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


   MID-AMERICA ASSOCIATION OF                                                 REAL ESTATE INVESTORS




   Investment News                           NETWORKING : EDUCATION : COMMUNITY : GOVERNMENT
                                                                                             August 2012

                                                 10
                                             e
                                         Pag
ten ts
         c on
         Page 3                     Page 12                   Page 18              Page 26
         Business Members           Bill Twyford              Calendar of Events   Altos Research
         Build your team with our   Language Patterns         Schedule Now         Area Market Data
         Service Providers & In-
         dustry Partners            Page 14                   Page 20              Page 27
                                    Membership                Duncan Weirman       Mid-West Real Estate
         Page 6                     Options                   SAFE Act Revisited   Investor Expo
         How I Did the Deal
                                    Page 15                   Page 22              Page 28
         Page 8                     Welcome                   For Sale             August Meeting
         August Speaker             New & Returning Members   Member Properties
         Marck de Lautour
                                    Page 16                   Page 24
         Page10                     Build Your Team           MAREI Website
         Benefits at a Glance       At MAREI                  Posting Properties
         Save with Discounts




                       2011                                        2012




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



        Foundations
                                                                            Insurance
   Cornerstone Foundation             Your Company Here
         Joe Williams                                                 www.APIAprotects.com
                                          $499 annual                     Lisa Goodner
        913-220-5253
  CornerstoneFoundationRe-             Or $135 a Quarter                 1-877-752-2742
                                                                    lgoodner@apiaprotects.com
      pair@yahoo.com
         Insurance                                                    Property Management
                                           Investors
   www.NREInsurance.com
                                  www.kcmoHomeBuyer.com              www.abraxasmgmt.com
          Jim Jrolf
                                        The Tuckers                       Meka Cayce
        913-915-3232
                                       816-200-2198                      816-474-8800
       1-888-741-8454
                                    kcmoHomeBuyer.com                mcayce@abraxasllc.com
    jj@nreinsurance.com
   Property Management
                                    Property Management               Real Estate Brokerage
 www.JamiesonHomeTeam.com
       Kevin Jamieson          www.MyPremierleasing.com            www.RealtyResourceKC.com
        816-503-4671                  Jeff Wood                         Kim Tucker & Staff
           kevin-                   816-841-9500                          816-523-4400
                             jwoods@mypremierleasing.com          RealtyResourceKC@gmail.com
jamieson@reeceandnichols.com

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

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




Investment News                                                                            Page 3
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                                      Phone: 913-815-0111



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Page 4                                                                                                          MAREInet.com
MAREI STAFF

                                                          & Volunteers
         Executive Director                                     Advisory Board / Membership Desk

         Kim Tucker                                             Scott Tucker

         kim@MAREInet.com                                       sTucker319@gmail.com

         Investor : Realtor                                     Realtor



         Advisory Board                                         Advisory Board / Membership Desk

         Donald Tucker                                          Dan Goodwin

         DonTuckerRE@gmail.com                                  DanGoodwin@kw.com

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

         Debra Felderhoff                                       Shelda Goodwin

         superiorrental@gmail.com                               SheldaGoodwin@kw.com

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

         Michelle Winberry                                      L. Scott Ficinus

         mlwinberry@gmail.com                                   Scott@Ficinus.com

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

         Brian Winberry                                         John Welchert

                                                                JWelchert@platinumrealtykc.com

         Investor :                                             Realtor : Investor : Landlord
         Focus Group Leader: IRA Investing                      Focus Group Leader: Young Professional Investor
         Coming Soon . . . Leader Located                       Leader Wanted




         Focus Group Leaders: Transaction Engineers             Focus Group Leader: Commercial

         Leader Wanted                                          Leader Wanted




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

         Leader Wanted                                          Leader Wanted




Investment News                                                                                          Page 5
d the d eal!
            How I di                                        New feature : Share your deal with our read-
                                                            ers so they can learn how a deal gets done.
                                                            Submit to info@MAREInet.com.


 The Property: We have recently purchased a patio           taxes and go to sale this month if they don’t get paid.
 home/ town house/ half a duplex in Kansas City Mis-        They owe about $8,000 in HOA. They wanted to net
 souri on the Golf Course. This is a home built in 1989,    $70,000 after all of the above had been paid.
 that needs a lot of cleaning and deferred maintenance
                                                            They received an $80,000 offer that was going to pay
 on the roof, windows, and HVAC and some updating.
                                                            off all the back taxes and HOA up front and then pay
 Based on comparables a similar sized 3 bedroom, 2 1/2
                                                            them the remaining $50,000 over 5 or 6 years time.
 bath patio home on the golf course should sell between
                                                            They also received a similar offer to ours that was a
 $140,000 and $160,000
                                                            bit higher, but they wanted to close on the 14th of Au-
 Comparables give us a similar renovated home with a        gust, which based on the tax sale, they need to have
 walk out basement that sold for $163,500 , a home          the closing on or before Friday Aug 17th.
 pending at $169,900 in 27 days and a 2 bedroom that
                                                            Why they took our lower price offer: We had the low-
 sold for $148,500. We estimate our after repair value at
                                                            est offer, but we agreed to pay them $2000 upon proof
 about $145,000 without a finished walk out basement
                                                            of clean title and their signing of closing documents,
 and about $155,000 with a finished basement.
                                                            so they had funds to rent a new place to live. We also
 Repairs Needed: Exterior just painted by HOA, needs        agreed to closing on the 16th, to stop the tax sale, but
 roof, windows, deck repairs, minor updates to kitchens     gave them the week end to move out. We gave them
 and baths—mainly fixtures and granite tops, a good         something the other offers did not: full cash sale now,
 cleaning and painting: About $35,000                       moving money before the official closing, and posses-
                                                            sion after closing so they have time to move out.
 Maximum Allowable Offer:
                                                            Exit Strategy: We could wholesale this for quick cash.
 $145,000 x 70% = $101,500
                                                            I estimate we could get a wholesale investor buyer at
 Less Repairs of $35,000                                    about $70,000. We could fix the roof, windows, and
 Maximum Allowable Offer: $66,500                           mechanicals for about $12,000 and sell to an owner
                                                            occupant as a fixer upper for about $100k to $110k as
 How we found the deal: We have a website on Word-          that’s what fixer uppers bring. Or we can fully reno-
 press that we pay $12 a year for and maintain our-         vate and sell at $145,000 and potentially finish the
 selves: www.kcmoHomeBuyer.com and we post about            basement and sell for $155,000 (or more).
 5 to 10 we buy houses about 5 days a week on
 Craigslist.com and Backpage.com. The sellers say they      Funding: Funding for this deal is coming from a pri-
 found our website on the Internet. So either they saw      vate partner who funds purchase and rehab for a split
 one of our ads or they did a search and received our       of the eventual profit. Deal submitted by the Tuckers,
 website.                                                   who are long time area investors who purchase
                                                            homes for cash to renovate and resell. Find us online
 Sellers Story: Sellers purchased the inherited the home    at kcmoHomeBuyer.com, via email at kcmoHome-
 free and clear several years and have not paid HOA         Buyer@gmail.com or by phone at 816-200-2198.
 dues or taxes since. They owe about $22,000 in back



Page 6                                                                                        MAREInet.com
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                                                                       For title, escrow,
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          Management Solutions
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         Enhance Investment Value
           Attract & Retain Tenants
                Find us Online
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                816-474-8800
                                                                         Bud Whisler
                                                                        816-380-3441

Investment News                                                                                     Page 7
We recently        a piece of paper or an idea of a piece of pa-
                                      sat down          per.
                                      and had a         These investors are looking for sound in-
                                      quick lunch       vestments with a dollars and sense return
                                      with Marck        on their money. They want to know going in
                                     de Lautour         what their risk is, what their return on invest-
                                    to discuss          ment is and how quickly they can turn a
                                   his real estate      profit.
                                 investing model
    in                        the Kansas City           Many of these investors live in US states or
    Market.              He had taken a truly           other countries where real estate investing
    unique approach to the turn-key investing           is cost prohibitive and they are turning now
    model.                                              to mid-west real estate markets for afford-
                                                        able options. This investor wants boots on
    He has applied a stock market investor men-         the ground in our markets who can locate
    tality to the real estate market here in Kansas     profitable deals, work the deal - be it rehab
    City. There is millions in anxious money from       and rental or rehab and flip, and to turn a
    investors who are tired of the ups and downs        profit for them.
    and downs and downs of the stock market
    who are looking for better returns with less        We are seeing 100’s of companies popping
    risk. With the stock market, value can go to        up across the US to be the turn-key invest-
    zero, but in real estate, even if the market        ment provider for these hands off investors.
    takes a nose dive, you still own an asset, not      These providers are buying houses really


                                                             Don’t miss this event!


      Monthly Meeting
Guest Speaker:                   Details:                           Agenda
      Local Kansas City Real            Tuesday August 14th                5:30 pm Pre Meeting / Setup
      Estate Investor Marck de          6:00 pm to 9:00 pm                 6:00 pm Registration
      Lautour with SBD Hous-            Career Education Systems           6:00 pm Vendor Hall
      ing Solutions will be             Ward Parkway Shopping              7:00 pm Speed Networking
      sharing his Real Estate           Center—8600 Ward Pkwy              7:15 pm Presentation
      Investing Model.                  Kansas City Missouri               8:30 pm Q & A / Networking
                                        Top Floor                          9:00 pm Adjorn



Page 8                                                                              MAREInet.com
cheap, getting them renovated    targets the pricing bracket that   tise he is able to get the low-
and rented up, then selling      includes first time home buy-      est possible price, and as you
them to the investors for cash   ers, retirees, families upgrad-    know your profit is make when
flow. The housing providers      ing as well as investors look-     you buy, not when you sell.
are making money every step      ing for a reasonably priced in-    He has teamed up with the
of the way in many cases from    vestment. The first criteria he    best industry providers to ser-
commissions to buy, manage-      uses when finding his inves-       vice the homes purchased.
ment fees to renovate, and       tors a property is no low end,     Their professional team in-
property management fees for     high crime neighborhoods.          sures a swift and effective re-
keeping them rented.             He offers his investors differ-    model as well as efficient
The major problem with this      ent options based on their in-     rental screening with a long
model in many cases is that      come needs. If they want           time professional manage-
the target neighborhoods are     quick cash, he works with          ment company to ensure that
the lowest end housing in the    them to find a fix and flip        the properties are rented out
metro area. Areas with high      house. If they want a longer       quickly to quality tenants.
crime, that are primarily all    term investment he will work       We have found that Marck’s
rental housing and with nu-      to find them a fix and lease to    approach to real estate invest-
merous vacant properties.        own property or a rental.          ing is with a financial business
Many of the anxious investors    He works to find the best pos-     model in mind from start to fin-
are getting burned with this     sible purchase price on homes      ish. We have invited him to
type of property as the pro-     through area wholesalers,          present his model to area in-
vider just wants to make their   distressed sellers, foreclosure    vestors at our August Meeting.
fast buck in selling them the    sales, and bank owned REO          Be sure to see complete de-
house and as soon as the         property. Through his exper-       tails on the back page.
deed is signed, often times
that fabulous tenant is on to
the next house.
Marck has taken a different
                                                                                    Marck de Lautour
                                                                                      Wealth Builder
approach. He is targeting DE-
                                                                                …………………………………………
SIRABLE areas of town that                                                              Ph: (816) 994-9401
appeal to the largest core of                                                          Fax: (816) 994-9449
                                                                                   marck@SBDHousing.com
buyers in the area and that
                                                                                …………………………………………
guarantees the greatest ap-                                                          www.SBDHousing.com
preciation as well as a safe
                                                                      P.O. Box 3338
and secure exit strategy. He                                   Independence, Missouri 64055



 Investment News                                                                                  Page 9
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     is 20% off Regular Prices.            Marketing                                        Investment News
                                                                                      The newsletter for Mid-America Asso-
Office Solutions                                                                      ciation of Real Estate Investors: pub-
                                                                                      lished monthly and distributed both in
                                                                                     print at our meetings and digitally to our
                                                                                          database of over 5000 people.

Save on select FedEx Office copy and      Websites for investors, landlords, and
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                                                                                                 Continued . . . .




Page 10                                                                                               MAREInet.com
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 Nearly 70% of QuickBooks users say                                           members at the grassroots level.
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  Investment News                                                                                     Page 11
Using Assumptive
                              Language Patterns
  . . . Bill Twyford                                                    foreclosure looming over your head. Let’s do the right
                                                                        thing and sign these papers so we can get started,
 Having a firm grasp on language patterns will help you
                                                                        okay?
 close more deals. In addition to using embedded com-
 mands, which are word groups that order you to do some-            The underlined words are embedded commands. Embed-
 thing, you must incorporate assumptive language patterns           ded commands are word groups that subconsciously order
 into your vocabulary. Assumptive language patterns as-             people to do something. Feel motivated, is a command.
 sume the outcome of what you are asking.                           Work with me, is a command. Do the right thing, is a com-
                                                                    mand. Sign these papers, is a command. When used in a
 When doing short sales you can ask the bank the same
                                                                    sentence, these commands motivate others to do as you
 question, two different ways. Read both sentences and
                                                                    say. See if you can think of several commands on your
 see which one you believe to be more assumptive:
                                                                    own. Write them down, repeat them everyday, and begin
     Hi, my name is Bob and I was wondering, do you do             using them. You’ll begin to notice that people will become
      short sales?                                                  easier to work with.

     Hi, my name is Bob. I am working on a short sale for          In order for you sound strong when using assumptive lan-
      the property located at 123 Elm St. The loan number is        guage and embedded commands you must do four things:
      #34777. Where do I need to fax my short sale package             Pause before the embedded command
      so that you can go ahead and get this deal approved?”
                                                                       Speak louder on the embedded command
 We are assuming the bank is going to say yes to our short
 sale, instead of wondering if they short sale at all.                 Down-swing on the embedded command
 Let’s look at another example of assumptive language pat-             Pause after the embedded command
 terns you can use when speaking to homeowners:
                                                                    Practice the above example by pausing, speaking louder,
     Are you ready to sign the contract so we can get going,       down swinging, and pausing again on the commands. See
      or do you want to think about it for a few days?              how much stronger you sound?
     After speaking with me this evening, obviously you are        Great sales people assume everything. Every time you
      ready to get started. Sign the contract, so I can get you     have the opportunity to speak with a bank or distressed
      what you want in the time you need it, won’t that be          homeowner, use strong language patterns. As you be-
      great?                                                        come more comfortable with these new language patterns,
                                                                    your sales will increase.
 Homeowners in distress want to told what to do. They want
 and need someone else to take over and make decisions              The banks like to work with experienced investors. Dis-
 for them. If you come across as weak or insincere, they will       tressed homeowners also like to work with someone they
 have no confidence in you. The more assertive you are,             feel can truly help them. Many homeowners are skeptical
 the better they feel about working with you.                       to begin with. If you can give them a sense of comfort,
                                                                    you’ll win them over every time. Perception is reality. If
 Let’s look at another example assumptive language pat-
                                                                    they think you have power, you do. If they think you’re an
 terns:
                                                                    imposter, they’re right.
     Unless you feel motivated, you’ll never decide to work
                                                                    Many investors worry that if they begin using stronger lan-
      with me, which means you’ll never get out of your             guage patterns that homeowners will know or feel that they
      situation and that’s not what you want, is it? Imagine        are being pushed. Folks, I’d venture to guess that before
      how great it will feel to sleep again without the stress of


Page 12                                                                                                  MAREInet.com
Learn How NLP is applied in all Areas of
Your Investing!
                                                                                           MARK YOUR CALENDAR
Bill Twyford aka The King of Communication and author of “How to
                                                                                            SATURDAY & SUNDAY
Sell a House When It’s Worth Less Than the Mortgage,” will be here
LIVE and IN PERSON, Nov.3rd & 4th, 2012. He will teach us how to                            NOVEMBER 3RD & 4TH
get OUR DEALS ACCEPTED! Bill says that it all boils down to NLP!
                                                                                                KANSAS CITY

Bill is an NLP specialist. He can teach you how to speak the language
of the banks, the homeowners, and the buyers…In other words:
He can make you wealthy!
You will learn:

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

With everyone offering you the next, best, “make a million dollars while
you sleep” program – people have forgotten that this is a people busi-
ness and without the proper COMMUNICATION SKILLS you are
dead in the water!

Unless you are closing 75% or MORE of your short sales, you must
attend this TWO-DAY WORKSHOP. This is not a sell-a-thon, it is
Bill Twyford teaching you for TWO SOLID DAYS! Please bring a cal-
culator, a good attitude, and come with an open mind. We guaran-
tee that you will learn more in these TWO DAYS than any other
workshop you have ever attended!

you read this article, you were not aware that these lan-         tion in a way that will produce a positive outcome.
guage patterns existed. The average person has no con-
                                                                  Old way:        Are you ready to sign the deed?
cept of language patterns and will never feel “sold.”
                                                                  New way: Obviously, you are ready to sign the deed,
As you drive in your car the next few days, listen to the radio
                                                                  aren’t you?
ads. Because radio does not have the luxury of being vis-
ual, it must use language patterns to attract customers.          Trust me, it won’t sound corny and people will feel confi-
Now that you are aware of it, you’ll notice that every ad has     dent working with you.
embedded commands as well as assumptive language pat-
terns.
To improve your language skills, start by asking every ques-



  Investment News                                                                                                  Page 13
MAREI Membership
            Mid-America Association of Real Estate Investors is for real estate investors: new or experienced,
            beginner level or advanced who live or invest in the Kansas City Metro area. We have a place for in-
            vestors at all levels of knowledge and experience. Become a member today. If you invest in Kansas
            City area real estate - or just want to - Mid-America Association of Real Estate Investors has some-
            thing for you. Please review our membership benefits on page 10 & 11 and our plans below, then
            Visit our website at www.MAREInet.com to get started now.

                                                        INTERNET MEMBER            INVESTOR MEMBER    BUSINESS MEMBER
             MAREI Member Forum                                                                           
             Online Member Library                                                                        
             Post Properties                                                                              
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             Reduced Entrance Fees                                                                        
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             Member’ s Included                                   1                           1              2

             Add Additional Members                                                         $50            $50

             Pricing                                      $50 Annual                  $99 Annual       $499 Annual
             Auto Renewal*                                      $45                         $90            $450
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Page 16                                                                                               MAREInet.com
W   WELCOME NEW MEMBERS
      To the premier trade association representing
         Kansas City Area Real Estate professionals
                                     MAREI continues its growth with
                                       a total of 390 members to-date.
                                    JOIN NOW (MAREInet.com/join)



New Members                                  Renewing
 ◎ DD Ashley: Lawrence, KS                     ◎ Mark Barrett: Overland Park, KS
 ◎ Jon B: Kansas City, MO                        (Since 2009)
                                               ◎ Richard Brewer: Belton, MO
 ◎ Chad Bartlett: Anchorage, AK
                                                 (Since 2006)
 ◎ Paul Bedtke: Tonganoxie, KS
                                               ◎ Alex Duckworth: Lee ’s Summit, MO
 ◎ Angela Coleman: Kansas City, KS               (Since Since 2011)
 ◎ Brett Gossen: Carol Stream, IL              ◎ Rick Romines: Independence, MO
 ◎ Mike Halverson: Kansas City, MO               (Since 2011)

 ◎ Dee Hilsinger: Lenexa, KS
 ◎ Alex Hulett: Kansas City, KS
 ◎ Brandon Kerk: Kansas City, MO
 ◎ Franklin Lloyd: Kansas City, MO
 ◎ Kevin Massey: Prairie Village, KS
 ◎ Clarence, McLaughlin: Kansas City, MO
 ◎ Billie Robinson: Independence, MO
 ◎ Madeline Todd: Overland Park, KS



Investment News                                                               Page 15
DRAFT
                                                      Your Team
   “The only reason I can conceive of someone want-          for referrals. If there is not a REIA group in your
   ing to invest in real estate is for financial gain,       area, find a business trade association and seek
   which is not an impure motive. Money is what buys         out fellow business people. If you are investing in
   us the freedom to do, well, whatever the heck it is       areas that are not in your own back yard, seek out
   we want to do. But what do we end up doing? We            REIA groups in the cities where you are investing.
   end up working like crazy and not doing the things        To find a REIA group in your area, go to
   for which we’re investing in real estate to begin         www.NationalREIA.com
   with.” Alan Brymer                                        Take note that you want to find the successful peo-
   Let’s face it, in most businesses you can’t do it all     ple in the group to ask for referrals. It does not do
   by yourself and real estate investing is no different.    you any good to get a good contact for a contractor
   You will need property managers, realtors, ac-            when the person who referred them has ran them
   countants, remodelers, appraisers, inspectors,            around and around making bids but has never
   lenders, attorneys, accountants, sign companies,          given them an actual rehab job. Likewise it is im-
   fellow investors, assistants and even coaches. Be         portant to only refer professionals who you know a
   sure you take the times to screen all of your team        little bit about and can comfortably say they will do
   players. Think about it, w work hard to make sure         a good job.
   our buyers are prequalified and we screen our ten-        Once you have assembled your team, be sure to
   ants, but how hard did you scrutinize the last ser-       stick with them. Call the Realtor on your team who
   vice provider you hired.                                  is sending you potential deals rather than calling
   When you consider that real estate is a business          the random listing agent when you are out driving a
   that can generate substantial profits, you will want      neighborhood. Think about it. When you call the
   to make sure your team members have the same              listing agent who represents the seller and buy the
   work ethic, business philosophy, and morals as            house, you do one transaction. Yet you have a
   you. More importantly you want team members               buyer’s agent who has been sending you the best
   that have a compatible personality. You don’t want        deals for the past 6 months and has negotiated
   people on your team that you just don’t like work-        hard for you and closed several transactions.
   ing with, life is too short. So to start make a list of   Which one of these agents is going to remember to
   the qualities that you need in each of the team           call you the next time a hot deal comes up?
   members so you have something to use in search-
   ing for the right person for each position on your        Also remember that from time to time you will need
   team.                                                     to pull in a pinch hitter when a key team player gets
                                                             benched and from time to time you will have to re-
   When starting your search for team members, the
                                                             cruit new players when an old one can no longer
   first place to go is the local real estate investor
                                                             get the job done correctly. By being an active
   trade association. This is a place where you will
                                                             member at the local REIA group, you can continue
   find people who are already successfully investing
                                                             to connect be scouting for new players to add to
   in real estate and these are the best people to ask
                                                             your team.


Page 18                                                                                      MAREInet.com
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Investment News                                                                              Page 19
Subscribe & Sync

                                                 MAREInet.com/Calendar


    The MAREI calendar is hosted on Google Calendars. This allows you to subscribe
    to our calendar and sync it with your own Google Calendar, Mobile Calendar, or
    Outlook Calendars. Find it online at http://www.MAREInet.com/Calendar



   Sat Aug 4, 2012: 1 1 a m                   Where: 1130 W 103rd St, Kansas City,
                                              MO
   Outside Group: Wichita REI:
                                              Thu Aug 16, 2012: 7 p m
   Where: 1635 N Waterfront Pkwy, Wichita
                                              Outside Group: KCIG Meeting
   Tue Aug 7, 2012: 3 p m
                                              Sat Aug 18, 2012: 4 p m
   Webinar - Trust Deeds in Your IRA
                                              Blue Springs / Independence Real Estate
   Wed Aug 8, 2012: 9 a m
                                              Investors
   Weekly Wednesdays - Sub Group Meeting
                                              Sun Aug 19, 2012: 9 a m Sub-Group:
   Where: 1130 W 103rd St, Kansas City, MO    Lees Summit Real Estate Investors
   Sat Aug 11, 2012: 4 p m SubGroup:          Mon Aug 20, 2012: 7 p m
   Blue Springs / Independence Investors
                                               Outside Group - Omaha REIA:
   Where: 18800 E Us Highway 40, Indep.
                                              Where: 3534 South 108th Street Omaha,
   Sun Aug 12, 2012: 9 a m Sub-Group:
                                              Wed Aug 22, 2012: 9 a m Weekly
   Lees Summit Real Estate Investors
                                              Wednesdays - Sub Group Meeting
   Where: 1686 NW Chipman Rd, Summit
                                              Sat Aug 25, 2012: 4 p m SubGroup:
   Woods, MO 64081
                                              Blue Springs / Independence Investors
   Tue Aug 14, 2012: 6 p m
                                              Sun Aug 26, 2012: 9 a m Sub-Group:
   MAREI's Monthly Meeting:                   Lees Summit Real Estate Investors
   Where: 8600 Ward Pkwy, Kansas City, MO     Wed Aug 29, 2012: 9 a m Weekly
   Wed Aug 15, 2012: 9 a m                    Wednesdays - Sub Group Meeting

   Weekly Wednesdays - Sub Group Meeting


Page 18                                                               MAREInet.com
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Investment News                                                          Page 23
S.A.F.E. Act
                                                             Revisited
 S.A.F.E. Act Overview And Its Effects On Real Estate In-       tations so as to be almost useless.
 vesting
                                                                The S.A.F.E. Act is intended to curtail the lending abuses
 The S.A.F.E. (Secure and Fair Enforcement for Mortgage         in subprime loans that greatly contributed to the present
 Licensing) Act is very broad and it's rules are almost con-    mortgage mess and difficulties in the residential credit
 stantly being changed by our politicians to hopefully im-      markets by more strictly regulating the financial deriva-
 prove it to become more reasonable to real estate profes-      tives that originated from subprime loans such as CDO's
 sionals than what is allowed in its present form.              (collateralized debt obligations) and CDS's (credit default
                                                                swaps, i.e., insurance for defaults on these loans). But it
 Key features of the S.A.F.E. Act include:
                                                                also restricts and governs activities of those who have
 This Act requires nationwide registration/licensing of any     nothing to do with subprime lending and hinders the sale
 residential mortgage lender who offers or negotiates           of residential properties that would normally be facilitated
 terms of a residential mortgage loan for compensation or       by seller financing. In the federal government's attempts
 gain. As investors, that would be us when we sell using        to prevent another recession in the residential markets by
 seller financing and it would be sellers who sell to us via    more strictly regulating lending guidelines, it will most
 seller financing.                                              likely fail by making residential properties more difficult
 This Act prohibits the seller financing of a residential       to sell by restricting seller financing. By restricting seller
 property without being licensed as a mortgage loan origi-      financing to the people who need it the most, the irony is
 nator. This includes selling with wraparounds, land con-       that the S.A.F.E. Act hurts the very people that it was
 tracts, seller 2nds, etc. This applies to people who assist    intended to help.
 in this process (investors) and hard money lenders who         Ways For Real Estate Investors Use Seller Financing
 take back real estate as collateral.                           Without Breaking S.A.F.E. Act Laws
 Implications Of The S.A.F.E. Act To Real Estate Investors      1. Get licensed as a mortgage loan originator. 2. Qual-
 And Lenders                                                    ify for applicable exemptions from S.A.F.E. Act laws. 3.
 Most lending that was previously unregulated or loosely        Have a licensed mortgage loan originator do all your pa-
 regulated is now regulated by the S.A.F.E. Act. This in-       perwork for seller financing.
 cludes hard money lending, seller "carrybacks" (seller          Possible Exemptions from S.A.F.E. Act Laws Exemptions
 2nds), and independent mortgage loan originations. The         can be at the federal or state levels. It may be possible
 S.A.F.E. Act is a federal law. While it imposes a general      to also say that something is exempt just because it is
 umbrella of regulation and requires meeting certain mini-      not prohibited by the Act. Recent Dodd-Frank Amend-
 mum requirements, it is up to each state to impose its         ments (federal amendments) seem to say that sellers can
 own interpretation of the rules set forth in this Act. Most    make a maximum of three (3) residential mortgage loans
 states have already implemented their own interpreta-          per year on properties owned by the sellers, i.e., sellers
 tions of the S.A.F.E. Act. Ironically, the federal govern-     are allowed to sell up to three (3) residential properties
 ment's attempt to uniformly regulate mortgage lending          with seller financing per year. A restriction is that this
 has resulted in non-uniform regulations from state to          exemption is not allowed is the seller is a contractor who
 state. Some states, such as Texas, have enacted laws           builds the house and then provides seller financing to sell
 that are even more restrictive than what is in the S.A.F.E.    it. Also, seller financed loans in this exemption must be
 Act itself. Other states have enacted legislation that         fully amortizing, i.e., no interest-only loans. Other re-
 meets just the minimum requirements of the S.A.F.E. Act        quirements include that the seller qualify the buyer with a
 or have legislation that is very open to different interpre-   minimum of credit report and income verification on re-



Page 20                                                                                               MAREInet.com
cord, and the loan must be have a          teaching that forming your own non-       sider these to still be sales so this
fixed interest rate or a "reasonable"      profit organization could help in ob-     exemption should be considered only
adjustable rate that does not in-          taining grants. Exemption from the        on a state-by-state basis. Some
crease for at least the first five (5)     S.A.F.E. Act is another benefit to        states will allow assignment of bene-
years of the loan term.                    forming one.                              ficial interest in a land trust without
                                                                                     calling it a completed sale thereby
At the federal level, the S.A.F.E.Act         2. Another exemption is if you are
                                                                                     qualifying as an exemption from the
does not appear to prohibit a balloon      selling to a business for non-
                                                                                     S.A.F.E. Act. The same is true with
payment or an escalating payment           residential purposes. For example,
                                                                                     lease-options in that these don't
schedule as long as the principal is       as long as the rehabbers don't move
                                                                                     qualify as being completed sales and,
paid down completely by the end of         into and live in the properties you
                                                                                     as such, are exempt from S.A.F.E.
the loan term.                             flip, these are non-residential proper-
                                                                                     Act laws.
                                           ties that you can sell to them with
At the state level, registered financial
                                           seller financing. This also applies to    6. Equity sharing can also be a "non-
institutions and their wholly-owned
                                           hard money loans that would use           loan" way to have a residential prop-
subsidiaries or holding companies
                                           these properties as collateral as long    erty seller financed to you, or you to
appear to be exempt from S.A.F.E.
                                           as the rehabbers don't move into and      an end buyer, with the effect being
Act laws. Another exemption is if
                                           live in them.                             that of a "carryback" by the seller.
you are originating non-residential,
i.e., commercial or business, loans.       3. Employ a multiple-entity strategy.     7. Sell to a LLC, use seller financing
In contrast to the federal Dodd-Frank      Each entity can sell up to three (3)      to "carryback" a note from the LLC,
Amendments that allow up to three          properties with seller financing per      and then sell the membership inter-
(3) residential properties per year to     year so you could use multiple enti-      ests in the LLC to an end buyer.
be seller financed without a license,      ties to sell residential properties.      When done properly, the collateral is
state exemptions appear to allow up        Multiple entities for possible use in-    not the real estate but rather the
to five (5) residential properties in a    clude you, a relative of yours, LLC's     shares of the LLC become the collat-
consecutive 12-month period to be          (limited liability companies), corpora-   eral for the seller financing.
seller financed without a license, but     tions, partnerships, IRA's (individual
                                                                                     In conclusion, before entering into
this should be checked on a state-by       retirement accounts), land trusts,
                                                                                     any creative real estate investing
-state basis since each state has its      living trusts, etc. The use of a land
                                                                                     transaction, always have it reviewed
own rules and interpretations of the       trust or LLC for this strategy should
                                                                                     by a real estate attorney to ensure
S.A.F.E. Act.                              be done only after consulting with an
                                                                                     you stay compliant.
                                           attorney since some states may not
Other exemptions from S.A.F.E. Act
                                           recognize revocable trusts or single-     ------------------------
laws at the state level include seller
                                           member/family-owned LLC's as
financing by federal/state/municipal                                                 Duncan Wierman is a Real Estate
                                           separate statutory entities (e.g.,
government agencies, any employee                                                    Investor and Educator. Discover how
                                           South Carolina, does not recognize
or employer pension plan making                                                      to use creative financing to get your
                                           single-member LLC's or LLC's that
mortgage loans only to participants,                                                 deals closed and make money faster
                                           are entirely family-owned as asset
anyone acting in a fiduciary capacity                                                without using any of your own
                                           protection vehicles).
as conferred by the courts, and any-                                                 money! Free Proof of Funds, No Pay
one negotiating residential loan           4. Other exemptions to S.A.F.E. Act       to Play!! Details:
terms for immediate family mem-            rules include selling your personal       www.QuickTurnCashFunding.com
bers. Creative Exemptions From             residence, selling to a family member
S.A.F.E. Act Laws (Exempt For Now -        (but it is not recommended to marry
But Could Change Soon)                     someone just to sell a property to
                                           him or her), and selling through an
  1. Forming a 501(c) non-profit or-
                                           attorney since, as of this writing,
ganization to provide seller financing
                                           attorneys are exempt from S.A.F.E.
could qualify for exemption exempt
                                           Act rules.
since non-profit organizations that
provide loans to promote education         5. Use of land contracts and ex-
or home ownership don't fall under         tended escrows but while some
S.A.F.E. Act rules. Government             states don't consider these to be
money gurus have been recently             completed sales, other states con-




  Investment News                                                                                               Page 21
237 N 15th St,       $35,000         3 Bed       Good rental or rehab      Steve Gardner
          Kansas City, KS                      1 Bath      opportunity. ARV of       Destination Properties
                               Rental          Basement                              Steve.Gardner@homeve
                                                           $48-50k. Needs a
                                               Carport                               stors.com
                               Rehab                       few repairs, but
                                                           nothing major             913–461–0402

          7315 Nieman Rd       $95,000         3 Bed       JOCO house in             Steve Gardner
                                               1.5 Bath    Shawnee, new roof,        Destination Properties
          Shawnee, KS          Rehab           Basement    foundation and exterior   Steve.Gardner@homeve
                                               2 Car Gar   paint. Must move it.      stors.com
                                                           Bring any offer.          913–461–0402

          5809 W 70th St       $89,000         3 Bed       $30—$35k Rehab.           Steve Gardner
                                               1 Bath      Great Overland Park       Destination Properties
          Overland Park, KS    Rehab           Crawl                                 Steve.Gardner@homeve
                                                           ranch, good schools,
                                                           strong resale value,      stors.com
                               Rental
                                                           needs help                913–461–0402

          4407 Genessee St     $99,000         3 Bed       Double Lot. West-         Steve Gardner
                                               1 Bath      port / Plaza. New         Destination Properties
          Kansas City, MO      Rehab           2 Car                                 Steve.Gardner@homeve
                                                           Roof, Repaired Foun-
                                                                                     stors.com
                                                           dation.
                                                                                     913–461–0402

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


          3829 Benton Blvd     $27,500         3 Bed       Excellent curb appeal     Christoph Becker
                                               1.5 Bath    – This 3/1.5 home is      Blue Print Properties
          Kansas City, MO      Rehab           Basement                              info@BluePrintProp.com
                                                           situated on the dis-
                                                                                     816-419-1165
                               Rental                      tinctive “Benton
                                                           Blvd” in KCMO
          8 Property Package   $22,500         Assorted    Offers avg Net Yield      Christoph Becker
                                                           of 23.82%. Re-            Blue Print Properties
          Kansas City, MO      Each Property                                         info@BluePrintProp.com
                                                           habbed & Rented.
                                                                                     816-419-1165
                                                           Long-Term Tenants.

          3524 Askew Ave       $14,000         3 Bed       75% Completed, lots of    Christoph Becker
                                               1 Bath      potential. New plumb-     Blue Print Properties
          Kansas City, MO      Rental Fixer    Full bsmt   ing updated electrical,   info@BluePrintProp.com
                                                           new roof.                 816-419-1165


Page 22                                                                                 MAREInet.com
MAREI Member Properties


MAREInet.com/Properties
           1812 E 70th St     $39,500        3 Bed       Renovated Section 8      Christoph Becker
                                             1 Bath      Turn Key Kansas City     Blue Print Properties
           Kansas City, MO    Rental         Full Bsmt                            info@BluePrintProp.com
                                                         Investment Property
                                             1 Car Gar                            816-419-1165
                                                         offering a proposed
                                                         NET ROI of 21%

           1810 E 70th St     $39,500        3 Bed       Renovated Rental—Net     Christoph Becker
                                             1 Bath      ROI 20%. Turn Key.       Blue Print Properties
           Kansas City,       Rental         Full Bsmt                            info@BluePrintProp.com
                                             1 Car Gar                            816-419-1165
                                             $825 Rent
           3711 E 68th ST     $42,500        4 Bed       Section 8 Turn Key       Christoph Becker
                                             2 Bath      Rental, Net ROI 22%      Blue Print Properties
           Kansas City, MO    Rental         Full Bsmt                            info@BluePrintProp.com
                                             $950 Rent                            816-419-1165



           3707 E 68th St     $35,000        3 Bed       Rent Ready, Fully Re-    Christoph Becker
                                             1 Bath      habbed, Proposed Rent    Blue Print Properties
           Kansas City, MO    Rental         Full Bsmt   $800, Proposed ROI       info@BluePrintProp.com
                                                         21%                      816-419-1165


           No Address         $94,500        3 Bed       Full ranch home avail-   Phillip Rich
                                             2 Bath      able for Lease Option    Go Mav Realty
                              Lease Option   Garage                               phil@gomavrealty.com
                                                                                  402-598-6696


           No Address         $49,000        3 Bed       2 Story Home—lease       Phillip Rich
                                             2 Bath      option contract avail-   Go Mav Realty
                                             1 Car       able                     phil@gomavrealty.com
                                                                                  402-598-6696


           1340 S Emery St    $33,000        3 Bed       Rental Potential         Chad
                                             1 Bath                               Home Remedy KC
           Independence, MO   Rental                                              HomeReme-
                                                                                  dyKC@gmail.com
                              Rehab
                                                                                  913-735-5598

           5733 Bales Ave     $15,000        4 Bed       Swope View area. 4bd 1 Makeba Hart
                                             1 Bath      ba Estimated NOI       Virtue Investments, LLC
           Kansas City, MO    Fixer                      $486.29                Makebashart2gmail.com
                                                                                  816-665-0491
                              Rental



Investment News                                                                                  Page 23
Using the Member Website
                                        Post a Property for Sale
                                   We do have a few rules here that we ask that you abide by. We ask that you only
                                   post properties that you (1) own outright (2) control by a contract (3) have a listing
                                   agreement to market or (4) otherwise have an ownership interest in. If you have a
  property you might be able to buy that you are fishing for offers before you put under contact, we would advise
  against marketing it until you have a valid contract.
  Our property market tool on the site is a work in progress. It is a free Wordpress Plug in called WP Property and it
  does have a few kinks we are trying to work out. When you post to the site, the property appears on the MAREI
  site and currently it is manually reposted to our social media sites, but this does not always happen because
  sometimes it just does not work. If you happen to be an expert in Wordpress and WP Property and could offer us
  any pointers in improving how this tool works on our site, we would welcome the assistance.
  To post a property:
  Step ONE: Log in and go to the Dashboard:
  Step TWO: click on Properties
  Step THREE: You can click on All Properties to see everything that is currently in
                      the system or Add Property to add a new property
                          Step FOUR: Click Add Property
                          Step FIVE: Enter a Title
                          Step SIX: Enter information in the big box—you can format this
                          information, embed video, embed photo albums and use HTML.
                          If you have no idea what that means, just type a paragraph about
                          your property in this box. Typing something is important even if it is one or two sentences
                          because when the property is further posted to Facebook for example, if you type nothing
                          then Facebook will pull into the linked post info about MAREI rather than info about your
                          property.
                          Step SEVEN: Fill in all the boxes under the “General Information” Section that you have
                          the answers for. Keep in mind if you are a Realtor listing for someone else, you must in-
                          clude your Broker Company.
                          In this area in the address box, enter the full address including city, state and zip, so the
                          Google mapping will work. You will find a couple of greyed out boxes that relate to ad-
                          dress that you cannot type in. Don’t worry about it.
                          Also be sure to put a summary of the property in the tag line box. When the property ap-
                          pears on a page with other properties on a summary page the tag line is what appears to
                          tell people about the house, it should have the basics of the house to make the viewer
  want to click to see more.
  Also in this area, if you have the property posted on your own website, put a link to your website or a direct
  link to the property in the Website Box.



Page 24                                                                                            MAREInet.com
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Investment News                                                              Page 27
MONDAY AUGUST 6TH, 2012

          KANSAS CITY, MO
            Single Family Homes




Page 26                             MAREInet.com
The Mid-West Real Estate
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                                GUEST SPEAKERS
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                             www.MAREInet.com/August

                                GUEST SPEAKER
               Marck de Lautour formed SBD
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               talize on the growing number of fi-
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                                                        Non-Members & Internet Members. Those
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                                                      who have joined at Investor or Business levels
             from 6:00 PM to 9:00 PM
                                                             receive complimentary entrance.
            www.MAREInet.com/August

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The Investment News: August 2012

  • 1. MAREI wins Awards of Excellence at National REIA Mid Year for 2nd Year in a Row! MID-AMERICA ASSOCIATION OF REAL ESTATE INVESTORS Investment News NETWORKING : EDUCATION : COMMUNITY : GOVERNMENT August 2012 10 e Pag
  • 2. ten ts c on Page 3 Page 12 Page 18 Page 26 Business Members Bill Twyford Calendar of Events Altos Research Build your team with our Language Patterns Schedule Now Area Market Data Service Providers & In- dustry Partners Page 14 Page 20 Page 27 Membership Duncan Weirman Mid-West Real Estate Page 6 Options SAFE Act Revisited Investor Expo How I Did the Deal Page 15 Page 22 Page 28 Page 8 Welcome For Sale August Meeting August Speaker New & Returning Members Member Properties Marck de Lautour Page 16 Page 24 Page10 Build Your Team MAREI Website Benefits at a Glance At MAREI Posting Properties Save with Discounts 2011 2012 Page 2 MAREInet.com
  • 3. BUSINESS MEMBERS MAREI Business Members are here to serve you in your Real Estate Business. They specialize in Real Estate Professionals and have joined our association as a Business. You can find out more about each of our Business Members at www.MAREInet.com/Services . Don’t see a service you need? Ask on the Forum! Foundations Insurance Cornerstone Foundation Your Company Here Joe Williams www.APIAprotects.com $499 annual Lisa Goodner 913-220-5253 CornerstoneFoundationRe- Or $135 a Quarter 1-877-752-2742 lgoodner@apiaprotects.com pair@yahoo.com Insurance Property Management Investors www.NREInsurance.com www.kcmoHomeBuyer.com www.abraxasmgmt.com Jim Jrolf The Tuckers Meka Cayce 913-915-3232 816-200-2198 816-474-8800 1-888-741-8454 kcmoHomeBuyer.com mcayce@abraxasllc.com jj@nreinsurance.com Property Management Property Management Real Estate Brokerage www.JamiesonHomeTeam.com Kevin Jamieson www.MyPremierleasing.com www.RealtyResourceKC.com 816-503-4671 Jeff Wood Kim Tucker & Staff kevin- 816-841-9500 816-523-4400 jwoods@mypremierleasing.com RealtyResourceKC@gmail.com jamieson@reeceandnichols.com Staging Suppliers: Building Suppliers: Building www.ShowHomesKC.com www.CabinetGiant.com www.HomeDepot.com Michelle Davis Josh Burns Roger_L_Holyfield@HomeDepot.com 913-449-3593 1-877-484-4268 mdavis@showhomes.com info@CabinetGiant.com George_R_Neal@HomeDepot.com Title Company Title Company Suppliers: Building www.AccurateTitleCo.com www.Coffeltlandtitle.com www.Sherwin-Williams.com Jackie White / Mary Peterson Bud Whisler Mike Steiner 913-338-0100 816-581-2299 swrep4735@Sherwin.com jwhite@accuratetitleco.com bwhisler@coffeltlandtitle.com Investment News Page 3
  • 4. read anytime Contact Information PO Box 8685, Prairie Village KS, 66208 Phone: 913-815-0111 Our Mission Statement Mid-America Association of Real Estate Investors is dedicated to promoting ethical real estate investing and to protect and promote the best interest of our membership through educational and networking opportunities as well as community, legislative and public relations. Legal Disclaimer Read the Investment News MAREI does not exist to render and does not give legal, tax, economic or investment advice and anywhere, anytime, on your disclaims all liability for the action or inaction taken or not as a result of communications from or to its members, officers, directors, employees and contractors. Each individual should consult iPad, Mac and PC: his/her own counsel, accountant and other advisors as to legal, tax, economic, investment and related matters concerning real estate and other investments. MAREInet.com/Newsletter Content Disclaimer www.calameo.com The views and opinions expressed by authors of articles contributed to this newsletter do not necessarily reflect those of the association, the board of directors or the staff. Search for “MAREI” Advertise in the Investment News To subscribe Rate Schedule Size Non-Member Member Business Associate Look for us Online Full Page $175 $140 $115 Search for 1/2 Page $145 $105 $85 “Kansas City Real Estate Investors” 1/4 Page $75 $65 $50 1/8 Page $55 $35 $25 A 10% discount is given on ads pre-paid for 6-12 months. Any changes to a pre-paid ad will incur a minimum charge of $20. The deadline to submit ad copy is the 1st of each month. All ads must be prepaid. Contact to verify ad format can be accepted. PDF preferred. There is an additional charge of $25 to typeset a business card ad or 1/4 page ad layout, $60 for a 1/2 page or full page lay-out. Opportunities also exist for advertising on www.MAREInet.com. Call 913-815-0111 for more information. Email ad copy to info@MAREInet.com. Mail payment to MAREI, PO Box 8685, Prairie Village, KS 66208 or request an online payment for to use credit or debit card. Page 4 MAREInet.com
  • 5. MAREI STAFF & Volunteers Executive Director Advisory Board / Membership Desk Kim Tucker Scott Tucker kim@MAREInet.com sTucker319@gmail.com Investor : Realtor Realtor Advisory Board Advisory Board / Membership Desk Donald Tucker Dan Goodwin DonTuckerRE@gmail.com DanGoodwin@kw.com Investor Realtor : Short Sales Focus Group Leader: Blue Springs / Lees Suumit Advisory Board / Membership Desk Debra Felderhoff Shelda Goodwin superiorrental@gmail.com SheldaGoodwin@kw.com Landlord : Investor Realtor : Short Sales Focus Group Leader: Weekly Wednesdays Focus Group: Eddie Speed Mentoring Students Michelle Winberry L. Scott Ficinus mlwinberry@gmail.com Scott@Ficinus.com Investor : Realtor Realtor Focus Group Leader: Weekly Wednesdays Advisory Board / Membership Desk Brian Winberry John Welchert JWelchert@platinumrealtykc.com Investor : Realtor : Investor : Landlord Focus Group Leader: IRA Investing Focus Group Leader: Young Professional Investor Coming Soon . . . Leader Located Leader Wanted Focus Group Leaders: Transaction Engineers Focus Group Leader: Commercial Leader Wanted Leader Wanted Focus Group Leader: Women in Real Estate Focus Group Leader: Advanced Investors Leader Wanted Leader Wanted Investment News Page 5
  • 6. d the d eal! How I di New feature : Share your deal with our read- ers so they can learn how a deal gets done. Submit to info@MAREInet.com. The Property: We have recently purchased a patio taxes and go to sale this month if they don’t get paid. home/ town house/ half a duplex in Kansas City Mis- They owe about $8,000 in HOA. They wanted to net souri on the Golf Course. This is a home built in 1989, $70,000 after all of the above had been paid. that needs a lot of cleaning and deferred maintenance They received an $80,000 offer that was going to pay on the roof, windows, and HVAC and some updating. off all the back taxes and HOA up front and then pay Based on comparables a similar sized 3 bedroom, 2 1/2 them the remaining $50,000 over 5 or 6 years time. bath patio home on the golf course should sell between They also received a similar offer to ours that was a $140,000 and $160,000 bit higher, but they wanted to close on the 14th of Au- Comparables give us a similar renovated home with a gust, which based on the tax sale, they need to have walk out basement that sold for $163,500 , a home the closing on or before Friday Aug 17th. pending at $169,900 in 27 days and a 2 bedroom that Why they took our lower price offer: We had the low- sold for $148,500. We estimate our after repair value at est offer, but we agreed to pay them $2000 upon proof about $145,000 without a finished walk out basement of clean title and their signing of closing documents, and about $155,000 with a finished basement. so they had funds to rent a new place to live. We also Repairs Needed: Exterior just painted by HOA, needs agreed to closing on the 16th, to stop the tax sale, but roof, windows, deck repairs, minor updates to kitchens gave them the week end to move out. We gave them and baths—mainly fixtures and granite tops, a good something the other offers did not: full cash sale now, cleaning and painting: About $35,000 moving money before the official closing, and posses- sion after closing so they have time to move out. Maximum Allowable Offer: Exit Strategy: We could wholesale this for quick cash. $145,000 x 70% = $101,500 I estimate we could get a wholesale investor buyer at Less Repairs of $35,000 about $70,000. We could fix the roof, windows, and Maximum Allowable Offer: $66,500 mechanicals for about $12,000 and sell to an owner occupant as a fixer upper for about $100k to $110k as How we found the deal: We have a website on Word- that’s what fixer uppers bring. Or we can fully reno- press that we pay $12 a year for and maintain our- vate and sell at $145,000 and potentially finish the selves: www.kcmoHomeBuyer.com and we post about basement and sell for $155,000 (or more). 5 to 10 we buy houses about 5 days a week on Craigslist.com and Backpage.com. The sellers say they Funding: Funding for this deal is coming from a pri- found our website on the Internet. So either they saw vate partner who funds purchase and rehab for a split one of our ads or they did a search and received our of the eventual profit. Deal submitted by the Tuckers, website. who are long time area investors who purchase homes for cash to renovate and resell. Find us online Sellers Story: Sellers purchased the inherited the home at kcmoHomeBuyer.com, via email at kcmoHome- free and clear several years and have not paid HOA Buyer@gmail.com or by phone at 816-200-2198. dues or taxes since. They owe about $22,000 in back Page 6 MAREInet.com
  • 7. Be sure to Join Now (Or Renew) Sell Vacant Houses Faster Go online at How? We transform vacant houses - often seen by buyers as stale, lifeless, unappealing - www.MAREInet.com into fully-furnished, inviting, valued Show- homes. Now in our third decade of service to Homeowners and their Realtors, we've become America's premier home staging service coast- For everyone that joins now or at the meeting to-coast. on Tuesday we have several free giveaway Our professional home staging services can add items for you to choose from: thousands of dollars to your sale price -- and at the same time reduce the stress and expense of mar- Buying Real Estate without Cash or Credit keting your property. (Peter Conti & David Finkel) and for more money! How to Create Multiple Streams of Income ShowHomesKC.com Buying Homes In Nice Areas with Nothing Down (Peter Conti & David Finkel) Michelle Davis 913-449-3593 Www.CoffeltLandTitle.com For title, escrow, 1031 & foreclosure. Management Solutions to help your properties Operate Smoothly Increase Desirability Enhance Investment Value Attract & Retain Tenants Find us Online www.AbraxasMgmt.com 816-474-8800 Bud Whisler 816-380-3441 Investment News Page 7
  • 8. We recently a piece of paper or an idea of a piece of pa- sat down per. and had a These investors are looking for sound in- quick lunch vestments with a dollars and sense return with Marck on their money. They want to know going in de Lautour what their risk is, what their return on invest- to discuss ment is and how quickly they can turn a his real estate profit. investing model in the Kansas City Many of these investors live in US states or Market. He had taken a truly other countries where real estate investing unique approach to the turn-key investing is cost prohibitive and they are turning now model. to mid-west real estate markets for afford- able options. This investor wants boots on He has applied a stock market investor men- the ground in our markets who can locate tality to the real estate market here in Kansas profitable deals, work the deal - be it rehab City. There is millions in anxious money from and rental or rehab and flip, and to turn a investors who are tired of the ups and downs profit for them. and downs and downs of the stock market who are looking for better returns with less We are seeing 100’s of companies popping risk. With the stock market, value can go to up across the US to be the turn-key invest- zero, but in real estate, even if the market ment provider for these hands off investors. takes a nose dive, you still own an asset, not These providers are buying houses really Don’t miss this event! Monthly Meeting Guest Speaker: Details: Agenda Local Kansas City Real Tuesday August 14th 5:30 pm Pre Meeting / Setup Estate Investor Marck de 6:00 pm to 9:00 pm 6:00 pm Registration Lautour with SBD Hous- Career Education Systems 6:00 pm Vendor Hall ing Solutions will be Ward Parkway Shopping 7:00 pm Speed Networking sharing his Real Estate Center—8600 Ward Pkwy 7:15 pm Presentation Investing Model. Kansas City Missouri 8:30 pm Q & A / Networking Top Floor 9:00 pm Adjorn Page 8 MAREInet.com
  • 9. cheap, getting them renovated targets the pricing bracket that tise he is able to get the low- and rented up, then selling includes first time home buy- est possible price, and as you them to the investors for cash ers, retirees, families upgrad- know your profit is make when flow. The housing providers ing as well as investors look- you buy, not when you sell. are making money every step ing for a reasonably priced in- He has teamed up with the of the way in many cases from vestment. The first criteria he best industry providers to ser- commissions to buy, manage- uses when finding his inves- vice the homes purchased. ment fees to renovate, and tors a property is no low end, Their professional team in- property management fees for high crime neighborhoods. sures a swift and effective re- keeping them rented. He offers his investors differ- model as well as efficient The major problem with this ent options based on their in- rental screening with a long model in many cases is that come needs. If they want time professional manage- the target neighborhoods are quick cash, he works with ment company to ensure that the lowest end housing in the them to find a fix and flip the properties are rented out metro area. Areas with high house. If they want a longer quickly to quality tenants. crime, that are primarily all term investment he will work We have found that Marck’s rental housing and with nu- to find them a fix and lease to approach to real estate invest- merous vacant properties. own property or a rental. ing is with a financial business Many of the anxious investors He works to find the best pos- model in mind from start to fin- are getting burned with this sible purchase price on homes ish. We have invited him to type of property as the pro- through area wholesalers, present his model to area in- vider just wants to make their distressed sellers, foreclosure vestors at our August Meeting. fast buck in selling them the sales, and bank owned REO Be sure to see complete de- house and as soon as the property. Through his exper- tails on the back page. deed is signed, often times that fabulous tenant is on to the next house. Marck has taken a different Marck de Lautour Wealth Builder approach. He is targeting DE- ………………………………………… SIRABLE areas of town that Ph: (816) 994-9401 appeal to the largest core of Fax: (816) 994-9449 marck@SBDHousing.com buyers in the area and that ………………………………………… guarantees the greatest ap- www.SBDHousing.com preciation as well as a safe P.O. Box 3338 and secure exit strategy. He Independence, Missouri 64055 Investment News Page 9
  • 10. MAREI’S MEMBER BENEFITS PROGRAM YOUR MEMBER BENEFITS AT-A-GLANCE USE THIS PAGE AS A GUIDE TO VALUE ADDED DISCOUNTS TOOLS AND SAVINGS CREATED JUST FOR YOU ON GOODS AND SERVICES YOU USE EVERY DAY. Landlord Services Suppliers Service Provider Screening for tenants & workers with 20% discount for members. Discount card for all members providing Learn how to save money at Home De- a 10% discount on all services.. pot and register for a 2% Rebate for all purchases & rentals across the US. Electronic collection for bounced Plus 20% Discount on Paint in Kansas rent checks. No charge to you. City. News & Information FORMS & DOCS Member Library is packed with forms and docs, plus 15 % discount at EZ Landlord Forms for premium forms. E-Update All members receive a discount card Our weekly email update with what’s to access our exclusive discounts up happening in real estate including to 40% off all paint, supplies, and flooring—nationwide. properties for sale, government af- Market your rentals on the nations top fairs and local market data. ranked rental site. Member discount is 20% off Regular Prices. Marketing Investment News The newsletter for Mid-America Asso- Office Solutions ciation of Real Estate Investors: pub- lished monthly and distributed both in print at our meetings and digitally to our database of over 5000 people. Save on select FedEx Office copy and Websites for investors, landlords, and print services up to 20% and on other services. FREE trial. FedEx Shipping up to 22%. Magazine for the real estate investor. Receive discounts up to 65% on over With discount subscriptions for MAREI Email and Social Media Marketing, Free members. 12,000 products you use the most online and in store. Trial and Discounts for paying in ad- vance. Continued . . . . Page 10 MAREInet.com
  • 11. Other Discounts Member Service We have several services as part of our website to help you grow your business. MAREI’s Government Affairs ac- tively monitors national legisla- tion and rule-making that im- pacts the real estate industry and harnessing the strength of MAREI Nearly 70% of QuickBooks users say members at the grassroots level. that it makes their business more prof- itable. Get your Accounting on track. Calendar of Events to stay up to Buy at a 40% discount through Na- date with all of our activities. MAREI mem- tional REIA. bers also re- ceive timely Calls to Action REAL ESTATE BOOKS when there is a The nation’s largest provider of time for our real estate training materi- members to als, DEARBORN is America’s take action on an important vote. Premier Real Estate Pub- lisher. Members receive up to Browse the member properties to Members also 40% off. find your next deal. Take the have access time to post your investment op- to the latest portunities for other members in Market and site visitors to browse. Data. Special member discounts for members at Avis, Budget, and Enterprise Rentals. VISIT The Member Library is packed and ever growing with pdf ver- ww.MAREInet.com sions of entire books, EBooks, Look under Resources - Articles, Forms, and Documents. Discounts Investment News Page 11
  • 12. Using Assumptive Language Patterns . . . Bill Twyford foreclosure looming over your head. Let’s do the right thing and sign these papers so we can get started, Having a firm grasp on language patterns will help you okay? close more deals. In addition to using embedded com- mands, which are word groups that order you to do some- The underlined words are embedded commands. Embed- thing, you must incorporate assumptive language patterns ded commands are word groups that subconsciously order into your vocabulary. Assumptive language patterns as- people to do something. Feel motivated, is a command. sume the outcome of what you are asking. Work with me, is a command. Do the right thing, is a com- mand. Sign these papers, is a command. When used in a When doing short sales you can ask the bank the same sentence, these commands motivate others to do as you question, two different ways. Read both sentences and say. See if you can think of several commands on your see which one you believe to be more assumptive: own. Write them down, repeat them everyday, and begin  Hi, my name is Bob and I was wondering, do you do using them. You’ll begin to notice that people will become short sales? easier to work with.  Hi, my name is Bob. I am working on a short sale for In order for you sound strong when using assumptive lan- the property located at 123 Elm St. The loan number is guage and embedded commands you must do four things: #34777. Where do I need to fax my short sale package  Pause before the embedded command so that you can go ahead and get this deal approved?”  Speak louder on the embedded command We are assuming the bank is going to say yes to our short sale, instead of wondering if they short sale at all.  Down-swing on the embedded command Let’s look at another example of assumptive language pat-  Pause after the embedded command terns you can use when speaking to homeowners: Practice the above example by pausing, speaking louder,  Are you ready to sign the contract so we can get going, down swinging, and pausing again on the commands. See or do you want to think about it for a few days? how much stronger you sound?  After speaking with me this evening, obviously you are Great sales people assume everything. Every time you ready to get started. Sign the contract, so I can get you have the opportunity to speak with a bank or distressed what you want in the time you need it, won’t that be homeowner, use strong language patterns. As you be- great? come more comfortable with these new language patterns, your sales will increase. Homeowners in distress want to told what to do. They want and need someone else to take over and make decisions The banks like to work with experienced investors. Dis- for them. If you come across as weak or insincere, they will tressed homeowners also like to work with someone they have no confidence in you. The more assertive you are, feel can truly help them. Many homeowners are skeptical the better they feel about working with you. to begin with. If you can give them a sense of comfort, you’ll win them over every time. Perception is reality. If Let’s look at another example assumptive language pat- they think you have power, you do. If they think you’re an terns: imposter, they’re right.  Unless you feel motivated, you’ll never decide to work Many investors worry that if they begin using stronger lan- with me, which means you’ll never get out of your guage patterns that homeowners will know or feel that they situation and that’s not what you want, is it? Imagine are being pushed. Folks, I’d venture to guess that before how great it will feel to sleep again without the stress of Page 12 MAREInet.com
  • 13. Learn How NLP is applied in all Areas of Your Investing! MARK YOUR CALENDAR Bill Twyford aka The King of Communication and author of “How to SATURDAY & SUNDAY Sell a House When It’s Worth Less Than the Mortgage,” will be here LIVE and IN PERSON, Nov.3rd & 4th, 2012. He will teach us how to NOVEMBER 3RD & 4TH get OUR DEALS ACCEPTED! Bill says that it all boils down to NLP! KANSAS CITY Bill is an NLP specialist. He can teach you how to speak the language of the banks, the homeowners, and the buyers…In other words: He can make you wealthy! You will learn:  What to say to the banks to get your short sale package to the top of the heap  What to say when the bank says no  How to get the bank to work with you even when your home- owners are in bankruptcy  How to get your homeowners to sign contracts on the first meeting  What paperwork to use to make every deal “air tight”  Learn the “little known” Bankruptcy Short Sale  How to negotiate when buying notes  How to automate your communication system  And much, much more! With everyone offering you the next, best, “make a million dollars while you sleep” program – people have forgotten that this is a people busi- ness and without the proper COMMUNICATION SKILLS you are dead in the water! Unless you are closing 75% or MORE of your short sales, you must attend this TWO-DAY WORKSHOP. This is not a sell-a-thon, it is Bill Twyford teaching you for TWO SOLID DAYS! Please bring a cal- culator, a good attitude, and come with an open mind. We guaran- tee that you will learn more in these TWO DAYS than any other workshop you have ever attended! you read this article, you were not aware that these lan- tion in a way that will produce a positive outcome. guage patterns existed. The average person has no con- Old way: Are you ready to sign the deed? cept of language patterns and will never feel “sold.” New way: Obviously, you are ready to sign the deed, As you drive in your car the next few days, listen to the radio aren’t you? ads. Because radio does not have the luxury of being vis- ual, it must use language patterns to attract customers. Trust me, it won’t sound corny and people will feel confi- Now that you are aware of it, you’ll notice that every ad has dent working with you. embedded commands as well as assumptive language pat- terns. To improve your language skills, start by asking every ques- Investment News Page 13
  • 14. MAREI Membership Mid-America Association of Real Estate Investors is for real estate investors: new or experienced, beginner level or advanced who live or invest in the Kansas City Metro area. We have a place for in- vestors at all levels of knowledge and experience. Become a member today. If you invest in Kansas City area real estate - or just want to - Mid-America Association of Real Estate Investors has some- thing for you. Please review our membership benefits on page 10 & 11 and our plans below, then Visit our website at www.MAREInet.com to get started now. INTERNET MEMBER INVESTOR MEMBER BUSINESS MEMBER MAREI Member Forum    Online Member Library    Post Properties    Submit Blog Posts    Reduced Entrance Fees    Complimentary Monthly Mtg   Discounts (See list pg 10 & 11)    Member’ s Included 1 1 2 Add Additional Members $50 $50 Pricing $50 Annual $99 Annual $499 Annual Auto Renewal* $45 $90 $450 Quarterly Pricing NA   Monthly Pricing  Service Provider Listing  Ad in Monthly Newsletter  3 Vendor Tables **  * Credit or Debit Card Required for Auto Renewal Discounts, ** 3 Vendor Tables with Annual Payment Page 16 MAREInet.com
  • 15. W WELCOME NEW MEMBERS To the premier trade association representing Kansas City Area Real Estate professionals MAREI continues its growth with a total of 390 members to-date. JOIN NOW (MAREInet.com/join) New Members Renewing ◎ DD Ashley: Lawrence, KS ◎ Mark Barrett: Overland Park, KS ◎ Jon B: Kansas City, MO (Since 2009) ◎ Richard Brewer: Belton, MO ◎ Chad Bartlett: Anchorage, AK (Since 2006) ◎ Paul Bedtke: Tonganoxie, KS ◎ Alex Duckworth: Lee ’s Summit, MO ◎ Angela Coleman: Kansas City, KS (Since Since 2011) ◎ Brett Gossen: Carol Stream, IL ◎ Rick Romines: Independence, MO ◎ Mike Halverson: Kansas City, MO (Since 2011) ◎ Dee Hilsinger: Lenexa, KS ◎ Alex Hulett: Kansas City, KS ◎ Brandon Kerk: Kansas City, MO ◎ Franklin Lloyd: Kansas City, MO ◎ Kevin Massey: Prairie Village, KS ◎ Clarence, McLaughlin: Kansas City, MO ◎ Billie Robinson: Independence, MO ◎ Madeline Todd: Overland Park, KS Investment News Page 15
  • 16. DRAFT Your Team “The only reason I can conceive of someone want- for referrals. If there is not a REIA group in your ing to invest in real estate is for financial gain, area, find a business trade association and seek which is not an impure motive. Money is what buys out fellow business people. If you are investing in us the freedom to do, well, whatever the heck it is areas that are not in your own back yard, seek out we want to do. But what do we end up doing? We REIA groups in the cities where you are investing. end up working like crazy and not doing the things To find a REIA group in your area, go to for which we’re investing in real estate to begin www.NationalREIA.com with.” Alan Brymer Take note that you want to find the successful peo- Let’s face it, in most businesses you can’t do it all ple in the group to ask for referrals. It does not do by yourself and real estate investing is no different. you any good to get a good contact for a contractor You will need property managers, realtors, ac- when the person who referred them has ran them countants, remodelers, appraisers, inspectors, around and around making bids but has never lenders, attorneys, accountants, sign companies, given them an actual rehab job. Likewise it is im- fellow investors, assistants and even coaches. Be portant to only refer professionals who you know a sure you take the times to screen all of your team little bit about and can comfortably say they will do players. Think about it, w work hard to make sure a good job. our buyers are prequalified and we screen our ten- Once you have assembled your team, be sure to ants, but how hard did you scrutinize the last ser- stick with them. Call the Realtor on your team who vice provider you hired. is sending you potential deals rather than calling When you consider that real estate is a business the random listing agent when you are out driving a that can generate substantial profits, you will want neighborhood. Think about it. When you call the to make sure your team members have the same listing agent who represents the seller and buy the work ethic, business philosophy, and morals as house, you do one transaction. Yet you have a you. More importantly you want team members buyer’s agent who has been sending you the best that have a compatible personality. You don’t want deals for the past 6 months and has negotiated people on your team that you just don’t like work- hard for you and closed several transactions. ing with, life is too short. So to start make a list of Which one of these agents is going to remember to the qualities that you need in each of the team call you the next time a hot deal comes up? members so you have something to use in search- ing for the right person for each position on your Also remember that from time to time you will need team. to pull in a pinch hitter when a key team player gets benched and from time to time you will have to re- When starting your search for team members, the cruit new players when an old one can no longer first place to go is the local real estate investor get the job done correctly. By being an active trade association. This is a place where you will member at the local REIA group, you can continue find people who are already successfully investing to connect be scouting for new players to add to in real estate and these are the best people to ask your team. Page 18 MAREInet.com
  • 17. For Investors By Investors In this market, you want an agent on your side that has the knowledge, the ability, www.APIAProtects.com 1(877) 752-2742 the EXPERIENCE, Lisa Goodner and the resources to help you! Because APIA sells only Real Estate Owned (REO) and Forced Lender insurance coverage, we've become the industry leader in providing comprehensive, affordable coverage to inves- tors, financial institutions and mortgage compa- nies. Our company specializes in Real Estate Owned (REO) and Forced Lender insurance coverage for property investors, servicers, financial insti- tutions and mortgage companies. Standard in- surance companies also turn to us for our ser- Realty Resource vices. 8014 State Line Rd, #210 816-523-4400 www.RealtyResourceKC.com HOUSES WANTED  Built After 1950 Minimum 3 Bed, 1.5 Bath On Demand Training Eastern Jackson County 30 Minute Segments MO or Johnson County KS Top Investor Trainers Retail Value $100k-$200k From the Comfort of Your own Internet Connection No Rental $39.00 Training Courses Local Cash Buyer Looking for 2 to 4 Houses a month to purchase, rehab and sell. Money Part- REO & Lease Option Creative Financing ners want their money placed quickly so they can Automated Investments turn their money fast and make a profit. Can’t do Auctions & Foreclosures that with out houses! Bring us a deal! Short Sales Wholesaling 101 Email: kcmoHomeBuyer@gmail.com Submit Online: kcmoHomeBuyer.com www.MAREIU.com Investment News Page 19
  • 18. Subscribe & Sync MAREInet.com/Calendar The MAREI calendar is hosted on Google Calendars. This allows you to subscribe to our calendar and sync it with your own Google Calendar, Mobile Calendar, or Outlook Calendars. Find it online at http://www.MAREInet.com/Calendar Sat Aug 4, 2012: 1 1 a m Where: 1130 W 103rd St, Kansas City, MO Outside Group: Wichita REI: Thu Aug 16, 2012: 7 p m Where: 1635 N Waterfront Pkwy, Wichita Outside Group: KCIG Meeting Tue Aug 7, 2012: 3 p m Sat Aug 18, 2012: 4 p m Webinar - Trust Deeds in Your IRA Blue Springs / Independence Real Estate Wed Aug 8, 2012: 9 a m Investors Weekly Wednesdays - Sub Group Meeting Sun Aug 19, 2012: 9 a m Sub-Group: Where: 1130 W 103rd St, Kansas City, MO Lees Summit Real Estate Investors Sat Aug 11, 2012: 4 p m SubGroup: Mon Aug 20, 2012: 7 p m Blue Springs / Independence Investors Outside Group - Omaha REIA: Where: 18800 E Us Highway 40, Indep. Where: 3534 South 108th Street Omaha, Sun Aug 12, 2012: 9 a m Sub-Group: Wed Aug 22, 2012: 9 a m Weekly Lees Summit Real Estate Investors Wednesdays - Sub Group Meeting Where: 1686 NW Chipman Rd, Summit Sat Aug 25, 2012: 4 p m SubGroup: Woods, MO 64081 Blue Springs / Independence Investors Tue Aug 14, 2012: 6 p m Sun Aug 26, 2012: 9 a m Sub-Group: MAREI's Monthly Meeting: Lees Summit Real Estate Investors Where: 8600 Ward Pkwy, Kansas City, MO Wed Aug 29, 2012: 9 a m Weekly Wed Aug 15, 2012: 9 a m Wednesdays - Sub Group Meeting Weekly Wednesdays - Sub Group Meeting Page 18 MAREInet.com
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  • 20. S.A.F.E. Act Revisited S.A.F.E. Act Overview And Its Effects On Real Estate In- tations so as to be almost useless. vesting The S.A.F.E. Act is intended to curtail the lending abuses The S.A.F.E. (Secure and Fair Enforcement for Mortgage in subprime loans that greatly contributed to the present Licensing) Act is very broad and it's rules are almost con- mortgage mess and difficulties in the residential credit stantly being changed by our politicians to hopefully im- markets by more strictly regulating the financial deriva- prove it to become more reasonable to real estate profes- tives that originated from subprime loans such as CDO's sionals than what is allowed in its present form. (collateralized debt obligations) and CDS's (credit default swaps, i.e., insurance for defaults on these loans). But it Key features of the S.A.F.E. Act include: also restricts and governs activities of those who have This Act requires nationwide registration/licensing of any nothing to do with subprime lending and hinders the sale residential mortgage lender who offers or negotiates of residential properties that would normally be facilitated terms of a residential mortgage loan for compensation or by seller financing. In the federal government's attempts gain. As investors, that would be us when we sell using to prevent another recession in the residential markets by seller financing and it would be sellers who sell to us via more strictly regulating lending guidelines, it will most seller financing. likely fail by making residential properties more difficult This Act prohibits the seller financing of a residential to sell by restricting seller financing. By restricting seller property without being licensed as a mortgage loan origi- financing to the people who need it the most, the irony is nator. This includes selling with wraparounds, land con- that the S.A.F.E. Act hurts the very people that it was tracts, seller 2nds, etc. This applies to people who assist intended to help. in this process (investors) and hard money lenders who Ways For Real Estate Investors Use Seller Financing take back real estate as collateral. Without Breaking S.A.F.E. Act Laws Implications Of The S.A.F.E. Act To Real Estate Investors 1. Get licensed as a mortgage loan originator. 2. Qual- And Lenders ify for applicable exemptions from S.A.F.E. Act laws. 3. Most lending that was previously unregulated or loosely Have a licensed mortgage loan originator do all your pa- regulated is now regulated by the S.A.F.E. Act. This in- perwork for seller financing. cludes hard money lending, seller "carrybacks" (seller Possible Exemptions from S.A.F.E. Act Laws Exemptions 2nds), and independent mortgage loan originations. The can be at the federal or state levels. It may be possible S.A.F.E. Act is a federal law. While it imposes a general to also say that something is exempt just because it is umbrella of regulation and requires meeting certain mini- not prohibited by the Act. Recent Dodd-Frank Amend- mum requirements, it is up to each state to impose its ments (federal amendments) seem to say that sellers can own interpretation of the rules set forth in this Act. Most make a maximum of three (3) residential mortgage loans states have already implemented their own interpreta- per year on properties owned by the sellers, i.e., sellers tions of the S.A.F.E. Act. Ironically, the federal govern- are allowed to sell up to three (3) residential properties ment's attempt to uniformly regulate mortgage lending with seller financing per year. A restriction is that this has resulted in non-uniform regulations from state to exemption is not allowed is the seller is a contractor who state. Some states, such as Texas, have enacted laws builds the house and then provides seller financing to sell that are even more restrictive than what is in the S.A.F.E. it. Also, seller financed loans in this exemption must be Act itself. Other states have enacted legislation that fully amortizing, i.e., no interest-only loans. Other re- meets just the minimum requirements of the S.A.F.E. Act quirements include that the seller qualify the buyer with a or have legislation that is very open to different interpre- minimum of credit report and income verification on re- Page 20 MAREInet.com
  • 21. cord, and the loan must be have a teaching that forming your own non- sider these to still be sales so this fixed interest rate or a "reasonable" profit organization could help in ob- exemption should be considered only adjustable rate that does not in- taining grants. Exemption from the on a state-by-state basis. Some crease for at least the first five (5) S.A.F.E. Act is another benefit to states will allow assignment of bene- years of the loan term. forming one. ficial interest in a land trust without calling it a completed sale thereby At the federal level, the S.A.F.E.Act 2. Another exemption is if you are qualifying as an exemption from the does not appear to prohibit a balloon selling to a business for non- S.A.F.E. Act. The same is true with payment or an escalating payment residential purposes. For example, lease-options in that these don't schedule as long as the principal is as long as the rehabbers don't move qualify as being completed sales and, paid down completely by the end of into and live in the properties you as such, are exempt from S.A.F.E. the loan term. flip, these are non-residential proper- Act laws. ties that you can sell to them with At the state level, registered financial seller financing. This also applies to 6. Equity sharing can also be a "non- institutions and their wholly-owned hard money loans that would use loan" way to have a residential prop- subsidiaries or holding companies these properties as collateral as long erty seller financed to you, or you to appear to be exempt from S.A.F.E. as the rehabbers don't move into and an end buyer, with the effect being Act laws. Another exemption is if live in them. that of a "carryback" by the seller. you are originating non-residential, i.e., commercial or business, loans. 3. Employ a multiple-entity strategy. 7. Sell to a LLC, use seller financing In contrast to the federal Dodd-Frank Each entity can sell up to three (3) to "carryback" a note from the LLC, Amendments that allow up to three properties with seller financing per and then sell the membership inter- (3) residential properties per year to year so you could use multiple enti- ests in the LLC to an end buyer. be seller financed without a license, ties to sell residential properties. When done properly, the collateral is state exemptions appear to allow up Multiple entities for possible use in- not the real estate but rather the to five (5) residential properties in a clude you, a relative of yours, LLC's shares of the LLC become the collat- consecutive 12-month period to be (limited liability companies), corpora- eral for the seller financing. seller financed without a license, but tions, partnerships, IRA's (individual In conclusion, before entering into this should be checked on a state-by retirement accounts), land trusts, any creative real estate investing -state basis since each state has its living trusts, etc. The use of a land transaction, always have it reviewed own rules and interpretations of the trust or LLC for this strategy should by a real estate attorney to ensure S.A.F.E. Act. be done only after consulting with an you stay compliant. attorney since some states may not Other exemptions from S.A.F.E. Act recognize revocable trusts or single- ------------------------ laws at the state level include seller member/family-owned LLC's as financing by federal/state/municipal Duncan Wierman is a Real Estate separate statutory entities (e.g., government agencies, any employee Investor and Educator. Discover how South Carolina, does not recognize or employer pension plan making to use creative financing to get your single-member LLC's or LLC's that mortgage loans only to participants, deals closed and make money faster are entirely family-owned as asset anyone acting in a fiduciary capacity without using any of your own protection vehicles). as conferred by the courts, and any- money! Free Proof of Funds, No Pay one negotiating residential loan 4. Other exemptions to S.A.F.E. Act to Play!! Details: terms for immediate family mem- rules include selling your personal www.QuickTurnCashFunding.com bers. Creative Exemptions From residence, selling to a family member S.A.F.E. Act Laws (Exempt For Now - (but it is not recommended to marry But Could Change Soon) someone just to sell a property to him or her), and selling through an 1. Forming a 501(c) non-profit or- attorney since, as of this writing, ganization to provide seller financing attorneys are exempt from S.A.F.E. could qualify for exemption exempt Act rules. since non-profit organizations that provide loans to promote education 5. Use of land contracts and ex- or home ownership don't fall under tended escrows but while some S.A.F.E. Act rules. Government states don't consider these to be money gurus have been recently completed sales, other states con- Investment News Page 21
  • 22. 237 N 15th St, $35,000 3 Bed Good rental or rehab Steve Gardner Kansas City, KS 1 Bath opportunity. ARV of Destination Properties Rental Basement Steve.Gardner@homeve $48-50k. Needs a Carport stors.com Rehab few repairs, but nothing major 913–461–0402 7315 Nieman Rd $95,000 3 Bed JOCO house in Steve Gardner 1.5 Bath Shawnee, new roof, Destination Properties Shawnee, KS Rehab Basement foundation and exterior Steve.Gardner@homeve 2 Car Gar paint. Must move it. stors.com Bring any offer. 913–461–0402 5809 W 70th St $89,000 3 Bed $30—$35k Rehab. Steve Gardner 1 Bath Great Overland Park Destination Properties Overland Park, KS Rehab Crawl Steve.Gardner@homeve ranch, good schools, strong resale value, stors.com Rental needs help 913–461–0402 4407 Genessee St $99,000 3 Bed Double Lot. West- Steve Gardner 1 Bath port / Plaza. New Destination Properties Kansas City, MO Rehab 2 Car Steve.Gardner@homeve Roof, Repaired Foun- stors.com dation. 913–461–0402 2 Houses Under $10K 3 Bed Huge Discounts 2 Makeba Hart 2 Bath house for under 10k Virtue Investments, LLC Kansas City, MO Each—Need Makebashart2gmail.com Make me an offer!!! Rehab 816-665-0491 3829 Benton Blvd $27,500 3 Bed Excellent curb appeal Christoph Becker 1.5 Bath – This 3/1.5 home is Blue Print Properties Kansas City, MO Rehab Basement info@BluePrintProp.com situated on the dis- 816-419-1165 Rental tinctive “Benton Blvd” in KCMO 8 Property Package $22,500 Assorted Offers avg Net Yield Christoph Becker of 23.82%. Re- Blue Print Properties Kansas City, MO Each Property info@BluePrintProp.com habbed & Rented. 816-419-1165 Long-Term Tenants. 3524 Askew Ave $14,000 3 Bed 75% Completed, lots of Christoph Becker 1 Bath potential. New plumb- Blue Print Properties Kansas City, MO Rental Fixer Full bsmt ing updated electrical, info@BluePrintProp.com new roof. 816-419-1165 Page 22 MAREInet.com
  • 23. MAREI Member Properties MAREInet.com/Properties 1812 E 70th St $39,500 3 Bed Renovated Section 8 Christoph Becker 1 Bath Turn Key Kansas City Blue Print Properties Kansas City, MO Rental Full Bsmt info@BluePrintProp.com Investment Property 1 Car Gar 816-419-1165 offering a proposed NET ROI of 21% 1810 E 70th St $39,500 3 Bed Renovated Rental—Net Christoph Becker 1 Bath ROI 20%. Turn Key. Blue Print Properties Kansas City, Rental Full Bsmt info@BluePrintProp.com 1 Car Gar 816-419-1165 $825 Rent 3711 E 68th ST $42,500 4 Bed Section 8 Turn Key Christoph Becker 2 Bath Rental, Net ROI 22% Blue Print Properties Kansas City, MO Rental Full Bsmt info@BluePrintProp.com $950 Rent 816-419-1165 3707 E 68th St $35,000 3 Bed Rent Ready, Fully Re- Christoph Becker 1 Bath habbed, Proposed Rent Blue Print Properties Kansas City, MO Rental Full Bsmt $800, Proposed ROI info@BluePrintProp.com 21% 816-419-1165 No Address $94,500 3 Bed Full ranch home avail- Phillip Rich 2 Bath able for Lease Option Go Mav Realty Lease Option Garage phil@gomavrealty.com 402-598-6696 No Address $49,000 3 Bed 2 Story Home—lease Phillip Rich 2 Bath option contract avail- Go Mav Realty 1 Car able phil@gomavrealty.com 402-598-6696 1340 S Emery St $33,000 3 Bed Rental Potential Chad 1 Bath Home Remedy KC Independence, MO Rental HomeReme- dyKC@gmail.com Rehab 913-735-5598 5733 Bales Ave $15,000 4 Bed Swope View area. 4bd 1 Makeba Hart 1 Bath ba Estimated NOI Virtue Investments, LLC Kansas City, MO Fixer $486.29 Makebashart2gmail.com 816-665-0491 Rental Investment News Page 23
  • 24. Using the Member Website Post a Property for Sale We do have a few rules here that we ask that you abide by. We ask that you only post properties that you (1) own outright (2) control by a contract (3) have a listing agreement to market or (4) otherwise have an ownership interest in. If you have a property you might be able to buy that you are fishing for offers before you put under contact, we would advise against marketing it until you have a valid contract. Our property market tool on the site is a work in progress. It is a free Wordpress Plug in called WP Property and it does have a few kinks we are trying to work out. When you post to the site, the property appears on the MAREI site and currently it is manually reposted to our social media sites, but this does not always happen because sometimes it just does not work. If you happen to be an expert in Wordpress and WP Property and could offer us any pointers in improving how this tool works on our site, we would welcome the assistance. To post a property: Step ONE: Log in and go to the Dashboard: Step TWO: click on Properties Step THREE: You can click on All Properties to see everything that is currently in the system or Add Property to add a new property Step FOUR: Click Add Property Step FIVE: Enter a Title Step SIX: Enter information in the big box—you can format this information, embed video, embed photo albums and use HTML. If you have no idea what that means, just type a paragraph about your property in this box. Typing something is important even if it is one or two sentences because when the property is further posted to Facebook for example, if you type nothing then Facebook will pull into the linked post info about MAREI rather than info about your property. Step SEVEN: Fill in all the boxes under the “General Information” Section that you have the answers for. Keep in mind if you are a Realtor listing for someone else, you must in- clude your Broker Company. In this area in the address box, enter the full address including city, state and zip, so the Google mapping will work. You will find a couple of greyed out boxes that relate to ad- dress that you cannot type in. Don’t worry about it. Also be sure to put a summary of the property in the tag line box. When the property ap- pears on a page with other properties on a summary page the tag line is what appears to tell people about the house, it should have the basics of the house to make the viewer want to click to see more. Also in this area, if you have the property posted on your own website, put a link to your website or a direct link to the property in the Website Box. Page 24 MAREInet.com
  • 25. Cornerstone Foundation Repair Kansas Cities Real Estate Investor’s #1 Foundation Repair Contractor  Steel Push to Bedrock Piers @ $850 ea  Steel Wall Restraints Starting @ $180 ea  Crack Injection @ $25 per foot  Sump Pumps @ $800 each Property Management We are proud to say that we have become real estate investors 1st call for major foundation Rental Services repair issues. We offer 25 year and lifetime Kansas City Metro transferable warranties for piering only. Joe Williams www.JamiesonHomeTeam.com ConerstoneFoundationRepair@yahoo.com 913-220-5253 Kevin Jamieson Ask about our Investor Pricing 816-503-4671 More Information . . . More Confidence The best place on the entire planet to buy kitchen cabinets. We Have The Best Prices Everything Is In Stock More Profits Tenant Screening We Ship Fast Pre Employment Screening Free Design Help Contractor Screening Collection Services www.CabinetGiant.com Discounts for MAREI Members Josh Burns www.AAAScreening.com 1-877-484-4268 816-436-0085 Investment News Page 27
  • 26. MONDAY AUGUST 6TH, 2012 KANSAS CITY, MO Single Family Homes Page 26 MAREInet.com
  • 27. The Mid-West Real Estate Investor's Expo Mingle With Vendors, Receive FREE Gifts, Learn from the Best! Sponsored by Realty411/reWEALTH magazine Mingle with Vendors/Brokers/Wholesalers Learn About TOP NATIONAL Markets: Success in Real Estate Can be Yours this Year, Let Us Show You How. Network with Local and Out-of-Town Investors, Area Business Owners & Real Estate Industry Leaders. GUEST SPEAKERS Marck Delatour Tim Norris, SBD Housing Solutions, formed in President of National Real Estate In- 2003 to capitalize on the growing surance Group and Affinity Group number of financially distressed Management is an industry- homes in the Kansas City area. recognized investor, speaker and Since that time, SBD has grown educator. He is Treasurer of the Na- to become the premier supplier of tional REIA and is a member of their foreclosure and pre-foreclosure homes in the Industry Partner Council. Tim is an active real es- Jackson County Area, attracting investors from tate investor and resides in the Kansas City area all over the world. with his wife and 2 daughters. Lloyd Segal, Quincy Long America’s leading foreclosure expert CEO of Quest IRA, Inc., a self-directed and author of “Get Started as a IRA third party administrator and li- Foreclosure Investors”. If you’ve censed Texas attorney since 1991 who always wanted to be a foreclosure specializes in real estate and is the co investor but didn’t know how to get author of “Real Estate Investment Us- started, this is the workshop for you. ing Self-Directed IRAs and Other Re- Lloyd will share how to get started tirement Plans” Dyches Boddiford and making money buying foreclosures. George Yeiter. Quincy is also an active real estate investor. Hilton Garden Inn Independence RSVP: FREE VIP Passes 19677 East Jackson Drive http://mid-westrealestateexpo.eventbrite.com/ Hotel Phone: 816-350-3000 Or call 310-994-1962 Independence, MO 64057 Email: realty411guide@msn.com Saturday, August 25, 2012 Find out about the Bus Tour on Sunday the from 9:00 AM to 4:00 PM (CT) 26th (Prices: $95 for 1 / $145 for 2)
  • 28. Invest Some Time in your Business Real Estate Investor Meeting Mingle With Vendors, Receive FREE Gifts, Learn from the Best! Sponsored by Mid-America Association of Real Estate Investors Mingle with Vendors/Brokers/Wholesalers/Industry Leaders Learn a LOCAL INVESTOR’s Business Model More and More Investors are leaving the stock market and turning to Real Estate With record low prices and interest rates The Returns can be Phenomenal Learn How to Grab Your Piece of the Action www.MAREInet.com/August GUEST SPEAKER Marck de Lautour formed SBD Housing Solutions in 2003 to capi- talize on the growing number of fi- nancially distressed homes in the Kansas City area. Since that time, SBD has grown to become the pre- FREE Issue mier supplier of foreclosure and pre first -foreclosure homes in the Jackson County Area, 50 people attracting investors from all over the world. Find out Marck’s model, where he finds deals, private money, and partners. Marck’s approach allows him to tap into the “Anxious Money” that is leaving the stock market and turning to Real Estate. Career Education Systems This is the Monthly Meeting for Mid-America Ward Parkway Shopping Center Association of Real Estate Investors. 8600 Ward Pkwy : Kansas City, Mo Door Fee $25 at Door / $15 Online for Non-Members & Internet Members. Those Tuesday, August 14, 2012 who have joined at Investor or Business levels from 6:00 PM to 9:00 PM receive complimentary entrance. www.MAREInet.com/August