The document provides tips for effective and efficient networking, recommending focusing on quality over quantity by getting clear on yourself and your goals, showing up authentically aligned with who you are, and investing in your most valuable connections rather than just adding more contacts. The nine steps discussed are: know yourself, know what you want, show up aligned with that, focus on quality connections, engage with curiosity, provide value first, follow up consistently, ask for referrals appropriately, and express gratitude.
RE investment News 2014: Successful Real Estate Investors Nine Characteristics and More/TITLE
1. investment
RE N E W S
January 2014 Volume 1
SUCCESSFUL
Real Estate Investors
Nine Characteristics
LEASE
PURCHASE
Five Common Mistakes
And How to Avoid Them
f
FINANCIALLY FIT
Planning for Real Estate
Success in 2014
2014 RE investment News
2. MAREI, through it’s partnership with the Home Depot, offers
its members a 2% Bi-Annual Rebate on top of any discounts
you already receive through the Home Depot & its Pro
Desk.
Join MAREI Today, and start saving THOUSANDS TODAY . . .
Rebates Start Tracking from the Day Registered Forward.
PRO DESK
Get the job done with
Help from the Pro Desk.
2
RE investment News 2014
Visit MAREI at www.MAREInet.com for more information on Membership Meetings, Discounts on Products and Services, and education for Real Estate Investors, Landlords, and Industry Service Providers.
3. MAREI
Mid-America Association of Real Estate Investors
A Real Estate Community
The Home Depot’s
EXCLUSIVE
Discounts &
MAREI Member
BENEFITS
FAST IN AND OUT
Time is money — we’ll get you back to work quickly.
Dedicated Pro Desk Associates.
Two hour advance order pulling.
In Store Hands On—How To
Workshops
Want to learn How a project is completed. Check out our workshops.
In store workshops each month, check out our website and
your local store.
Access step by step video 24-7 on our website—look for our
Project Guide Library
10% Price Guarantee
If you find a lower price on identical in-stock item
We will match the price & beat it by 10%.
Excludes special orders & bid pricing and others—see website
for complete details.
GREAT PRICES JUST FOR PROS
We Offer everyday low prices, plus more ways to save on larger
orders.
You can count on competitive pricing on everything in every department
Volume pricing discounts available on purchases as low as
$2,500.
Instant bulk price savings available 1000s of items.
2014 RE investment News
3
4. CONTENTS
From the Publisher
Ten Years!
for our own Group.
The years have crept up on us and MAREI
and the Real Estate Investment News is celebrating our 10 year anniversary.
With the help and support of a few key friends
and business associates, we launched MAREI
in January of 2004 with $300 for a marketing
budget and my 3000 member buyer database.
We have came a long way since that long ago
Sell-A-Thon Real Estate Convention at
Wealth Builders in Tampa Bay where it rained
for 4 days straight, forcing us to bypass the
beach and enjoy 100% of the entire conference.
We were subjected to training speakers from
8 am to 10pm every day for 3 1/2 days and
we spent many hours networking with the
members Wealth Builders finding out what it is
that they liked about their group why they attended.
We also spend many hours talking to their
group leaders before, during and after the
event getting tips on how they managed their
REIA group. The result was after four days
that we came home with a course on how to
Wholesale Houses, which made me $10,000
after I finally implemented it and that I still refer. Plus we came home with a business plan
At the high of the market in early 2008 we were
approaching the 500 mark in membership and
we weathered the downturn quite well. We
could not have survived with out the help and
support of our Members who Attended, our
Business Members who provided services and
Volunteers who helped in many capacities.
We have recently added an Executive Director
to manage the MAREI office, websites and coordinate events. We hope with this addition we
will be better able to serve our membership
base.
In the next 10 years we want to work with our
members to have more involvement in the community and a stronger voice in our local, state
and government affairs. We know that with your
support we will be able to reach that goal. We
are looking for committee volunteers to take part
in both of these projects.
Kim A. Tucker
Publisher & Founder of MAREI
4
RE investment News 2014
5. CONTENTS
cover story
28
SUCCESSFUL
Real Estate Investors
Nine Characteristics
34
LEASE
PURCHASE
Five Common Mistakes
And How to Avoid Them
40
FINANCIALLY FIT
Planning for Real Estate Success in 2014
2014 RE investment News
5
6. CONTENTS
Rehab Workshop
Success Tips
Saturday
January 18th
With Dave Williams
Regular Features
9
New Rules
2014 Are You Ready
10
Mold
January 2014
PUBLISHER
Kim Tucker
What You Need to Know
12
Networking
Nine Effective & Efficient
Steps to Success
ADVERTISING INFORMATION
913-815-0111
info@MAREInet.com
16
The First Two Months
Are the Hardest
18
Small Claims Court
Dealing With Deadbeat Tenants
RE INVESTMENT NEWS IS PUBLISHED
IN ASSOCIATION WITH
MID-AMERICA ASSOCIATION
OF REAL ESTATE INVESTORS
8014 State Line, Ste 210
Prairie Village, KS 66208
www.MAREInet.com
913-815-0111
22
Changes
The New FHA
26
Why You Should Join
Your Local REIA Group
44
Short
Workshops
Get Your
PHP Credits
Saturday
March 22nd
6
RE investment News 2014
Owner Financing
Frank Dodd & the Safe Act
Regular Features
8
Market Report
24
Member Benefits at a Glance
40
Monthly Meetings & Dates
DISCLAIMER
Mid-America
Association
of
Real Estate of Investors and
the RE Investment News does
not exist to render and does
not give legal, tax, economic
or investment advice and disclaims all liability for the
action or inaction taken or
not as a result of communications from or to its members,
officers, directors, employees and contractors.
Each
individual
should
consult
his/her own counsel, accountant and other advisors as to
legal, tax, economic, investment and related matters concerning real estate and other
investments.
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.
7. Industry Services
Don’t Toss another Seller Lead
for Lack of Buyers!
Let Us Review Your Lead . . .
Assign to us or partner with us.
Submit kcmoHomeBuyer.com
Houses & Notes
WANTED
APIAProtects.com
2014 RE investment News
7
8. Market
Kansas City Real Estate Market Report
Sales Prices Up, Sales Up, Inventory Down
Year end reports for the Kansas City Housing Industry support that 2013 was a good year for Real Estate
in Kansas City.
Permits for single family construction was at
4087, the first time they were over 4000 since
2007 and up 24 percent over 2012 according to
the Home Builders Association. Multi Family
permits were up 62.2 percent over last year.
The year also closed strong with the existing
home prices up 95% and new homes up 3%
over 2012. According to the KCRAR we are
now in a seller’s market with only a 4.1 supply of
existing homes on the market at the end of 2013
after having a balanced market for most of the
past year
Get involved: MAREI is looking to partner with our members and business Associates for a Habitat for Humanity
House Project, a Summer in July Type Project, a Blood
Drive, Project Warmth and/or a Food Drive for Harvesters.
If this is a project your company has been considering, or
you might be willing to chair a committee to organize a
community project, please email Kim@MAREInet.com.
8
RE investment News 2014
9. Advocacy
The New Rules
For 2014 . . . Are You Ready?
Foreclosures
Decline 26%
The Kansas City Star reports that
hoe foreclosures at the national
level are at their lowest level since
the early stages of the mortgage
crisis.
Qualified Mortgages
Consumer, Owner Occupied Loans
Verify and Document Borrowers are Qualified
Must be fully amortizing, no Balloon Payments
Fixed Interest Rate for First Five Years
Can adjust no more than 2 points per year with cap of six
points from original rate. And it must be tied to the Prime
Rate at the Start.
Have to Prove and Document the Borrowers Ability to Repay, not just the initial rate, but the Adjusted Rate
Standard Debt to Income Ration of 43%
If borrower goes into Default
For the Life of the Loan, if it goes into foreclosure, the Borrower can claim faulty underwriting and go payments, interest, fees, and all legal fees.
More Information:
Foreclosure rates have also
dropped in the KC Metro area with
Kansas down 39 percent and Missouri down 40 percent in 2013
over the previous year.
See Website: www.MAREInet.com/QM
“Shadow cast by the foreclosure
crisis is shrinking” according to
Daren Blomquist at RealtyTrac and
he predicts a greater drop in foreclosures in 2014.
See Article Page 38
RealtyTrac reports that default notices, schedule auctions and bank
repossessions are down 26 percent in 2013 from the previous
year.
Dodd Frank E-Book from Alan Cowgill
MAREInet.com/AC-Dodd-Frank
2014 RE investment News
9
10. MOLD
What YOU Need to Know
Hairy, black mold isn’t just unattractive–it’s unsafe. Whether in your home or place of business,
mold could be an issue and your health at stake.
some areas of the home that are always susceptible to mold growth and should be part of routine
cleaning to keep them under control.
Sure, the idea of throwing a dinner party at your
moldy home isn’t an option–who wants to show
off their hairy, black regions? But, the risk of
grossing out your friends is just superficial. The
real concern is the underlying risks you’re taking
by living in moldy conditions.
The EPA’s: Ten Things You Should Know
About Mold
A mold problem can usually be seen or smelled–
but not always. Mold growth may often appear as
slightly furry, discolored, or slimy patches that increase in size as they grow–or it could be dangerously hidden out of site. Often times they produce
a musty odor, which may be the first indication of
a problem–or when hidden, the first sign is your
failing health.
2. There is no practical way to eliminate all mold
and mold spores in the indoor environment;
the way to control indoor mold growth is to
control moisture.
The best way to find mold is to examine areas for
visible signs of mold growth, water staining, or follow your nose to the source of the odor. If you can
see or smell mold, you can assume you have a
mold problem. Other clues include excess moisture and water damage. It may be necessary to
look behind and underneath surfaces, such as
carpets, wallpaper, cabinets, and walls. There are
4. Fix the source of the water problem or leak to
prevent mold growth.
10 RE investment News 2014
10 RE investment News 2014
1. Potential health effects and symptoms associated with mold exposures include allergic reactions, asthma, and other respiratory complaints.
3. If mold is a problem in your home or school,
you must clean up the mold and eliminate
sources of moisture.
5. Reduce indoor humidity (to 30-60%) to decrease mold growth by: venting bathrooms,
dryers, and other moisture-generating sources
to the outside; using air conditioners and dehumidifiers; increasing ventilation; and using
10
11. Member Spotlight
exhaust fans whenever cooking, dish washing, and cleaning.
6. Clean and dry any damp or wet
building materials and furnishings within 24-48 hours to prevent mold growth.
7. Clean mold off hard surfaces
with water and detergent, and
dry completely. Absorbent materials such as ceiling tiles, that
are moldy, may need to be replaced.
8. Prevent condensation: Reduce
the potential for condensation
on cold surfaces (i.e., windows,
piping, exterior walls, roof, or
floors) by adding insulation.
9. In areas where there is a perpetual moisture problem, do not
install carpeting (i.e., by drinking fountains, by classroom
sinks, or on concrete floors with
leaks or frequent condensation).
Who is Titan?
Titan Environmental Services, Inc.
(TES) was established with the primary purpose of offering more efficient and personalized client services. They are a Minority and
Women owned business based in
Kansas City, Missouri serving both
the private and public sectors
throughout the Midwest region and
beyond. They are the “go-to” environmental agency, which can assist
your firm, agency or organization
with any environmental management
and/or regulatory compliance issue
facing your existing and future projects.
Titan is dedicated to serving its clients in a professional and costeffective manner. Their highly
skilled team includes industrial hygienists, inspectors, various level
abatement and remediation project
managers, and field technicians with
years of environmental consulting,
testing and contracting experience. This combination of technical
expertise, multi-variable project
management experience and a dedicated industrial hygiene staff allows
all TES employees to serve as a part
of a well-rounded, professionally empowered team.
What does Titan do?
As a full-service environmental consulting, testing and contracting company, they provide a wide-range of
environmental management and inspection services for asbestos, leadbased paint, mold and suspected
meth labs. Though they are based
in Kansas City, Missouri, they serve
the entire Midwest region; from Minneapolis to Omaha, St. Louis to
Wichita, Little Rock and beyond.
10. Molds can be found almost anywhere; they can grow on virtually any substance, providing
moisture is present. There are
molds that can grow on wood,
paper, carpet, and foods.
(Sourced from epa.gov)
GOT MOLD? Call Titan Environmental at 816561-0959 today for a free consultation. Or visit
them online at www.titankc.com!
2014 RE investment News
11
13. Marketing
Networking
Nine Effective &
Efficient Steps to Success
By Patti DeNucci and Ed Rigsbee, CAE, CSP
Ever wonder why some people are so powerfully connected, are the first to hear about great
opportunities, and earn more quality referrals? The answer may surprise you. To attract more
success in business, you don’t have to network more; you just have to network
more intentionally. This means becoming more focused, engaging, trusted, and memorable.
And not necessarily with more people, but with “your people”—meaning the people who naturally bring the most value into your world.
After years of experience and study, we’ve discovered your networking success boils down to
nine critical steps. Here they are for you, presented in their most basic form and derived from
Patti’s award-winning book The Intentional Networker: Attracting Powerful Relationships, Referrals & Results in Business.
1. Know yourself.
It truly is not selfish or narcissistic to practice self-awareness. This involves knowing your
strengths, weaknesses, beliefs, passions, preferences, and traits. Fact is, knowing yourself is
a key component to creating success and building connection. It breeds authenticity, enthusiasm, and discernment, which helps others see and “get” the real you more readily.
2. Know what you want.
If you are vague, ambivalent, scattered, or unsure of your vision, intention, and goals, then you
are likely drifting along, preserving the status quo, and possibly even invisible to others. Clarity
and focus go a long way to helping you become more memorable, which in turn means others
are clearer and more focused on how to help you.
2014 RE investment News 13
2014 RE investment News 13
14. Marketing
3. Show up in alignment with the
above two points.
Everything about you, from your
attitude and appearance to your
correspondence and conversation,
gives off messages. What’s more,
you have mere seconds to make a
first impression. If your image
doesn’t line up with whom you say
you are and what you aspire to,
then confusion, disengagement,
and distrust can result. Be sure
everything associated with you and
your career or business is congruent with who you are and what you
want.
4. Focus on quality, not quantity.
People often believe that doing lots
of networking and having hundreds
of contacts and connections
equal greater success. Not so fast!
Rather than adding more new people to your network, invest some
time identifying your most valuable
connections; the ones who not only
bring you referrals and opportunities, but also provide you with valuable insights, information, and support. Focus on these top connections for a while. The same goes for
your networking activities. Which
ones really bring energy, value, and
results to your career or business?
Next, make a list of the traits that
make these top people and events
valuable to you. Note for future reference how you originally met or
heard about them. This information
will help you recognize and attract
more of the same. You’ve just created a faster track to your success!
5. Say no with grace.
Once you identify your top contacts
and networking activities, you’ll start
to see who and what no longer
serves you. It will be easier to prioritize, which is crucial to your networking efficiency and success. Figure out who and what
needs to be edited out (or given
less attention). Gradually—
and graciously—back away from
those who drag, drain, and disenable you.
6. Focus on your best connections.
Stay in touch with your best connections. This means reaching out
and staying top-of-mind on a regular basis. Invest a few minutes each
day to sending friendly, helpful,
grateful, congratulatory, or supportive notes to your valued connections. Set up one or
two weekly strategic coffee or
lunch dates. Attend a few targeted
business or association events
each month. Organize and make
time in your weekly routine to follow
up and succeed utilizing the
above. The key is doing these
things regularly and consistently.
7. Stand out in the crowd.
You just never know where or when
an important conversation will take
place, when an opportunity will
arise, or when you will run into a
valued colleague or customer. Be
ready, alert, and aware. Live your
brand and allow it to guide how you
show up and conduct yourself.
Show genuine interest in other people by being the first to say hello,
offering a professional handshake,
and engaging in friendly conversation. Ask questions that show interest. Then take the time to actively
listen to what others have to say.
With a little extra effort and courtesy
you can make connections and
meetings so much more memorable
New to MAREI, Meeting Tips
1. Taking Your Seat: Remember during the networking portion, this is your time to get up and speak
to several new people you don’t know. By all means mark the seat you want to take for the presentation portion, but don’t sit for an hour and wait. Get up and visit with vendors, browse the deals on
the marketing table, visit with people you know, AND go meet 3 or 4 new people.
2. Business Cards: Spend $20 at Vista Print and get something that you can use. It does not have to
be perfect. Include your name, company name if you have one, contact information and a bit about
what it is that you do. If you have a business outside of real estate, that you would like to share ,
utilize that business card.
14
RE investment News 2014
16. Monthly Speaker
The First Two Months
Are the Hardest
Chris Lengquist:
The first two months are always the hardest. I’m talking about when we take
over a rental property for the first time. Whether it’s already been managed
by your or we have just finished rehabbing the house and now it’s ready to
rent (well,e specially if it’s being rented after rehab) we find that the first two
months, from a property management standpoint are always the hardest.
Why?
If we are taking over the property the tenants usually will want to tell us why. Let’s face it. If we are
taking over a property it is probably because
someone else hasn’t been doing a bang-up
job. So first we have to clean up the deferred
maintenance issues that are no doubt present,
smooth over the tenant and do all this without
freaking out your check book too much.
If we are renting a house that just got through with
an extensive rehab then there are all sorts of
things that may not have shown up in the rehab. For instance, you can run drains and flush
toilets for construction crews but until you have a
house full of people using toilet paper and using
the toilets often you cannot know if there is a problem somewhere deep down the drain line. Or perhaps the furnace only works intermittently because
of some weird deal. We always find at least a few
things like this.
The caution here? Just make sure you have some
repairs dollars still set aside for the first couple
months of new tenancy. After that it usually slows
down to just an occasional trickle of problems. But
those first couple months I can almost guarantee
you we will speak quite often.
16
RE investment News 2014
Setting Goals in 2014
Instead of making resolutions you may never intend to keep, may I suggest setting your 2014
goals for your real estate investing ventures? How
many properties do you own? How many would
you like to own? Here are some things to think
about as you are setting 2014 goals;
Should you sell or exchange in 2014?
Should you buy?
Should rents be moved up or down?
Is it time to change who manages the property?
Is this the year to catch up on deferred maintenance?
Have a good tenant? Maybe it’s time to send
them a “thank you” letter.
Any value-added improvements that could be
done?
Hopefully those few things can get you started on
your planning for next year.
17. Industry Services
Insurance for
Vacant Properties
Rehab Properties
Renter Insurance for Your Tenants
Business Insurance
Umbrella Liability
Health Insurance
Life Insurance
www.MOFB.com
Stephanie Cunliff
816-781-4370
2014 RE investment News
17
18. Monthly Speaker
March Main Meeting
Cynthia Schmidt
Collecting
Back Rent
Small Claims Court
Dealing with Deadbeat Tenants
Cynthia Schmidt
What if the tenant vacates the rental property owing back rent, damages above the security deposit and/
or an unpaid utility bill?
The majority of real estate investors across the country will rationalize to themselves “I got my place
back” or “I don't care about the money”.
That was not good enough for me, I didn't get into real estate investing to have my profits stolen from a
non-paying tenant. I deserve every dime the tenant owes me and I knew I had to get aggressive to prove
to the non-paying tenant that I mean business!
This is when a Small Claims lawsuit is filed with the clerk of the court. The average time allowed to file
after the infraction in the 50 states is 5 years. So, the investor has 5 years to pull the judgment debtor
into Small Claims to obtain the judgment.
At the court hearing, the Judge or Magistrate will have to be presented the rental agreement to render a
money judgment concerning any back rent owed. When seeking a judgment concerning damages above
the security deposit, he/she will want to see a copy of the itemized statement concerning the deposit that
was sent to the tenant 30 days vacating and all pictures and receipts of the excessive damages. If it is
for the unpaid utility bills, he/she will ask for the rental agreement that states the tenant's responsibilities
concerning the utilities and the unpaid utility bills.
Once the judgment is awarded in Small Claims Court, the Judgment Creditor will have to proceed to the
post-judgment proceedings to collect. So, when I hear through the grapevine that it isn't worth the paper
it is written on- I challenge that statement! I have collected 90 satisfied judgments and I haven proven to
those 90 tenants that I want my money!
18
RE investment News 2014
19. Monthly Speaker
Have you ever evicted a tenant and received a judgment for back rent?
Were you able to collect on the judgment?
No?
Would you like to know how to collect all the back rents due you?
If so you will not want to miss hearing Cynthia Schmidt at our Main March MAREI
Collecting Back Rent and Judgments!? Now I know what you are thinking --this will not work in Texas!
That is what I thought too! But after five minutes on the phone with Cynthia Schmidt--she had me convinced that this should be a very interesting meeting.
You owe it to our profession and yourself to give the Schmidt's 90 minutes to enlarge your vision. A must
for the serious investor that wants to change the mindset when dealing with a non-paying tenant.
Here is just some of what will be covered...
--> Serving of the Notices
About the Speakers
--> Forcible Entry and Detainer
Cynthia and Gary Schmidt have been landlords
for 20 years with over 500 tenants. Fifteen years
ago, they ventured into post-judgment proceedings and has collected 90 satisfied judgments. In
2005, they wrote their first Collect Back Rent
Manual and the filming of their first DVD.
--> Small Claims
--> Abstract of Judgment
--> Writ of Execution-Personal Property
--> Writ of Garnishment (Bank Levy)
--> Subpeona Duces Tecum
--> Show Cause Hearing
--> Contempt to Judgment Satisfied
--> And much much more
Tuesday March 11th Main Meeting. Register on the
calendar of events at MAREInet.com
Today, after constantly improving they have
comprised the 50 State Overview Books-Dvd's
with an additional book for each of the 50 states.
They have been endorsed by Jeffrey Taylor
(Mrlandlord) and have spoken on his 22nd Annual Cruise and Convention this year with great
reviews.
2014 RE investment News
19
20. www.KCInvest.com
Looking for cash-flowing
or fix and flip
investment property
for your Self Directed IRA?
The KCInvest Team
offers one of the top
selections in the KC Market.
Visit our Website
view our Current Properties
and Mortgage Notes
Register Yourself and
Your Buying Criteria.
20
RE investment News 2014
21. Industry Services
A Full Services
Environmental
Consulting, Testing &
Contracting Service
www.TitanKC.com
816-561-0959
See Web for RRP Training
2014 RE investment News
21
22. Changes
The New FHA
MAREI Staff:
The Federal Housing Administration recently announced they were going to reduce loan limits, one of
their high costs areas. They raised these limits back in 2008 when the financial markets just were not
making loans and the economy was
entering the recession. The FHA raised the limits to help
support our failing housing industry and the economy at large.
Since that time, the economy and the housing sector has recovered and the government wants to minimize their exposure to losses from higher end loans.
So here is what to expect for 2013
1. Loan Limits will be reduced. That means that
on average the maximum price of a house they
will finance in the Kansas City Metro area be
$278,300.
2. Jumbo Mortgage Loans will be coming back,
but with harder qualifications in terms of credit
histories and debt to income ratios. So while
FHA will finance people sooner out of foreclosure, short sale or bankruptcy, the Jumbo borrowers will in most cases have to wait the full
seven years or have a 30 percent down payment.
3. Credit Scores are going to need to be higher.
The higher the score the better the loan you are
going to be ble to obtain.
4. Borrowers May Need a Minimum 20 Percent for
Down Payment. If you are not getting an FHA
loan you are going to see that 20 percent down
is going to be the new normal in many markets.
5. With larger down payments and harder FHA
standards, borrowers are going to be turning to
friends and family for documented gift money to
22 RE investment News 2014
22 RE investment News 2014
help them purchase the property.
6. Lenders are going to be looking at the borrowers reserve funds to cover future payments.
While FHA does not have a requirement on reserves, most jumbo loans do. For example you
may need six months of mortgage payments in
your post closing escrow account.
7. Buyers may have to buy houses they can actually afford rather than buying the big house and
hoping their income grows to afford the larger
house. Or they may want to
wait to buy while they spend time to save up a
substantial down payment.
8. Keep in mind that the housing market is showing a strong improvement and while FHA is reducing limits, other types of loans are stepping
up to fill the gap.
Real Estate Investors need to keep a strong eye on
what is going on in the mortgage markets as this
will affect how hard it is for buyers to get traditional
bank and mortgage company lending.
Investors who retail houses to owner occupant
buyers will often have to jump through special
23. MAREI
hoops to help make sure the sale goes
through the are channels.
Other real estate investors are offer creative financing options for their buyers
through lease options and seller financing.
These options are also being challenged by
new rules.
Join us on Wednesday February 19th when
MAREI Business Member Beth Langston, a
loan officer at Pulaski Bank in Lee’s Summit hosts MAREI’s roving meeting for the
month. We will have an open house for
networking and a discussion about changes in FHA lending and how this will affect
us as home sellers.
ROVING
MEETING
New for 2014:
Starting in January 2013, MAREI will
no longer hold the secondary northland meeting.
The main monthly meeting will continue on the 2nd Tuesday of the
Month, as it has been for the past 10
years.
The secondary meeting will vary by
month.
January’s secondary meeting will
be hosted by Chris Lengquist of
Keller Williams in Olathe.
February’s will be hosted by Beth
Langston of Pulaski Bank in Lee’s
Summit.
March on the 5th Monday we will
be going back up north for a networking and discussion. Location
and topic yet to be determined,
watch the MAREI calendar.
2014 RE investment News 23
2014 RE investment News 23
24. 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
News & Information
E-Update
Screening for tenants & workers with
20% discount for members.
FORMS & DOCS
Member Library is packed with forms
and docs to use in your real estate
business.
Market your rentals on the nations top
ranked rental site. Member discount
is 20% off Regular Prices.
MAREI’s award winning weekly email
update with what’s happening in real
estate including properties for sale, government affairs and local market data.
Learn how to save money at Home Depot and register for a 2% Rebate for all
purchases & rentals across the US.
Plus 20% Discount on Paint in Kansas
City. And coming in 2013 the New
Home Depot App for iPad exclusively for
Chapter Members to use in project estimation on home repair and remodel.
Investment News
The award winning newsletter for MidAmerica Association of Real Estate Investors: published monthly and distributed both in print at our meetings and
digitally to our database of over 5000
people. One of the best ways to get
your message in front of a targeted
group of real estate professionals.
All members receive a discount card
to access our exclusive discounts up
to 40% off all paint, supplies, and
flooring—nationwide.
Office Solutions
Marketing
Save on select FedEx Office copy and
print services up to 20% and on FedEx Shipping up to 22%.
Receive discounts up to 65% on over
12,000 products you use the most
online and in store.
24
RE investment News 2014
Websites for investors, landlords, and
other services. FREE trial.
Email and Social Media Marketing, Free
Trial and Discounts for paying in advance.
Free issues of both magazines
available at the monthly
meetings of MAREI.
25. Other Discounts
Member Service
We have several services as part of our
website to help you grow your business.
Nearly 70% of QuickBooks users say
that it makes their business more profitable. Get your Accounting on track.
Buy at a 20% discount our special
links from the MAREI Web Site.
REAL ESTATE BOOKS
Calendar of Events to stay up to date with
all of our activities.
The nation’s largest provider of real estate
training materials, DEARBORN is
America’s Premier Real Estate Publisher. Members receive up to 40% off.
Special member discounts for members at
Avis, Budget, and
MAREI’s Political Advocacy Group actively monitors national legislation and
rule-making that impacts the real estate
industry and harnessing the strength of
MAREI members at the grassroots level.
MAREI members also receive timely
Calls to Action
when there is a
time for our members to take action
on an important
vote.
Members also have
access to the latest in Market Data.
Browse the member properties to find
your next deal. Take the time to post your
investment opportunities for other members and site visitors to browse.
Enterprise Rentals.
VISIT
The Local Market Monitor tracks real
estate sales and economic trends nation
wide. Offering 25% Discount for Members.
The Member Library is packed and ever
growing with pdf versions of entire books,
EBooks, Articles, Forms, and Documents.
www.MAREInet.com
Look under Resources
& Members Only
2014 RE investment News
25
26. Membership
Why You Should Join
Your Local REIA
Group
Tim Herriage
HomeVestors & REI Expo
Just recently I returned from a National REIA mid-year conference in Pittsburgh. Needless to say, I was very impressed with the organization and all the hard work and dedication put forth into the event to make it a success. This
was a “coming together” type of mastermind group of REIA leaders so that they could compare notes and ideas there
to hopefully do a better job with their local REIA groups.
For me personally, my REIA experience started in 2003 when I was struggling with additional financing for my Real
Estate investing. The irony was not only did I find additional financing but I found a whole new career in note investing
of which I can attribute directly to the education I had received from my local REIA in Philadelphia.
So take note from me, if you’re in the note business, you need to be a part of your local REIA. And here are 3 reasons why:
1.) Education – this was the beginning for me as I was introduced to people like Jimmy Napier, Donna Bauer, Pete
Fortunato, and later on Eddie Speed. My local REIA offers monthly meetings with guest speakers and Saturday workshops. When I was getting started, I took every single weekend workshop I could. I’m glad I did it too because I never
would’ve networked or learned as much as I did in such a short amount of time. Some of these speakers and fellow
REIA members became mentors to me, and in turn I did the same to others. If you’re looking for a coach or mentor
you’re REIA group is a great place to start.
2.) Sources of Capital – Not only to build relationships with like minded investors, I made a lot of friends who still invest in my Real Estate projects as well as my current note funds today. And it’s not just the people I’ve met, but also
the sources I have learned about. 37% of the capital that we raise is from Self-Directed IRA’s, a technique I learned
about at a REIA meeting.
3.) Networking – My REIA group has turned into a great distribution network for my deals, both hard real estate and
notes. It’s funny, now when I go to a meeting I see two groups – note investors…and everybody else. Being in such a
niche business is great because within our REIA we’ve built a little community where we can see each other at least
every month to discuss deals and give advice. I love it!
Now if you’re in the note business and you’re not in a REIA group, I strongly urge you to consider joining and maybe
even actively participating. I’m not saying you have to be a speaker like me, but maybe you can become a vendor or a
volunteer that just helps out. You’ll not only help out your local REIA, but you and your business could get more
recognition. If you don’t have a meeting in your area, you could start one yourself. As Tom Hennigan pointed
out there’s over 38,000 members in National REIA, with chapters both for profit and non-profit alike. So if
you want to get an education, sell a note, or meet like minded investors join or start a local REIA today.
26
RE investment News 2014
27. Industry Services
MAREI
Mid-America Association
of Real Estate Investors
Karl Dunivant
816-343-8887 (work)
816-500-1527 (mobile)
ChoiceCabinet.com
Have a Product or Service
To Promote to Real Estate Professionals
Who Live or Invest in Kansas City
Business Membership
By far the best bang for your buck when targeting
the Real Estate Professional for your product or service in the Kansas City Metro would be a Business
Membership with Mid-America Association of Real
Estate Investors.
The business membership includes all the access to
our website and all the discounts that our Standard
Investor Membership. However, unlike the Investor
Membership that is for the person, the Business
Membership follows the Business. So as a Business you receive two guest passes to every monthly
meeting (20+ meetings a year) that can be used by
the same two people or interchanged among several people each month.
Advertise in our Newsletter
Residential & Single Family
Commercial & Multi Family
Institutional & Bank Owned
Farm & Development Land
www.CatesAuction.com
Missouri: 816-781-1134
Kansas: 913-378-1134
Toll Free: 877-781-1134
Also included in a Business Membership is an advertisement in our monthly newsletter, the Investment News. This is published once a month and
posted on our website, our social media pages, several online file sharing sites and emailed out to our
5000+ database. We highly recommend submitting
educational articles for the newsletter for maximum
exposure.
Advertise on our Website
Our website has a Service Provider Section that
provides you with a home on our website where you
can create a full page advertisement of your choosing and link it to your website. Some examples of
ad pages might include: a photograph, two or three
short paragraphs, an embedded video, contact information and a sign up page for your product or
service. We can make it as elaborate or as simple
as you would like. Also submit educational articles
and videos for our blog.
2014 RE investment News
27
29. COVER STOREY
SUCCESSFUL
Real Estate Investors
Nine Characteristics
Vena Jones Cox
In my 18 years in the real estate business, I bet I've met 100,000 investors at all levels of knowledge and experience. Some have become amazingly successful, while others have lost steam or experienced dramatic failures. In
this time, I've noticed that there are certain characteristics that come with real estate investing success. As a matter of fact, that I have come to believe that I can predict with fair accuracy whether a particular investor will be successful. All I have to do is find out a little about their attitudes and actions, and I'll know what their chances of becoming successful are.
Before I outline the specific characteristics that I've found in successful investors, I’d like to define what I mean by
"successful investor". A successful investor is NOT the person who owns the most properties or does the most
deals, or who has the most zeros in his net worth. A successful investor is simply a person who knows what he
wants - financially, personally, and in terms of what he wants to contribute to the world - and uses real estate investing as a way to get those things. For a successful real estate investor, real estate is a means to an end, not
an end unto itself. A successful real estate investor works to become as financially secure as is necessary for his
peace of mind and who is happy and comfortable with his investment activities.
Successful investors I've known include high school dropouts and PhDs, men and women of all races and backgrounds, people born into poverty and people born with trust funds, guys who started investing at 19 and those
who started in their 70's, part-timers and full timers. There is no single predictor of success, but there are things
that I've found that all successful investor have in common. Here are a few.
1. Successful investors have a plan - and work it.
It's simple enough to put pen to paper and figure out how to become financially independent in 2 or five or ten
years. It's another thing altogether to wake up each morning and do the things you need to do to reach this goal.
Somehow, your real life always seems to get in the way of your long-term goals. Successful investors battle this
tendency to get caught "in the thick of thin things" by creating not just a list of goals, but a daily plan for getting
there.
2014 RE investment News
29
30. COVER STORY
2. Successful investors network.
Real estate investing must be
the only profession in the country that has no accepted curriculum of formal training. Since
your success as a real estate
entrepreneur relies in no small
part on your ability to get reliable
information and advice when you
need it, and since your local
community college doesn't teach
courses on important topics like
how to evict a non-paying tenant, the only answer is for you to
find a mentor who can teach you
the ropes.
Choose a mentor who is knowledgeable, motivating, accessible, and is known for high ethical
and business standards. Don't
abuse your mentor by constantly
asking for information that you
could get from a simple trip to
the library. And don't forget to
thank your mentor by taking him
to lunch, giving him gift certificates to his favorite restaurant,
and, of course, letting him in on
good leads when you find them.
Where do you find mentors? Try
your local non-profit real estate
investment or landlording association. It's full of people who are
there to share.
3. Successful Investors Cull
Their Herds.
When I was a little kid, I read an
30
RE investment News 2014
article about chicken farmers.
This article mentioned that when
the new chicks hatched, the
farmer killed the weak, undersized, and deformed chicks before they had a chance to grow
up. I was, of course, horrified,
and immediately began making
plans to open an orphanage for
runt chickens. Unfortunately, my
home in the suburbs and my insensitive parents conspired to
keep my project in the planning
stages to this day.
Most real estate investors look at
selling their "dud" properties with
the same horror with which I
view the wholesale slaughter of
slightly imperfect baby chicks.
They will keep a property year
after year despite the fact that it
loses money, doesn't fit the owner's goals, is a huge management hassle or is in a neighborhood that has become a
warzone. Successful investors
review their portfolios at least
once a year, and aggressively
get rid of their loser properties
before they can damage the
profits from their winners.
4. Successful Investors Protect Their Assets.
What's the use of building a
huge real estate portfolio if a single lawsuit could wipe it all out?
Why bother to achieve financial
independence if the bulk of your
estate will end up in the hands of
the government? And why is it
that the average real estate investor does absolutely nothing to
reduce their #1 yearly expense taxes?
Arranging your affairs to protect
your assets from creditors, plaintiffs, and the taxman is tedious,
complicated, and time consuming. Yet every successful real
estate investor takes the time to
do it, thus assuring that their
hard-earned money stay theirs.
5. Successful investors have a
code of ethics.
We tend to think of our investment activities in terms of bricks
and cash. In fact, the real estate
business is about PEOPLE.
Without sellers, renters, contractors, agents, and so on, you
would have no real estate business. And since your business
activities affect so many other
people, I think it's important to
decide how you are going to
treat the people you come into
contact with each day.
Since there is no formal code of
ethics for real estate investors,
it's up to each of us to decide
how we'll behave toward customers, tenants, sellers, workers
etc. Instead of using as a measure, "what can I get away with?",
or "what allows me to sleep at
night?”, perhaps the proper
question is, "what’s FAIR?".
Take the time to think about your
31. COVER STOREY
activities and how they affect peo- overcome by an understanding of
ple that you come into contact with. what you're doing.
6. Successful Investors Involve
Their Families.
In ten years, I have yet to meet a
truly successful investor who did
not have the support of his (or her)
significant other.
Because your
real estate activities generally involve spending (or promising to
pay back) tens of thousands of dollars at a time, and since your business will take time away from your
family, I think it's very important to
sit down with everyone who's old
enough to feed themselves and
explain what you're doing, and
why, and that you'd really like to
have their help or at least their understanding. If you have a spouse
who's reluctant to allow you to take
out a second mortgage on your
home in order to invest in the deal
of a lifetime, try sending him or her
to a beginner's seminar on investment. Some of your significant other’s very natural fears may be
7. Successful Investors Treat
Everyone Better than They Expect to Be Treated.
What goes around comes around.
If you think that your reputation as
a buyer or landlord doesn't precede you, think again. When you
go the extra mile to solve people's
problems, both profit and success
will follow.
or jailed for renting to drug dealers.
Mortgage money for high-risk borrowers has become cheap and
easy to get. The Fair Credit Reporting Act has been revised to include landlords. Things change.
Your business is affected. Stay on
top of it.
9. Successful Investors Pass On
What They've Learned.
Just as successful investors have
mentors, successful investors become mentors. By passing on their
8. Successful Investors Stay Edknowledge to novices, they keep
ucated.
our industry alive, give others at
Since I began investing in real es- chance a financial independence,
tate full time in 1989, my state has and get a wonderful sense of their
passed a mandatory seller disclo- own accomplishments. Now that's
sure law. The federal government what I call success.
has made lead-based paint discloReprinted from The Real Life Real Estate
sures mandatory and expensive to e-letter with permission of Vena Jonesignore. Congress has changed the Cox. Get a free subscription at
rules for capital gains taxes twice. www.TheRealEstateGoddess.com
HIV-positive people have become
a "protected class" in terms of fair
housing. My city has passed ordinances that say that I can be fined
Listen to Vena and her guest
speakers on her real estate
radio show: Real Life Real
Estate Investing, find in podcasts on iTunes. Join Vena
to learn Real Estate 101 in
Her Express Success
Training Program presented here at MAREI.
MAREInet.com/ES
2014 RE investment News
31
32. CCsESS
ESS SU s es
PR
EX 6 Months Wednesday Web Cla
The Real Estate Goddess’s Guide
To Getting Your First Deal
Learn Property Evaluation for Single
Family & Multi Family Properties.
How to Retail Houses, Sell Creatively
How to Inspect Properties Efficiently &
Estimate Repair Costs.
How to Screen Sellers for Motivation and
Negotiate the Best Deals.
Buying Creatively with Seller Financing
and Alternative Financing.
Understand Due Diligence, Disclosures,
and What Happens at the Closing
How to Find and Utilize Private Funding
and When to Use Hard Money
How to Protect Your Assets and the Basics of Using Land Trusts
How to find desperate sellers with direct
mail, bandit signs and internet marketing.
Understanding Contracts and all Those
Clauses and Addendums
How to Wholesale Houses
Time Management, Planning and the Importance of Systems
and when to Rent Properties.
Featuring
20 Year Vetteran Real Estate Investor
Vena Jones Cox
32
RE investment News 2014
33. Ever wonder why some of the folks at MAREI are doing really well and other’s just can’t quite get started?.
After all, they have the same info and opportunity.
12 Month Curriculum of Education,
Support & Accountability to take
your Business to the Next Level
Two Payment Plans
Pay in Full
1 MAREI Member $599
2 MAREI Member’s $799
Financing Options
1 MAREI Member $100 Up Front
Then $55 a month for 11 months
2 MAREI Members $100 Plus
$75 a month for 11 months
We sat down with Vena to find out and we recorded it.
Download and Listen now at www.MAREInet.com/ES.
BONUSES
for Paying in Full
Saturday MAREI Workshops
MAREI has 1 Saturday Workshop planned
for every month except November & December, that’s 10 Live Workshops
Real Estate 101
Vena will mail out her Real
Estate 101 Training Course:
- a 200 Page Manual
- 10 hours audio
- CD Rom of Forms & Docs
Vena’s Email Coaching
Register
Online MAREInet.com/ES
Call 913-815-0111
2014 RE investment News
33
34. Success Strategies
“I believe there is no easier way than Wholesaling Lease Options to
make quick chunks of cash in 2-4 weeks. It’s so easy to do, doesn’t require any money, and involved very little risk. Join me at my Wholesaling Lease Options Full Day Seminar on March 22nd, being hosted
by MAREI.”
Lease Purchase
Five Common Mistakes
And How to Avoid Them
Joe McCall
If you think you can be successful in real estate investing without making mistakes, you have a lot of surprises in store! And in fact, if you are afraid to make
mistakes, you will probably never be successful in this business. It’s a crazy
world out there, and you are going to make mistakes. It’s time to face up to it
and get used to it. It’s a crazy reality, but you will probably learn more from your
mistakes than anything else.
Along with all the success I have had, I have made a lot of mistakes in my business. I list only a few of them here in hopes that I can help you avoid the same ones. But if you are
hard-headed like me, you will read this list and think, “OK – yeah, that’s great. That’s really good
stuff. But I wouldn’t do anything like that. I already know that. I’m cool. Whatever…”
The most successful people in this business learn from their mistakes, and they are wise enough to
learn from the mistakes of others. When they fail, they fail falling forward. So here are some mistakes
I have made. I hope you will learn from them so you can avoid them yourselves!!!
Mistake #1 – Slowing Down Your Marketing
It’s tempting. You have been doing some marketing and you are getting some success. Now you are
starting to get sellers to call you. Congratulations – your marketing is working! You might be getting
real excited. All of the sudden, you are busy. You’re starting to wheel and deal. You’re a “dealmaker” now! You find a motivated seller and you get a house under contact. You start seeing dollar
signs. You start advertising and marketing the house all over the internet. You take a ton of calls from
tenant-buyers. You drive around all over town, meeting the tenant-buyers at the house. You stick
34
RE investment News 2014
36. Success Strategies
signs and flyers all over the neighborhood. Then finally, you sell the house! You breathe a big sigh of relief. The tenant-buyer is happy. The seller is happy. You are happy. You just made $5,000! Congratulations! And then you look around you and say to yourself, “Awesome! Let’s do another one!”
But what just happened? You just wasted 3 weeks
spending all your time & effort selling a home while
your marketing for sellers has completely ground to a
halt. Now what are you going to do for new
leads? Well, okay, you start marketing again for
sellers. But now it takes another 2 weeks to find another seller. And then it takes another 4 weeks to sell that
property. All of the sudden, it’s been 6 weeks since
your last paycheck and you’re starting to freak out!
This mistake is real easy to avoid, and it should be obvious how to avoid it… Don’t stop your marketing! Keep doing it consistently, systematically, religiously, etc!
Mistake #2 – Trying To Sell Houses People Don’t
Want to Buy.
viously, each market is different. But here is a list of
what buyer’s are looking for in my area:
1. 3+ bedrooms & more than one bathroom
2. Homes in good school districts
3. Homes in the median price range ($120,000 –
$175,000)
4. Homes that have a basement and a garage
So it’s logical to see which homes I stay away from like
the plague:
1. Anything less than 2 bedrooms & only 1 bathroom
2. Houses with no garage and/or no basement
3. Houses in bad school districts
4. Houses in rental neighborhoods
If you follow these simple rules when marketing for
Lease Purchase homes, you will save yourself a ton of
headaches… and you will make more money!
Mistake #3 – Not Treating Your Investing Business
Like a BUSINESS
Real estate investing should not be a hobby to
you. You need to treat it and run it like a business. Do
you have a business plan? What are your business
goals? If you don’t have something in writing, create a
business plan today! It doesn’t have to be an epic
tome. What type of real estate investing business do
you want to have? How many homes do you need to
sell a month? How much marketing do you need to do
every week to meet your goals? What cash flow do
you need every month to break even? What type of
sellers and tenant-buyers are you looking for?
I get a lot of investors that call me and ask me to help
them sell their investment property on a lease option. They are usually extremely frustrated by a lack of
results. I ask them what they have been doing to sell it
and usually, they are doing all the right things. Then I
find out where the house is located and discover immediately what their problem is. They bought a good
house in the wrong neighborhood. The numbers work,
but no one wants to live in the home – at least no one
There is so much that could be said about this topic,
who wants to eventually buy it. And don’t you think
that I don’t have the time to write it all our here. The
that might be a problem? There is usually nothing I
main point is that you need to have a plan. You need
can do to help investors sell these types of homes.
to have something in writing that guides everything you
Here’s one of the most important keys you can ever
do. What’s the saying – “If you don’t know where
learn in this biz – whether you learn it from me or you
you’re going, I can guarantee you will get there.” Get a
learn it after you buy the wrong property… You can
plan and work the plan!
only sell homes people want to buy! Stay away from
Also, one final important tid-bit – learn to manage your
ugly houses in bad neighborhoods! Only lease purcash flow. Cash flow will make you or break you. You
chase nice homes in nice neighborhoods.
have to know what’s coming in and out every month.
What are buyers looking for in your area? I run most of
my lease purchase business in St Louis, Missouri. Ob- Mistake #4 – Being Too Hard For Your Sellers and
3636 RE investment News 2013
RE investment News 2014
37. Success Strategies
key – you’re going to waste more
time playing phone tag than you
Does it really need to be
would if you just answered the stusaid? Would you ever do business
pid phone and answer their 3 queswith someone who is impossible to
tions! Usually, I am not on the
reach? If you look at any successful
phone more than 2 minutes with a
investor in your area, I can almost
tenant-buyer, and not more than 5promise you they do not use all
10 minutes with a seller. But before
those expensive & elaborate voice
they ask me all their questions, I ask
mail systems and websites that all
them my questions first. I stay in
the guru’s try to sell you
control of the conversation. I only
on. Why? Those systems pretalk to motivated sellers and tenantscreen everyone out. If you want to
buyers. If they are not motivated, I
be successful in this business, you
thank them for their time, and I get
must be easy to talk to. When a
off the phone as quickly as possible.
seller calls, don’t make them jump
through 100 hoops and answer
Mistake #5 – Not Outsourcing
1,000 questions before you call
Your Marketing.
them back. When a tenant-buyer
I have a virtual assistant that does
calls, don’t make them listen to a 10
ALL my marketing for sellers and
minute message that tries to answer
tenant-buyers. Yes, you heard that
every question they have about
right. Actually, I have 3 virtual assisLease Purchasing. Be accessible!
tants – but that’s a different story. I
On all my marketing and in all my
have already talked about how imvoice mails, I have a way for people portant marketing is. But this is one
to reach me at my office. They can of the easiest parts to outsource –
leave a message if they want, but
yet I don’t understand why so few
they also all know that they can be
investors are actually doing it!
re-directed to my office if they want
You think it’s too expensive to hire a
to talk to a live person.
virtual assistant? Guess how much I
Now I am not talking about answer- pay my VA? $2.78 / hour. She lives
ing the phone at all hours of the day in the Philippines, has excellent
and night. I am just talking about
English, and is very happy with
basic, simple customer service. You $2.78/hour.
wouldn’t believe how much business
What do I have her do? Well, you
I used to throw away before I
need to subscribe to my course to
changed this part of my business
find out! In my course, I will give
and became easier to get a hold of.
you the exact instructions, checkIf you’re worried about spending too lists, and videos I give to all my virtumuch time on the phone with “tire
al assistants. It’s not rocket scikickers”, your focusing on the wrong ence. All you need to do is write
thing! You’re focusing on yourself
down everything you do for marketand not your customers. Here’s the ing, and have your VA do it. Here
Buyers to Reach.
are two tools that I use all the time in
my outsourcing:
• www.oDesk.com – I like the VA’s
from the Philippines
• www.JingProject.com – a free
tool where you can record videos
and instructions for your VA’s
Listen, you have more important
things to do than researching the
internet, stamping envelopes and
addressing postcards. Hire someone else to do all your marketing. It
will be some of the best money you
ever spend on your business.
Summary
This list of mistakes could easily be
2-3 times longer. These are just A
FEW of the lessons I have learned
along the way. You can learn more
about the mistakes I made and how
to avoid them by subscribing to our
membership site and gaining access
to all our great content.
Happy investing!
Saturday Seminar
Wholesaling
Lease Options
With
Joe McCall
Saturday March 22nd
Details at
MAREInet.com/JM
2014 RE investment News
2013 RE investment News
37
31
38. Watch the MAREInet.com Blog over the next
Full Day Workshop Saturday March 22nd
Joe McCall has been investing for over 7 years and he says there has probably never been a
better time to invest than right now. In the last 24 months, he has seen his part-time business
take off by using a simple strategy he calls “Wholesaling Lease Options”.
Discover why "Wholesaling Lease Options" is one of the easiest, cheapest, fastest, and safest
ways to make big chunks of cash in real estate today. You can get started right away with zero
prior experience, no sales skills, and no big down payments (just $10)... because you are not
“buying and selling” houses.
Let’s look at some facts…
1)
There are TONS of sellers out there who can’t sell their home.
2)
There are TONS of buyers out there who can’t buy a home.
3)
Creative Investors have the solutions these people need!
Most Sellers can’t discount their home to 70 cents on the dollar to compete with all the distressed houses in their neighborhood. And most Buyers can’t get a loan because the banks
won’t lend them any money! It’s a vicious, downward spiral.
So, Joe asked himself, why am I throwing away all these leads? Why can’t I do anything with
them? Why can’t I plug “Lease Options” and “Wholesaling” together, and start making money
with these two strategies at the same time?
So that’s exactly what Joe did. Within 3 months, He started consistently making $10,000 $15,000 every month, working part-time, spending very little money on marketing, and hardly
throwing away any leads!
38
RE investment News 2014
39. “ I believe there is no easier way than Wholesaling Lease Options to make quick chunks of cash in 2-4 weeks. It’s so easy to
do, doesn’t require any money, and involves very little risk.
Join me on February 22nd, when I am in Kansas City for a full
day workshop with me and I will teach you how to do it!
t 30 days for quick tips and articles from Joe
Joe McCall
For Low Equity Deals & Very Little Capital!
Included
in Express
Success
Program!
REGISTER BEFORE FEB 19th for EARLY BIRD PRICING
□ Member Price $39 (early $25)
□ Member Price for 2 $49 (early $35)
□ $99 Add Membership for 1 Person
□ Non-Member $49
□ Non-Member for 2 $69
□ $149 Add Membership for Two People
_______________________________________
Student Member #1
____________________________________
Email #1
________________________________________
Student Member #2
____________________________________
Email #2
________________________________________
Address
_____________________________________
City State Zip
______________________________________
Phone
______________________________
Credit Card #
_____ / ____ __
Expire Date / Sec Code
Register Online MAREInet.com/JM
Or Call 913-815-0111
_________________________________
Signature
Scan & Email to info@MAREInet.com / Fax to 201-574-2969 /
Mail to MAREI : 8014 State Line, Suite 210, Leawood, KS 66208
More Information at MAREInet.com/JM
2014 RE investment News
39
40. COVER
Wholesale
Wholesale Real Estate
Building Your Buyer’s List
Kim Tucker
“I want to get into this real estate investing. Where should I start?”
This is a question that I often receive and while many factors should go into where you personally start like time and money, I
quite often recommend getting your start in this business by learning how to wholesale properties. It does not take a bunch of
money to wholesale a house and all the tasks needed in wholesaling should be learned in just about any other type of residential real estate investing.
40
RE investment News 2014
41. Wholesale
So what are your plans for 2014? Are they written
out and scheduled? Do you have an effective support group and coach to keep you on task?
FINANCIALLY FIT:
PLANNING FOR REAL ESTATE
SUCCESS IN 2O14
A brand new year with brand new possibilities!
Kim Tucker, KCInvest
THIS TIME, 2014 is the year I will reach my Goals.
I have read time and again that in order to reach goals, you need to be able to visualize what it you want to accomplish and have bench marks to be able to determine if you have met your goal. Next you need to outline the
steps needed to reach those goals, breaking a big goal into smaller portions that need to be completed. You
need to take the time to schedule all of these steps and probably most importantly, you need a support structure
to help keep you on task. Let’s face it, life happens, stress and schedules get in the way and if you don’t have the
support you need to keep you motivated and to offer assistants, you might lose sight of the prize.
To give you an example that everyone can relate to we will turn to the most common New Years Resolution: Getting Fit / Losing Weight. We can all probably relate to getting fitter. We can all visualize what we want to look like
and feel like when we do get fit. We can set down with a doctor, nutritionist and / or exercise coach to help us
come up with a written plan of what we need to do. Eat the right things, limit the bad things we do to our body and
have an exercise routine. We jump in week 1 in January and we work real hard and follow the plan to a “T”.
Week 2, you are so busy on Tuesday that you grab some fast food not on the plan and you are so tired on Saturday that you skip the exercise. Week 3, you screw up even more and by Week 4, you have given up.
Sound familiar? What was missing in our exercise example? We left out the support structure, if we don’t have
the support we need from our friends and family as well as from outside sources we might get discouraged when
we deviate from our plan and eventually give up.
Do you remember way back when to one of the times that Oprah lost a bunch of weight and looked so great?
She did it several times, as did many famous people. How do they so dramatically change their lives? Well first
they have the money to hire someone to help them. They decide I want to do “X”, then they hire a coach to help
them define what “X” is and to create a plan to attain “X”, then they hire support staff and coaches to keep them
on track until, they achieve “X”. We also know that Oprah, while she lost all the weight and looked so awesome,
also gained it all back, why? Well, I don’t know the real reason, but I am going to bet that once she reached the
2013 RE investment News 41
2014 RE investment News 41
42. Success Strategies
breaking down the goals and outlining the steps that need to be taken to
acquire the goals. One way to get
the help is to purchase a training program or hire or partner with a mentor.
Where can you find courses, coaches
and others in the business to partner
with? I would suggest getting involved and meeting people at your
local Real Estate Investor Association. The local REIA will be filled with
people who are doing exactly what
you want to do as well as have recommendations on training and coaches.
goal, she didn’t need the chef and
the exercise coach at her house
daily to support her in her efforts
and to keep her on track. The
coaches stopped coming, the exercise and the diet slipped and back
came all the weight.
How can we apply these to our real
estate goals for 2014? Well, keep
reading and let’s see if I can translate . . .
I have heard this several times from
new investors this past month. “I
have been thinking about getting into
real estate and this year is the year.”
I have also heard that “This is the
year I take my real estate to the next
level!”
These are both great statements, but
what is the goal? Do you want to become a Realtor or the guy who drives
around and takes photos of houses
or the gal who goes in and stages
houses? All three are “Getting into
Real Estate” but might not be exactly
what you had in mind.
So you need to define what you want
to do and put in measurable benchmark points. So for example if you
want to build your rental portfolio you
might say: “I want to buy 5 Rental
Properties using Creative Financing
Techniques in 2014 that Cash Flow
$300 a month so that at the end of
2014 I have only $2,000 out of pocket
on each house and a net cash flow of
$1500 by December.” If your goal is
to become a house flipper, you might
state that “ I want to flip 6 houses with
a minimum profit of $3,000 each to
add $18,000 to my IRA by the end of
December.”
Next, take that goal and break it
down, from the goal of what you want
to achieve over the whole year and
put it into monthly or quarterly goals.
Then define the necessary steps you
need to take to reach the smaller
goals. After you have the steps defined, put in deadlines and get them
on your calendar so you can make
sure they happen and that life will not
get in the way.
You may need some help finding
42
RE investment News 2014
You might also find that you already
have a course from past years gathering dust on your shelf. Or you
might find a great resource in one of
the many online sites for Real Estate
Investors.
If you purchase a training course and
it is not step by step, then get busy
and convert it into a step by step
plan. Set deadlines for each item on
your plan and schedule it out on your
calendar.
Then once you have the plan, you
need to go out and do it. This is
where things often slip through the
cracks, its easy to plan out the tasks,
but much harder to go out and get
them done.
As you look at each step, be it sending out marketing letters, posting
craigslist ads, returning seller calls,
posting property ads or whatever,
make sure each step is scheduled on
your calendar. And make sure it gets
completed. If you just don’t have the
time to complete the steps, then you
might have to give up some other
activity or hire someone to do some
of the steps.
So for example, if you know for a fact
that you will not physically print out
43. Success Strategies
that 100 letters each week and hand
address the envelopes, stamp them
and take them to the post office . . . I
have a hard time with this. Then you
need to go out and find a way to get it
all done for you. (That is . . . if this is
one of the steps on your plan)
Get a system down that you know
you will actually do, over and over
and over. It may be that year one,
you do a lot of the work until it becomes a repeatable system that you
could outsource to an employee, a
virtual assistant or a partner in year
number 2. Many of the trainers out
there offer resources for outsourcing
because they know most students
are not going to be able to do everything themselves. Resources like call
centers to take calls, website designers to create websites, mailing houses to help you create the mailing list,
the letters and to get the mailings out.
Many of the trainers also have Virtual
Assistant Companies that do work for
them who will also do the same tasks
for you.
Now we are really moving, we are
dropping the weight and getting fit or
conversely we are getting the marketing out and making the phone ring,
but what happens when we stumble.
What if we are doing this real estate
thing on the side and a HUGE project
at our day job gets in the way and we
let a few things slide. We don’t have
things just falling into our laps. We
get discouraged and we want to give
up?
Yes, it will happen. Most people that
decide to try something new and set
the New Year’s Resolution to do it,
totally give up by April if not before.
Sorry, that’s just the way it is.
What do we need to do? Get a support group and / or coach.
Personally when I find things to be
discouraging, when I have a week
where nothing clicks, those are times
I need to go to a real estate investor
meeting of other investors and talk to
them about what they are doing.
Share my problem and work with
them to brainstorm new ideas. Ask
them for suggested resources.
So where do I find these meetings?
Register as a Buyer
And we Promise
NOT TO SEND YOU
A SPECIAL REPORT
Just Properties!
Well I own a Real Estate Investor Association that has meetings once a
month, so I make sure I never miss a
meeting. But I also belong to several
other groups of Real Estate Investors
that meet weekly, monthly, by telephone and at big conventions.
I also am a coaching student of a national real estate investor trainer that
has several telephone trainings each
week, and online forum to ask questions and big live training events several times a year. I find that participating in all of these resources helps
me stay on task, fix my broken tasks
and be more successful.
So what are your plans for 2014?
Are they written out and scheduled?
Do you have an effective support
group and coach to keep you on
task? If you do, then GREAT! If not,
I highly recommend picking out at
least one of your goals and finding a
way to break it down, implement it
and get it done, so this time next year
you will not be staring at the same list
of things to accomplish as you have
right now.
We buy houses in
the Kansas City Metro Area.
Call us when you have
a property to sell or a
deal that you need help with,
816-200-2198
Call the Tuckers
913-735-0018
2014 RE investment News
43
44. Regulations
Reprinted from William Bronchick’s website http://legalwiz.com/owner-financing-dodd
-frank-safe-act/.
Please visit his website for a video on the subject as well as a lengthy discussion
over the past few months between Bill, readers of his blog and other experts in the
industry.
Owner Financing
Dodd Frank & the Safe Act
William Bronchick
LegalWiz.com
Owner Financing, Dodd-Frank and the SAFE Act… If you are selling properties to owner occupants and doing selling financing, you ought to be aware of some comprehensive new regulations that have been in effect for a few
years, and a real zinger that goes into effect on January 10, 2014.
A few years ago, the “SAFE Act” was passed on the federal level, then was implemented on a state-by-state basis. The SAFE Act basically required that you be a mortgage loan originator, or use a mortgage loan originator to
sell properties with owner financing. This means getting a loan application like a FNMA 1003, comply with Truth in
Lending, and have the buyer sign the ½” thick pile of other lender disclosures.
People panicked when the SAFE Act came out, and declared that seller financing was all but dead. I simply
walked down the hall of my office building and asked a mortgage guy if he could “originate” my seller financing
loans. He printed the stack of documents from his lender software and charged the buyer $400 as a loan origination fee. No big deal, just a waste of good trees in my opinion.
The SAFE Act was later amended in my state (and many others) to allow you to do three or so deals a year without
having to do all this nonsense. The Act did not address using different entities every three deals, so, as a practical
matter, the issue was put to bed for us in Colorado. In other states, however, there were NO exemptions, meaning
unless you were selling your own principal residence, you had to be a mortgage loan originator, or use one in the
transaction, even for one deal. Technically, you can’t even ADVERTISE the seller-financing feature – the mortgage
loan originator has to do so. But, again, as a practical matter I don’t think the powers that be are searching through
craigslist or looking for “owner will finance” signs on houses, and the likely scenario is a “cases and desist” letter
from your state agency, giving you a chance to get licensed. No fines, no jail time.
Enter two corrupt, knucklehead politicians named Dodd and Frank. They managed to pass the Dodd-Frank regulations that go into effect January 10, 2014. This one is a bit more complex and difficult to deal with, largely because
it is confusing and has regulations that have yet to be clarified.
We’ll start with who is exempt and who is not. If you are selling raw land, commercial property, or to a person who
is not going to a live in the property, you have nothing to worry about. If you are a person or a trust, you can do one
deal a year, so long as it’s not a “funky” loan, like a reverse amortization, etc . I know, you’re thinking, “I’ll use different land trusts for each property”, but that may end up blowing up in your face if you get caught. Admittedly,
44
RE investment News 2014
45. Regulations
however, nothing clearly in the DoddFrank regulations address this. We
certainly are anticipating a “controlled
group” definition to come out
soon. One federal regulator commented that the rule was 25% common ownership, but nothing in the
regs back that up.
If you are a corporate entity, then you
can do up to three deals a year, if the
deals meet the following three criteria:
1. There’s no balloon in the note
(meaning it must be fullyamortizing)
2. The interest rate is fixed for at
least five years, and
3. You “qualify” your buyer.
Of course, these geniuses did not lay
out what the qualifications are supposed to be, except for the debt-toincome ratio (43%) In my opinion, you’d be a fool if you sold a
property and did not check the buyer’s credit, verify their income (with
tax returns and employment), and
make sure their gross income is at
least THREE times their total monthly
debt payments, including the mortgage. Personally, I’ve always done
this and I don’t object to making this a
rule, other than the fact that there are
already too many regulations in this
Country. On a practical note, if you
are selling to a tenant or lease/option
tenant, you can use their rental history as strong proof of their ability to
repay.
Again, it is not clear if you form a new
LLC or corporation for every three
deals you can get around all of this,
but nobody wants to be the “test
case”. Also, if you want to have a
balloon after five years, simply pop
the interest rate up so it hurts the
buyer enough for him to want to refinance and pay you off anyway
(note: you can only increase the rate
2% a year for a maximum of 6%
above the original rate).
afford a lawyer, then you will be facing a fight. One investor I met in
Houston recently commented, “If that
happens, I’ll just give them the property”. Since he was dealing in $60k
homes, that would be a simple solution. It’s really rare that you’d end up
So, effectively you can do three deals
in court over this Dodd Frank issue
in an entity, and one deal in a trust or
anyway, but what keeps me up at
your own name if you are strictly folnight is the slimy “consumer proteclowing the law. A second entity
tion” lawyer who puts out an ad that
owned by your IRA and a third owned
says, “Have you bought a house with
by your spouse would add six more
owner financing? Call 1-800-BADdeals, in theory. If you buy and sell
LOAN”. Yikes! Even so, if you do
with owner financing more than 10
every deal in a separate LLC, then
times a year, you will likely need to
you are limited in exposure to the valbecome a licensed mortgage loan
ue of the equity in the home. If you
originator or hire one on staff, which
bought the property subject-to the
may not be a bad idea, just a bit of a
existing loan with little or no equity,
hassle because the slew of other nitthen all you really risk losing is the
picky regulations that come with
cash flow from the deal.
it. Also, when you are beyond the 4
deal limit, you must not only prove
So, to sum it up:
ability to repay, you must DOCUYou can do one deal per year as a
MENT it. Tax returns, W-2′s, bank
natural person or trust, three deals
statements – the works. Thus, if you
per year in an entity without being
have a self-employed person who
licensed under Dodd-Frank. HOWEVlooks broke on paper but has 30%
ER… if your state has no exemption
cash to put down, you really can’t
under the SAFE Act, you still have to
document his ability to repay
use a licensed mortgage loan origina(suggestion – lease/option for 2
years, then convert to a owner-carry tor on EVERY deal.
sale).
In theory, if you are married and you
Are the Feds going to be chasing
both have IRAs, then that’s 4 + 4 + 3
down real estate investors for
+ 3 = 14 deals a year in various entithis? No, the SAFE Act already coties. That’s a lot of leeway without
vers that at the state level. What the
having to get licensed.
Dodd-Frank Act does is provide a
Remember, too, this is only a sumbuyer who is being foreclosed or
evicted with a counterclaim recouping mary of the Dodd-Frank and SAFE
all their interest paid, plus their down Acts. You should consult with a qualpayment, attorney’s fees, and court
ified attorney in your state before procosts. I always recommend that peo- ceeding. Remember there’s state
ple settle out of court when a buyer
law disclosures, RESPA, Truth-indefaults, using the “cash for keys”
Lending, and servicing rules to worry
method. But on the off chance that
about, too!!
they aren’t paying you and can still
2014 RE investment News
45
46. Events
Monthly
Meetings
MAREI MEMBERSHIP
MEETINGS HELD AT:
Main Monthly
(1st Thursday of the Month)
North Kansas City Community Center
1999 Iron Street
North Kansas City, MO
(816) 300-0433
MAREInet.com/Main
There’s not a better investment in
yourself that you could make!
At our monthly meetings we host guest speakers, panels and
roundtable discussions with industry experts providing insightful and
current information for attendees. MAREI meetings are an essential
tool for building a comprehensive team for real estate professionals.
Roving Meeting
Secondary Meeting
Day of the Month Varies
Location Rotates
Watch Email & Website
MAREInet.com/Roving
MAREI works to keep its members up-to-date with the latest information on the real estate industry. MAREI has built relationships with
members and the community at large who provide our members with
information they need to be successful in today’s world.
We are the place to go for the information you need from the novice to
the experienced Real Estate Investor. Monthly meetings are the best
place to connect and build relationships with like-minded people and
learn a thing or two along the way.
Thinking Bigger in 2014
Jan 18: Workshop: Dave Williams
Be a Successful Rehabber
Jan 29: Webinar: Vena Jones Cox
Five Things Successful RE Investors Do
Jan 22: Roving Meeting Olathe
Market Update with Chris Lengquist
Feb 4: Webinar: Joe McCall
46
Case Studies
Feb 19: Roving Meeting Lees Summit
FHA Changes
Feb 22: Seminar: Joe McCall
Wholesaling Lease Options
Mar 11: Main Meeting: Cynthia Schmidt
Collecting Back Rent
Mar 15: PHP Credit Catch Up Saturday
Mar 31: Roving North TBD
GUEST PASS
A Real Estate Community
Mid-America Association
of Real Estate Investors
MAREI
5 Top Reasons for Lease Options in 2014
Feb 11: Main Meeting
Name: ______________________________
Date: _______________________________
Email: _______________________________
Source: ______________________________
For first time guest to visit meeting.
RE investment News 2014
Guest Pass is available for first
time attendees to MAREI. If you
have attended before, explore
membership options or pay
guest fee.
Jan 14: Main Meeting: Kelly Scanlon
More Education & Networking Opportunities
MAREInet.com/Calendar
47. LET US HELP
KEEP PROPERTIES MARKETABLE
Keep Costs Under Control & Meet Tight Deadlines
Dedicated to your Success, With Solutions for Every Surface & All the Essentials
National Account Services
LEED® & VOC Coatings
Color Services
Our strategic account teams can simplify
processes and maximize efficiencies with
centralized account management.
Download the latest guide on our products that meet LEED® and low VOC
specs.
Find out about our color design services
for properties and read about the latest
color trends.
Flooring Products &
tion
Installa-
Wide variety of name brands, 24-hour
turnaround and reliable installation.
Your Closest Floor Covering Store
14531 W 101st Ter , Lenexa, KS 66215-1144
FLOORCOVERING PRODUCTS:
Commercial Wallpaper
Commercial Floor Coverings
HomeScapes®
Sherwin-Williams is your
one-stop
source for commercial wall covering.
Over 5,000 residential and commercial
wallpaper collections available.
From carpeting to sheet vinyl, select the
right floorcovering specific to your
needs. Fully stocked national network,
fast turnaround and reliable service.
Enhance curb appeal and make selection
easier with pre-selected exterior color
schemes.
Finishing Touch™ Builder Support
Program
Comprehensive Program for your Home
Buyers: Welcome Kits, Discount Cards,
and Model Home Programs.
EXCLUSIVE MEMBER DISCOUNT
MAREI as a member of National REIA is able to bring our
members the exclusive Sherwin William Discount Card that
offers unbeatable savings on paint, applicators, floorcovering,
paint sundries, wall covering, spray equipment, and even window
treatments!
Members look for your discount card in your members Benefit Package or download from the Member’s Discount Section of the MAREI Member Library.
ASK SHERWIN WILLIAMS
Find out more about all these products and services offered by Sherwin Williams plus their
Chip It Online Color Matcher, ColorSnap Studio
for iPad and their Paint Pro Alerts by Text at
www.Sherwin-Williams.com .
EXCLUSIVE MEMBER DISCOUNT
Investment News
Page 5
2014 RE investment News
47
48. I n c r e a s e Yo u r P r o f i t a b i l i t y
Join Mid-America Association of Real Estate Investors
Members receive a complimentary e-subscription to RE Investment News.
Become a Part of a Local, State and National
Network that Supports YOUR Industry!
MAREI MEMBERSHIP AUTOMATICALLY GIVES
YOU NATIONAL REIA MEMBERSHIP
MAREI is the local Chapter of National Real Estate Investors Association (National REIA), a federation of local associations through out the United States representing 40,000
members across the U.S.
LEGISLATIVE MONITORING & ADVOCACY
MAREI monitors and promotes the enactment and enforcement of local, state and federal laws and regulations beneficial to the real estate industry. Support and create local and
national advocacy initiatives and grass roots mobilization.
EDUCATIONAL SEMINAR AND COURSES
MAREI offers all National REIA Programs locally.
Professional Housing Provider Designation
National REIA University
MAREI also offers local training events
2 Monthly Meetings a Month
Weekend Workshops and Full Day Seminars
Partnering with National Education Events locally and
across the country.
MAREI WEBSITE
MAREI maintains a website that includes our event calendar,
service provider list, government affairs updates, articles of
interest and member properties for sale. All members are
able to interact through our website with member forums.
MAREI SOCIAL MEDIA
MAREI maintains active social media spaces on Facebook,
LinkedIn and Google+ for the benefit of members to interact
with each other and the public at large. Build your circle of
influence by interacting on our social media pages.
48
www.MAREInet.com
RE investment News 2014
NETWORKING & BUSINESS BUILDING
MAREI holds a variety of events that enable members to
interact with other industry professionals, develop contact
and gain knowledge that helps them grow their business.
MAREI’s calendar also includes a variety of events held by
members and outside groups that are open to the general
public.
NATIONAL REIA BENEFITS INCLUDE
National Cruise: Network and learn about new techniques on the National REIA annual cruise.
Industry Resources: Brining member benefits to the national buying power of our local associations.
“I went to the MAREI meeting and was very impressed with the quality of people I met, as well
as the content that was presented. Thank you
for putting that on, and I look forward to next
month’s meeting!”
Joe McDonald, Real Estate Investor
“The main reason for joining was to meet with
other Real Estate Investors in the Kansas City
area. Not only have we done that but we have
also received access to services from other MAREI members, among them rehab insurance
and a general contractor.”
Tami and Kerry Hardinger, RE Investors
“I can’t afford to let my membership expire! It
pays for itself. I think you have really done a
good thing creating MAREI. It is a
very important tool.”
Scott Shore, Real Estate Investor Contractor
www.NationalREIA.com