the investment news: april 2011
DESCRIPTION
The monthly newsletter for Mid-America Association of Real Estate Investors. A Real Estate Investing Trade Association based in the Kansas City Metro Area. Find us online at www.MAREInet.com.TRANSCRIPT
Investment News MI D - A ME R I C A A S S O C I A T I O N O F R E A L E S T A T E I N V E S T O R S
April 2011 NETWORKING : EDUCATION : COMMUNITY
It’s all a Numbers Game
» Lead Generation
» Social Media
» Wholesaling
» Courthouse Auctions
» Lease Purchase
» Real Estate Investing
Plus:
A Packed Networking &
Educational Calendar
for April
Page 2 MAREInet.com
BUSINESS MEMBERS
ADDRESSING THE NEEDS OF
THE REAL ESTATE INVESTOR
marei
Real Estate Investors and Landlords depend on a well
rounded team of professionals. If you are building your
team or looking to make a trade, start your recruiting with
our Vendor Members and Business Associates. See a
complete list of suppliers and any discounts they may of-
fer to MAREI members by visiting, www.MAREInet.com.
Look in under the Toolbox tab under “Service Directory”.
Type Company Web Phone Contact
Attorney Wise / Anderson BobWiseLaw.com 816-942-5925 Bob Wise
Contractor Te-Tee Light MAREI Vendor 816-356-1870 George Bai
Lender Argentine Federal Savings ArgentineFed.com 913-402-1500 Ann Wilkinson
Realtor Realty Resource KCInvest.com 816-523-4400 Kim Tucker
Supplier Home Depot Home Depot 816-510-9199 Roger Holyfield
Title Accurate Title Company AccurateTitleco.com 913-338-0100 Jackie White
Wholesale kcmoHomeBuyer kcmoHomebuyer.com 816-200-2198 Don Tucker
http://mareinet.com/marei-tool-box/business-associates
Investment News Page 3
Features ׀ April 2011
8
Social Media, It’s a Waste of
Time and it Does Not Work.
These are two of the biggest
things people say about So-
cial Media Today. Is it true
or just an excuse?
10
The Fair Lease Purchase,
An Investors Perfect Hy-brid. When properly exe-
cuted it includes the best of both the buy and hold
world as well as the buy and flip form of investing.
In This Issue
MAREI Business Members 2
MAREI Staff 5
Notes from Director 6
Social Media, It’s a Waste of Time 8
The Fair Lease Purchase 10
Square Peg, Round Hole? 12
Professional Housing Provider 14
Your Business is Your Database 16
Government Affairs 18
Training Events 20
Wholesaling Step by Step 22
Calendar 23
FREE Membership with MAREI Money 24
Buying at the Courthouse 28
Contents MAREI News
Photos from the March 2011 Meeting featuring Bob Wise.
Page 4 MAREInet.com
MAREI Notes
Contact Information
PO Box 8685, Prairie Village KS, 66208
Phone: 913-815-0111 Fax: 816-523-4448
Our Mission Statement Mid-America Association of Real Estate Investors is dedicated to promoting ethical real estate in-
vesting and to protect and promote the best interest of our membership through educational and
networking opportunities as well as community, legislative and public relations.
Legal Disclaimer MAREI does not exist to render and does not give legal, tax, economic or investment advice and
disclaims all liability for the action or inaction taken or not as a result of communications from or to
its members, officers, directors, employees and contractors. Each individual should consult his/her
own counsel, accountant and other advisors as to legal, tax, economic, investment and related
matters concerning real estate and other investments.
Content Disclaimer The views and opinions expressed by authors of articles contributed to this newsletter do not neces-
sarily reflect those of the association, the board of directors or the staff.
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Kim Tucker 816-523-4400
Director
Investment News Page 5
Don Tucker 816-523-4400
President
Steve Burns
Audio Visual
Dan Goodwin 913-642-5218
Meeting Ambassador
Shelda Goodwin
Meeting Ambassador
MAREI Staff
John Welchert
Meeting Ambassador
816-268-3849
Larry Prato
Commercial Subgroup
913-227-4693
Spencer Cullor
Commercial Subgroup
913-324-5900
the rules are not being enforced, that the things they
need to do are stupid, and that the rules are only to
protect their own children anyway. Boy, do they need
to change their thinking fast.
The EPA and states had held off enforcement till the
end of December 2010 as the had done such a poor jo
getting the information about the law out and the lack
of certification training courses to cover all the people
who needed to attend. But that is all changing and
they are now going after the people who are violating
the law.
Now we as Real Estate Investors and Landlords may
not be doing the actual work our houses and apart-
ments. We may be hiring contractors. But if your con-
tractor has the same outlook as the 3 or 4 I spoke
with, well, YOU are going to be in trouble. You as the
owner of the property who earns a profit through the
resale or rental of that property are who they are going
to go after. Yes, you had a contractor, but if the con-
tractor did not do follow lead safe work practices, edu-
cate the tenant, and document everything, will the
EPA be able to find the contractor or just ask who sold
the house or who collects the rent. So I am going to
ask all Landlords, Rehabbers, and Property Managers
to make sure your renovations are lead safe.
Kim Tucker
Director of MAREI
A little over a year ago I noted there was a new law
coming out that was going to be a game changer for a
lot of people in the construction industry as well as in
real estate. That law is the EPA’s Repair Renovation,
and Painting Rule listed out on the next page that
went into effect April 22, 2010.
We had a guest speaker come in to share all the ins
and outs of the new law and we were able to get the
information out with a 20 second spot on 2 different
TV stations and a brief paragraph or two in the local
paper. WOW!
One would think that a law that is going into effect to
save the health and lives of thousands of people, that
would require the licensing of thou-
sands more would have at least got a
full 2 minute segment on TV and
maybe, just maybe a feature story in
the Star. But as there is no blood and
guts, we probably will not see much.
That is until there are some sensa-
tional items, like for example the Win-
dow World Company in St Louis that
is settling with about $19,000 in fines
and another $20,000 in window re-
placements as a community service.
Or the contractor in Connecticut who settled for
$30,000 and change.
I have talked to a few contractors who have already
attended a certification training and their take is that
Director’s Notes
“I will be at the April 9th Certification Training Workshop. I hope you
can join me and my husband as we learn what we need to know and
what our contractors are supposed to be doing. $199 to $250 now is
much better than $20,000 or more later!
Avoid Fines! Avoid Prison! Protect health!
Get Certified! ENVIRONMENTAL PROTECTION AGENCY (EPA) RENOVATION, REPAIR, & PAINTING LEAD SAFE WORK PRACTICES COURSE
On April 22, 2010, the Environmental Protection Agency (EPA) started requiring firms performing work for compensation that disturbs lead-based paint in residential homes, child care facilities, child occu-pied facilities, and schools built before 1978 be EPA certified, ensure necessary EPA certified renova-tors are on each job, ensure all workers affected are trained in specific work practices to prevent lead contamination, all work is performed according to EPA work practices, pre-renovation education re-quired for residents, and ensure record keeping requirements are met.
Additionally, all persons are required to be licensed/certified by the appropriate state agency where the
work is occurring or by EPA. There is also a requirement for refresher training for any person who be-
comes licensed/certified every 5 years. Penalties for performing work without being EPA certified can
lead to penalties of up to $37,500 per violation, per day. MAREI is
partnering with Kachina Lead Paint Solutions , an EPA accred-
ited training provider to offer this training in Kansas City.
REQUIREMENTS OF FIRMS PERFORMING WORK
EPA certified
Ensure necessary EPA certified renovators are on each job
Ensure all workers trained in specific work practices to prevent lead contamination
All work is performed according to EPA work practices
Pre-renovation education required for residents
Record Keeping requirements are met
THE EPA REQUIRES CERTIFIED RENOVATORS MUST
Use a lead test kit to determine if lead is present
Provide on-the-job training in specific work practices for other workers onsite
Be physically present on the jobsite at times required by the EPA
Regularly direct the work of other employees to insure proper work practices
Be available onsite or by telephone at all times renovation is being conducted
Have at the site a copy of certification certificate
Prepare required records
Saturday April 9th
Sylvester Powell Jr Community Center (Mission KS)
8:00 to 5:00 (Lunch Provided)
Cost $250 per person / MAREI Members $199
Register www.MAREInet.com
Page 8 MAREInet.com
FaceBook: It is simply your Sphere of Influence,
and with over 600 million people on it, how can
you deny this, or put it into the category of a
"fad"? Never before have you been able to cost
effectively market yourself or product to this seg-
ment which is statistically speaking the best area
to get a return on your investment. It is cost ef-
fective, and you can market to them daily now,
no more time consuming and costly mailings
and ads. With FaceBook, the key is to be both a
real person, and learn to market yourself without
coming across as marketing yourself.
Twitter: If you are not a Sports Athlete, Rock
Star, or Celebrity it is not one of the best areas
These are two of the biggest things I hear when
I speak all over in reference to Social Media in
business today. Is it the truth, or is it just the ex-
cuse the individual uses because they are not
comfortable "selling" themselves to people?
Are they actually selling themselves or simply
educating their friends and others as to what it is
they do? Imagine if you had a business want or
need, and didn't know who to turn to, and then
later on found out that a good friend of yours or
neighbor actually does what your need is for a
living. Is there anyone you would rather have
working with you or representing you than some-
one you already know?
social media
It’s a Waste of Time
Attend the April MAREI Monthly Meeting and join John God-dard, a nationally recognized expert on using Social Media Real Estate.
Location: Sylvester Powell Jr Community Center: 6200 Martway in Mission Kansas
Date: Tuesday April 9th: Doors open at 6:00
Cost: Members FREE, Guests $25 at the Door or Pre-Register for $15. See more & Register online.
PHP: 1 Credit Marketing PHP, members only, must be pre-registered.
Monthly Meeting Don’t miss this event!
and it doesn’t work
1 PHP
CREDITS
Investment News Page 9
to get a return on your time investment. I ruffle a lot of feathers with this
statement, but so many educators teach people to join this Media be-
cause of the "aura" that surrounds it. In my opinion Twitter is 150 million
people all trying to sell things to each other. I ask you have you ever gone
to Twitter to do research on an expert or product? With this said, Twitter
can be a great way to increase your Sphere of Influence if used properly,
certain free applications like TwitterLocal.net or NearbyTweets.com can
let you know of the local "active" people tweeting in your area. Use Twitter
to sell yourself directly and become the expert to a whole new segment,
and build your Sphere.
LinkedIn: The business people, the decision makers, it is the party of the
"in" people, the crowd you want to be associated with. With the average
age of 41, it is not a kids site. Many will say it is a Media that is for getting
jobs, so true, but the reason it is, is because the decision makers of the
companies you want to work at are there. So many ways to maximise with
this site, but most importantly, create a great profile (an online resume)
and get recommendations. The beauty is that you can be selling yourself
to people you want to everyday by simply having it "out" there.
These are the three Medias you need to be using if you want to be able to
get your message to the widest audience cost effectively. You can either
do it now while not everyone is using it, and carve your niche, or you can
wait until you are forced to in the changing business world. That younger
generation that is coming up not only knows how to use these Medias way
beyond what over 35 people do, but have numbers of followers that they
cannot comprehend. The question I ask is how do you beat these new
entrepreneurs coming up?
Experience, that is what the younger generation lacks. Imagine if YOU are
one of the people who can step out of your comfort zone and start market-
ing yourself using the Medias properly, how much you can benefit during
this window time period. I say window meaning that soon the way busi-
ness is being done is going to change.
Real Estate is one of the greatest examples, the average age of a Real
Estate agent is much higher than most industries, and when computers
came in they lagged behind, when email became the way to communi-
cate, they hopped on the band wagon way after everyone else. Do you
think they will shift and change quickly this time? I think not, which means
that those that do, are going to benefit like you would not believe.
The Medias now make it so you can contact and get your message to the
masses, and get them to contact you! The key, is what to use. Understand
the human behavior that stops most, and how simple systems put in place
properly, will move you toward the life you dream of.
I show people what to use, and how monetize. I could have made this a
50 page document, but I give you a taste, and when I speak you will know
how to capture leads with ease.
speaker
biography
The April 12th Monthly Meeting will host James Goddard, a Top Producer who knows how to monetize Social Media and will show you how to give your business an edge.
At 25 James purchased his first business and sold it less than a year later for twice what he paid. As an agent he was a top agent Prudential and then Cold-well Banker. As a Manager of the Coldwell Banker he pur-chased in 1996, he Quadrupled company sales and sold the brokerage for 12 times what he paid. And in 2008 as the aver-age agent‟s income went down 30%, James went up 15% while he worked less.
James is going to share with us
What Social Media to use
How to use Properly
Best Ways to get Clients
A Weekly Business Plan
How to use Social Media to Increase your Sales
Most importantly he will share how Social Media is changing the way we do business and how YOU want to become a part of it!
All attendees will find
out how to get a FREE
Time Budgeting Guide-
line for your Real Estate
Business.
Page 10 MAREInet.com
The “buy and hold” model by definition is for
the investor who seeks to hold property for the long term. Many “buy and hold” investors
envision funding their retirement years by selling the properties once the notes have been paid off, sometimes thirty years after
purchase. A key benefit for these investors is that the need to acquire these properties at a
significant investor discount is minimized, as the investors are seeking their primary return many years into the future. Thus, the supply
of homes that meet their long term invest-
ment model is often plentiful.
There are two main issues with the “buy and hold” model. First, there are no opportunities for “cash windfalls” from the real estate dur-
ing the “hold period”. Without the cash wind-falls, funds to expand the portfolio generally
must come from the investor’s day job, other investments, and sometimes partly from posi-
tive cash flow. Because of such “slow growth” characteristics, it is rare to find a pure “buy and hold” landlord with much more
than five or six properties.
Second, many “buy and hold” landlords burn
so much time, effort, money, and energy tak-ing care of repairs, maintenance, and high va-cancies common with pure rental property
(some investors delegate this to a manage-ment company, and while this may save the
investor time, it cuts into the profits as the management company must be paid for their work). The time, effort, money, and energy
spent dealing with landlording issues often serves to minimize the investor’s ability to
grow his or her portfolio to any reasonable
(Continued on page 11)
We see them all over the roads to-
day. Growing in popularity, Hybrid vehicles are beginning to offer an enticing option to
dependence on foreign oi l sup-plies. Similarly, the Buy Low, Rent Smart, Sell High lease/purchase model offers inves-
tors a Hybrid of the “buy and flip” and “buy
and hold” investment models.
Most residential investment models resemble and can be grouped into one of two general categories. Each has a major flaw that con-
cerns many investors who consider or invest
in each model.
The “buy and flip” model by definition is for the investor who seeks to purchase property at a discount, oftentimes improve the prop-
erty, then sell the property quickly for imme-diate gain. This model is ideal for investors
who have no interest in landlording, as the “buy and flip” investor does not intend to
seek a tenant for the property in advance of
sale.
The main problem with the “buy and flip”
model is that if a buyer does not come by quickly, then the investor is faced with dis-
counting the property and/or involving a real estate agent in the marketing of the prop-erty. Due to this possibility, most “buy and
flip” investors need a discount of 25% or more even after adjusting for the necessary
repairs and improvement. With such high investor discounts, the pool of properties available with such significant discounts is
often small. Simply put, the higher the dis-count the investor needs to make his or her
model work, generally the fewer properties
available at such a steep discount.
An Investors Perfect Hybrid
The Fair Lease Purchase
Investment News Page 11
size. Worse, troublesome land-
lording experiences often sour
new investors on real estate.
A properly implemented “buy and lease/purchase” model takes the best of the “buy and
flip” and “buy and hold” mod-els. It also minimizes each
model’s most glaring flaws.
First, most investors who use the lease/purchase model are
able to “flip” some of their properties and sell others to
their lease/purchase ten-ants. This allows the investor to generate the “cash windfalls”
necessary for portfolio expan-sion, without the pressure of-
having to sell that is specific to t h e “ b u y a n d f l i p ”
model. Additionally, the inves-tor should be able to make pur-chases work with as little as
10% investor discount (much less than the typical “buy and
flip” model), because the pres-sure and risk associated with having to sell fast is no
longer present.
Second, on the landlording side,
most lease/purchase agree-ments transfer the repairs and maintenance responsibility to
the tenant, as the tenant is not a typical renter but rather a
“future homeowner”. The typi-cal lease/purchase agreement can also be signed for signifi-
cantly longer terms. Both these factors save the landlord
much of the time, headache, and cost associated with up-keep and turnover common
with most rentals. A final bo-nus is even when the tenant
does not exercise the purchase
and vacates either voluntarily or involuntarily, the properties
generally are in much better condition than had the tenant
been a typical renter.
What do we mean by “fair” lease/purchase as noted in the
title?
Sadly, many investors have given lease/purchase a bad
reputation by offering restrictive terms designed to minimize the
lease/purchasers probability of exercising the purchase option, while “supposedly” maximizing
the investor’s return. We have found a correlation between of-
fering attractive and reasonable option terms, and the profits
available to the investor, our “win/win” philosophy. People are not stupid, and if the terms
are not attractive demand for the investor’s lease/purchases
will be minimized. By making the terms especially attractive, there should be higher demand
for the lease/purchase, and the investor can be more selective
among the available candi-dates. Carrying this supposition further, higher quality tenants
placed in the property mean
less money and time spent
landlording. That time and money can then be better spent
expanding the investor’s portfo-
lio to truly significant levels.
Does this “buy and flip” and
“buy and hold” hybrid model
work in practice?
Indeed one must allow for variation as no model is imple-mented exactly the same by
any two investors, and markets across North America can be
incredibly different. However, implemented correctly and in the right market, we can attest
that an investor can manage a large portfolio of properties with
minimal management time with the Fair Lease/Purchase Hy-
brid. We have, and we’ve been able to do this while maintain-
ing full-time day jobs.
If Hybrids are the automotive
future of our country, perhaps
the Fair Lease/Purchase Hybrid
will be the perfect model for in-
vestors concerned with the
flaws of either the “buy and flip”
or “buy and hold” investment
models.
mareiU.com Andy Heller
is one of the featured
national trainers on our new
online training university. Visit to preview
his course REOs and Lease Options, made
up of 13 thirty minute modules.
Total cost if you purchase is $39.00 US
If you do any type of marketing for motivated sellers you are probably sitting with a pile of square pegs that just will not fit.
You probably have a variety of leads that:
Need to be listed by a Realtor for a nice retail sale.
Need to have a short sale negotiated.
Have tenants that you don‟t want.
Need more work that you are willing or able to do.
Are the wrong type of property or in the wrong area.
For what ever reason they just don't fit your niche or mine. So what can you do with them besides toss them aside, who has the time or energy to chase a deal that just does not work.
If you are like me, on average out of 100 leads that come in, only about 30 are going
to fit enough for me to go look at. Out of that 30, only about 10 are going to get an of-fer. We might only buy 2.
So if you look at it, we are pretty much tossing
Page 12 MAREInet.com
out 90 leads that could be of some value to someone.
One option I have found that works well are listing them my self. We sometimes get leads that are total rehabs or in my book a total tear down. I don‟t want to buy it and rehab it yet I am sure there is someone out there who might want it. So rather that working really hard to get the seller to sign a purchase contract for 90 days with a ton of weasel clauses, I list it for a flat fee commis-sion and in most cases I have found a buyer who is braver than myself. For this option alone, I hold a real estate license.
Second are the houses that need listed. If you go back through the dead leads in your stack at about 90 days later, you will find that probably 5 of them were listed a few days after you talked to the seller, and sold for a decent price in a fairly short period of time. If you hold a real estate license, you can offer to list or refer it to a realtor for a referral fee. If you are not an agent, sorry you can‟t legally ask for a referral fee, but you could send these leads to a realtor friend in exchange for some other thing of value: say comps, discounts when they list your house, be creative.
Houses that are just out of your area, you might find an investor to trade those leads with. For example, I get a bunch of Missouri leads that are in St Louis, while a friend in St Louis gets about the same number of Mis-souri leads in Kansas City. We just trade.
(Continued on page 13)
Square Peg
Round Hole?
Investment News Page 13
Then we have leads that are not the right kind of property. We buy single family houses, so we get a call for a car wash or a mixed use commercial building or a hotel. These I send on to a commercial real-tor.
I have the luxury of having a Real Estate License so I am able to obtain a Referral Fee. If I did not have a license I would look for a non-monetary way to get compensated for your leads.
So what do you do, I would love to get some new ideas! Please look for this article post on the MAREI Blog and post your comments.
About the Author: Kim Tucker and her husband Don buy and rehab homes in the Kansas City Metro area. See their add for kcmoHomeBuyer.com or give them a call at 816-523-4400.
MAREIandCC.info
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As well as Nationally.
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Page 14 MAREInet.com
Mission: Enable…members to expand their education and knowledge via courses as valuable tools to attain successful goals and present a professional image to the public and government.
What is the PHP? PHP stands for the Professional Housing Provider program.
What is the PHP designation?
The PHP designation is a metrowide, educa-tion-based certification program designed to recognize the high level of knowledge and professionalism among the designation holder. It is sponsored and overseen by the Mid-America Association of Real Estate In-vestors (MAREI).
Why obtain the PHP designation? Only persons completing the educational re-quirements on the Course of Studywill be permitted to hold themselves out to the public as a Professional Housing Provider. The des-ignee will be recognized in the form of an award certificate and the right to use the des-
ignation, and should recognize that having a basic education in the topics outlined will increase his or her ability to reach their goals in real estate investing. Further, as MAREI and National REIA works to make the National PHP designation more recog-nizable, it is hoped that the PHP holders will have an advantage in dealing with legal and governmental bodies when a “my word against his” situation occurs. It will also aid in encouraging legislators to think of edu-cated investors as a larger group for political action. Other tangible benefits, including discounts on courses and educational mate-rials, may be added as the program devel-ops. Benefits
Professionalism – This level of high es-teem for Graduates is perceived by peers, the local media and local govern-ment officials.
Accreditation – Graduates qualify to use the PHP title and/or initials on their busi-ness cards, for rent signs, name badges, etc.
Awards – Personal certificate awarded to each graduate.
National PHP – Graduates from states with identical programs automatically qualify for the National Professional Housing Provider Award.
Keeping Track of Hours/Credits – Paper-work It is the responsibility of the individual candi-date to keep track of his/her own attendance certificates.
Professional
Housing Provider
PHP
www.AccurateTitleCo.com 913-338-0100 phone
Title Services Provided for:
FSBO, Wholesale, & REO Transactions New Construction Closings Commercial Purchases and Refinance All Types of Loan Closings 1031 Exchanges FHA, VA, USDA, Conventional Loans,
and Hard Money Loan Closings Refinance & Reverse Mortgages Doc Prep, Prelim HUDS, Curing Issues Short Sale Closing & Assistance 100 Years of Combined Service!
accurate
Accurate Closings: Smooth, Timely, Professional.
Investment News Page 15
MAREI to certify that you have completed the required courses.
How Will I Obtain Credits? The hours may be obtained through local association meet-ings and seminars, or through accredited courses taught out-side of the local association. All outside courses and seminars must meet the following re-quirements: they must be taught live; they must be pre-approved by the PHP commit-tee, and they must provide a certificate of attendance accept-able to the PHP Committee. Attendance In order to receive credit for any meeting, the candidate must be in attendance for at least 90% of the meeting. NO credit will be given for partial attendance. All candidates must have their at-tendance form stamped or ini-tialed at the beginning of the event and at the end of the event. Sometimes there are a number of investors who typically stand outside chatting for the majority of the lecture. This does not count as attendance at the meeting. Remember this certifi-cation reflects a high level of
education among the gradu-
ates.
Find out more and
download the Course of Study and Master Record
Sheet on the MAREI web-site. Look under Education.
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913-221-9080
MAREI
Internships
Managing Websites
Booking Events
Selling Advertising
Graphic Design
Page 16 MAREInet.com
Your Business IS
industry and that you would appreciate follow ups. Then on a systematic basis follow up with them via email, text, or social media with something that shows your expertise in the “x” industry.
So for example you are a realtor and farming a specific neighborhood or neighborhoods. You might want to send out quarterly a market update for your specific neighborhood or city data and then fill in the other months with helpful articles or information related to real estate.
Next you want to do activities that allow you to meet new people every day to add people to your database. And as you add the people, again fol-low up with them systematically to make sure these new people know who you are.
Now as you go through following group with all these contacts you want to find a system to direct you when and how to follow up with each category of contacts. Most of these contact management programs that you can buy or subscribe to will let you create a system and then send out some of the contacts automatically, making you look really organized and efficient. And some of them come preloaded with systems that you just need to per-sonalize and others may provide you with front end websites to capture those new leads.
So now you have a database, you are adding leads to it every day, you are following up with them on a regular basis. Then your next step is to offer good customer service and take care of all the customers that come your way from your data-base and from referrals from your database.
If you would like to learn more about lead genera-tion, databases, follow up systems and generating new business, attend our Lead Generation work-shop on Thursday April 14th.
In any direct sales business including real estate, the size of your business will be in direct propor-tion to the size and quality of your database.
the better equipped you are to generate leads the better your ability to amass a large database of contacts and then systematically market to them. So to succeed in your sales business, you need to First build a database, add new contacts to it every day, find a way to communicate with your contacts systematically (meaning you need a system in place), and then service the leads so they gener-ate more leads.
So we start at the first step, building a database. You have a lot of choices in devices to store your database. You can go with an old fashioned con-tact book or rolodex. Upgrade to an excel spread-sheet our Microsoft Outlook. But to truly systema-tize your database, take a look at a contact man-agement program. Most industries have contact management system geared for the industry.
Look for a system that will allow you to group dif-ferent types of contacts together. Have a built in autoresponder system that will allow you to auto-matically follow up via email. One that will allow you to set up systems of follow up: emails, letters, phone calls, for each type or group of contacts. And in real estate you may want to also look for one with the ability to attach forms and documents and manage real estate transactions.
Next you want to add every single person you know into your database to start off. These are your initial circle of influence. Getting started you your sales business will require you to start follow-ing up systematically and on a regular basis with everyone in your database. These are people that you already know and respect you. The systematic follow up is to let them know that you are in “x” in-dustry and to build your credibility as an expert in your “X” industry. You may want to call initially to let your contacts know that you are now in the “X”
In your Database
Investment News Page 17
TE-TEE LIGHT
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Office (816) 356-1870
Cell (816) 210-4710
“Flexible rehab options
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Ann Wilkinson Vice President
Mortgage Loan Production 12501 Antioch Rd
Overland Park, KS 66213 Ph: (913) 402-1500
Fax: (913) 402-0673 [email protected]
www.ArgentineFed.com
“Presentation is Everything!”
Canyon-Stone.com
550 E. 56 Highway, Suite B
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Phone: (913) 254-9300
Fax: (913) 254-9301
kcmoHomeBuyer.com
Do you have a house you need to sell? A wholesale
or Assignment you need an end buyer for?
We are looking for homes to Rehab and Sell to First
Time Home Buyers. Please add us to your Buyer List.
Parameters:
After Repair Value $120,000 to $180,000
3-4 Bedroom, 1.5+ Bath
Basement & Garage Preferred
Like Post 1978, but will consider older
Cash Buyers, no Appraisals or Loan Qualification
Page 18 MAREInet.com
Local
The Kansas City Missouri Water Department seems to be the biggest local issue for our Government Affairs Committee. We have met three times since January with Water Department and City officials in conjunction with Landlords Inc. These three meetings have led a few key changes regarding billing in Water Department Ordinances in Kan-sas City Missouri. These changes still need to be implemented by the Water Depart-ment but it is a Step. Our next big issue is the Billing of Landlords for Tenants Bills. We need your help here. We need actual instances of this to provide evidence that this is really happening on a much larger scale than the Water Department believes. Please take time right now to email (info @ MAREInet.com) your actual issues of being
billed for tenants usage.
See more on our Water Department Page
Copper Theft
Please join us in finding a solution. If you have constructive information to contribute of ways other cities and states have combated Copper Theft, please join us on Facebook Stop Copper Theft Now. And note that all Government Officials seem to be very inter-ested in a solution.
Kansas Legislation
We browsed proposed and passed legislation in Kansas and have compiled the infor-mation on our Legislative Tracking page. Nothing of note.
Missouri Legislation
Our Legislators in Missouri have been busy proposing a lot of bills and you can read through all of them or just the condensed version of those we thought our members would have interest in.
We have laws proposed regarding tenants security deposits, tenants not paying rent, contract for deed laws, foreclosure laws and more. Note one law was proposed by one of our members Gary Cross. Look for HB 748.
Federal
We recently sent out a call for action on the discussion at the Federal Level on Mort-gage Interest Tax Deduction. Read more and take action on the Realtor Action Center Page.
And you sill have time to attend National REIA's Day on the Hill in Washington DC on April 13th & 14th.
Government Affairs
See more info under our Government Affairs Tab at MAREInet.com
Investment News Page 18
More Profits
On Demand Training
30 Minute Segments
Top Investor Trainers
From the Comfort of
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REO’s & Lease Options
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Tenant Screening
Pre Employment Screening
Contractor Screening
Collection Services
www.AAAScreening.com
816-436-0085
Discounts for MAREI Members
For Investors By Investors
In this market, you want an agent on your
side that has the knowledge, the ability,
the EXPERIENCE,
and the resources to help you!
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Page 20 MAREInet.com
TRAINING
Wholesaling 101
Fast Start to Cash
Make small chunks of cash by wholesaling properties!
Join us and learn:
What is a wholesale deal What are the best houses How do you get paid? Which is Better Double Closing or Assignment What happens at closing? Who should be on your buyer‟s list? How to build a buyers list, FAST!
Wholesaling is one if the best places to start in real
estate investing because it feeds all other forms of
investing, teaches marketing, and lower costs.
Date & Time
April 23th
9-12 pm
Location
115 E Gregory Kansas City, MO
PHP
1 Credit Marketing 2 Credits Mgmt
Cost
Members $39 Non-Members $49 Register Online
Buying at Auction
Maximum Profits while Minimizing Risk
Heard about buying houses on the courthouse steps, but not sure where to start?
Join us to Learn:
How to Examine Title What to look for in Public Records Tips for Staying Safe while Viewing Properties Estimating Repairs when you Can‟t Get In How to Bid at the Auction and Stay Cool What to do when you are Successful Bidder.
Workshop taught by Kim Tucker with kcmoHome-
buyer.com. Kim and her partners bought and sold
over 20 houses at the courthouse in the past 2 years.
Date & Time
April 23th 1-4 pm
Location
115 E Gregory
Kansas City, MO
PHP
1 Credit Inspections 2 Credits Purchasing
Cost
Members $39 Non-Members $49 Register Online
3 PHP
CREDITS
3 PHP
CREDITS
Investment News Page 21
EVENTS
LEAD GENERATION
Your Business = Your Database
Sales training out there shows that they key to any ser-
vice or sales business is having a database of people
you know, adding to it on a regular basis, communicat-
ing with it systematically, and Servicing all the leads
your database brings to you. In this two part workshop
we are going to discuss your circle of influence, how to
influence it and build credibility, how to grow it, and how
to covert it into sales dollars.
Workshop taught by Kim Tucker Broker at Realty Re-
source using methods she has used to grow both her
Real Estate Business and MAREI.
Date & Time
April 14th 1-4 pm
Location
115 E Gregory
Kansas City, MO
PHP
1 Credit Marketing 2 Credits Mgmt
Cost
Members $39 Non-Members $49 Register Online
3 PHP
CREDITS
April Webinars
Learning at Home
April 7th: Self Directed IRAs with Edwin Kelly
April 12th: Effective Business Page Marketing with
April 12th: Rock Your World with a Roth IRA
April 19th: Learn 7 Key Elements to a Successful Web
Strategy
April 26th: The Perfect 60 Minute Listing Presentation
May 3rd: How to Effectively Market to Sellers In
Foreclosure
Page 22 MAREInet.com
Wholesaling
put it all together to determine how much the house is worth now and when fixed up.
4. Negotiation is the next step to master. You will be negotiating with sellers to get the lowest possible price at the best terms for you as a buyer, then turning round and negotiating with the buyers for the exact same things for you as a seller.
Along the way you have a lot of other factors consider.
What price ranges should you be buying in. Well that will be determined by your buyer list and areas you want to work. Here in Kansas City you can find a lot more cheap low end houses and make a very small chunk on a lot of houses. Or you could look in a nicer price ranges, do fewer deals, but earn more per deal.
Wrapped up in the price range is the neighborhood. A great deal in an owner occu-pied neighborhood is going to be much easier to sell while a cheap house in a low end high rental neighborhood might take a lot longer.
Another consideration is going to be how are you going to get paid. You have a lot of op-tions from assigning the contract, double clos-ing, buying and then selling at a later date or just getting a real estate commission. These options will depend on your access to cash to do a deal.
If you are just starting out in real estate invest-ing or if you want to learn the basic concepts in real estate investing that work for real right here in the Kansas City market, then join us at our Wholesale 101 Training Workshop on Sat-urday April 23rd.
There are a lot of “gurus” out there teaching wholesale real estate investing that did 100 deals their first year, wrote a book and are now out there teaching.
Why do they focus on wholesaling? Well who knows why gurus do anything. We are focus-ing on Wholesaling as it is one form of invest-ing that does not take a lot of money, is not overly difficult, and your success can be in direct proportion to your marketing efforts.
Wholesaling is also a good point to start your investing business because if you perfect the technique, it will be well versed in almost all the aspects of other investing.
So what are the key steps you need to mas-ter?
1. Marketing is the most important task you will need to learn in marketing. You will need to market to build your buyer „s list. You will need to market to find motivated sellers. Last you will need to market to put your deals together with you getting paid in the middle.
2. Evaluating deals will be your next task. If you market right you will have a lot of deals to potentially look at and make an offer. So first you will need to be able to evaluate on the phone and prioritize which houses are a waste of you time, which ones to refer out because they don‟t fit your model, which ones to follow up with later, and which ones to go look at right now.
3. Evaluating properties is the next step. You will need to be able to estimate re-pairs and holding costs and then evaluate the house for an after repair value. Then
Step by Step
Investment News Page 23
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April 5 NAR Webinar Realtor Safety at Open Houses
April7 Webinar Ask Edwin: Self Direct IRAs
April 8 Networking Johnson County Networking
April 9 Workshop EPA Lead Safe Certification
April 10th Networking Lee‟s Summit Investor Breakfast
April 11 Deadline Date to Reserve Vendor Tables for Tuesday
April 12 Meeting Monthly Meeting: 101 Ways to Use Social
Media
April 12 NAR Webinar Effective Business Page Marketing in Face-
book
April 12 Webinar Rock your works with a ROTH IRA
April 13 Webinar Commercial Investors Group
April 14th Workshop Lead Generation
April 15 Networking Johnson County Investors
April 19 NAR Webinar Learn the 7 Key Elements to a Successful
Web Strategy
April 20 Focus Advanced Investors: Monetizing Deal leads
April 22 Networking Johnson County Investors
April 23 Workshop Wholesaling 101 for Fast Cash
April 23 Workshop Buying at the Courthouse
April 27 Networking Commercial Investors Sub Group
April 29 Networking Johnson County Investors
Page 24 MAREInet.com
FREE Membership
With MAREI Money How to Get (almost) FREE MAREI Money
Wouldn‟t it be nice if someone paid you to become a better Real Estate Investor or Business Entrepre-neur?
Well, here at Mid-America Association of Real Es-tate Investors, we do just that!
MAREI has a FREE money program that will put credits (or MAREI dollars) in your MAREI member-ship account that can be used to pay for member-ship, OUR workshops, vendor tables, and other ad-vertising.
And every time you attend an event, you‟re guaran-teed to learn something that will save or make you money. Here‟s how it works. . .
Do one or more of the following and you‟ll automati-cally get credited:
Invite a Guest to a Meeting………………….$5
Refer a New Investor Member……………. $10
Refer a New Business Member……………$50
Volunteer (per event)……………………… $10
Work in MAREI Office (per hour)………… $10
And last, but not least. . .
Special Projects………………………………Varies
As an investor, you need to see a good deal and take action, so start adding to your MAREI account today!
In order to use your credits, you must be a
MAREI member.
If you haven‟t joined yet, what‟s stopping you?
Join Now
Invite a First Time Guest to Attend: Click left to for our Potential Member Package. Download and email to a Friend. They can print the guest pass part of the package and insert YOUR name as refer-ing them. When we process their guest pass we will credit your account with $5.
Refer a New Investor Member: After your friend checks out their first meeting, be sure to follow up with them to see if they have any questions. Please don‟t hesitate to call or email MAREI to get the an-swer. Remind them that when they join, to put in your name as a referral. When they join, we credit you with $10.
Refer a New Business Member: Do you have businesses that you work with on a regular basis that would benefit from being a member of MAREI. Please Invite them to Attend First Time as your Guest, tell them about Business Membership , and email us with their contact info so we can follow up. When they join we credit your account with $50.
Volunteer: We need help with set up, check in, and clean up. Sometimes with handouts and more. Please email us to get on the volunteer list. When you volunteer at an event, we credit you $10.
Work in MAREI Office: This is basic clerical
stuff. Copies, Assembly Filing, Stuffing, Addressing,
and maybe more depending on your skills. Pay for
clerical help is $10 in MAREI Money per hour. For
specific skilled jobs with newsletter creation, ad
creation, creation of educational materials, teaching
classes, training videos, webinars, more . . . we can
work with you for a bonus bucks payment structure.
Investment News Page 25
Offered As Address City Price Bed/
Bath
Contact Phone
Rehab Stratford Estates Kansas City $40,500 3 / 2 F Jannsen 816-359-3337
Owner Fin Near Blacktop Lake Ozarks land S Summers 816-350-7200
Owner Fin Kansas City, MO $25,000 2 / 1 S Summers 816-250-7200
Rental Kansas City, MO $32,500 3 / 1 S Summers 816-507-4203
TLC 309 Hill St Belton, MO $29,500 3 / 2 C Becker 816-419-1165
Rehab 850 Shawnee Rd Kansas City, KS $19,500 3 / 1 B Bomboma 913-735-9997
Turn Key 6032 Everett Kansas City, KS $45,000 2 / 1 K Tucker 816-523-4400
Turn Key 3209 E 69th Tr Kansas City, Mo $30,000 2 / 1.5 K Tucker 816-523-440
Rental 2631 Montgall Kansas City, MO $15,500 2 / 1 C Becker 816-419-1165
Rental 3928 Highland Kansas City, MO $24,500 3 / 1 C Becker 816-419-1165
Rental 9909 Wheeling Kansas City, MO 33,500 3 / 1 C Becker 816-419-1165
Turn Key 5254 Skiles Kansas City, MO $35,000 2 / 1 K Tucker 816-523-4400
Turn Key 7424 Bellefon-
taint
Kansas City, MO $35,000 3 / 2 K Tucker 816-523-4400
Turn Key 5956 E 129th St Grandview, Mo $45,000 2 / 1.5 K Tucker 816-523-4400
Rental 509/ 513 Maple Liberty, MO $150,000 2 / 2 John Parr 913-634-8230
Rental 501/505 Maple St Liberty, MO $150,000 2 / 2 John Parr 913-634-8230
Fixer 3815 Flora Kansas City, MO $12,500 3 / 1 C Becker 816-419-1165
Rehab $75,000 B Bomboma 913-735-9997
Rehab 937 Haskell Kansas City, KS $11,950 3 / 1 C Becker 816-419-1165
Rehab Kingsidge West Blue Springs, $49,900 4 / 2 R Walls 219-864-1788
Rehab Jackson County $15,000 4 / 2 B Bomboma 913-735-9997
Rehab 4737 Norton Ci Kansas city, MO $22,500 3 / 1.5 C Becker 816-419-1165
See all properties on the classified page on MAREInet.com
Page 26 MAREInet.com
Buying at the
sale price in certified funds right there. Oth-ers will settle for 10% now and the rest wired by noon the next day. So having a ready source of cash funds is a must.
4. There is no inspection or due diligence pe-riod. So for example, if you are buying a bank owned house, you get it under contract and per the contract you have so many days to do inspections and possibly renegotiate the sale price or back out. At the court-house, once you win the bid, there is no backing out.
5. You may or may not be able to get into the house before you go to the auction. For the majority of deals you will be able to drive by and see the outside of the house. But unless the home is listed for sale and or the owner will let you in, you are bidding com-pletely based on the outside of the house.
6. You are buying who ever is living in the house at the time. You may be buying a ten-ant you will need to work with to keep or move out. You may be buying a house with the previous owner in the home and they may not want to move. Or they may move but be upset and do damage to the house on the way out.
7. The hardest drawback for me to deal with was the time frame involved. Here in Mis-souri the attorney will file foreclosure and have 21 days from the date of filing to the sale. In theory if we can find out about that sale through a list service we should have 21 days to do our homework. Here‟s the prob-lem. If 100 loans had foreclosure filed on them today, maybe 20 would actually go to sale in 21 days. So there is no point in doing
(Continued on page 27)
My partners and I have been buying the majority of our houses on the courthouse steps in Jack-son County for the past 2 years.
It has some really great upsides, like the fact that once the bidding is over, YOU OWN the house, for the most part. There still is the matter of you paying for it right now and the final filing of the deed. If you have ever went through the hassles of trying to close a bank owned property lately, you might like a 5 minute process to buy-ing a house.
When buying at the courthouse you can also make some great profits, but remember when there is potential for great profits, there are also a lot of RISK. So you need educate yourself on the risks.
Some of the risks and drawbacks you need to know about are as follows:
1. Does the state in question have a redemp-tion period. This is a time period set after a home is sold at the courthouses steps where the original borrower can make the loan good and get their house back. In the mean time your money is tied up in a house that you may not get to keep for 30, 60, 90 days or longer.
2. You are not guaranteed clear title when buy-ing at the foreclosure auction. For the most part a foreclosure on a lien will wipe out any junior liens. So you need to be able to do your home work and research which lien is foreclosing, what position is it in and are their any other liens like a State Tax Lien that would not be wiped out.
3. We hinted at this before, but you need to have all your cash ready to go at the time of the auction. Many will want 100% of the
Courthouse
Investment News Page 27
Lead Lists
Pre-Notice of Default
Pre-Foreclosure
Affluent Consumer
Free & Clear Homeowner
Absentee Owners
Newly Listed Homes
New Business leads
Custom Consumer Leads
EZ Data Group Leads
Track Foreclosures
Complete Details
Including Addresses
Jackson, Clay, Platte
EZ Data Group Foreclosure
See housing stats online
www.KCRAR.com
Resources Tab
Heartland MLS Statistics
any homework until the day before. And many times a house that is on the list for sale tomorrow, may not get priced until the time of the sale. So you spend hours of your time researching a property only to have the house not go to sale because it either gets canceled or never priced. Or you skip one because it is not priced and then you hear that some-one bought it for cheap.
I remember the first house we bought. From the outside it looked really nice, well painted, clean yard. We bought it. When we got inside later that day it was vacant with wall to wall pink carpet, 2 pink bathrooms, a kitchen from 1952 with a nice haze of nicotine all over everything and a really bad foun-dation. We sold it and made money.
We had another nice newer home we purchased that we had to work with the homeowners until they moved out. They left the house in brand new condition. Other than shampooing the carpets and in-stalling appliances we did nothing to it and sold it fast for a tidy sum.
We reduced our risks by doing our homework. That means we did our own title research with a few key phone calls to our title attorney to verify the weird ones. We walked away from a few because we were not sure.
We drove by to see the outside and did our best guess at estimat-ing all repairs from the outside and on a few were lucky enough to get inside.
We also did our best to deal with the tenants and previous owners that came with the houses. Some
we just walked away from because we were uncomfortable dealing with the occupant. Kicking grandma out of her house is not fun.
As a form of investing, I have to say it is a really great option if you have access to the necessary cash and have the ability to do your own homework. You need to also have a bit of gambling blood, because if you are looking for a cut and dried, sure thing, by the num-bers kind of deal, well you don‟t find those every day at the court-house.
If you would like to learn more about this process, join me on Sat-urday, April 23rd for a 1/2 day workshop where we will review the steps necessary to minimize the risks of buying on the courthouse steps.
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