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MID-AMERICA ASSOCIATION OF   REAL ESTATE INVESTORS




Investment News          NETWORKING : EDUCATION : COMMUNITY
                                                         January 2012




                                     90 Day Challenge
                                     Challenge yourself to something new
                                     for 90 days for a better 2012!



                                     Analyze Deals
                                     You make your profit when you buy!
                                     So be sure to buy right!



                                     Assigning a Contract
                                     Double closes and finder’s fees are
                                     gone, so how do I get paid?



                                     Market Conditions
                                     Be an investor in the know, take a
                                     look at the data.




            Read Online for working Web Links
                www.MAREInet.com/NEWS
MAREI
                                                             Notes
             2011        Contact Information
         National REIA
                         PO Box 8685, Prairie Village KS, 66208
           Awards of     Phone: 913-815-0111

          Excellence
                         Our Mission Statement
                         Mid-America Association of Real Estate Investors is dedicated to promoting ethical real estate in-
                         vesting and to protect and promote the best interest of our membership through educational and
                         networking opportunities as well as community, legislative and public relations.



                         Legal Disclaimer
                         MAREI does not exist to render and does not give legal, tax, economic or investment advice and
                         disclaims all liability for the action or inaction taken or not as a result of communications from or to
                         its members, officers, directors, employees and contractors. Each individual should consult his/her
                         own counsel, accountant and other advisors as to legal, tax, economic, investment and related

         Honors          matters concerning real estate and other investments.



                         Content Disclaimer
         Of Merit        The views and opinions expressed by authors of articles contributed to this newsletter do not neces-
                         sarily reflect those of the association, the board of directors or the staff.


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Page 2                                                                                                    MAREInet.com
MAREI
                                                              Staff

Kim Tucker 816-523-4400         Don Tucker 816-523-4400       Steve Burns
Director                        President                     Audio Visual
Kim@MAREInet.com                Don@MAREInet.com              cashflowtreasures@gmail.com




John Welchert                   Dan Goodwin 913-642-5218      Shelda Goodwin
Meeting Ambassador              Meeting Ambassador            Meeting Ambassador
816-522-0002                    DanGoodwin@kw.com             SheldaGoodwin@kw.com



volunteers:           Be sure to thank our volunteers who
help out at each and every meeting making sure the entire
meeting is a success. If you would like to volunteer from
time to time to help set up, take down, or check in, or as-
sist for a few hours in the business office, please email
info@MAREInet.com or call 913-815-0111.
                                                              Scott Tucker
Need: Blog Articles, Newsletter Articles, Workshops for       Meeting Ambassador
                                                              STucker319@gmail.com
Members, Guest Speakers, Office Assistance, Web Mas-
ter . . . If this might be you, let us know!

 Investment News                                                                            Page 3
m ar ei
    BUSINESS MEMBERS
                    ADDRESSING THE NEEDS OF
Type         Company                          Web                      Phone          Contact

Insurance    APIA                             REOIns.com               877-752-2742   Lisa Goodner

Lender       Argentine Federal Savings        ArgentineFed.com         913-402-1500   Ann Wilkinson

Partnering   kcmoHomeBuyer                    kcmoHomeBuyer.com        816-523-4400   Don Tucker

Prop Mgr     Abraxas Prop Mgmt                AbraxasMgmt.com          816-474-8800   Meka Cayce

Prop Mgr     Jamieson Home Team               JamiesonHomeTeam.com     816-503-4671   Kevin Jamieson

Prop Mgr     Premier Leasing                  MyPremierLeasing.com     816-841-9500   Jeff Woods

Realtor      Realty Resource                  RealtyResourceKC.com     816-523-4400   Kim Tucker

Security     Devcon Security                  DevconSecurity.com       913-907-4942   Marian Collins

Staging      ShowHomesKC                      ShowHomesKC.com          770-853-3506   Amanda Palomba

Supplier     Canyon Stone                     Canyon-Stone.com         913-254-9301   Matt Puckett

Title        Accurate Title Company           AccurateTitleco.com      913-338-0100   Jackie White




                                         Real Estate Investors and Landlords depend on a well
                                         rounded team of professionals. If you are building your
                                         team or looking to make a trade, start your recruiting with
                                         our Vendor Members and Business Associates. See a
                                         complete list of suppliers and any discounts they may of-
                                         fer to MAREI members by visiting, www.MAREInet.com.




                                                           http://mareinet.com/associates

Page 4                                                                                MAREInet.com
Contents
               MAREI News
                                               In This Issue
                                               The Fine Print                                      2
                                               MAREI Meeting Staff                                 3
                                               Business Members                                    4
                                               Contents                                            5
                                               Director’s 90 Day Challence                         6
                                               Analyze & Submit Offers on Properties               8
                                               Member Benefits at a Glance                        10
                                               Assigning a Contract                               12
                                               Market Conditions                                  14
                                               Association Update                                 16
                                               Welcome New Members                                18
                                               Calendar of Events—SubGroups                       20
                                               Classifieds—How to submit part 2                   22
                                               Classifieds—Houses for sale                        23
                                               10 Ways to Build Your Buyer List                   23



 January Meeting
 What is a good deal?                                       Member Benefits
 Join us as 3 of MAREI’s very experienced
                                              New member orientation will cover many of our member
 investor’s share their methods of making a
                                               benefits. If you are new to MAREI or just have some
 good deal.
                                              questions please join us at 6:30 at the January Meeting
 Tuesday January 10th, from 6 to 9             when we will go over all the benefits of being a mem-
 Note the meeting format will be a bit dif-            ber. Members and Guests welcome!
 ferent, come prepared for a mini speed
 networking from 7:00 to 7:15



Investment News                                                                             Page 5
Director’s

         As we head into a new year with many op-        one new thing out of one of those books
            portunities for new beginnings I am re-                       and try it for 90 days.
          minded of a Facebook Post I read just be-
                                                       What is it you want to change or improve.
                                    fore Christmas!
                                                          I would be willing to bet that you have
     A friend of mine while watching an infomer-       much of the necessary tools right in front
          cial about a weight loss exercise training      of you, it is a matter of actually imple-
     video came to the realization that she had a         mentation. So go to your library, be it
     shelf full of training videos that she was not    books on a shelf, notes you have taken at
     using. At that time she set forth for herself       a training, stuff on the internet and pick
      a 90 day challenge—if she could exercise in       one thing you know you should be doing
       some way for 1 hour for 90 days, then she                     and commit to it for 90 days.
      would spend the money to buy the new ex-
                                                       Do you need to write a blog post a day for
            ercise program. She completed the 90
                                                       90 days? Interact with 1 person on social
      days last week. Each and every day for 90
                                                       media per day? Make 5 calls to your circle
      days she found a way to exercise, from go-
                                                         of influence a day for 90 days? Sending
            ing to the gym for an hour, to taking a
                                                        out 20 letters a day to motivated sellers?
       walk, to using some of the exercise videos
                                                           What is it you need to do in your busi-
        she already had in her house on the shelf.
                                                                   ness, your life, or your family?
       You see she knows one important key fac-
        tor, if you do something for 90 days it be-    One way to help you with your challenge if
                                     comes a habit.     to have a partner who has a challenge of
                                                       well and work to keep each other account-
       So fast forward to today, January 4th as I
                                                        able. You might join us on Facebook and
      sit at my desk trying to figure out new and
                                                                   tell us what your challenge is.
     improved ways for buying houses. Search-
         ing for one new key way to find the next
          great deal, while in front of me I have a
     vast library of real estate training materials
                                                                                Kim Tucker
     and I know for a fact that the golden key is
         already in front of me if I would just pick                                   Director



Page 6                                                                          MAREInet.com
Asset Protection
                                                                Insurance Agency
                                                               www.REOIns.com

           Property Management
                                                                  877-752-2742
              Section 8 Housing
                KC Metro Wide


                   Jeff Woods
                      Broker
        ww.MyPremierLeasing.com
                   816-849500
                                                         Real Estate Owned / Forced Placement
                                                          For Investors & Finance Institutions




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         and for more money!                                           and purchase financing
 How? We transform vacant houses - often
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 seen by buyers as stale, lifeless, unappealing -                            Ann Wilkinson
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 homes. Now in our third decade of service to                           Mortgage Loan Production
 Homeowners and their Realtors, we've become                                12501 Antioch Rd
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                                                                          Fax: (913) 402-0673
 Our professional home staging services can add
                                                                        AnnW@ArgentineFed.com
 thousands of dollars to your sale price -- and at the
 same time reduce the stress and expense of mar-                         www.ArgentineFed.com
 keting your property.


            ShowHomesKC.com
                     Amanda Palomba
                      913-227-4364



Investment News                                                                             Page 7
Analyze & Submit
          Offers on Property
     Well, I want to take the next few minutes explain-      same thing and you can even design your own.
     ing exactly how much profit you should allow            You can use a calculator or a simple pen and
     whether you are buying a fixer upper or buying a        paper method.
     property that is already rented or ready to rent or
                                                             My point is that no matter what system you use
     sell.
                                                             the most important thing I can share with you is
     How many times have you seen a run down va-
                                                             that if you don't know what kinds of margins
     cant property and thought to yourself... that
                                                             you need or if you don't know your repair costs
     would be a good investment? You see it for sev-
                                                             and closing costs they will be of no meaningful
     eral weeks or months and do nothing about it and
                                                             use to you. You have to know what numbers to
     all of the sudden you see someone is now rehab-
                                                             enter into your calculations to get the right an-
     bing it and you see a "for sale" or "for rent" sign
                                                             swer.
     in the yard. Then you say to yourself... "I knew
     that would have been a good investment! Darn, I         I'm going to butt heads with a few people here
     missed that one"! You just weren't sure how much        but I am very much a big picture person. I don't
     you should offer and how much profit you should         use all of those fancy calculations when I'm buy-
     allow before making an offer.                           ing. I basically need to ask the seller or realtor a
                                                             few specific questions and then I can make an
     The bad news here is that there are as many dif-
                                                             offer on the spot before we ever get off the
     ferent ways to analyze a deal as there are ways to
                                                             phone. Is that great or what? This is why I can
     put a deal together. There are software programs
                                                             buy 10-15 houses every month on a consistent
     that you can purchase that will calculate your in-
                                                             basis.
     ternal rate of return every year from now until the
     property is ultimately paid off and beyond. There       Rules of Thumb To Use When Making Offers
     are spread sheets that you can buy to do the            Here are a couple of hard and fast rules of


                                                                       Don’t miss this event!

       Monthly Meeting
January Monthly Meeting:               Agenda
 Tuesday January 10th, 2011,           5:00 Set Up
    6pm to 9pm                          6:00 check in
   Career Education Systems,           6:00 vendor hall
   FREE for members, Guests            6:30 new member orientation
    $25 at the door, $15 if you pre-
    register                            7:00 mini speed networking
   We will be analyzing deals!         7:15 guest panel:
                                             Deal Analysis


Page 8                                                                                     MAREInet.com
thumb. And I want you to keep in       fer:                                       vested and this includes the pur-
mind that they are just what I                                                    chase price, repair cost and closing
                                       Deal Finder Question #1: I need to
said... rules of thumb.                                                           cost. Keeping a margin of 30% in-
                                       know the after repaired value of the
                                                                                  sures that when you are finished
Deal Finder Rule #1: The first         property or the current comps in the
                                                                                  making the necessary repairs, after
rule of thumb when analyzing a         area
                                                                                  closing cost you will still have 30%
deal is very simple: "If you need
                                       Deal Finder Question #2: What is           equity. Then you can sell it, refi-
a calculator, it's probably not a
                                       the estimated amount of repairs or         nance it, lease option the property or
deal". Let me explain. If you can
                                       types of repairs.                          rent it for cash flow as well.
look at a deal, knowing the after
repaired value, the repair cost        Deal Finder Question #3: The as-           Now, if you are looking at what I call
and how much they are asking           sociated closing costs                     an "instant landlord" property then
then you should be able to tell        Deal Finder Question #4: If it is a        you can pay a little more than 70%
whether or not it is worth pursu-      rental property then I want to know        of value. After all there are no re-
ing. If the profit numbers are so      the rent or potential rent.                pairs to do on your part. My rule is
close that you have to figure it                                                  not to pay anymore than 80% of
                                       Sure I will eventually find out more
on the calculator then you proba-                                                 value and maybe 85% of value if the
                                       information but we are talking about
bly need to say "NEXT" and move                                                   cash flow is good and there is good
                                       getting our offer out there on the first
on to the next property, after                                                    possibility of appreciation.
                                       call. These basic four questions will
making your low ball offer of                                                     All you need to have is a simple cal-
                                       give you all the info you need to
course.                                                                           culator to figure what to offer while
                                       make an offer and be on your way to
Deal Finder Rule #2: The next          a deal.                                    on the phone with a seller or submit-
rule of thumb is also very simple.                                                ting an offer by email. Let me men-
                                       How Much Should You Offer?                 tion here that it is extremely impor-
"If you have to ask someone if
it's a deal it probably isn't". Lets   I know what your asking...How much         tant that your deals are home runs,
face it, you have at least read        should I pay. This is very simple. If      especially your first few. That is the
some books, been to a seminar          you are looking at a fixer upper then      critical stage in your investing career
or two, taken an investor to           you don't want to have any more            that will make you stay in or get out.
lunch, listened to a webinar or        than 70% of after repaired value in-                             . . . Larry Goins
training audio or something. You
know what to do for the most                                                      Want some help analyzing your
part. YOU can tell whether it's a                                                 deals . . .Be sure to pick up your
deal or not so if you have to ask                                                 FREE Copy of Larry Goins Uliti-
someone then it probably isn't.                                                   mate Property Analyzer Soft-
                                                                                  ware. We will have a free copy for
4 Key Deal Finding Questions
                                                                                  the first 25 people in the door! Be
Now, how do we put all this stuff                                                 sure to Arrive Early. Want to learn
to use? As I mentioned I only                                                     more about Buying and Flipping
need to ask a few specific ques-                                                  Properties? Visit the education
tions before making my first offer                                                page for a free webinar with Larry
right over the phone. Here is what I                                              Goins on buying and selling
need to know before making an of-                                                 houses.


  Investment News                                                                                              Page 9
MAREI’S MEMBER BENEFITS PROGRAM
                                         YOUR MEMBER BENEFITS

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Receive discounts up to 65% on over                                                       database of over 5000 people.
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Page 10                                                                                               MAREInet.com
Member Service
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Magazine for the real estate investor.            your business.
With discount subscriptions for MAREI
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Other Discounts                                                                 tion and rule-making that im-
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  Investment News                                                                                     Page 11
Assigning
                             A Contract
      We were discussing at the MAREI office if       make a profit and at the same time don’t
      in fact assignment of contract was still a      want their end buyer to know how much
      viable way to flip a property. But we have      profit they are a making. Not really a
      found that Diana Jackman from Chicago           problem, until that one time someone
      Title and the Arizona Real Estate Investors     finds out what you made, gets upset and
      Association believes that they are still        takes you to court. With the assignment
      here.                                           everyone is put on notice as to exactly
      As Diana points out the whole concept of        how much you are making in the way of
      being a bird dog and getting a “finder’s        the assignment fee. So nothing is hidden.
      fee” or referral fee is no longer an option,    The extra costs comes in to play because
      not only is this against most state laws the    with the double close you have just that:
      title companies will not pay them. Ask your     two closings one for you to buy and one
      title company to do a double close where        for you to sell and the title company gets
      you as the wholesale seller in the middle       paid for title twice and two sets of clos-
      pay for your purchase from the original         ings. With an assignment you as the
      seller with the proceeds from your sale to      wholesaler have absolutely no costs, you
      the end buyer, and they will again tell you     just get paid.
      no.                                             Diana gives us this scenario: You sign a
      Diana also tell us that “Some investors are     contract with the owner of the property
      under the assumption that if you close on a     and show as buyer John Doe, LLC, and or
      double you can somehow ―hide‖ the profit        assignee. You now have the right to as-
      you are making on a file. This is a costly      sign the contract. You will also disclose in
      misconception in more ways than one. Not        your contract that you are an investor and
      only are you increasing your liability on a     plan to assign the contract/property for
      double close but you are also increasing        profit. If one or more of the members of
      your cost (in some cases).                      your LLC holds their real estate license in
      When she refers to increasing your liability    the state of Arizona then that disclosure
      by hiding the fact that you are buying and      should also be made in the contract. Now
      selling to make a profit, she is referring to   you have full disclosure! You find a buyer
      the fact that many investors don’t want the     (assignee) to take over your interest in
      original seller to know they are selling to     the contract for an ―assignment fee‖ of
                                                      $4,000.00. You would supply the buyer

Page 12                                                                        MAREInet.com
(assignee) a copy of the con-         buyer (assignee), and the             She does point out that most
tract and an assignment               seller. Again full disclosure on      banks in REO and short sales
agreement. The assignment             this gives you very limited li-       specifically write into their
                                                                            contracts that they are non-
agreement will dictate the            ability. The other selling point      assignable. But for the most
terms of the assign-                  for you as assignor is that you       part other sellers do not have
ment. Don’t leave your ear-           pay no fees, you just collect         an issue with it. We also did a
nest money on the table – re-         your initial deposit back and         little research online and
member to include the re-             whatever assignment fee is            found that some title compa-
                                                                            nies are saying they do not
placement or reimbursement            agreed upon. Your title com-
                                                                            want to conduct a closing with
of earnest money in your as-          pany will require a 1099-m            the assignment of contract, so
signment agreement. All par-          form from you, the signed as-         far the title companies that we
ties will sign off on this agree-     signment forms and where to           have worked with still close
ment, you, (the assignor), the        send your money.                      them.


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 Investment News                                                                                   Page 13
Market
                                  Conditions
      The housing market data is out for November          off going into December and January in the Kan-
      and it is showing that the Pending home sales        sas City area. It is also important to note that
      are continuing to gain and in November it            we are going into our second spring sales period
      reached it’s highest level in 19 months, according   with out the tax credits. So when we look at
      to the National Association of Realtors®. The last   sales figures for 2009 and the first part of 2010
      time the index was higher was in April 2010 when     through April 30th the numbers were all scewed
      it reached 111.5 as buyers rushed to beat the        by the $8,000 home buyer tax credit and then
      deadline for the home buyer tax credit. The data     the spring 2011 sales and appraisals were still
      reflects contracts but not closings.                 being affected by tax credit sales from a year
                                                           ago.
      NAR’s chief economist, Lawrence Yun attributed
      these gains to both buyers who have been on the      Our inventory of homes in the Kansas City metro
      sidelines waiting for the economy to get better      is down all the way around with our new home
      and to buyers who had contract and financing         inventory at 1264 a decline of 3% from October
      issues that have now been resolved and are now       and a 16% declined from a year ago. Existing
      buying a house again.                                home inventory was at 12,505 with is down 9%
                                                           from October and 14% lower than 1 year ago.
      This data on pending home sales is telling us that
                                                           Here I have to think that this is affected by the
      closed home sales should continue to improve.
                                                           slow down in foreclosures while the mega banks
      If we step back and look at the date for the Kan-    go through and verify paperwork and foreclosure
      sas City area we see that the average sales price    procedures and as I recently read on a blog post
      of a new home was $323,146 according to the          from Mark Beauvais, that the banks are holding
      Kansas City Regional Association of Realtors         back inventory to limit supply, increase demand,
      (KCRAR). This value is almost identical to the       and raise prices. This is the “Shadow Inventory”
      same average price last year. Existing homes         that you keep hearing about in the media.
      saw an average price of $147,386, just 4% higher
                                                           We can look to RealtyTrac to see that foreclo-
      than the $142,071 price of last year.
                                                           sure activity is trending down over the past 6
      KCRAR also reported that on the number of            months in Kansas while foreclosures seem to be
      home sales that in November we saw 136 new           trending up in Missouri. Looking at the make up
      home sales this year compared to 135 in 2010.        of foreclosures in both states, we see in Kansas
      And for existing home sales we sold $1566 this       That about 1/3 are homes in pre-foreclosure, 1/3
      year, 5% more than we did in 2010 but down 8%        are ready to go to auction, and 1/3rd are bank
      from October 2011.                                   owned. Looking at the pie chart in Missouri is
      It is important to note that sales generally taper   vastly different with almost no homes in pre-


Page 14                                                                                MAREInet.com
foreclosure, 70% ready to go to           Missouri side.                        great deal where they can invest
auction, and 30% bank owned. If                                                 sweat equity. This is further driv-
                                          So what does this all mean for real
this data on the RealtyTrac web-                                                ing up the prices of bank owned
                                          estate investors in the Kansas City
site is correct, we have almost 3/4                                             properties. Tough for those of us
                                          market? It seems we are in for
of the foreclosure inventory waiting                                            working to get a great deal, but on
                                          more of the same across the metro
for sale so either the banks are                                                the flip side if we are looking for
                                          with higher prices for bank owned
just letting houses go to sale a little                                         prices to increase, this is helping
                                          houses continuing. Add in that two
trickle at a time to control assets                                             on that side of the coin.
                                          or three years ago investors were
on their books and inventory of
                                          the primary buyers of bank owned      Please visit http://
REO available, or we have a lot of
                                          properties while today the inves-     www.MAREInet.com/Market to see
properties that will be coming to
                                          tors are competing against owner      more on this data.
market in the spring of 2012 on the
                                          occupant buyers looking for a



                           accurate



        Accurate Closings:                                                On Demand Training
    Smooth, Timely, Professional.
                                                                          30 Minute Segments
Title Services Provided for:                                              Top Investor Trainers
 FSBO, Wholesale, & REO Transactions
 New Construction Closings                                                From the Comfort of
 Commercial Purchases and Refinance
                                                                    Your own Internet Connection
 All Types of Loan Closings
 1031 Exchanges                                                        $39.00 Training Courses
 FHA, VA, USDA, Conventional Loans, and
    Hard Money Loan Closings                                                  REO & Lease Option
 Refinance & Reverse Mortgages                                                Creative Financing
 Doc Prep, Prelim HUDS, Curing Issues                                      Automated Investments
 Short Sale Closing & Assistance                                           Auctions & Foreclosures
                                                                                  Short Sales
 100 Years of Combined Service!
                                                                           Government Grant Money
            www.AccurateTitleCo.com
              913-338-0100 phone                                  www.MAREIU.com

  Investment News                                                                                        Page 15
Association
                    Update
  In real estate as in business, you have to     first quarter and $30 every quarter after.
  adapt to the ever changing market or be-
  come obsolete and go out of business.
                                                  Divide to monthly with $15 the first
                                                 month and $12 monthly after.
  MAREI is a very important part of the real
  estate market here in Kansas City and we       Guests fees paid at meeting will apply
  have to be responsive as well.                 to any membership if you join at the
  We may be biased, but we doubt that            meeting.
  there is anyone else out there working to      MAREI has been very fortunate over the
  provide Kansas City Metro real estate in-      past 9 years and as a result we haven’t
  vestors with the extent of market informa-     ever raised our dues. The above options
  tion, government affairs updates, network-     allow the member to best choose what will
  ing opportunities, deal opportunities, ex-     work for them based on their needs and
  pert service providers, education and more     their budget.
  at MAREI. And in today’s economy where
                                                 It is important to note that MAREI exist
  the real estate investor is a very important
                                                 because of members. Member pay dues
  cog in the community wheel, MAREI’s role
                                                 that allow MAREI to put on meetings, offer
  to the community is growing. We need to
                                                 the outstanding benefits listed on page 10
  strive to serve our current members, moti-
                                                 and 11 plus tracking the local market and
  vate new members, and improve our ser-
                                                 keeping you informed on what is happen-
  vices.
                                                 ing in your local government. While wee
  So we have some new improvements that          have never raised our dues doesn’t mean
  have kicked in and others that we are          our expenses haven’t gone up. They have,
  working on for 2012.                           a lot. Over the past three to four years we
  First in the last 1/2 of 2011 we have up-      have adjusted by lowering cost, but not
  dated our membership offerings:                service level. This hasn’t been easy, but
                                                 through tremendous dedication by the
  Annual – Full Membership Privileges
                                                 staff we have pulled it off. So we encour-
  $99 First Year & $99 Renewal                  age you to join or renew your member-
                                                 ship or switch to one of our monthly or
  Family Member / Business Partner $50          quarterly plans. To switch to one of
   Break to Quarterly with only $35 for         these plans we can waive the start fee



Page 16                                                                        MAREInet.com
and just convert your mem-           working to complete the              ter format and allow us to
bership over to the recurring        main presentation of the             market them to our email
dues.                                meeting closer to 8:30               and post to our social me-
Other changes coming:                rather than 9:00.                    dia pages automatically
                                                                          gaining you more expo-
You will note our agenda         Property marketing, we are             sure.
   looks a bit different. We         in the testing stages of a
   are adding a new member           property marketing tool to       Last we are working to
   orientation during the net-       replace our current classi-          make our web page more
   working time at 6:30 at           fieds. This will allow our           user friendly so the mem-
   the meetings and we are           members to post and ad-              bers will be able to interact
                                     vertise properties in a bet-         more.



                                                                                    Be sure to
                                                                                    Join Now
                                                                                   (Or Renew)
                                                                                  Go online at
                                                                                www.MAREInet.com
      Do the math.
      Your vacancy is costing you every day.              For everyone that joins now or at the
      Fill your vacancy faster and save money            meeting on Tuesday we have several free
      with Rentals.com!                                  giveaway items for you to choose from:
                                                         Buying Real Estate without Cash or Credit
 Discounts for MAREI Members:                                       (Peter Conti & David Finkel)

        Receive 20% off all Regular
                                                         How to Create Multiple Streams of Income
        Priced Advertising. Log into
                                                           Buying Homes In Nice Areas with Nothing Down
        Member’s Area, click on Member                              (Peter Conti & David Finkel
        Discounts and look for MAREI’s
        Discount code!                                                 Buy Even Lower,
                                                          The Regular People’s Guide to Real Estate Riches
                                                                    (Scott Frank & Andy Heller)




 Investment News                                                                                   Page 17
New Members                          Renewing
   Carol Babcock: Kansas City, MO      Steve Burns: Shawnee Mission, KS

   Kevin Boggs: Overland Park, KS      Brian Gates: Leawood, KS

   Steven Glaze: Lee’s Summit, MO      Dan & Shelda Goodwin: Overland
                                         Park, KS
   Melanie Gomez: Kansas City, MO
                                        Dee Grisamore: Overland Park, KS
   Diane Hastings: Liberty, MO
                                        Bilal Hazziez: Kansas City, MO
   Jane Mahoney: Kansas City, KS
                                        Scott Tucker: Kansas City, MO
   Michael Linn: Kansas City, MO

   Dena Odom: Mission, KS

   David Watson: Topeka, KS




Page 18                                                      MAREInet.com
More Information . . .
 HOUSES WANTED
                                                       More Confidence
   Built After 1950
  Minimum 3 Bed, 1.5 Bath
  Eastern Jackson County
      MO or Johnson County KS
  Retail Value $100k-$200k
                                                              More Profits
  No Rental                                            Tenant Screening
Local Cash Buyer Looking for 2 to 4 Houses a month      Pre Employment Screening
to purchase, rehab and sell. Money Partners want
                                                        Contractor Screening
their money placed quickly so they can turn their
money fast and make a profit. Can’t do that with        Collection Services
out houses! Bring us a deal!
                                                      Discounts for MAREI Members
 Email: kcmoHomeBuyer@gmail.com
                                                                    www.AAAScreening.com
Submit Online: kcmoHomeBuyer.com
                                                                    816-436-0085




“Presentation is Everything!”
                                                        Property Management
                                                           Rental Services
        Canyon-Stone.com
                                                          Kansas City Metro

       550 E. 56 Highway, Suite B
           Olathe, KS, 66061                         www.JamiesonHomeTeam.com

         Phone: (913) 254-9300                             Kevin Jamieson

           Fax: (913) 254-9301                              816-503-4671

         info@canyon-stone.com


Investment News                                                                     Page 19
CALENDAR
           events
                                                                        ,




          Locations, Cost & Registration at www.MAREInet.com/Calendar




Page 20                                                MAREInet.com
Sub Groups meet more often than the monthly meeting.
                                     Residential Groups
Blue Springs/ Independence: Every Saturday from 4pm to 6pm at the
Panera Bread at 40 Hwy and 291 Hwy, Independence.
Lees Summit: Every Sunday from 9am to 11 am at the Panera Bread on
Chipman Road in Lees Summit.
Weekly Wednesdays: Every Wednesday from 9am to 11 am at the Panera
Bread at 103rd and State Line.
                          Commercial—Larger Multi Family
Commercial Investors: Every other Wednesday from 5:30 pm to 7:30 pm at
the Panera Bread at 103rd and State Line.

                                                             OU!
                                                THANK Y

                                               Many thanks to our Volunteers who sponsor a
Larry Prato              Spencer Cullor        Networking. If you need more networking and
Commercial Subgroup      Commercial Subgroup   interaction, please check out the Networking
                                               Group on the Calendar. First Networking event
                                               is free and does not require membership. After
                                               that if you want to continue as a part of the sub-
                                               group, we request that you become a member of
                                               MAREI to gain more knowledge and access all
Debra Felderhoff         Michelle Winberry     the tools and benefits of membership.
BS, LS, Indep Subgroup   Weekly Wednesdays



Group Facilitators for the following Groups wanted: Northland Investors, Joco
Investors, Short Sale Investors, Landlords, Note Buyers.


 Investment News                                                                         Page 21
Classifieds
              The Mechanics Part 2




 Once you click post classified, you get the input screen above. Fill it out and click Submit Classified. You might
 note as you look through other peoples classifieds that they look real fancy. These folks have created their
 posting in an HTML (web site editor) and pasted the HTML code in the Description Box. Doing this you can
 add color, formatting, links to your website, and photos. You are only allowed 1500 characters and HTML takes
 up a lot of those. We are not here to teach you HTML, but if you use something like Google Sites or Word-
 press, you can create a page in that service, switch to the HTML view and copy and paste here (and also into
 craigslist as well) and have a beautifully formatted classified advertisement.
 Caution: if you edit your classified, it will always default to vehicle, so be sure to check that before you
 Submit.
 See Part 1 in December 2011 Investment News



Page 22                                                                                       MAREInet.com
CLASSIFIEDS
         See more details on each property in the Classifieds at www.MAREInet.com.




Offered As   Address             City                   Price      Bed/Bath    Contact            Phone
Fixer / Rental 4206-4212 E 7th   KCMO                 $19,500      4 plex 2bd Christoph Becker    816-419-1165
Fixer /Rental 1812 E 70th St     KCMO                 $17,500      3 bed       Christoph Becker   816-419-1165
Fixer / Rental 5713 Palmer       KCMO (Raytown)       $12,500      3 bed/1ba Bilal Hazziez        816-237-8696

Fixer / Rental 5161 Hardesty     KCMO                 $14,500                  Christoph Becker   816-419-1165

Rental       ShiloEstates        Lees Summit          $99k Each    7 units     Danny Hammond      816-985-4950
Fixer        8300 E 104th Tr     Kansas City          $38,700                  Jamison Home Team 913-384-8331


                     10 Ways to Build Your Buyer List
  1. Network at all of our live events and exchange             want, add them to your list.
     cards.
                                                          7. When you have a property, market it in every way
  2. Carry a legal paid at investor networking               possible, and add a comment, that if this is not the
     events, ask people if they would like to be on          property for you do “x” to get added to my buyers
     your list and write them down.                          list.

  3. Go to the courthouse, network with cash buy-         8. For end buyers or lease to own buyers—market all
     ers.                                                    a free report on how to buy “lease to own”, “fha” or
                                                             “your first home”, those that respond will either be
  4. On MAREI’s social medial pages and other real
                                                             potential buyers or your competition.
     estate related social media pages, post where
     you are looking for properties and ask for buy-      9. Troll the landlords at socialserve.com—they
     ers to add to your list.                                give you phone numbers & emails.
  5. Online Classifieds and Paper classifieds—            10. Obtain a list of people who have purchased
     CALL all the we buy houses and for rent by              cash in the last 6 months and send them a
     owner ads, ask to add them to your list.                postcard with an enticement to go to your
  6. Troll online pages for people looking for               website and register for your list.
     houses, call them up and find out what they          11. More online: click here



  Investment News                                                                                         Page 23
Many thanks to our
members & guests for
a great 2011! Please
join us for an even
better 2012!

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The Investment News: January 2012

  • 1. MID-AMERICA ASSOCIATION OF REAL ESTATE INVESTORS Investment News NETWORKING : EDUCATION : COMMUNITY January 2012 90 Day Challenge Challenge yourself to something new for 90 days for a better 2012! Analyze Deals You make your profit when you buy! So be sure to buy right! Assigning a Contract Double closes and finder’s fees are gone, so how do I get paid? Market Conditions Be an investor in the know, take a look at the data. Read Online for working Web Links www.MAREInet.com/NEWS
  • 2. MAREI Notes 2011 Contact Information National REIA PO Box 8685, Prairie Village KS, 66208 Awards of Phone: 913-815-0111 Excellence Our Mission Statement Mid-America Association of Real Estate Investors is dedicated to promoting ethical real estate in- vesting and to protect and promote the best interest of our membership through educational and networking opportunities as well as community, legislative and public relations. Legal Disclaimer MAREI does not exist to render and does not give legal, tax, economic or investment advice and disclaims all liability for the action or inaction taken or not as a result of communications from or to its members, officers, directors, employees and contractors. Each individual should consult his/her own counsel, accountant and other advisors as to legal, tax, economic, investment and related Honors matters concerning real estate and other investments. Content Disclaimer Of Merit The views and opinions expressed by authors of articles contributed to this newsletter do not neces- sarily reflect those of the association, the board of directors or the staff. Electronic Advertise in the Investment News Rate Schedule Communication Size Full Page Non-Member $175 Member $140 Business Associate $115 1/2 Page $145 $105 $85 & 1/4 Page $75 $65 $50 1/8 Page $55 $35 $25 Membership A 10% discount is given on ads pre-paid for 6-12 months. Any changes to a pre-paid ad will incur a minimum charge of $20. The deadline to submit ad copy is the 1st of Development each month. All ads must be prepaid. Contact to verify ad format can be accepted. PDF preferred. There is an additional charge of $25 to typeset a business card ad or 1/4 page ad layout, $60 for a 1/2 page or full page lay-out. Opportunities also exist for advertising on www.MAREInet.com. Call 913-815-0111 for more information. Email ad copy to info@MAREInet.com. Mail payment to MAREI, PO Box 8685, Prairie Vil- lage, KS 66208 or request an online payment for to use credit or debit card. Page 2 MAREInet.com
  • 3. MAREI Staff Kim Tucker 816-523-4400 Don Tucker 816-523-4400 Steve Burns Director President Audio Visual Kim@MAREInet.com Don@MAREInet.com cashflowtreasures@gmail.com John Welchert Dan Goodwin 913-642-5218 Shelda Goodwin Meeting Ambassador Meeting Ambassador Meeting Ambassador 816-522-0002 DanGoodwin@kw.com SheldaGoodwin@kw.com volunteers: Be sure to thank our volunteers who help out at each and every meeting making sure the entire meeting is a success. If you would like to volunteer from time to time to help set up, take down, or check in, or as- sist for a few hours in the business office, please email info@MAREInet.com or call 913-815-0111. Scott Tucker Need: Blog Articles, Newsletter Articles, Workshops for Meeting Ambassador STucker319@gmail.com Members, Guest Speakers, Office Assistance, Web Mas- ter . . . If this might be you, let us know! Investment News Page 3
  • 4. m ar ei BUSINESS MEMBERS ADDRESSING THE NEEDS OF Type Company Web Phone Contact Insurance APIA REOIns.com 877-752-2742 Lisa Goodner Lender Argentine Federal Savings ArgentineFed.com 913-402-1500 Ann Wilkinson Partnering kcmoHomeBuyer kcmoHomeBuyer.com 816-523-4400 Don Tucker Prop Mgr Abraxas Prop Mgmt AbraxasMgmt.com 816-474-8800 Meka Cayce Prop Mgr Jamieson Home Team JamiesonHomeTeam.com 816-503-4671 Kevin Jamieson Prop Mgr Premier Leasing MyPremierLeasing.com 816-841-9500 Jeff Woods Realtor Realty Resource RealtyResourceKC.com 816-523-4400 Kim Tucker Security Devcon Security DevconSecurity.com 913-907-4942 Marian Collins Staging ShowHomesKC ShowHomesKC.com 770-853-3506 Amanda Palomba Supplier Canyon Stone Canyon-Stone.com 913-254-9301 Matt Puckett Title Accurate Title Company AccurateTitleco.com 913-338-0100 Jackie White Real Estate Investors and Landlords depend on a well rounded team of professionals. If you are building your team or looking to make a trade, start your recruiting with our Vendor Members and Business Associates. See a complete list of suppliers and any discounts they may of- fer to MAREI members by visiting, www.MAREInet.com. http://mareinet.com/associates Page 4 MAREInet.com
  • 5. Contents MAREI News In This Issue The Fine Print 2 MAREI Meeting Staff 3 Business Members 4 Contents 5 Director’s 90 Day Challence 6 Analyze & Submit Offers on Properties 8 Member Benefits at a Glance 10 Assigning a Contract 12 Market Conditions 14 Association Update 16 Welcome New Members 18 Calendar of Events—SubGroups 20 Classifieds—How to submit part 2 22 Classifieds—Houses for sale 23 10 Ways to Build Your Buyer List 23 January Meeting What is a good deal? Member Benefits Join us as 3 of MAREI’s very experienced New member orientation will cover many of our member investor’s share their methods of making a benefits. If you are new to MAREI or just have some good deal. questions please join us at 6:30 at the January Meeting Tuesday January 10th, from 6 to 9 when we will go over all the benefits of being a mem- Note the meeting format will be a bit dif- ber. Members and Guests welcome! ferent, come prepared for a mini speed networking from 7:00 to 7:15 Investment News Page 5
  • 6. Director’s As we head into a new year with many op- one new thing out of one of those books portunities for new beginnings I am re- and try it for 90 days. minded of a Facebook Post I read just be- What is it you want to change or improve. fore Christmas! I would be willing to bet that you have A friend of mine while watching an infomer- much of the necessary tools right in front cial about a weight loss exercise training of you, it is a matter of actually imple- video came to the realization that she had a mentation. So go to your library, be it shelf full of training videos that she was not books on a shelf, notes you have taken at using. At that time she set forth for herself a training, stuff on the internet and pick a 90 day challenge—if she could exercise in one thing you know you should be doing some way for 1 hour for 90 days, then she and commit to it for 90 days. would spend the money to buy the new ex- Do you need to write a blog post a day for ercise program. She completed the 90 90 days? Interact with 1 person on social days last week. Each and every day for 90 media per day? Make 5 calls to your circle days she found a way to exercise, from go- of influence a day for 90 days? Sending ing to the gym for an hour, to taking a out 20 letters a day to motivated sellers? walk, to using some of the exercise videos What is it you need to do in your busi- she already had in her house on the shelf. ness, your life, or your family? You see she knows one important key fac- tor, if you do something for 90 days it be- One way to help you with your challenge if comes a habit. to have a partner who has a challenge of well and work to keep each other account- So fast forward to today, January 4th as I able. You might join us on Facebook and sit at my desk trying to figure out new and tell us what your challenge is. improved ways for buying houses. Search- ing for one new key way to find the next great deal, while in front of me I have a vast library of real estate training materials Kim Tucker and I know for a fact that the golden key is already in front of me if I would just pick Director Page 6 MAREInet.com
  • 7. Asset Protection Insurance Agency www.REOIns.com Property Management 877-752-2742 Section 8 Housing KC Metro Wide Jeff Woods Broker ww.MyPremierLeasing.com 816-849500 Real Estate Owned / Forced Placement For Investors & Finance Institutions Sell Vacant Houses Faster “Flexible rehab options and for more money! and purchase financing How? We transform vacant houses - often for qualified investors! seen by buyers as stale, lifeless, unappealing - Ann Wilkinson into fully-furnished, inviting, valued Show- Vice President homes. Now in our third decade of service to Mortgage Loan Production Homeowners and their Realtors, we've become 12501 Antioch Rd America's premier home staging service coast- Overland Park, KS 66213 to-coast. Ph: (913) 402-1500 Fax: (913) 402-0673 Our professional home staging services can add AnnW@ArgentineFed.com thousands of dollars to your sale price -- and at the same time reduce the stress and expense of mar- www.ArgentineFed.com keting your property. ShowHomesKC.com Amanda Palomba 913-227-4364 Investment News Page 7
  • 8. Analyze & Submit Offers on Property Well, I want to take the next few minutes explain- same thing and you can even design your own. ing exactly how much profit you should allow You can use a calculator or a simple pen and whether you are buying a fixer upper or buying a paper method. property that is already rented or ready to rent or My point is that no matter what system you use sell. the most important thing I can share with you is How many times have you seen a run down va- that if you don't know what kinds of margins cant property and thought to yourself... that you need or if you don't know your repair costs would be a good investment? You see it for sev- and closing costs they will be of no meaningful eral weeks or months and do nothing about it and use to you. You have to know what numbers to all of the sudden you see someone is now rehab- enter into your calculations to get the right an- bing it and you see a "for sale" or "for rent" sign swer. in the yard. Then you say to yourself... "I knew that would have been a good investment! Darn, I I'm going to butt heads with a few people here missed that one"! You just weren't sure how much but I am very much a big picture person. I don't you should offer and how much profit you should use all of those fancy calculations when I'm buy- allow before making an offer. ing. I basically need to ask the seller or realtor a few specific questions and then I can make an The bad news here is that there are as many dif- offer on the spot before we ever get off the ferent ways to analyze a deal as there are ways to phone. Is that great or what? This is why I can put a deal together. There are software programs buy 10-15 houses every month on a consistent that you can purchase that will calculate your in- basis. ternal rate of return every year from now until the property is ultimately paid off and beyond. There Rules of Thumb To Use When Making Offers are spread sheets that you can buy to do the Here are a couple of hard and fast rules of Don’t miss this event! Monthly Meeting January Monthly Meeting: Agenda  Tuesday January 10th, 2011,  5:00 Set Up 6pm to 9pm  6:00 check in  Career Education Systems,  6:00 vendor hall  FREE for members, Guests  6:30 new member orientation $25 at the door, $15 if you pre- register  7:00 mini speed networking  We will be analyzing deals!  7:15 guest panel: Deal Analysis Page 8 MAREInet.com
  • 9. thumb. And I want you to keep in fer: vested and this includes the pur- mind that they are just what I chase price, repair cost and closing Deal Finder Question #1: I need to said... rules of thumb. cost. Keeping a margin of 30% in- know the after repaired value of the sures that when you are finished Deal Finder Rule #1: The first property or the current comps in the making the necessary repairs, after rule of thumb when analyzing a area closing cost you will still have 30% deal is very simple: "If you need Deal Finder Question #2: What is equity. Then you can sell it, refi- a calculator, it's probably not a the estimated amount of repairs or nance it, lease option the property or deal". Let me explain. If you can types of repairs. rent it for cash flow as well. look at a deal, knowing the after repaired value, the repair cost Deal Finder Question #3: The as- Now, if you are looking at what I call and how much they are asking sociated closing costs an "instant landlord" property then then you should be able to tell Deal Finder Question #4: If it is a you can pay a little more than 70% whether or not it is worth pursu- rental property then I want to know of value. After all there are no re- ing. If the profit numbers are so the rent or potential rent. pairs to do on your part. My rule is close that you have to figure it not to pay anymore than 80% of Sure I will eventually find out more on the calculator then you proba- value and maybe 85% of value if the information but we are talking about bly need to say "NEXT" and move cash flow is good and there is good getting our offer out there on the first on to the next property, after possibility of appreciation. call. These basic four questions will making your low ball offer of All you need to have is a simple cal- give you all the info you need to course. culator to figure what to offer while make an offer and be on your way to Deal Finder Rule #2: The next a deal. on the phone with a seller or submit- rule of thumb is also very simple. ting an offer by email. Let me men- How Much Should You Offer? tion here that it is extremely impor- "If you have to ask someone if it's a deal it probably isn't". Lets I know what your asking...How much tant that your deals are home runs, face it, you have at least read should I pay. This is very simple. If especially your first few. That is the some books, been to a seminar you are looking at a fixer upper then critical stage in your investing career or two, taken an investor to you don't want to have any more that will make you stay in or get out. lunch, listened to a webinar or than 70% of after repaired value in- . . . Larry Goins training audio or something. You know what to do for the most Want some help analyzing your part. YOU can tell whether it's a deals . . .Be sure to pick up your deal or not so if you have to ask FREE Copy of Larry Goins Uliti- someone then it probably isn't. mate Property Analyzer Soft- ware. We will have a free copy for 4 Key Deal Finding Questions the first 25 people in the door! Be Now, how do we put all this stuff sure to Arrive Early. Want to learn to use? As I mentioned I only more about Buying and Flipping need to ask a few specific ques- Properties? Visit the education tions before making my first offer page for a free webinar with Larry right over the phone. Here is what I Goins on buying and selling need to know before making an of- houses. Investment News Page 9
  • 10. MAREI’S MEMBER BENEFITS PROGRAM YOUR MEMBER BENEFITS AT-A-GLANCE USE THIS PAGE AS A GUIDE TO VALUE ADDED DISCOUNTS TOOLS AND SAVINGS CREATED JUST FOR YOU ON GOODS AND SERVICES YOU USE EVERY DAY. Landlord Services Suppliers Marketing Affordable Landlord Websites with a Screening for tenants & workers with 15% discount or free trial for members. 20% discount for members. Learn how to save money at Home De- pot and register for a 2% Rebate for all purchases & rentals across the US. Websites for investors, landlords, and Electronic collection for bounced other services. FREE trial. rent checks. No charge to you. FORMS & DOCS All members receive a discount card Service Provider Member Library is packed with forms to access our exclusive discounts up and docs, plus 15 % discount at EZ to 40% off all paint, supplies, and Landlord Forms for premium forms. flooring—nationwide. Discount card for all members providing a 10% discount on all services. Market your rentals on the nations top ranked rental site. Member discount Members have access to many great is 20% off Regular Prices. tools and savings including discounts News & Information of up to 7% - nationwide. E-Update Office Solutions Our weekly email update with what’s happening in real estate including properties for sale, government af- Discounts of products through Sears fairs and local market data. Save on select FedEx Office copy and Commercial plus 5% off Gift Cards. print services up to 20% and on Investment News FedEx Shipping up to 22%. The newsletter for Mid-America Asso- Membership ciation of Real Estate Investors: pub- lished monthly and distributed both in print at our meetings and digitally to our Receive discounts up to 65% on over database of over 5000 people. 12,000 products you use the most online and in store. FREE membership in Community Buy- ing Group for all MAREI members to Continued . . . . bring you even more great discounts. Page 10 MAREInet.com
  • 11. Member Service We have several services as part of our website to help you grow Magazine for the real estate investor. your business. With discount subscriptions for MAREI members. MAREI’s Government Affairs ac- tively monitors national legisla- Other Discounts tion and rule-making that im- pacts the real estate industry and harnessing the strength of MAREI members at the grassroots level. MAREI mem- Calendar of Events to stay up to bers also re- date with all of our activities. ceive timely Calls to Action when there is a time for our Nearly 70% of QuickBooks users say members to that it makes their business more prof- take action on itable. Get your Accounting on track. Buy at a 40% discount through Na- an important vote. tional REIA. Browse the member classifieds to Members also find your next deal. Take the have access REAL ESTATE BOOKS time to post your investment op- to the latest The nation’s largest provider of portunities for other members in Market real estate training materi- and site visitors to browse. Data. als, DEARBORN is America’s Premier Real Estate Pub- lisher. Members receive up to 40% off. VISIT The Member Library is packed and ever growing with pdf ver- sions of entire books, EBooks, MAREINET.COM/DISCOUNTS Special member discounts for Articles, Forms, and Documents. members at Avis, Budget, and TO LEARN MORE Enterprise Rentals. Investment News Page 11
  • 12. Assigning A Contract We were discussing at the MAREI office if make a profit and at the same time don’t in fact assignment of contract was still a want their end buyer to know how much viable way to flip a property. But we have profit they are a making. Not really a found that Diana Jackman from Chicago problem, until that one time someone Title and the Arizona Real Estate Investors finds out what you made, gets upset and Association believes that they are still takes you to court. With the assignment here. everyone is put on notice as to exactly As Diana points out the whole concept of how much you are making in the way of being a bird dog and getting a “finder’s the assignment fee. So nothing is hidden. fee” or referral fee is no longer an option, The extra costs comes in to play because not only is this against most state laws the with the double close you have just that: title companies will not pay them. Ask your two closings one for you to buy and one title company to do a double close where for you to sell and the title company gets you as the wholesale seller in the middle paid for title twice and two sets of clos- pay for your purchase from the original ings. With an assignment you as the seller with the proceeds from your sale to wholesaler have absolutely no costs, you the end buyer, and they will again tell you just get paid. no. Diana gives us this scenario: You sign a Diana also tell us that “Some investors are contract with the owner of the property under the assumption that if you close on a and show as buyer John Doe, LLC, and or double you can somehow ―hide‖ the profit assignee. You now have the right to as- you are making on a file. This is a costly sign the contract. You will also disclose in misconception in more ways than one. Not your contract that you are an investor and only are you increasing your liability on a plan to assign the contract/property for double close but you are also increasing profit. If one or more of the members of your cost (in some cases). your LLC holds their real estate license in When she refers to increasing your liability the state of Arizona then that disclosure by hiding the fact that you are buying and should also be made in the contract. Now selling to make a profit, she is referring to you have full disclosure! You find a buyer the fact that many investors don’t want the (assignee) to take over your interest in original seller to know they are selling to the contract for an ―assignment fee‖ of $4,000.00. You would supply the buyer Page 12 MAREInet.com
  • 13. (assignee) a copy of the con- buyer (assignee), and the She does point out that most tract and an assignment seller. Again full disclosure on banks in REO and short sales agreement. The assignment this gives you very limited li- specifically write into their contracts that they are non- agreement will dictate the ability. The other selling point assignable. But for the most terms of the assign- for you as assignor is that you part other sellers do not have ment. Don’t leave your ear- pay no fees, you just collect an issue with it. We also did a nest money on the table – re- your initial deposit back and little research online and member to include the re- whatever assignment fee is found that some title compa- nies are saying they do not placement or reimbursement agreed upon. Your title com- want to conduct a closing with of earnest money in your as- pany will require a 1099-m the assignment of contract, so signment agreement. All par- form from you, the signed as- far the title companies that we ties will sign off on this agree- signment forms and where to have worked with still close ment, you, (the assignor), the send your money. them. Wireless Security Systems Keypad, 3 doors, 1 motion, 1 primary & 1 door siren One time Charge of $99 plus tax Includes installation Requires 36 month contract. Monthly Monitoring Fee $39.99 Management Solutions Sell house transfer to new owner to help your properties or move to new house Operate Smoothly DevconSecurity.com Increase Desirability Marian Collins: 913-907-4942 Enhance Investment Value Attract & Retain Tenants Find us Online www.AbraxasMgmt.com 816-474-8800 Investment News Page 13
  • 14. Market Conditions The housing market data is out for November off going into December and January in the Kan- and it is showing that the Pending home sales sas City area. It is also important to note that are continuing to gain and in November it we are going into our second spring sales period reached it’s highest level in 19 months, according with out the tax credits. So when we look at to the National Association of Realtors®. The last sales figures for 2009 and the first part of 2010 time the index was higher was in April 2010 when through April 30th the numbers were all scewed it reached 111.5 as buyers rushed to beat the by the $8,000 home buyer tax credit and then deadline for the home buyer tax credit. The data the spring 2011 sales and appraisals were still reflects contracts but not closings. being affected by tax credit sales from a year ago. NAR’s chief economist, Lawrence Yun attributed these gains to both buyers who have been on the Our inventory of homes in the Kansas City metro sidelines waiting for the economy to get better is down all the way around with our new home and to buyers who had contract and financing inventory at 1264 a decline of 3% from October issues that have now been resolved and are now and a 16% declined from a year ago. Existing buying a house again. home inventory was at 12,505 with is down 9% from October and 14% lower than 1 year ago. This data on pending home sales is telling us that Here I have to think that this is affected by the closed home sales should continue to improve. slow down in foreclosures while the mega banks If we step back and look at the date for the Kan- go through and verify paperwork and foreclosure sas City area we see that the average sales price procedures and as I recently read on a blog post of a new home was $323,146 according to the from Mark Beauvais, that the banks are holding Kansas City Regional Association of Realtors back inventory to limit supply, increase demand, (KCRAR). This value is almost identical to the and raise prices. This is the “Shadow Inventory” same average price last year. Existing homes that you keep hearing about in the media. saw an average price of $147,386, just 4% higher We can look to RealtyTrac to see that foreclo- than the $142,071 price of last year. sure activity is trending down over the past 6 KCRAR also reported that on the number of months in Kansas while foreclosures seem to be home sales that in November we saw 136 new trending up in Missouri. Looking at the make up home sales this year compared to 135 in 2010. of foreclosures in both states, we see in Kansas And for existing home sales we sold $1566 this That about 1/3 are homes in pre-foreclosure, 1/3 year, 5% more than we did in 2010 but down 8% are ready to go to auction, and 1/3rd are bank from October 2011. owned. Looking at the pie chart in Missouri is It is important to note that sales generally taper vastly different with almost no homes in pre- Page 14 MAREInet.com
  • 15. foreclosure, 70% ready to go to Missouri side. great deal where they can invest auction, and 30% bank owned. If sweat equity. This is further driv- So what does this all mean for real this data on the RealtyTrac web- ing up the prices of bank owned estate investors in the Kansas City site is correct, we have almost 3/4 properties. Tough for those of us market? It seems we are in for of the foreclosure inventory waiting working to get a great deal, but on more of the same across the metro for sale so either the banks are the flip side if we are looking for with higher prices for bank owned just letting houses go to sale a little prices to increase, this is helping houses continuing. Add in that two trickle at a time to control assets on that side of the coin. or three years ago investors were on their books and inventory of the primary buyers of bank owned Please visit http:// REO available, or we have a lot of properties while today the inves- www.MAREInet.com/Market to see properties that will be coming to tors are competing against owner more on this data. market in the spring of 2012 on the occupant buyers looking for a accurate Accurate Closings: On Demand Training Smooth, Timely, Professional. 30 Minute Segments Title Services Provided for: Top Investor Trainers  FSBO, Wholesale, & REO Transactions  New Construction Closings From the Comfort of  Commercial Purchases and Refinance Your own Internet Connection  All Types of Loan Closings  1031 Exchanges $39.00 Training Courses  FHA, VA, USDA, Conventional Loans, and Hard Money Loan Closings REO & Lease Option  Refinance & Reverse Mortgages Creative Financing  Doc Prep, Prelim HUDS, Curing Issues Automated Investments  Short Sale Closing & Assistance Auctions & Foreclosures Short Sales  100 Years of Combined Service! Government Grant Money www.AccurateTitleCo.com 913-338-0100 phone www.MAREIU.com Investment News Page 15
  • 16. Association Update In real estate as in business, you have to first quarter and $30 every quarter after. adapt to the ever changing market or be- come obsolete and go out of business.  Divide to monthly with $15 the first month and $12 monthly after. MAREI is a very important part of the real estate market here in Kansas City and we Guests fees paid at meeting will apply have to be responsive as well. to any membership if you join at the We may be biased, but we doubt that meeting. there is anyone else out there working to MAREI has been very fortunate over the provide Kansas City Metro real estate in- past 9 years and as a result we haven’t vestors with the extent of market informa- ever raised our dues. The above options tion, government affairs updates, network- allow the member to best choose what will ing opportunities, deal opportunities, ex- work for them based on their needs and pert service providers, education and more their budget. at MAREI. And in today’s economy where It is important to note that MAREI exist the real estate investor is a very important because of members. Member pay dues cog in the community wheel, MAREI’s role that allow MAREI to put on meetings, offer to the community is growing. We need to the outstanding benefits listed on page 10 strive to serve our current members, moti- and 11 plus tracking the local market and vate new members, and improve our ser- keeping you informed on what is happen- vices. ing in your local government. While wee So we have some new improvements that have never raised our dues doesn’t mean have kicked in and others that we are our expenses haven’t gone up. They have, working on for 2012. a lot. Over the past three to four years we First in the last 1/2 of 2011 we have up- have adjusted by lowering cost, but not dated our membership offerings: service level. This hasn’t been easy, but through tremendous dedication by the Annual – Full Membership Privileges staff we have pulled it off. So we encour- $99 First Year & $99 Renewal age you to join or renew your member- ship or switch to one of our monthly or Family Member / Business Partner $50 quarterly plans. To switch to one of  Break to Quarterly with only $35 for these plans we can waive the start fee Page 16 MAREInet.com
  • 17. and just convert your mem- working to complete the ter format and allow us to bership over to the recurring main presentation of the market them to our email dues. meeting closer to 8:30 and post to our social me- Other changes coming: rather than 9:00. dia pages automatically gaining you more expo- You will note our agenda Property marketing, we are sure. looks a bit different. We in the testing stages of a are adding a new member property marketing tool to Last we are working to orientation during the net- replace our current classi- make our web page more working time at 6:30 at fieds. This will allow our user friendly so the mem- the meetings and we are members to post and ad- bers will be able to interact vertise properties in a bet- more. Be sure to Join Now (Or Renew) Go online at www.MAREInet.com Do the math. Your vacancy is costing you every day. For everyone that joins now or at the Fill your vacancy faster and save money meeting on Tuesday we have several free with Rentals.com! giveaway items for you to choose from: Buying Real Estate without Cash or Credit Discounts for MAREI Members: (Peter Conti & David Finkel) Receive 20% off all Regular How to Create Multiple Streams of Income Priced Advertising. Log into Buying Homes In Nice Areas with Nothing Down Member’s Area, click on Member (Peter Conti & David Finkel Discounts and look for MAREI’s Discount code! Buy Even Lower, The Regular People’s Guide to Real Estate Riches (Scott Frank & Andy Heller) Investment News Page 17
  • 18. New Members Renewing  Carol Babcock: Kansas City, MO  Steve Burns: Shawnee Mission, KS  Kevin Boggs: Overland Park, KS  Brian Gates: Leawood, KS  Steven Glaze: Lee’s Summit, MO  Dan & Shelda Goodwin: Overland Park, KS  Melanie Gomez: Kansas City, MO  Dee Grisamore: Overland Park, KS  Diane Hastings: Liberty, MO  Bilal Hazziez: Kansas City, MO  Jane Mahoney: Kansas City, KS  Scott Tucker: Kansas City, MO  Michael Linn: Kansas City, MO  Dena Odom: Mission, KS  David Watson: Topeka, KS Page 18 MAREInet.com
  • 19. More Information . . . HOUSES WANTED More Confidence  Built After 1950 Minimum 3 Bed, 1.5 Bath Eastern Jackson County MO or Johnson County KS Retail Value $100k-$200k More Profits No Rental Tenant Screening Local Cash Buyer Looking for 2 to 4 Houses a month Pre Employment Screening to purchase, rehab and sell. Money Partners want Contractor Screening their money placed quickly so they can turn their money fast and make a profit. Can’t do that with Collection Services out houses! Bring us a deal! Discounts for MAREI Members Email: kcmoHomeBuyer@gmail.com www.AAAScreening.com Submit Online: kcmoHomeBuyer.com 816-436-0085 “Presentation is Everything!” Property Management Rental Services Canyon-Stone.com Kansas City Metro 550 E. 56 Highway, Suite B Olathe, KS, 66061 www.JamiesonHomeTeam.com Phone: (913) 254-9300 Kevin Jamieson Fax: (913) 254-9301 816-503-4671 info@canyon-stone.com Investment News Page 19
  • 20. CALENDAR events , Locations, Cost & Registration at www.MAREInet.com/Calendar Page 20 MAREInet.com
  • 21. Sub Groups meet more often than the monthly meeting. Residential Groups Blue Springs/ Independence: Every Saturday from 4pm to 6pm at the Panera Bread at 40 Hwy and 291 Hwy, Independence. Lees Summit: Every Sunday from 9am to 11 am at the Panera Bread on Chipman Road in Lees Summit. Weekly Wednesdays: Every Wednesday from 9am to 11 am at the Panera Bread at 103rd and State Line. Commercial—Larger Multi Family Commercial Investors: Every other Wednesday from 5:30 pm to 7:30 pm at the Panera Bread at 103rd and State Line. OU! THANK Y Many thanks to our Volunteers who sponsor a Larry Prato Spencer Cullor Networking. If you need more networking and Commercial Subgroup Commercial Subgroup interaction, please check out the Networking Group on the Calendar. First Networking event is free and does not require membership. After that if you want to continue as a part of the sub- group, we request that you become a member of MAREI to gain more knowledge and access all Debra Felderhoff Michelle Winberry the tools and benefits of membership. BS, LS, Indep Subgroup Weekly Wednesdays Group Facilitators for the following Groups wanted: Northland Investors, Joco Investors, Short Sale Investors, Landlords, Note Buyers. Investment News Page 21
  • 22. Classifieds The Mechanics Part 2 Once you click post classified, you get the input screen above. Fill it out and click Submit Classified. You might note as you look through other peoples classifieds that they look real fancy. These folks have created their posting in an HTML (web site editor) and pasted the HTML code in the Description Box. Doing this you can add color, formatting, links to your website, and photos. You are only allowed 1500 characters and HTML takes up a lot of those. We are not here to teach you HTML, but if you use something like Google Sites or Word- press, you can create a page in that service, switch to the HTML view and copy and paste here (and also into craigslist as well) and have a beautifully formatted classified advertisement. Caution: if you edit your classified, it will always default to vehicle, so be sure to check that before you Submit. See Part 1 in December 2011 Investment News Page 22 MAREInet.com
  • 23. CLASSIFIEDS See more details on each property in the Classifieds at www.MAREInet.com. Offered As Address City Price Bed/Bath Contact Phone Fixer / Rental 4206-4212 E 7th KCMO $19,500 4 plex 2bd Christoph Becker 816-419-1165 Fixer /Rental 1812 E 70th St KCMO $17,500 3 bed Christoph Becker 816-419-1165 Fixer / Rental 5713 Palmer KCMO (Raytown) $12,500 3 bed/1ba Bilal Hazziez 816-237-8696 Fixer / Rental 5161 Hardesty KCMO $14,500 Christoph Becker 816-419-1165 Rental ShiloEstates Lees Summit $99k Each 7 units Danny Hammond 816-985-4950 Fixer 8300 E 104th Tr Kansas City $38,700 Jamison Home Team 913-384-8331 10 Ways to Build Your Buyer List 1. Network at all of our live events and exchange want, add them to your list. cards. 7. When you have a property, market it in every way 2. Carry a legal paid at investor networking possible, and add a comment, that if this is not the events, ask people if they would like to be on property for you do “x” to get added to my buyers your list and write them down. list. 3. Go to the courthouse, network with cash buy- 8. For end buyers or lease to own buyers—market all ers. a free report on how to buy “lease to own”, “fha” or “your first home”, those that respond will either be 4. On MAREI’s social medial pages and other real potential buyers or your competition. estate related social media pages, post where you are looking for properties and ask for buy- 9. Troll the landlords at socialserve.com—they ers to add to your list. give you phone numbers & emails. 5. Online Classifieds and Paper classifieds— 10. Obtain a list of people who have purchased CALL all the we buy houses and for rent by cash in the last 6 months and send them a owner ads, ask to add them to your list. postcard with an enticement to go to your 6. Troll online pages for people looking for website and register for your list. houses, call them up and find out what they 11. More online: click here Investment News Page 23
  • 24. Many thanks to our members & guests for a great 2011! Please join us for an even better 2012!