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MAREI Newsletter

investment

RE N E W S

November 2013 Volume 1

Private Lending
Kim Tucker ’s
Inside Scoop

A Brand New Year
Check Out What is
New for MAREI in
2014

Gift Membership
Available for MAREI
Members

2013 RE investment News
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.

PRO DESK
Get the job done with
Help from the Pro Desk.

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.
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.
2

RE investment News 2013
Sept 2013

PUBLISHER
Mid-America
Association of
Real Estate Investors

ADVERTISING INFORMATION
913-815-0111
info@MAREInet.com

RE INVESTMENT NEWS IS PUBLISHED
IN ASSOCIATION WITH
MID-AMERICA ASSOCIATION
OF REAL ESTATE INVESTORS

8014 State Line Rd
Suite 210
Leawood, KS 66208
www.MAREInet.com
913-815-0111

DISCLAIMER

CONTENT WANTED
Are you an expert in a specific area of real estate?
MAREI is looking for quality articles relating to real estate
both instructional articles as well as success stories to
share in the newsletter and or the blog.
Also looking for Real Estate Photos as well.
Please email Kim@MAREInet.com
Or call 913-815-0111.

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.

2013 RE investment News

3
Banks Are Not Our Friends
Author: Kim Tucker

RE investment News 2013
4 4 RE investment News 2013
“With the Private Money Lender, we take
out the middle man spread. The Real Estate Investor pays less for the money and
the Private Money Lender makes more for
their investment. “

Scenario #1: Well Seasoned Investor who has been investing in real estate for many years has a $100,000 line of
credit at their bank. They have never been late or missed a payment. They get a new property under contract, contact
the bank for the wire to close to find the line of credit has been canceled. Deal is lost.
Scenario #2: The same investor has 10 rental properties on a note with the local bank. Has never been late, has never
missed a payment and has rolled the note 3 times. His original note amortized over 20 years and has a 2 year balloon,
but with good stead payments, the note can be renewed every 2 years. He is all set to renew and he gets told he has to
pay off the note or be foreclosed on. No other bank is lending and he does not have the full amount in cash, so he
looses all 10 properties to foreclosure. Investors Credit is Shot.
So these two scenarios played out over and over and over again since 2007 as the banks stopped lending to investors,
started calling notes due and pretty much put a halt to all lending for a while.
Then banks, well they are slowly coming back to life and offering some loans to the real estate investor again if you
can find the bank, have the down payment and can meet their requirements and many can’t because of Scenario #2,
because they could not refinance a note, the bank foreclosed and now they have a foreclosure on their record, so no
more loans for a while.
Well back in 2007 and 2008 there was a very little known secret called Private Lenders. The Real Estate Investor who
had the private lender could gain access to money faster than working with the banks and mortgage companies, could
get loans for less closing costs if any, and for a lot less in interest.
Because the private lender is lending partly because of the investors credibility and experience and based on the equity
in the house, typically there is no credit check involved. And because you are borrowing or partnering with a private
individual, there is no reporting to the credit bureau. This is a good thing, not because you are going to default on the
loan but because it keeps your credit clean of multiple house loans so when you need to use your credit to get a mortgage, it is available to do so. Remember, often times lenders say you can only have so many loans in your own name
on your credit report. So if the private lender does not report it, the loan does not count against this arbitrary number
of traditional loans you can obtain.
Fast forward to 2013 and Private Lender and Private Partner and Joint Venture are the catch phase.
So with a traditional bank, you and I, the general public put our money in the bank for safe keeping and hopefully a

Continued on the Next Page
2013 RE investment News 5
2013 RE investment News 5
Legislative

1% rate of return on our money. In
turn the bank lends it back to us for
say 6% interest. They make the
spread.
With the Hard Money Lender, the
guys that charge more . . . they take
contributions to their fund from
people wanting a better rate of return and offer them a much better
rate of return than the bank will
pay . The Hard Money Lender then
administers the fund to lend money
back out to the real estate investor
with Points up front and a much
larger interest rate.
With the Private Money Lender, we
take out the middle man spread.
The Real Estate Investor pays less
for the money and the Private Money Lender makes more for their investment. But because the middle
man is not there to deal with the fall
out should things go south, there is
more risk, but remember the private
lender is getting paid more to take
on that risk.
So where are you going to find a
private lender . . . well, typically
they are going to be people that
know you who know and trust you
both on a personal level as well as
your business sense in investing in
real estate who are going to be will-

6 6 RE investment News 2013
RE investment News 2013

ing to take the risk to lend you
money.
u might remember back in
2003
There are steps you can take to
attract the people you know so
they want to do a deal with you.
The best being letting them
know about your latest great
deal you have just completed.
The more good deals you do, the
more likely they are to want to
partner with you. My first two
private lenders, well , they came
to me. “If I could do one or two
more deals a year with their
money and pay them $5,000 a

deal, would it be worth it too me?”
Sure, we did several, I made more
money and they made more money
and my intro to the world of Private
Money was started.
Want to learn more? Well I have and
a ½ day workshop here in Kansas
City on October 19th for MidAmerica Association of Private Lenders that I hope you can attend .
If you are a member of MAREI, be
sure to check out the resources in
their member library, and please be
sure to do some research on Google
as there are a ton of resources there.
ugh 2006 when Neighborhood

Make Sure To Continue with Kim and
Private Lending on October 19th at
Career Education Systems
More Information on this:
Private Lending Workshop
On Pg 15
A Brand New Year

Dustin Keller
Executive Director

A Brand New Year
Here in the MAREI Office the topic of conversation over the last month has shifted from idea to
idea, with the goal of making MAREI even better in the 2014 year. We’ve listened to the opinions
of members and guests alike, taking each suggestion into careful consideration. With the help of
our members, hard work, and dedication we’re proud to present a final product.
This month long brainstorming session spawned what can only be described as ‘massive potential’
for the future of MAREI. We have always set our goals to educate and connect real estate investors, and in 2014, were taking it to the next level.
Take a look at a couple of the BIG changes for 2014:

Roving Meeting:
Each month we love the feedback from our members, and
each month we have heard two
things quite often. The first of
which is, “Why isn’t the meeting closer?” Our members
come from all around the Kansas City area and it is not always convenient for them to
make it to each of our meetings.
The second thing we hear is,
“We love networking, Why not
more of it?” With both of those
thoughts in mind we are happy
to announce the Roving Meeting.
MAREI is going to take a small
road trip around Kansas City
every month. There is nothing
better than having the meeting
just minutes away! MAREI will
be ending our Northland Meeting, and bringing the meeting to
you. North, South, East, West,
Here we come!
“What about more network-

ing?” You ask and you shall receive. The format of the new
meeting will be focused around
the networking aspect. A short
presentation at the beginning,
ranging from thirty minutes to an
hour, followed by all the networking you can get your hands on!
We are very excited about this
here at the Office and we hope
now you are too!

Make sure to check out the first
Webinar series of the year in January,
with Accurate Title Company. After
their event the past summer we kept
hearing that the members want more.
ATC has graciously agreed to do this
amazing 3 part webinar series and a
Saturday event to get MAREI Members more of what they want. Make
sure to keep an eye out this December
for more information.

Webinars and Online Training
If there is one thing that is certain,
MAREI members CANT get
enough education. With more
members each week, and attendance constantly going up, we
have to make sure to keep you
with more options. We have taken
this responsibility to heart and
begun pioneering with the help of
some very talented individuals to
bring you Webinars and Online
Training courses which will
premiere through out 2014.

2013 RE investment News

7
Meetings

MAREI Gift Membership
With the Holiday season approaching we here at MAREI decided to offer a whole new form of Gift for you to give this holiday
season. We have all experienced receiving the toaster we don't need on Christmas morning or the ugly sweater we just can t
bring ourselves to through away. We took this thought of those awful gifts and created MAREI’s ‘Red Rider BB Rifle’ This
year we announce the MAREI Gift Membership.
What better Gift to give this year than one that promote community and ethics within our wonderful real estate community
here in Kansas City. We all know someone we would like to
get involved in MAREI.
Help us welcome new people into this amazing family. We
have special priced this Six month Gift Membership in an effort to open up new possibility to Non-Members.
Included with the Membership:
-Educational Materials
-Name Tag
-Membership Package
-2 Free Guest Passes for Friends or Family
-1 50% Off Coupon for any Paid MAREI Event
Take this Opportunity to get a fellow co-worker, a fellow investors, or even a Member of your family involved in MAREI.
With an exciting year just around the corner there isn't a better time to be involved with Kansas City LARGEST Real Estate Community.

For More Information or to Purchase a Gift Member Ship Visit
us Online at
www.MAREInet.com/
GiftMembership

8

RE investment News 2013
Meetings

Professional
Housing Provider
Professional Housing Provider or PHP Certification is a National Designation and
Certification from the National Association of Real Estate Investors.
Earn Your PHP Certification with MAREI
Earn instant credibility and show those you are working with
that you are a professional investor committed to the highest
standard of excellence.
All MAREI educational seminars have been approved for students to earn credits towards obtaining the nationally acclaimed Professional Housing Provider Certification offered
by the National Real Estate Investors Association (National
REIA).
Details
To earn the PHP Certification, you must complete a minimum
of 60 credit hours of education: 42 hours in required core
subject areas, and 18 additional hours in the subject areas of
your choice. MAREIoffers all the seminars needed to complete this certification program on a two year cycle.
What is the PHP Designation?
The PHP designation is a national education-based certification program designed to recognize the high level of
knowledge and professionalism among the designation holders. It is sponsored and overseen by the National Real Estate
Investors Association, a non-profit trade association serving
the real estate industry.
Why Obtain the PHP Designation?
Only individuals completing the educational requirements will
be permitted to hold themselves out to the public as a
“Professional Housing Provider”. The designee will be recognized in the form of an award certificate, pin, and the right to
use the designation. By having a standardized education in
the topics outlined increase your ability to achieve your goals
in real estate investing.
Further, as National REIA works to increase the visibility of
the PHP designation, individuals who have earned the certification are held to a higher standard of credibility when dealing with legal and governmental bodies. It aids legislators in

perceiving educated investors as a larger group for political
action, and in turn, provides our industry with greater legislative influence.
How Will I Obtain These Hours?
Mid-America Association of Real Estate Investors offers
course in all the areas needed to complete this certification.
When attending a MAREI PHP certified training event, attendees must arrive within 5 minutes of the start time to be
issued a PHP Certificate and sign up on the final registration
sheet at the end of the monthly meeting when they turn in
their name tag. Attendance will also be tracked on other
qualifying training events.
Attendees are responsible for keeping track of PHP certificates and will not be replaced. Attendees are also responsible for tracking progress towards completion of their PHP
designation. A tracking folder is available for download and at
meetings. Once all courses have been completed, submit
your PHP certificates to the PHP committee for verification of
award.
Please visit the MAREI website or review your Membership
Package for more information about PHP.
In addition, courses completed at MAREI can be combined
with PHP certified courses offered by other National REIAassociated organizations and conferences. It is possible that
seminars and training events offered by other groups may
qualify for PHP credit; however, all outside training events
must meet the following requirements:
1. They must be taught live
2. The must be pre-approved by the MAREI PHP Committee
3. They must provide a Certificate of Attendance acceptable
to the MAREI PHP committee.
We are also working on a few online resources through National REIA.
2013 RE investment News

9
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, plus 15 % discount at EZ
Landlord Forms for premium forms.

Market your rentals on the nations top
ranked rental site. Member discount
is 20% off Regular Prices.

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.

10

RE investment News 2013

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.
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

2013 RE investment News

11
Services

12 RE investment News 2013
12 RE investment News 2013
Services

Houses & Notes

WANTED
Don’t Toss another Seller Lead
for Lack of Buyers!
Let Us Review Your Lead . . .
Assign to us or partner with us.
kcmoHomeBuyer.com
816-200-2198
 Rehab & Retail
 Turn Key Rental
 Fixer Uppers
 Multi Family
 Non-MLS
Call Don or Scott
816-200-2198

2013 RE investment News

13
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

14

RE investment News 2013
2013 RE investment News

15
16

RE investment News 2013
Some Stats



South Meeting Attendance:
100



180 Website Page Views a
Day



Most Views from US, Canada
and Philippines - total 105
countries



Email Database 5000+



Facebook Page: 2446 Likes



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.

North Meeting Attendance:
50



Business Membership

350 Current Paid Members



Ph oto Caption

Incorporated 2003

Facebook Group: 1131
Members



LinkedIn Group: 721 Members

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
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.

@

Check out our Website
MAREInet.com

Host a Vendor Table

Contact us by Phone
913-815-0111

While you can do all the advertising in the world in our Newsletter and on our
Website, meeting members face to face at our monthly meetings allows you to get
face to face with the members, build rapport and explain your product or service in
person. To help you facilitate the face to face interaction, we have Vendor Tables
available for a fee from 6:00 to 7:00 before each meeting. These can be reserved
for $25 for one night or $50 for 3 different nights. A Business Membership includes 3 free annually. Available on a first-come first-served basis.

Email US
info@MAREInet.com
Join The Conversation
MAREInet.com/Blog
Join Association
MAREInet.com/Membership

2013 RE investment News

17
Events

Monthly
Meetings

MAREI MEMBERSHIP
MEETINGS HELD AT:
Northland
(1st Thursday of the Month)
North Kansas City Community Center
1999 Iron Street
North Kansas City, MO
(816) 300-0433
MAREInet.com/KCNorth

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.

Southland
(2nd Tuesday of the Month)
Career Education Systems/ In Mall
8600 Ward Parkway, Ste 2080
Kansas City, MO
(816) 444-7277
MAREInet.com/KCSouth

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.

More Education & Networking Opportunities
MAREInet.com/Calendar

Upcoming D ates
November 7th Meeting: Northland Meeting - Round Table Networking– Use this opportunity to get
your name out among fellow MAREI members and get any questions answered you have before 2014!

18

Name: ______________________________
Date: _______________________________
Email: _______________________________
Source: ______________________________
For first time guest to visit meeting.

RE investment News 2013

Guest Pass is available for first
time attendees to MAREI. If you
have attended before, explore
membership options or pay
guest fee.

GUEST PASS
A Real Estate Community

Mid-America Association
of Real Estate Investors

MAREI

November 12th Meeting: Southland Meeting - Three Speakers, Three Topics, One Amazing Evening.
With this fast paced meeting style members and guests will get more information that ever in these short
12 minutes presentations followed by Q&A. Topics covered will be: Subject 2 Housing, Multi-Family Investing, and Rehabbing.
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.

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.

Flooring Products &
tion

Installa-

Wide variety of name brands, 24-hour
turnaround and reliable installation.

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 .

Investment News

Page 5
2013 RE investment News

19
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.

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

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.

“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

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.

“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

20

www.MAREInet.com
RE investment News 2013

www.NationalREIA.com

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October november 2013 magazine

  • 1. MAREI Newsletter investment RE N E W S November 2013 Volume 1 Private Lending Kim Tucker ’s Inside Scoop A Brand New Year Check Out What is New for MAREI in 2014 Gift Membership Available for MAREI Members 2013 RE investment News
  • 2. 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. PRO DESK Get the job done with Help from the Pro Desk. 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. 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. 2 RE investment News 2013
  • 3. Sept 2013 PUBLISHER Mid-America Association of Real Estate Investors ADVERTISING INFORMATION 913-815-0111 info@MAREInet.com RE INVESTMENT NEWS IS PUBLISHED IN ASSOCIATION WITH MID-AMERICA ASSOCIATION OF REAL ESTATE INVESTORS 8014 State Line Rd Suite 210 Leawood, KS 66208 www.MAREInet.com 913-815-0111 DISCLAIMER CONTENT WANTED Are you an expert in a specific area of real estate? MAREI is looking for quality articles relating to real estate both instructional articles as well as success stories to share in the newsletter and or the blog. Also looking for Real Estate Photos as well. Please email Kim@MAREInet.com Or call 913-815-0111. 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. 2013 RE investment News 3
  • 4. Banks Are Not Our Friends Author: Kim Tucker RE investment News 2013 4 4 RE investment News 2013
  • 5. “With the Private Money Lender, we take out the middle man spread. The Real Estate Investor pays less for the money and the Private Money Lender makes more for their investment. “ Scenario #1: Well Seasoned Investor who has been investing in real estate for many years has a $100,000 line of credit at their bank. They have never been late or missed a payment. They get a new property under contract, contact the bank for the wire to close to find the line of credit has been canceled. Deal is lost. Scenario #2: The same investor has 10 rental properties on a note with the local bank. Has never been late, has never missed a payment and has rolled the note 3 times. His original note amortized over 20 years and has a 2 year balloon, but with good stead payments, the note can be renewed every 2 years. He is all set to renew and he gets told he has to pay off the note or be foreclosed on. No other bank is lending and he does not have the full amount in cash, so he looses all 10 properties to foreclosure. Investors Credit is Shot. So these two scenarios played out over and over and over again since 2007 as the banks stopped lending to investors, started calling notes due and pretty much put a halt to all lending for a while. Then banks, well they are slowly coming back to life and offering some loans to the real estate investor again if you can find the bank, have the down payment and can meet their requirements and many can’t because of Scenario #2, because they could not refinance a note, the bank foreclosed and now they have a foreclosure on their record, so no more loans for a while. Well back in 2007 and 2008 there was a very little known secret called Private Lenders. The Real Estate Investor who had the private lender could gain access to money faster than working with the banks and mortgage companies, could get loans for less closing costs if any, and for a lot less in interest. Because the private lender is lending partly because of the investors credibility and experience and based on the equity in the house, typically there is no credit check involved. And because you are borrowing or partnering with a private individual, there is no reporting to the credit bureau. This is a good thing, not because you are going to default on the loan but because it keeps your credit clean of multiple house loans so when you need to use your credit to get a mortgage, it is available to do so. Remember, often times lenders say you can only have so many loans in your own name on your credit report. So if the private lender does not report it, the loan does not count against this arbitrary number of traditional loans you can obtain. Fast forward to 2013 and Private Lender and Private Partner and Joint Venture are the catch phase. So with a traditional bank, you and I, the general public put our money in the bank for safe keeping and hopefully a Continued on the Next Page 2013 RE investment News 5 2013 RE investment News 5
  • 6. Legislative 1% rate of return on our money. In turn the bank lends it back to us for say 6% interest. They make the spread. With the Hard Money Lender, the guys that charge more . . . they take contributions to their fund from people wanting a better rate of return and offer them a much better rate of return than the bank will pay . The Hard Money Lender then administers the fund to lend money back out to the real estate investor with Points up front and a much larger interest rate. With the Private Money Lender, we take out the middle man spread. The Real Estate Investor pays less for the money and the Private Money Lender makes more for their investment. But because the middle man is not there to deal with the fall out should things go south, there is more risk, but remember the private lender is getting paid more to take on that risk. So where are you going to find a private lender . . . well, typically they are going to be people that know you who know and trust you both on a personal level as well as your business sense in investing in real estate who are going to be will- 6 6 RE investment News 2013 RE investment News 2013 ing to take the risk to lend you money. u might remember back in 2003 There are steps you can take to attract the people you know so they want to do a deal with you. The best being letting them know about your latest great deal you have just completed. The more good deals you do, the more likely they are to want to partner with you. My first two private lenders, well , they came to me. “If I could do one or two more deals a year with their money and pay them $5,000 a deal, would it be worth it too me?” Sure, we did several, I made more money and they made more money and my intro to the world of Private Money was started. Want to learn more? Well I have and a ½ day workshop here in Kansas City on October 19th for MidAmerica Association of Private Lenders that I hope you can attend . If you are a member of MAREI, be sure to check out the resources in their member library, and please be sure to do some research on Google as there are a ton of resources there. ugh 2006 when Neighborhood Make Sure To Continue with Kim and Private Lending on October 19th at Career Education Systems More Information on this: Private Lending Workshop On Pg 15
  • 7. A Brand New Year Dustin Keller Executive Director A Brand New Year Here in the MAREI Office the topic of conversation over the last month has shifted from idea to idea, with the goal of making MAREI even better in the 2014 year. We’ve listened to the opinions of members and guests alike, taking each suggestion into careful consideration. With the help of our members, hard work, and dedication we’re proud to present a final product. This month long brainstorming session spawned what can only be described as ‘massive potential’ for the future of MAREI. We have always set our goals to educate and connect real estate investors, and in 2014, were taking it to the next level. Take a look at a couple of the BIG changes for 2014: Roving Meeting: Each month we love the feedback from our members, and each month we have heard two things quite often. The first of which is, “Why isn’t the meeting closer?” Our members come from all around the Kansas City area and it is not always convenient for them to make it to each of our meetings. The second thing we hear is, “We love networking, Why not more of it?” With both of those thoughts in mind we are happy to announce the Roving Meeting. MAREI is going to take a small road trip around Kansas City every month. There is nothing better than having the meeting just minutes away! MAREI will be ending our Northland Meeting, and bringing the meeting to you. North, South, East, West, Here we come! “What about more network- ing?” You ask and you shall receive. The format of the new meeting will be focused around the networking aspect. A short presentation at the beginning, ranging from thirty minutes to an hour, followed by all the networking you can get your hands on! We are very excited about this here at the Office and we hope now you are too! Make sure to check out the first Webinar series of the year in January, with Accurate Title Company. After their event the past summer we kept hearing that the members want more. ATC has graciously agreed to do this amazing 3 part webinar series and a Saturday event to get MAREI Members more of what they want. Make sure to keep an eye out this December for more information. Webinars and Online Training If there is one thing that is certain, MAREI members CANT get enough education. With more members each week, and attendance constantly going up, we have to make sure to keep you with more options. We have taken this responsibility to heart and begun pioneering with the help of some very talented individuals to bring you Webinars and Online Training courses which will premiere through out 2014. 2013 RE investment News 7
  • 8. Meetings MAREI Gift Membership With the Holiday season approaching we here at MAREI decided to offer a whole new form of Gift for you to give this holiday season. We have all experienced receiving the toaster we don't need on Christmas morning or the ugly sweater we just can t bring ourselves to through away. We took this thought of those awful gifts and created MAREI’s ‘Red Rider BB Rifle’ This year we announce the MAREI Gift Membership. What better Gift to give this year than one that promote community and ethics within our wonderful real estate community here in Kansas City. We all know someone we would like to get involved in MAREI. Help us welcome new people into this amazing family. We have special priced this Six month Gift Membership in an effort to open up new possibility to Non-Members. Included with the Membership: -Educational Materials -Name Tag -Membership Package -2 Free Guest Passes for Friends or Family -1 50% Off Coupon for any Paid MAREI Event Take this Opportunity to get a fellow co-worker, a fellow investors, or even a Member of your family involved in MAREI. With an exciting year just around the corner there isn't a better time to be involved with Kansas City LARGEST Real Estate Community. For More Information or to Purchase a Gift Member Ship Visit us Online at www.MAREInet.com/ GiftMembership 8 RE investment News 2013
  • 9. Meetings Professional Housing Provider Professional Housing Provider or PHP Certification is a National Designation and Certification from the National Association of Real Estate Investors. Earn Your PHP Certification with MAREI Earn instant credibility and show those you are working with that you are a professional investor committed to the highest standard of excellence. All MAREI educational seminars have been approved for students to earn credits towards obtaining the nationally acclaimed Professional Housing Provider Certification offered by the National Real Estate Investors Association (National REIA). Details To earn the PHP Certification, you must complete a minimum of 60 credit hours of education: 42 hours in required core subject areas, and 18 additional hours in the subject areas of your choice. MAREIoffers all the seminars needed to complete this certification program on a two year cycle. What is the PHP Designation? The PHP designation is a national education-based certification program designed to recognize the high level of knowledge and professionalism among the designation holders. It is sponsored and overseen by the National Real Estate Investors Association, a non-profit trade association serving the real estate industry. Why Obtain the PHP Designation? Only individuals completing the educational requirements will be permitted to hold themselves out to the public as a “Professional Housing Provider”. The designee will be recognized in the form of an award certificate, pin, and the right to use the designation. By having a standardized education in the topics outlined increase your ability to achieve your goals in real estate investing. Further, as National REIA works to increase the visibility of the PHP designation, individuals who have earned the certification are held to a higher standard of credibility when dealing with legal and governmental bodies. It aids legislators in perceiving educated investors as a larger group for political action, and in turn, provides our industry with greater legislative influence. How Will I Obtain These Hours? Mid-America Association of Real Estate Investors offers course in all the areas needed to complete this certification. When attending a MAREI PHP certified training event, attendees must arrive within 5 minutes of the start time to be issued a PHP Certificate and sign up on the final registration sheet at the end of the monthly meeting when they turn in their name tag. Attendance will also be tracked on other qualifying training events. Attendees are responsible for keeping track of PHP certificates and will not be replaced. Attendees are also responsible for tracking progress towards completion of their PHP designation. A tracking folder is available for download and at meetings. Once all courses have been completed, submit your PHP certificates to the PHP committee for verification of award. Please visit the MAREI website or review your Membership Package for more information about PHP. In addition, courses completed at MAREI can be combined with PHP certified courses offered by other National REIAassociated organizations and conferences. It is possible that seminars and training events offered by other groups may qualify for PHP credit; however, all outside training events must meet the following requirements: 1. They must be taught live 2. The must be pre-approved by the MAREI PHP Committee 3. They must provide a Certificate of Attendance acceptable to the MAREI PHP committee. We are also working on a few online resources through National REIA. 2013 RE investment News 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 News & Information E-Update Screening for tenants & workers with 20% discount for members. FORMS & DOCS Member Library is packed with forms and docs, plus 15 % discount at EZ Landlord Forms for premium forms. Market your rentals on the nations top ranked rental site. Member discount is 20% off Regular Prices. 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. 10 RE investment News 2013 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.
  • 11. 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 2013 RE investment News 11
  • 12. Services 12 RE investment News 2013 12 RE investment News 2013
  • 13. Services Houses & Notes WANTED Don’t Toss another Seller Lead for Lack of Buyers! Let Us Review Your Lead . . . Assign to us or partner with us. kcmoHomeBuyer.com 816-200-2198  Rehab & Retail  Turn Key Rental  Fixer Uppers  Multi Family  Non-MLS Call Don or Scott 816-200-2198 2013 RE investment News 13
  • 14. 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 14 RE investment News 2013
  • 17. Some Stats   South Meeting Attendance: 100  180 Website Page Views a Day  Most Views from US, Canada and Philippines - total 105 countries  Email Database 5000+  Facebook Page: 2446 Likes  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. North Meeting Attendance: 50  Business Membership 350 Current Paid Members  Ph oto Caption Incorporated 2003 Facebook Group: 1131 Members  LinkedIn Group: 721 Members 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 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. @ Check out our Website MAREInet.com Host a Vendor Table Contact us by Phone 913-815-0111 While you can do all the advertising in the world in our Newsletter and on our Website, meeting members face to face at our monthly meetings allows you to get face to face with the members, build rapport and explain your product or service in person. To help you facilitate the face to face interaction, we have Vendor Tables available for a fee from 6:00 to 7:00 before each meeting. These can be reserved for $25 for one night or $50 for 3 different nights. A Business Membership includes 3 free annually. Available on a first-come first-served basis. Email US info@MAREInet.com Join The Conversation MAREInet.com/Blog Join Association MAREInet.com/Membership 2013 RE investment News 17
  • 18. Events Monthly Meetings MAREI MEMBERSHIP MEETINGS HELD AT: Northland (1st Thursday of the Month) North Kansas City Community Center 1999 Iron Street North Kansas City, MO (816) 300-0433 MAREInet.com/KCNorth 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. Southland (2nd Tuesday of the Month) Career Education Systems/ In Mall 8600 Ward Parkway, Ste 2080 Kansas City, MO (816) 444-7277 MAREInet.com/KCSouth 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. More Education & Networking Opportunities MAREInet.com/Calendar Upcoming D ates November 7th Meeting: Northland Meeting - Round Table Networking– Use this opportunity to get your name out among fellow MAREI members and get any questions answered you have before 2014! 18 Name: ______________________________ Date: _______________________________ Email: _______________________________ Source: ______________________________ For first time guest to visit meeting. RE investment News 2013 Guest Pass is available for first time attendees to MAREI. If you have attended before, explore membership options or pay guest fee. GUEST PASS A Real Estate Community Mid-America Association of Real Estate Investors MAREI November 12th Meeting: Southland Meeting - Three Speakers, Three Topics, One Amazing Evening. With this fast paced meeting style members and guests will get more information that ever in these short 12 minutes presentations followed by Q&A. Topics covered will be: Subject 2 Housing, Multi-Family Investing, and Rehabbing.
  • 19. 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. 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. Flooring Products & tion Installa- Wide variety of name brands, 24-hour turnaround and reliable installation. 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 . Investment News Page 5 2013 RE investment News 19
  • 20. 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. 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 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. “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 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. “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 20 www.MAREInet.com RE investment News 2013 www.NationalREIA.com