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RE N E W S

NEWSLETTER FOR
INVESTMENT

MID-AMERICA ASSOCIATION OF
FEBRUARY 2017

REAL ESTATE INVESTORS

WIN - WIN! THE BASIC RULES PLUS


& CONCEPTS OF NEGOTIATIONS
Tom Zeeb: page 3 Calendar of Events
Security Deposit
Legislation
EVICTING A TENANT Partnerships
Business Directory
answers to common questions
Julie Anderson : page 5
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- JOIN US SATURDAY FEBRUARY 19TH TO LEARN MORE -

WIN - like you desperately need to buy,


dont forget that they need to sell.

WIN!
Some need to sell more than
others. And some really need to
sell fast.

Understand that there is pressure


THE BASIC RULES & on them as well. There is time
CONCEPTS OF pressure on them. There is money

NEGOTIATION pressure on them. There are other


situational pressures on them.
Dont forget that.
BY TOM ZEEB
There are some basic rules and Dont always feel that there is just
concepts to remember when you are pressure on you. Stop and breath,
negotiating. I will describe these take a step back, and look at the
rules and concepts so that you can situation calmly. A lot of this is
get a clear idea of what negotiating is about going around the other side
and what things you need to be aware of the table and thinking like
of. them, feeling like them and
recognizing what is going on
Remember that you are negotiating there.
all the time. This is true for many
aspects of your life. Therefore, even Just dont forget that they have
if you are not using a specific pressure on them to close the deal
technique, keep these basic rules and as well.
concepts in mind. They are the
starting point and framework for any 2. Wanting to learn negotiating
negotiation. skills.

Five Things that Make a Good You have to want to learn this
Negotiator stuff.

The right state of mind is important. That sounds basic and obvious, but
As is learning the skills necessary to many people think to themselves,
success and improve. Like anything I am a good businessman. I am a
else, there are things that you can do good negotiator. Yes, maybe. But
to improve your mindset and skill set. there is a lot you can learn and it
is going to take practice.
Consider these five things that make
a good negotiator: Commit to wanting to learn about
negotiation.
1. Understanding that the other side
has pressure on them to do the deal 3. The desire to practice.
as well.
You need to be willing to practice
Both sides are under pressure to do these skills.
the deal. So dont feel too
intimidated. Dont think it is just you I have a friend whom I told to
that needs to perform. study these techniques. I
recommended a course to him and
If you start approaching someone he said to me, I am a good

RE INVESTMENT NEWS PAGE 3


- NEGOTIATION -

negotiator already. I know all that. I dont need help. I 5. Wanting to create "win/win" negotiating situations.
said, Just humor me on this one. You are starting a new
job and I think these techniques will really do you good. I know you hear the term win-win a lot and it might
I had once thought the same thing myself, that I sound a little cheesy, however it really does make all the
couldnt get any better, etc. Thats nonsense! Everyone difference in the world.
can get better if they study and practice the right
things. Not viewing someone as the winner and someone as the
loser is one of the major things that separate
He did actually study the techniques. I got an email from negotiation from high-pressure sales techniques.
him a couple of weeks later and he said, That stuff was
awesome. I am doing so well now. High pressure sales techniques sometimes make you feel
like a loser. Especially if you are the one who forked
He negotiated 25% discounts across the board from all over a lot of money for something you maybe didnt
the vendors he was dealing with. He said his boss is need or really want.
thrilled beyond belief and cant believe what a great
choice they made hiring him. He applied these In a win-win situation, you would say I think I got a
techniques and totally changed the dynamics of the way good deal. I got some of value out of that. That will
that his company is doing business with other make a difference in the way you are perceived by the
companies. other party and by the business community in general.
It will make people want to refer you to others.
He said some of the stuff sounded basic but you just
dont always think about it, especially in a big picture Tom Zeeb has been featured by CNBC, The Washington
perspective that ties it all together. Post, Kiplinger's Magazine, The Washington Examiner,
Financial Lifeline Radio and National Real Estate
Commit to practicing the skills it takes to be a Investors Association's Magazine among others. He is the
successful negotiator. President of Traction REIA and he will be teaching his
business blueprint at the February 14th MAREI meeting
and an all day Master Class on Saturday the 18th.

Tom Z e e b s '
A T S H E ET TM

F L O W C H E
E A L
THE DK e y M a r k e t i n g E l e m eFnrti cs t i o n t o F l o w
t o M o v e Your

The 5 B u s i n e s s from
e
Real Estat

Grab your copy


MAREI.org/Traction
evicting a tenant
ANSWERS TO COMMON QUESTIONS
eviction suit?

If your rental property is owned in the


name of a business entity, you are
required by law to be represented by a
lawyer. If you own in your own name,
you may be able to file without an
attorney. Note that in both Kansas and
Missouri, an eviction case is much
faster than a civil case, but you have to
follow highly detailed rules and you
may find that hiring an attorney will
speed up the process and get you the
property back sooner.

Can I change the locks or turn off the


utilities if the tenant stops paying?
No. Landlords may be prosecuted
criminally or sued in civil court for
tenant damages such as temporary
housing, value of food spoiled if the
refrigerator stops running, etc. The fact
that the tenant did not pay rent, left the
property a mess, or otherwise acted
Areviewofcommonquestionsaskedabout outrageously will not be a valid defense
for changing locks or turning off

evictionsinKansasandMissourifrom utilities.

If the tenant moves in and fails to put


MoKsLaw.com the utilities into their own name, you
still cant shut them off. It is a good idea
for the tenant to provide proof of
service on the utilities before letting
them move in.
What is an eviction? the lease, the law or failure to move out
when agreed. Emergency Eviction that How long does the eviction process
An eviction is the removal of tenant(s) allows the landlord to remove the take?
from a rental property by a landlord tenant within 24 hours of judgment due
through a court action (lawsuit). There to violence, drugs or damage. In Missouri, a court date is scheduled
are three types of evictions in Missouri: about four weeks after the lawsuit is
(1) a Rent & Possession action, (2) an In Kansas, an eviction lawsuit is called a filed. A private process server will give
Unlawful Detainer action, and (3) an forcible detainer and pertains to failure a copy of your petition and the court
Emergency Eviction. to pay rent or violations in the lease or summons to the tenant(s) at least ten
the law, or criminal activity. days before the court date. If the
Rent & Possession is for past due rent.
Unlawful Detainer is for violation of When do I need a lawyer to file an

RE INVESTMENT NEWS PAGE 5


tenant shows up to court and disputed The 14-day/30-day notice would be the What if the day of eviction the tenant
the allegations in your petition for notice provided in the case of a lease or refuses to remove themselves and
eviction, then the Judge will set the law violation listing out the tenants their belongings?
case for trail in seven to 14 days. If the names, the address and a list of each
tenant fails to appear, the Judge will lease or law violations and a brief In Missouri, the Deputy Sheriff will
enter a default judgment. A Rent and description explaining the violation. physically remove the tenant, and you
Possession will be final in 10 days, State that the tenants right to will be responsible for removing all of
Unlawful Detainer in 30 days. possession will automatically terminate their personal possessions to the curb.
in 30 days from the date of the notice Once everything is removed, the
In Kansas, your court date will be about unless the tenant fixes the violation Deputy will authorize you to change the
three weeks after the lawsuit is filed. A within 14 days of the date of notice. locks.
Deputy Sheriff will give a copy of the
petition and the court summons to the To terminate a month to month you In Kansas, while the Sheriffs Deputy
tenant at least three days before the must provide your tenant with a one will physically remove the tenant, he
court date. If the tenant fails to show or month notice based on the date that will also take inventory of the personal
shows and agrees the charges a default rent is due. property and authorize you to change
judgment will be filed and becomes final the locks. However, you have to keep
after fourteen days. If the tenant shows If I hire an attorney, do I need to possession of the belongings for thirty
up and disputes the allegations a trial appear. days and publish in the local paper as
will be set for seven to fourteen days described below.
later. Once the judgment becomes No, you do not need to appear at the
final, the sheriff has up to 30 days to first court date. If it is held over for What if my tenant moves out but
physically remove the tenant. trial, you will need to appear for that. leaves their stuff behind?

What notice is required prior to filing What is the process for an eviction? In Kansas, you cant throw away
an Unlawful Detainer in Missouri? belongings until at least thirty days
Step 1: Attorney sends written demand from the date you reclaim possession of
You should serve your tenant with a 10 letter to pay rent or vacate and to call the property. And prior to disposing of
Day Termination Notice if your tenant the landlord to resolve. the belongings you must publish a
has violated their lease, the law, or notice in the local newspaper for at
failed to move when the lease expired. Step 2: The eviction is filed at the least 15 days and mail a notice to the
If you are on a month to month lease, courthouse. tenants last known address at least
you first need to provide the tenant seven days prior to disposition.
with a months notice to terminate the Step 3: The court will schedule the case
lease. for a hearing and issue a summons to In Missouri if you have reasonable
tenant to appear. belief that the tenant has moved out
What notice is required prior to filing and does not intend to return and rent
an eviction suit in Kansas? Step 4: A private process server in is due and unpaid for 30 days and you
Missouri or the Sherriff in Kansas will post and mail both regular mail and
Kansas law requires that the landlord serve a copy of petition and summons certified mail to the tenants last known
serve the tenant with a written to tenant. address to contact you within 10 days
termination prior to filing an eviction to claim the property. You can then
lawsuit. These notices include a Three- Step 5: Your attorney goes to Court on dispose of possessions after the 10 days
Day Notice to Pay or Quit and a your behalf to obtain a judgment. have passed with no response.
Fourteen/ Thirty Day Termination
notice. Step 6: Attorney will contact you with Information is from Julie Anderson on
the Courts results and ask if you would the website www.MOKSLaw.com. You
The Three-Day Notice to Pay or Quit like to schedule the Deputy Sheriff to can learn more about evictions and
must be in writing, list all tenants, the perform a lockout procedure. collections in both Kansas and Missouri
address, exactly how much is owed, by visiting the website. Julie will be our
state that past due rent must be paid in Step 7: You and the Sheriff will lock out guest speaker in March helping us learn
full within three days of the notice or the tenant and remove their best practices when it comes to dealing
they must move out and list who and possessions. with tenants.
where to pay the money.
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RE INVESTMENT NEWS PAGE 7


MAREI.ORG/CALENDAR

THE CALENDAR
FROM OTHER GROUPS > MEETING
WinVestor's
Hosted by Brian & Michelle Winberry
Wednesday Mornings at 9 am
Lucky Brewgrill
RAPID CASH
5401 Johnson Drive, Mission GENERATOR
1st Saturdays
Hosted by Jim & Beth Kasper
1st Saturday of the Month 9 am
BLUEPRINT
Networking Coffee / Denny's Join us Tuesday February14th when we welcome Tom
9001 Shawnee Mission Pkwy, Mission Zeeb to share his business blueprint to make money
without money in real estate. Meeting start at 6pm
Landlords of Johnson County with Networking and Presentation starts at 7pm. and
First Wednesday of the Month should run till about 9:pm. As always members and first
Matt Ross Community Center time guests can pre-register to attend for FREE - all others are
8101 Marty, Overland Park, KS asked to join, pre-register for $15 or pay $25 at the door.
Location: Holiday Inn at 8787 Reeder Road in Overland Park.
Cass County Landlords Meeting after meeting runs till about 11 pm.
3rd Tuesday of the Month Bring your Valentine!
Carnegie Village
103 Bernard Drive, Belton WORKSHOP RAPID CASH GENERATOR
Landlord Inc of KCK
3rd Tuesday of the Month
Loan Star Steak House
Register at MAREI.org
MASTER CLASS
1501 Village West, KCK
to Master Marketing, Learn to Seal the Deal, Learn Where to get Comps, HowSee
There are 5 elements that drive a successful real estate investing business. Join u y
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Offer, and Get the Paperwork Right. If you want to be your own boss and learn to be successful
Blue Springs Real Estate Investors
3rd Thursday of the Month right away in real estate, join Tom Zeeb on Saturday., Workshop starts at 9 am andp ageruns5till
Perkins about 3:00 and includes lunch. Doors open at the Holiday Inn at 8787 Reeder Road in Overland
3939 S Bolger, Rd, Independence Park at 8:30 am. We tend to sell out on Saturday workshops, so please pre-register early.

Landlords Inc.
4th Tuesday of the Month MARCH
Central United Methodist Church
5144 Oak Street, KCMO
Landlords of EJC
TENANT BEST PRACTICES
Join us in March when we welcome Attorny
4th Thursday of the Month Julie Anderson to learn best practices when
Allen's Banquet Hall
11330 E Truman Rd dealing with tenants to finding them,
Independence, MO screening them, complaying with fair
housing, manage them and evicting them
Jackson County Real Estate Investors when it does not work out.
Last Wednesday of the Month
4 West Monroe Street Julie will be our speaker at our Tuesday
Buckner, Missouri meeting and joining us for a Saturday
Workshop.

Registration at www.MAREI.org

" I came to the speed networking event and it was honestly eye opening and life changing. I made
multiple connections for my Investor remodeling company as well as my investing goals. ."
MISSOURI LANDLORDS &
SECURITY DEPOSITS
SUPPORT MISSOURI HB 705 AND SB 234 TO REPEAL LAW THAT
REQUIRES YOU TO HOLD SECURITY DEPOSITS IN A TRUST
ACCOUNT
Current Law in Missouri According City. We are asking all landlords
to Section 535.300.1 in the state of Missouri, who
would be able to be in Jefferson
All security deposits shall be held City on Tuesday February 7th by
by the landlord for the tenant, who 3pm for a premeeting in Gary
is a party to the rental agreement, Cross s office and the hearing at
in a bank, credit union, or 4pm.
depository institution which is
Were You Aware insured by an agency of the federal For those that cannot make it to
of Section 535.300.1 government.Security deposits shall
not be commingled with other
Jefferson City at 4pm next
Tuesday, we ask that you take
funds of the landlord. All security action, right now, today and reach
deposits shall be held in a trust out to your own Senator and
Do you keep tenant established by the landlord and Representative via phone and / or
security deposits in a deposited in a bank, credit union, fax to let them know your own
or depository institution account in opinion on these two bills.
trust account? the name of the trustee.
Visit MissouriPOA.org for more
To resolve this vague and almost details of the current law and the
We want to know, please uneforcable law, Senator Doug proposed bills to change the laws.
visit our discussion on Libla has proposed SB234 and
Representative Gary Cross has Also find links to reach out to your
our Facebook Group proposed HB705 that would repeal own representatives as well as
Missouri Landlords this particular section of the law. information on how one would
testify at the hearing and best
The Senate had a hearing on practices for writing to your
SB234 on Tuesday January 31st legislator.
and MAREI Member & Missouri
Landlord, Steve Vogel went to Take Action and #DOSOMETHING
Jefferson City to testify on your
behalf and to represent the 1. Testify on the 7th in Jeffersn
Missouri Landlords. At this City at 5pm. Contact Steve Vogel
meeting Senator Libla who had to Coordinate at 816 - 210 - 0357
introduced the bill in Senante 2. Fax or Email your Legislator,
testified on behalf of the bill. utilize links at MissouriPOA.org for
Steve presented the rough costs more information.
we had found with complying with 3. Join us on our Meetup Group
the law that seemed to gather at
attention by those at the hearing. https: // www.meetup.com / Missouri
- Landlords /

The hearing for HB705 will be in 4. Join our discussion on


Jefferson City on Tuesday Facebook
February 7th at 4pm in Jefferson at https: // www.facebook.com / gro
ups / 1658703507747377 /

RE INVESTMENT NEWS PAGE 9


Tom Zeeb on Partnerships

Are two better than one ? Is there strength in numbers ? started. Therefore they feel comfortable with each other

Should you do partnerships with other investors ? because they are in the same boat .

The answer is : it depends . However , two struggling people with no experience do not

bring much to the table . It is a partnership without any true

There are a lot of criteria to evaluate when considering if benefit to either party other than having someone to share

you should take on a partner in your business . the ride with .

In my experience and from my observations , partnerships of Intermediate to advanced investors also need to be

inexperienced investors tend to feel good for those cautious about partnerships .
partnering up , '
but don t succeed because there is no real

balance of skills and knowledge . And there are quite often Once someone has done a few deals , they develop their

very different objectives as well that make the two parties own style and method for doing business . This may clash

incompatible as long term business partners . with another investor , especially as entrepreneurs tend to

be very independent minded and strong willed .


Inexperienced potential partners feel good together

because both investors are struggling and afraid to get In the case of both the beginner and advanced investor , it is
important to be sure that both sides see eye to eye on what - - Partnerships can be out of balance because of overlapping

their personal financial and business goals are . strengths or both sides being weak in a certain area .

For example , if one partner is younger and broke and wants Double weakness = problems externally

to wholesale everything for quick cash and the other Double strength = internal clashes

partner is older and more interested in cash flow and

appreciation and wants to buy and hold everything , then Do not underestimate this . Recognize where these overlaps

the partnership is going to have trouble . occur and work with your partner to ensure that you find a

way to account for the problems that can occur .


The same would be true if the partners had very different

risk tolerances . If one partner wants to renovate everything If you do find a good partner and decide to join up for long -
for the
big bucks but the other partner is scared of the term business purposes , be sure you legally construct an

time and money involved and just wants to wholesale for entity to protect yourselves from each other .
quick cash , then the partnership will have trouble .
Have an attorney draft up an operating agreement that

At the end of the day , it is wise to remember that there is clearly states what happens if the partnership dissolves .
only one captain on a ship . It is a rare partnership that Decide on the details of how you would split up front when


doesn t have any serious friction . you are still on friendly terms . Trying to do that once the

relationship has soured is not easy or pleasant .


For those partnerships that do work , the partners have a


good understanding of each other s personalities and of If you are just partnering up on an ad hoc basis for certain

their own strengths and weaknesses and well as their deals, use a Joint Venture ( ) JV arrangement . In all cases


partner s strengths and weaknesses . They also share very avoid the general partnership , as it provides no protection

similar goals and expectations for what they want to get out and actually makes you liable for the other party s actions .
of the business partnership .
The main questions to ask yourself when

considering a partnership are : Is your

partnership profitable ? Do both sides bring

something to the table ? Will two be better

than one ?
We often get asked who offers Mentoring

here at MAREI . Note that most local

memers will answer a question or two ,


but if you want someone to hold your

hand and actually teach you something ,


we highly recommend the guest speakers

who join us to teach Saturday workshops .

MAREI STAFF

RE INVESTMENT NEWS PAGE11


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