAVING MONEY ON RENO EVICTIONS
05
05
EVICTION ATTORNEY
Are you managing rentals in Kansas City? Attorney
Julie Anderson Clark can help you with forms and
instruction on her website, her rental leases, or
consultation on the situation.
Learn More about Julie and the services she offers
at www.MAREI.org/Anderson
We are excited to share with you a free copy of Rent
Perfect's new eBook, "Steer Clear of Your Next Eviction: A
Guide for Rental Property Owners." David Pickron,
President of Rent Perfect, shares over 20 years of
knowledge in this book which is overflowing with great
advice for landlords as well as seasoned and new
investors. Learn some common mistakes made during the
application process, costly red flags and money-saving tips
to help you steer clear of your next eviction.
"Steer Clear of Your Next Eviction"
Get Your FREE Copy Today!
Visit www.RentPerfect.com and
request link is at the top!

Fannie Mae started a new reward initiative that
offers financial awards to borrowers. To qualify,
you must be borrowing for a multifamily project
that will offer affordable housing. Then you need to
offer services in this affordable housing that will
improve the health and well-being of the tenants.
These services could be a lot of different things
such as an in-house daycare or an onsite grocery
store. or perhaps educational programming and
job training as well as youth activities.
This initiative aims to advance sustainable
communities and the availability of affordable
housing by encouraging their borrowers to improve
their design features and services to help the
residents.
At least 60 percent of the units seeking the
financial awards must serve residents earning 60
percent or less of the average median income.
These awards can help Fannie Maes borrowers
save between $15,000 and $75,000 per year.
To learn more about the Healthy Housing Rewards
program, visit
https://www.fanniemae.com/multifamily/healthy-
housing-rewards.
California may be facing a rent control-style
program through its ballot process by a group that
evolved from ACORN. Several Cities including
groups in Kansas City.
Tenant Advocacy groups want to make sure
landlords are licensed, that every unit is inspected,
that all units are updated and upgraded, that it is
harder to evict and oh yes, with rent control, despite
the fact that Rent Control is not allowed by
Missouri State Law.
HEALTHY HOUSING RENT CONTROL
EVICTION - THE BOOK
Evictions are the latest hottest issue to “address”
by municipalities and was the topic of an event in
Kansas City in January. The book “Eviction”, has
set the stage for an argument for making it more
difficult to evict a resident. Yes, even if they have
wasted their income, blown their money on drugs
(as repeatedly documented in the book) and lied
to their landlord. Somehow the accountability
aspect of paying a bill, i.e. rent, should now be more
difficult to enforce. Read the book, get a used copy.
This might be a marketing ploy to sell books.
HEAD IN THE SAND
Readers don't stick your head in the sand and say
"Someone needs to do something!" You are
somebody and unless you stay informed and take
action some little law somewhere could change the
way you do business, affect the values of your
properties, and make changes to the economy as a
whole.

08 07RE INVESTMENT NEWS • PAGE
MEMBER LIBRARYMEMBER BENEFIT
There are a lot of gurus who come to
town pitching very expensive courses
and have highly motivating
presenations to get you to buy.
Here at MAREI we are the first to tell
you to invest in your own training But
before you plop down $1000s of
dollars on any training you need to not
only do a bit of research on the guru
themselves, but on the topic at hand.
For example before you spend a ton of
money to learn more about the note
business, might you want to read up a
bit on the note business to make sure it
fits your style, your needs and your
resources? The same goes for any
topic.
So to get you a good broad overview of
the many different topics related to
real estate investing, here at MAREI
we have been assembling a massive
library since we started in 2004. It is
100% digital meaning you can access it
Second: Find the My Account Tab
Third: Click on Member's Library in
the Drop Down Menu
Fourth: Click on Link to the LIbrary in
Google Drive
If you are a trainer or a service
provider and you have an ebook or
other training item you would like to
share with our members please email
kim@MAREI.org to explore options
for sharing your materials in our
library.
If you are not yet a member of MAREI
and would like to access just a small
part of the MAREI Member Library,
please visit our FREE Training Page at
MAREI.org/free-training/
If you are thinking about learning
more about a specific topic, please
explore the library first to learn more
about it before you spend $1000s.
at any time and other than your
membership fee, it costs nothing extra.
Whats In It?
Forms and Documents that have been
donated to the library by members.
Audio Recordings, Video Recordings and
E-books we have been emailed through
out the years.
Webinars and Podcasts we have done
with members and trainers.
And when ever a speaker comes to
MAREI, we do try to get at least one
giveaway item from them to add to the
Library.
So Members, if you have not logged in
and checked it out, what are you wating
How to Access It?
First: log into MAREIMember.com

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08 09RE INVESTMENT NEWS • PAGE
S T U P I D
W H O L E S A L E RCASE STUDIES FROM VENA JONES-COX
Vena is a long-time wholesaler and past
president of the National Real Estate
Investors Association. She’s on a mission
to professionalize the wholesaling
business and create wholesalers who
make lots of money while also treating
buyers and seller right and not making
idiots of themselves. Come learn from her
at our March 13th MAREI Meeting.
Is it wrong of me to get ticked when
people who call themselves
wholesalers show a complete lack of
understanding of what wholesaling is,
or why wholesalers get paid?
I mean, it IS my businesses—and I
imagine that, say, a pediatrician might
get mad of some guy who’d never gone
to medical school hung up a shingle and
started treating kids’ broken arms.
Not that I’m trying to compare what
wholesalers do to what doctors do—
people’s lives are rarely saved or lost
because of what happens in a real
estate deal. But I do sometimes wish
Here is, as closely as I can remember,
an actual word-for-word conversation
I had last year with one of these “fake”
wholesalers:auditor’s website. Don’t
worry about repair costs—you never
need to see the house. Just offer
owners half of whatever they’re
asking or whatever the property tax
folks think it’s worth, and you’ll be
fine. Buyers will line up to buy that
house at 55% of value.
If you don’t understand what’s wrong
with that theory, please don’t call
yourself a wholesaler. Wholesalers get
paid for providing profitable deals to
serious buyers, not for getting deal
under contract. REAL wholesalers
know what they’re offering, know that
it’s a good deal, and can stand behind
their numbers.
The folks I’m talking about seem to
think that they can and should get
checks for throwing numbers at a wall
and seeing what sticks.
that wholesalers had to prove some
basic level of competence before they
could call themselves wholesalers.
But that’s not the case: anyone who
thinks they can “buy low, sell not so low”
is allowed to print business cards that
say “Don Dufus, Wholesaler” and run
around wreaking whatever havoc they
can manage.
My favorite type of stupid wholesaler is
the one who’s fallen for one of those,
“You don’t really have to know anything,
it’s all done for you” sales pitches,
bought himself a website, and tries to
sell me properties about which he knows
NOTHING, from the actual value of the
property to the amount and cost of the
work needed.
In case you haven’t had the pleasure of
buying one of these courses / Ebooks /
seminars, the basic pitch seems to be
this: don’t worry about knowing the
market—the tax folks have the value of
the property right up there on the

Him: “Hi, my name’s Don Dufus, and I
saw on craigslist that you buy junker
properties in Cincinnati. I have one that I
think you’d be interested in.”
Me: “Ok, do you own it, or are you
wholesaling it?”
Him: [long pause]
Me: “It’s fine if you’re wholesaling it, I just
want to know if I’m dealing with an owner
or a wholesaler.”
Him: “I have it under contract.”
Me: “Ok, tell me about it”
Him: “It’s at 1234 main street in a
neighborhood called Delhi. It’s a 2
bedroom, it’s worth about $70,000 fixed
up, needs about $7,000 in work, and I’m
asking $22,000”
Me: “OK, Dufus, let me tell you a few
things about that property.
“First of all, it’s not in Delhi, which is a
bread and butter area with a great school
system—it’s in Fairmount, a near-warzone
in the city schools. It doesn’t even adjoin
Delhi.
“Secondly, I could literally buy that house
and every house for 2 blocks around it for
a TOTAL of $70,000, because 9 out of
every 10 houses on that street are
boarded up. On a rental evaluation, this
house is worth $35,000, max, and that’s
really an imaginary number because there
are no sales of fixed-up properties in that
area for the last 5 years.
“Thirdly, it doesn’t need $7,000 in work,
it needs $17,000 in work, and the reason
I know this is that I sold that property 12
months ago for $1,500.
“So, Dufus, I’m curious: where did you get
your numbers?”
Him: [long silence].
and that he trusted me so much that
he’d take a personal check for that
amount on the spot.
I, of course, have no problem with
paying any fee to a wholesaler, as long
as the overall price works for me. But
before I wrote the check, I asked to
see the purchase contract. Why?
Because when a wholesaler assigns a
contract, the buyer—me , in this case—
is agreeing to ALL of the terms of the
contract. Before I pay an assignment
fee, I want to know what it is I’m
agreeing to.
The “wholesaler” then informed me
that he didn’t have a contract—he was
co-wholesaling the deal for the
ACTUAL wholesaler, who was in
contract with the seller. The co-
wholesaler then asked me to pay HIM
the ENTIRE wholesale fee (only
$2,000 of it was his, the rest was what
the actual wholesaler was asking), so
that he could get into contract with
the real wholesaler, so that he could
have a contract to assign me.
HUH?? So, this guy was asking me to
pay him for something that he didn’t
have: the right to buy a property. And,
apparently, this is tactic that has
worked for him in the past.
Unfortunately for him, I actually
understand that paying someone for
something they don’t have and have
no guarantee of getting (who’s to say
that the actual wholesaler hadn’t
already found a buyer? Or that she
was actually in contract, for that
matter, since neither he nor I had seen
such a contract?) is a really, really bad
idea.
So I told him I would do this: pay his
wholesaler $7,000 for her contract,
and let her pay him, the co-wholesaler,
his $2,000. He refused on the grounds
that he was afraid she’d want to keep
the entire $7,000…and he did not at
all see the irony when I mentioned
Me: “Have you even seen it?”
Him: “No, I’m in Portland. This was a lead I
got from my website. I got my repair
numbers from the seller, who said he had a
bid from a contractor to fix it for $7,000,
and he told me it was in Delhi. The County
website says it’s worth $70,000. I have it
under contract for $19,900, what should I
do?”
Me: “I guess you’ll have to go to some other
Dufus from the West Coast’s website and
post it there, ‘cause you’re never going to
sell it to anyone who actually bothers to go
and see it.”
You may think that this kind of wide-
eyed naiveté—“It’s done for me! I can
make thousands, and don’t have to do a
thing!” is rare. If only. I have some
version of this conversation an average
of once a month with people who
honestly think they don’t have to know,
or do, anything in order to make money
wholesaling. And, let me add, the ‘gurus’
who are willing to sell courses using this
pitch are making money hand over fist.
Of course, their making it selling
courses, not wholesaling houses.
But what’s almost worse is people who
decide to get “creative” with their
wholesaling techniques, and because
they don’t really understand WHY it is
that real wholesalers do what they do in
the ways that they do it, end up doing
things that make absolutely no sense.
Don’t get me wrong: there are creative
things you can do with wholesale deals—
but they kind of have to fall within the
parameters of what’s possible, given the
nature of the deals we do.
For instance: I was recently approached
by a local wholesaler who told me about
a deal that sounded pretty interesting.
After evaluating it and deciding that the
numbers were right, I asked what part of
the total price the was the wholesaler’s
fee. He informed me that it was $7,000,

11RE INVESTMENT NEWS • PAGE
that I was sort of afraid the same thing
was going to happen if I gave the
$7,000 to him.
Was it pretty creative of him to bypass
the whole deal-finding process and
specialize in marketing other people’s
deals to buyers? Sure. Was it pretty
stupid of him to be out trying to sell a
deal that he had no actual interest in,
no idea what the contract he was
trying to sell looked like, and no
concept that what wholesalers get paid
for is a piece of paper he’d never seen
and didn’t even know for sure existed?
Yep.
In a twist on the same “wholesalers
who don’t understand that wholesaling
is assigning contracts” theme, a
student of mine recently related this
story (basically accurate, but details
changed to protect the Dufus):
A co-wholesaler approached him and
asked if he could bring a buyer for the
student’s deal and get paid for it. The
product he didn’t have—a deal—and
couldn’t get, because rather than
thinking about the fact that a
contract already existed and needed
to be fulfilled, he was thinking, “in real
estate, we make offers”.
I strongly recommended to the
student that he track down this co-
wholesaler and slap him upside the
head for me, just for claiming to be in
the same business we are.
PLEASE, if you’re going to wholesale,
know your craft and understand your
product. If you don’t, the best thing
that’s likely to happen to you is that
you’ll spin your wheels a lot and not
make the money you should. The
worst thing could be that you
unwittingly break the law, or ruin your
own reputation. Get trained, take
advice, and don’t try to reinvent the
wheel.
student agreed, and the co-wholesaler
proceeded to bring him an offer from a
buyer that included a closing to occur in
30 days. Problem: the student’s contract
expired in 10 days. Problem 2: the co-
wholesaler had already collected $500
from the buyer in return for the deal.
Follow this: the co-wholesaler took
certified funds from a buyer. The co-
wholesaler had no contract on the
property. The co-wholesaler allowed the
buyer to make an offer that couldn’t
possibly be accepted, because the buyer
wanted to close 40 days after the
expiration of the student’s contract.
What, exactly, was this guy thinking? My
guess: “I got $500! I got $500!”, and not
much else.
Here’s what I’m thinking: what this co-
wholesaler did could easily be construed
as criminal fraud. He took money for a
Learn Wholesaling with
Vena Jones-Cox
Learn how wholesaling really works in today's market. Find
out which properties are the most profitable & which to
avoid. How to make the right offer to make $5k or more in
cash every time. How to get a property under contract with no
risk if you can't sell the deal. How to find tons of anxious
buyers for your deals who will pay you cash up front.
Plus much more and all with real-life examples.
If you are a wholesaler or you wanna be . . . or just
want to generate more profitable deals, then you
can't afford to miss his meeting with master
wholesaler & veteran investor, Vena Jones-Cox at
the March 13th MAREI Meeting. PLUS she's coming
back on March 24th for a full day of training.
Register at MAREI.org

Escrow Services acts as a professional third party
escrow agent to handle all the details involved in
servicing a first, second, or wrap-around
mortgage, deed of trust, land contract,
option or other installment loans. EscrowServ.com

5
things to understand
about private lending
A R T I C L E B Y K I M T U C K E R
DEFINITION
A private money lender is a non-institutional
(non-bank) individual or company that loans
money, generally secured by a note and deed
of trust, for the purpose of funding a real
estate transaction. Generally, they do not
advertise that they lend and are found by
building a relationship with the person who will
only lend to you once they get to know you and
build confidence in your investing skills.
HOW LENDERS GET PAID
Hard money lenders tend to charge points on
the loan and an interest rate for a short term
and many private lenders do the same. But
this is not set in stone and loans can be
negotiated with or without points, with varying
interest rates, amortizing or interest only. And
in some cases with a minimum fee. Others get
paid a portion of the profits. Or a
combination of some or all of the above.
WHERE LENDERS OBTAIN FUNDS
Lenders have build up funds in various
accounts which can include: cash in the bank,
money in an IRA or 401k, money borrowed
against stock investments, home equity lines of
credit.
SECURING THE LOAN
All transactions should be secured with a
promissory note and a mortgage or a deed of
trust. As a lender, it is important to close all
transactions through a title company or closing
attorney. Make sure the closing service
records the deed or mortgage immediately and
then sends you the orinal copies and recorded
copies of everything.
PROTECTING THE INVESTMENT
Close all private loans through a title company
or escrow service and lender should review
title to make sure the borrower owns the
property and that the loan will be in the first
position. Lenders should request to see proof
of insurance naming the lender as second
insured. And if part of the loan is for
renovation lender may want to set the loan up
with draws as the renovations are made.
TO LEARN MORE
There are quite a few private lenders at MAREI
including several attorneys that can assist you
in learning, there are also quite a few
resources in the MAREI Member Library under
the Private Lending tab.

NOT A "GOOD" DEAL
by Vena Jones-Cox
Vena Jones-Cox is a wholesaler
with over 25 years experience in
the real estate business and more
than 800 deals under her belt.
She’s also a world-class teacher
and coach in the business, and
best of all, she’s the guest speaker
at our March meeting. Make sure
you mark your calendar for the 13th
and get there—whether you’re a
brand new wholesaler or an
experienced pro, you’ll learn
plenty!
It’s a frustrating thing when you’ve
put a wholesale deal under
contract, have evaluated it to the
nth degree, and then get told by a
buyer that “It’s not a good deal” or
“I’d never pay that much for that
house”.
Yet it will happen to you, over and
over again, even when you’re a
REALLY GOOD wholesaler, and
here’s why:
Despite the fact that we use the same
set of formulae (After repaired value x
70% less repairs for retail deals, After
repaired value x 60% less repairs for
rental deals), buyers are not some
monolithic group that all have the
same costs, the same profit
requirements, or the same rehab
standards.
Yet when we make offers, we can’t do
so to satisfy the needs of ALL buyers,
or of particular buyers—we have to
shoot for a number that makes sense
to a lot of buyers, but not to the
pickiest or to the ones that have the
highest costs.
Let’s take an example of a single
retail house that’s worth $100,000
fixed up and needs $20,000 in
repairs.
As a wholesaler, you’d want to pay
around
$100,000
X .7
$70,000
-$20,000
$50,000 (your sale price)
-$7,000 for your profit
$43,000 offer.
Now let’s look at how 3 different
buyers—all based on actual
buyers I know—might view this
same deal.
Why You Can’t Sell to Every Buyer…

Buyer #1 is a retailer who buys
and sells about 4 houses a year. He
uses hard money to close and
rehab his deals, an agent to sell
them, and contractors to do all the
work. He wants to make a
minimum of $20,000 per deal, so
he’d do his calculations like this:
$100,000 sale price
-$20,000 profit
-$10,000 sales costs**
-$20,000 repairs
-$6,000 holding costs
-$8,750 finance costs ++
$35,250 maximum allowable offer.
Clearly, for buyer #1, your $50,000
deal isn’t good enough.
** (6% commission + 4% for buyer
concessions)
++(15% interest + 5 points
on $70,000 borrowed)
Buyer #2 is also a retailer, who
buys and sells 6 houses a year. He
uses a mixture of contractors and his
own labor, borrows private money at
8% interest with no points, and sells
most of his houses himself. He also
wants to make $20,000, but he’d
calculate his MAO differently:
$100,000 sale price
-$20,000 profit
-$4,000 sale costs
-$15,000 repairs
-$2,800 finance costs
$52,200 MAO.
For this buyer, your deal looks really
good.
Buyer #3 is a high-volume retailer.
He uses contractors to do all of his
work, and does a higher level of work
than the other buyers. However, he’s
also able to sell his finished
properties at about 5% more than
“market”. He’s a licensed broker who
lists his own properties, thus paying a
3% commission rather than a full 6%
commission, finishes and sells his
has a properties in an average of 3
months, borrows money, at 12%
interest, but it goal of $15,000 per
property. His calculation would
look like this:
$105,000 sale price
-$15,000 profit
-$25,000 repairs
-$7,350 sales costs
-$4,200 finance costs
$50,450 maximum allowable offer
—right on target with what you’re
asking.
The moral of the story is, as a
wholesaler, you can’t and won’t
satisfy all of your buyers with all of
your deals. And it’s not because
you’re doing anything wrong—it’s
because your buyers have
different needs and desires. Don’t
take it to heart if a particular buyer
tells you a particular deal isn’t a
good one: what he really means is
that it isn’t a good one TO HIM.
HOUSES
WHOLESALE
correctly
FREE Training for
our readers. Go to
marei.org/bonuses-from-vena/

C H A L L E N G E S TO THE AFFORDABILITY OF THE AMERICAN DREAM
by Joe Varnadore with NoteSchool
As home sales have cooled, it seems that
“affordability” has become a concern and
focus for many institutions, consultants
and real estate companies.
Last Summer Lawrence Yun, Chief
Economist for the National Association
of Realtors, joined Rosen Consulting
Group and Berkeley Hass Real Estate to
provide information regarding the new
white page report from RGC titled
Hurdles to Homeownership:
Understanding the Barriers.
Adam DeSanctis, of National Association
of Realtors blog, highlights the
conclusion to the barriers as:
Post-Foreclosure Stress Disorder:
There has been long-lasting
psychological changes in financial
decision-making for some of the 9 million
homeowners who experienced
foreclosure and the 8.7 million people
who lost their jobs during the Great
Recession.
Mortgage availability : Credit standards
have not normalized following the
recession.
Growing burden of student loan debt:
Student loan debt makes it extremely
because of low housing supply.
• Home prices up 5.0 percent.
Thinking through the above information
should lead one to summarize that lack
of supply and financing are holding the
market back. On the positive side, more
people are working, credit issues are
being slowly turned around and people
would buy if the terms and prices were
affordable.
As a real estate investor you should
recognize this as an opportunity to fill a
void in the market place.
Large supplies of homes are sitting
vacant. These homes are not on the
market for sale but rather are in idle
position while the non-performing loan
works its way through the system. Once
the non-performing loan is acquired and
the note holder repossesses the
property, putting it on the sales market
with seller financing will lead to a quick
sale.
Note investors have access to the
inventory (supply) and the ability to fill
the void (demand) in the market by
offering attractive terms to potential
buyers.
Learn more in May at MAREI when Joe
Varnadore from NoteSchool will speak.
difficult to save for a down payment,
qualify for a mortgage and afford a
mortgage payment, especially in expensive
markets.
Single-family housing affordability :
Many markets are experiencing decaying
affordability conditions because of soaring
home prices and rents and a lack of single-
family housing inventory.
Single-family housing supply shortages:
An insufficient level of homebuilding has
created a cumulative deficit of nearly 3.7
million new homes over the last eight
years.
Yun gave a presentation titled
Affordability Challenges to
Homeownership. The presentation
provided informative information about
equity, job growth, and overall supply and
demand.
Following are some the highlights from
Yun’s presentation according to
DeSanctis:
• Home equity has doubled since 2009.
• Job creation is far outpacing housing
starts.
• Home sales are at a decade high and
would be higher if there were more supply.
• There’s a mismatch between what’s for
sale and what households can afford.
• Affordability challenges will remain

Attorney
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www.NuLookFinishes.net
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Realty Resource
Listing Agent
Scott Tucker
www.RealtyResourceKC.com
816-284-7844
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National Credit Systems
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Heather Johnson
www.RentPerfect.com
877-922-2547
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Loan Servicing Nationwide
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913-338-0100
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913-498-8999
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816-935-7078
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Servicing
Escrow Services Inc.
Loan Servicing Nationwide
www.EscrowServ.com
Title Company
Accurate Title Company
Dave Green
www.AccurateTitleCo.com
913-338-0100
Alpha Title
Mary Kellogg
www.AlphaTitleInc.com
913-498-8999
Trash Out
1-800-Got- Junk
Trash Pick Up
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To learn more and join, please go
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Julie Anderson : Attorney
MEMBER
SPOTLIGHT
While Julie and her team are known for their specialty in
Evictions and Landlord Tenant Issues they handle a
wealth of issues:
Landlord-Tenant Disputes
Collections
Real Estate Law
Foreclosure
Civil Litigation
Bankruptcy
Julie is a very very busy attorney and works
hard to make sure her clients are educated
and doing their job correctly so she
does not have to charge by the
hour to teach you how to be
a better landlord, she speaks at
MAREI and other organizations,
she offers a b unch of instructions
and forms for FREE on her
website and she also has a lease package
for managing tenants in Kansas or
Missouri or both. And she has offered a
discount for MAREI Members.
Julie's Lease Package Covers
The Screening & Application Process
Lease Agreements & Addendums
Move In / Out Process
Eviction Documents
Sale of a Leased Property
Learn More & Download Order
Form at www.MAREI.org/Anderson

At Mid-America Association of Real Estate Investors,
we have been helping real estate professionals
connect, learn and do deals since 2004. Now in our
15th year, we must be doing something right!
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RE Investment News: February 2018

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