Investment News


September 2011

The New Land Rush See Page 8

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 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
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.

Honors Of Merit 2011 Electronic Communication & Membership Development
Page 2

Content Disclaimer
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.

Advertise in the Investment News
Rate Schedule Size Full Page 1/2 Page 1/4 Page 1/8 Page Non-Member $175 $145 $75 $55 Member $140 $105 $65 $35 Business Associate $115 $85 $50 $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.



Kim Tucker 816-523-4400 Director Kim@MAREInet.com

Don Tucker 816-523-4400 President Don@MAREInet.com

Steve Burns Audio Visual cashflowtreasures@gmail.com

John Welchert Meeting Ambassador 816-268-3849

Dan Goodwin 913-642-5218 Meeting Ambassador DanGoodwin@kw.com

Shelda Goodwin Meeting Ambassador SheldaGoodwin@kw.com


Be sure to thank our volunteers who

help out at each and every meeting making sure the entire meeting is a success. If you would like to volunteer from time to time to help set up, take down, or check in, or assist for a few hours in the business office, please email info@MAREInet.com or call 913-815-0111. Special Thanks to Marty Seiss and Melissa Wurtz for their assistance this past month.
Scott Tucker Meeting Ambassador STucker319@gmail.com

Investment News

Page 5

ei ar m
Type Attorney Contractor Insurance Lender Prop Mgr Prop Mgr Realtor Security Supplier Title Wholesale Company Web Wise / Anderson Te-Tee Light APIA Argentine Federal Savings Abraxas Prop Mgmt Jamieson Home Team Realty Resource Devcon Security Canyon Stone Accurate Title Company kcmoHomeBuyer BobWiseLaw.com MAREI Vendor REOIns.com

Phone 816-942-5925 816-356-1870 877-752-2742 913-402-1500 816-474-8800 816-503-4671 816-523-4400 913-907-4942 913-254-9301 913-338-0100 816-200-2198 Contact Bob Wise George Bai Lisa Goodner Ann Wilkinson Meka Cayce Kevin Jamieson Kim Tucker Marian Collins Matt Puckett Jackie White Don Tucker

ArgentineFed.com AbraxasMgmt.com JamiesonHomeTeam.com RealtyResourceKC.com DevconSecurity.com Canyon-Stone.com AccurateTitleco.com kcmoHomebuyer.com

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 offer to MAREI members by visiting, www.MAREInet.com. Look in under the Benefits tab under “Service Directory”.

Page 4 MAREInet.com

Next Month Mortgage Fraud with Julia Jensen, FBI

In This Issue
MAREI Business Members MAREI Meeting Staff Notes from Director The New Land Rush—Farmland Being Rich more than Money Investors Wanted: Ideas for Govt REOS Marketing Plan: 10 Steps MAREI Market Data Report Home Depot Checks Calendar Updating your Specialty in your Profile Classifieds Welcome New Members 2 5 6 8 10 12 14 16 18 22 24 25 26

More Stories on the Blog
    Is Real Estate in a Slump Be Prepared for Appraisal Delays $5000 Grants for First Time Military Buyers. From Appraisal News : too many interesting economic facts to list—click to read all of them!


Facebook / LinkedIn
    Home Prices Rise for 4th Straight Month Unemployment Drops in 7 of 10 US Metros Several Deal Posts on Linked In New Facebook Group: post your deals here

Investment News

Page 3

Director’s Notes
Wow, what a year of ups and downs. The economy is up one day and down the next. Housing sales are up and then they are down. Employment is rising, but it’s not. I think rather than in a up and down cycle that everything seems to be going around in circles. But I have noted that when the media was hinting at the housing bubble and the recession was starting we noted that membership started decreasing at MAREI. We also noted that we had fewer advertisers and business members. I also noted that the Kansas City Star Newspaper seemed to be getting thinner and thinner, the Real Estate Section shrinking with fewer ads. Now over the past 6 months we have had a large influx of both brand new members and members renewing their memberships that we have not seen for a few years. I would love to welcome all of you into the new and improved MAREI, we have figured out how to provide you more with the same low membership fees. In the past month or so we have started adding brand new Business Members. These are growing small businesses that are starting to expand and want to earn your business here in Kansas City, so be sure to welcome them to our membership. We are also seeing a huge increase in the number of houses our members are offering for sale on the Classifieds. And the really telling factor to the Economy, at least in Kansas City, is that the Kansas City Star seems to be getting bigger. Every week the sections seem to have a few more ads and maybe another page extra here and there. Now I know the paper will never be the size it was because the internet has changed the way newspapers work, but it is growing and I think it is a sure sign that things are getting better, bit by bit. We have added a new feature to help you make your own decisions on how things are doing locally and across the country: the MAREI Market Report. You can see some out takes of the full report on page 16 and members can log into the website and access the full report for July 2011. I hope you will find this a helpful tool in your business. It is a evolving tool as we are looking for data providers for some information, if you track real estate and or economic numbers and would be willing to provide a chart or two, please let me know! .

Kim Tucker Director of MAREI

Page 6


Our Home Depot Guys!

August Speaker: Michael Charest

Working on our Big Rocks & Weekly Planner

Investment News

Page 7

the New Land Rush FARMLAND
You may have seen the article about us that appeared in this mornings KC Star. It got me to thinking that a lot of buyers may not recognize that rural property, particularly land has actually turned out to be a good investment as we work our way through what has now become a multi year slump. I found this article from INVEST magazine that I thought I share with our readers.

At precisely twelve noon on September 16, 1893 a cannon’s boom unleashed the largest land rush America ever saw. Carried by all sorts of transportation - horses, wagons, trains, bicycles or on foot - an estimated 100,000 raced to claim plots of land in an area of land in northern Oklahoma Territory. There had been a number of previous land rushes in the Territory - but this was the big one. Many would be disappointed. There were only 42,000 parcels of land available - far too few to satisfy the hopes of all those who raced for land that day. Additionally, many of the

“Boomers” - those who had waited for the cannon’s boom before rushing into the land claim - found that a number of the choice plots had already been claimed by “Sooners” who had snuck into the land claim area before the race began. The impact of the land rush was immediate, transforming the land almost overnight. Over 100 years later, we are in the midst of a second rush for land. When it is over it will go down as the greatest land rush in United States history far eclipsing the Oklahoma land rush of the 1890’s. How will it be different? Baby Boomers, investors and institutional investment firms are preparing to buy over one-half of the useable land in the U.S. in the next ten years. Are you aware there is approximately 1.6 billion acres (Yes, billions – with a big B!) that can be bought and sold? The potential is for millions and millions of land deals in the next few years.

Monthly Meeting
Don’t miss this event!

August Monthly Meeting:  Tuesday September 13th, 2011, 6pm to 9pm

 

Career Education Systems, Ward Parkway Shopping Center FREE for members, Guests $25 at the door, $15 if you pre-register

Agenda 5:30 Premeeting—Marketing Tools 6:00 Check in / Vendors / Networking

7:00 Announcements / Haves & Wants 7:30 Presentation

Page 8


Just like the previous “land rush”, the demand for land it is going to transform who owns land in our country and what they are going to use it for. In last month’s article, I wrote how Baby Boomers are buying land in all shapes, sizes and types. Let’s read what the media is saying who else is participating in this modern day rush for land: Wall Street Journal “Is it still possible to make money in real estate? With home prices continuing to plummet, many people have finally stopped seeing their family manse as a big bottomless bag of cash. But look beyond your front door, and you’ll find some alternative real-estate related opportunities that are holding up despite the current economic downturn including rural land. Rising food prices, demand for corn-based ethanol and a growing desire by many urbanites for a place in the country are making rural land more valuable.” The New York Times “The real estate market may have cooled, but investor demand may soon be heating up for at least one type of property: LAND. Some of the most attractive deals lately have come from land developers and home builders, who are divesting parcels in many parts of the country as they whittle down excess housing inventory. Even smaller landowners, facing their own financial strains, are selling off lots once meant for building.” “The time is ripe to start looking; I haven’t seen this market in 20 years,” said Jaime Raskulinecz, a real estate investor from NJ, who wants to buy land in the hard-hit market of Cape

Coral, FL. She found lots for sale on or near the water at about a third to half below their peak prices of two years ago. On a larger scale, H. Ray Alcorn Jr., an investor in VA, is picking up commercial and residential parcels after two years on the sidelines. Mostly using cash, he has bought more than 100 acres throughout Virginia this year, much of it at reduced prices, and he has options to buy more.” www.Bloomberg.com “…farmland is having its biggest revival in almost 30 years as demand for corn and soybeans from Asia and the ethanol industry drive commodity prices to record highs. From Iowa to South Dakota to Wyoming, gains in rural land prices have ranged from 78 percent to more than 200 percent, according to farmers and data from Farm Credit Services of America.” “TIAA-CREF, the largest U.S. manager of retirement funds, bought $340 million of farmland in seven states in December. George Washington University plans to earmark $100 million for agricultural investments during this year. “ “Farm values probably will rise at an annual rate of 6 percent to 10 percent in the next five years,” said Murray Wise, the CEO of Westchester Group Inc., manager of $550 million of global farm tracts. In comparison, the median U.S. home is forecast to gain 1.2 percent through 2010 and stay below the 2006 peak of $221,900, the Mortgage Bankers Association in Washington said. “It’s just crazy out there right now,” said Mac Boyd, 65, a real estate broker in Arcola, IL, who has sold farms for more than three decades. “The land market has never been stronger.”

speaker Agenda
Cropland Investing 101
     
How do I know I am buying good land? How do I find and negotiate with renters? How do I know I’m not paying too much or not getting enough return on rental income? Can I be sure my land will not be damaged? What are the risks in cropland investing? Should I be afraid of a cropland bubble?

Brad Gaughan, sales agent for Rural KC, refers to it as ―Cropland Investing 101.‖

Tuesday September 13 7:30 pm to 9:00 At Monthly MAREI meeting
http://www.landflip.com/, the premier land website, recently conducted a poll asking “When are you likely to purchase land?” 73% responded said they plan to purchase land in the next 12 months! What is creating such an interest in land? Retiring Baby Boomers – In my previous article, I documented that many Boomers are nearing retirement. Here is a snapshot of this group: 10,000 Boomers will retire every 24 hours!  17 trillion dollars are going to flow out of retirement accounts over
(Continued on page 20)

Investment News

Page 9

Being Rich
More than Money!
“Being Rich is about more than Money” Many people think that being rich is about having enough money to do whatever you want. However, these same people miss an IMPORTANT POINT. Having millions of dollars may make you ―financially rich‖. However you will have lived a ―poor life‖, if you were a ―slave to money‖ and did not have adequate time for family, friends, and the many other enjoyable things life has to offer. The following stories illustrate this point. Jack’s Story Shortly after Jack turned thirty, he married his college sweetheart. Jack was a sharp and thoughtful guy, as well as a meticulous planner. Jack saw all the layoffs happening in the corporate world, and wanted to establish a safety net for his upcoming family beyond the fragile sanctuary of his day job. He was determined to give his two kids a better quality of life than he had growing up. Jack invested in rental homes. He also bought a sandwich shop franchise. Over the years, Jack did make money on his real estate investments. However, he also found some very unpleasant surprises. Tenant turnover was a big problem. Repairs and re-renting the properties were eating up much of Jack’s time with his family. Especially upsetting to Jack was the weekend and evening time these properties ate up. This was time he would rather have spent coaching his son’s sports team and watching his daughter’s theatrical productions. The sandwich shop also made money. However, Jack was surprised at how hard it was to find dependable employees. Whenever an employee did not show up, Jack or his wife often had to fill in. Several times Jack had to cancel or postpone the family vacations due to employee issues. Yes, in the end, Jack’s investments made ―good money‖. However, his investments had made a significant negative impact on his family life, as well as his ability to spend time with friends and on other things he loved to do. There was many a time when he wondered whether all the extra money was worth the sacrifices he made. Jill’s Story Jill was an average student and never finished college. However, Jill had a lot of ―common sense‖. When Jill settled down, she decided that her family would not be dependent on corporate America for their long-term well being. Jill worked for a few years in advertising, then got married and had three children. Even before marrying, Jill began investing in real estate. Jill marketed all of her homes as ―lease/purchase‖. She gave the tenant a locked in sales price, and three years to purchase. In exchange, the tenant assumed the repairs and maintenance responsibilities of the home. This trade-off worked for both the tenant and Jill. The tenant got a fair deal on the home, and Jill found that she was able to build up a nice portfolio of homes without the typical problems (a lot of time, energy, and headaches) inherent in most rentals. Because of her real estate success and ease of investing, she saw no need to consider other businesses (like a sandwich shop). Jill made ―great money‖ from her real estate investments. However, most importantly, Jill’s investments
(Continued on page 11)

Page 10


never took up a significant portion of her ―invaluable and irreplaceable time‖ with family, friends, and her other interests. Best of all, she felt like she was living a ―full and wonderful life‖. Regular Riches Sadly, we all know plenty of Jacks. People who seem to be a slave to the very investments that were intended to provide ―freedom‖ for them and their families. The investors do their best job to rationalize with defenses, such as ―I am doing this for my kids‖ or ―one day this is going to pay off‖. However, they often miss out on many of life’s most precious gifts….quality time with family, friends, and other interests. We can speak from experience. We are ―regular people‖ like you. We have always tried to live good lives, make an honest living, invest on the side, spend quality time with family and friends, take nice vacations, enjoy hobbies, and more. When Scott met Andy in the late 1980’s, he was managing a portfolio of headaches (pure rental properties) that were eating up a lot of his time and energy. The money was pretty good, but it wasn’t making up for the hassles. Because of this negative experience, Scott almost decided to give up on real estate investing. However, both considered that the flaw may be with the system (landlording), not the investment category (real estate). Over time we developed a model similar to Jill’s (lease/purchasing). After a combined more than forty years and approximately 100 properties, we can say that we have developed an investment strategy that minimizes our time, energy, and headaches, while it maximizes our profits. We’ve also developed an easy to use strategy for efficiently buying discount properties (more specifically, post foreclosures, aka ―REOs‖). Some years, our side real estate investments have made more money than our individual successful careers, and this on an average of just

Five Questions for Choosing Regular Riches Buy Low : Rent Smart : Sell High Put your investment to the following test, asking these five questions. Yes to 4 or 5 indicates an investment opportunity that has the potential to provide ―Regular Riches‖, and worthy of further research and consideration: 1. Does the potential investment have the ability to get more lucrative and easier over time (greater profits, less time)? 2. If examined on an hourly basis, will the potential investment produce returns of at least 3-4 times higher than the investor’s hourly pay on his/her day job? 3. Does the investment have the ability to scale back (e.g. ease of exit strategy such as slowly sell off properties or a partner that is willing to buy out your share in a successful business)? 4. Does the investment opportunity produce passive income, where you could simply do almost nothing for many months and still collect big profits (regular rent checks, royalties, cash from an ongoing business)? 5. Does the investment opportunity have a good chance to be profitable during bad economic cycles?
5 – 6 hours per week. More importantly, during this time we have enjoyed a higher quality of life with our families due to the financial freedom that comes with ―smart investing‖. Don’t be a JACK! Life is so short, and it is not enough to end up with a huge pot of gold. Rather, be a JILL! It is more important to enjoy the journey of life along the way. This is what we refer to as ―REGULAR RICHES‖. REGULAR RICHES is about living a ―full and wonderful life‖. Because everyone is different, an individual’s definition of a ―full and wonderful‖ life may vary. However, what will always be the same is having enough TIME and MONEY (not simply one or the other) for what one truly loves. How can one tell if the investment he or she is considering will produce REGULAR RICHES and truly enhance their lives like Jill’s investments did? Here are five questions we suggest you ask yourself before diving into an investment. These questions will help you assess whether the investment you are considering has the potential of producing REGULAR RICHES.

Andy Heller is co-author of the Fortune Magazine recommended book “Buy Low, Rent Smart, Sell High” and together with his partner, Scott Frank, have approximately 40 years of combined real estate investing experience and have purchased, rented and sold approximately 100 residential properties. For more on the Fair Lease/ Purchase and other real estate investing tips go don’t miss out on his workshop in Kansas City on the 22nd. Go to www.MAREInet.com/AndyHeller to sign up for the event, and to register for some FREE Bonuses. Every person that Pre-registers for the event will receive a free copy of Andy’s Book—Buy Even Lower.

Investment News

Page 11

Investors Wanted
Ideas for Government REOS
On Wednesday, the Federal Housing Finance Agency (FHFA),HUD, and the Treasury Department issued the call for private investors, industry stakeholders, and community organizations to share their recommendations on how best to manage the disposition of government-owned properties. The agencies have issued an official Request for Information (RIF) to explore alternatives for foreclosed homes held by Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA) – both current inventories and the expected inflow of new properties. Together, the three entities hold nearly 250,000 REO homes. About 70,000 of those are currently listed for sale, and another 22,000 have been listed and a buyer has made an offer but the deal hasn’t closed yet, according to an FHFA spokesperson.

Federal officials believe the most effective tactic to take to reduce taxpayer losses and help alleviate the market’s oversupply of homes is to sell off pools of properties to responsible investors I want YOUR Ideas on who will employ an REO-to-rental strategy. But they say they’re open to any range of what to do with all creative ideas that will reduce the REO inthese Government ventories of the GSEs and FHA, and miniOwned Homes! mize loss severities at the same time. Per the RFI, strategies might include: joint venture proposals that specifically address local economic and real estate conditions; analytic approaches to determine the appropriate disposition strategy for properties, whether sale, rental, or demolition; programs for previous homeowners to rent properties or for current renters to become owners through a lease-to-own option; or plans that include asset contributions from other REO holders, including banks and private securitization trusts. Officials noted that any recommendations involving a rental strategy should also include details on the steps the investor will take to ensure the properties are well maintained and managed. The ultimate goal, according to the administration, is to improve loss recoveries compared to individ-

Page 12


ual retail REO sales, help stabilize neighborhoods and local home values, and where feasible and appropriate, improve the supply of rental housing. The initial scope of the project proposal is to get around 90,000 homes off Fannie’s, Freddie’s, and FHA’s books, a HUD spokesperson explained. She noted, though, that this is just a preliminary ballpark figure, not the full reach of what they hope to accomplish. The primary objective, she stressed, is to develop innovative and effective strategies for managing not only the current inventory

held on government portfolios, but the stream of new REOs coming down the pipeline. Federal officials say they are looking for input not only on how to enhance market outcomes in the process of disposing of REO properties, but responses from industry participants that have the technical and financial capability to engage in large-scale transactions with the GSEs or FHA. Based on responses to the RFI, Fannie, Freddie, or FHA may issue requests for proposals to third parties to implement the transactions or disposition structures sug-

gested, according to administration officials. ―Taking steps to encourage private investment in REO properties and transition them into productive use will help stabilize neighborhoods and home values at a critical time for our economy,‖ said HUD Secretary Shaun Donovan. The full RFI, detailing the administration’s objectives and how to submit recommendations, can be viewed online. Responses are requested by September 15th. Article Provided by Carrie Bay with DSNews.com

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

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 13

Investment News

Marketing Plan
Ten Steps to Get Started
1. Become a student of your business. Study your customer, your competitors, and trends in the industry. You need to have a goal in this stage of top ten tips to become an expert in your business so you know how your customers think. You will find that when you are the expert it will be easier to know what your customer wants, how to give it to them and how to share your product with them. 2. Get some outside advice Find a friend or associate who is outside of your business and have them place themselves in their customer’s shoes. Work with them to find at least 10 new ways to promote your business. You want the input from someone outside of your business because, sometimes you are just too close and need to get some fresh new outside ideas. 3. Remember not everything you do is not just to get customers You will be doing some things to bring in new clients and some things to keep current clients. You will also be taking steps to build a good reputation and credibility with your potential clients, so that when they are in the market for your product or service they will remember that YOU are the expert in that area. 4. You don’t have to do it yourself There are numerous different marketing tactics. Work the ones you enjoy, but if there is one you just hate, skip it and work on the others. Or hire someone to do it. 5. You do have to do it Most small businesses are awesome at offering the product or service. They may not be so good at or excited about the marketing of that product or service. Ideally if you ask any small business coach you should be spending about 30% of your time marketing your business. 6. Start with one Marketing Method Select one way to market your business that you are comfortable with, implement it, systematize it. Then add another one, get it working well and on a system. Then add another till you have at several marketing methods that are continually generating new business. 7. Follow Up Most small business owners are great at following up on a business lead that is going to give them business right now. For example a client calls a contractor to ask them to do a bid for a rehab job. But not many follow up for no apparent reason. So as an example, all members at our group MAREI have access to all the member profiles. Most profiles include either a phone number or an email. As a new business at MAREI, would you actually take the time to follow up with every member to chat, introduce yourself, and find out what each member on the profile list does. Take notes as you talk and work on building a relationship. Then take it a step further and add them to your own database with a reminder to follow up with them in a few days. In a few days friend them on Facebook and then on Linked In. If they have an immediate problem help them solve it either with your product or service or refer them someone to help them solve their problems. 8. Get a Marketing Buddy Remember marketing is like meeting that New Years Resolution—you work really hard the first week and then let it slack off more and more till you have to get in to summer clothes and you have another heavy week of activity, then it slacks off again. Instead get a buddy to hold you accountable so you get off your butt and into that exercise or in this case picking up the phone, sending a postcard, or going to a networking meeting.

Page 14


The Federal Housing Finance Agency announced Sept. 2 that it filed suit against 17 of the nation’s largest financial institutions to recoup billions in losses from the sale of soured mortgage-backed securities to Fannie Mae and Freddie Mac. ———————————— Freddie Mac accelerated its efforts to buy loans backed by apartment buildings, which will boost the multifamily real estate market by giving landlords greater access to financing. ———————————— Bank of America and JPMorgan Chase will not receive second-quarter Home Affordable Modification Program funds from the U.S. Treasury Department due to ongoing poor performance in assisting homeowners in modifying their mortgages. ———————————— The Obama administration will give unemployed homeowners until Sept. 15 to apply for a new $1 billion foreclosure-prevention program, The Wall Street Journal reported Aug. 29. All borrowers must be approved by Sept. 30, which is when the government’s authority to make new loans runs out. The Emergency Homeowner Loan

Program, created as part of the Frank-Dodd Act, was designed to help up to 30,000 unemployed homeowners in 27 states to continue making their mortgage payments, the Journal reported. ———————————— Mortgage applications were down for the third consecutive week despite fixed rates hitting historically low levels, the Mortgage Bankers Association reported in its weekly Mortgage Applications Survey released Sept. 7. ———————————— Where do my MAREI dues go? For the support and maintenance of this newsletter, the website, negotiations of discounts with vendors, tracking on market data, community events, and harmful government action and making sure you are updated on all of these on a regular basis. ———————————— More than 28,000 underwater borrowers refinanced through the Home Affordable Refinancing Program in June. That’s up 12 percent from May and was the first increase since February. Federal Reserve Chairman Ben Bernanke has urged Congress to be more active in helping the struggling

housing market. ————————————
Mortgage loans in foreclosure had been delinquent an average 599 days, Lender Processing Services reported Aug. 30. The firm said the tally is the highest it had recorded.

Before the housing bubble burst, many believed the nation’s five biggest banks would control 90 percent of U.S. mortgages, but some experts now believe midsize lenders will have greater opportunity to enter the market, National Mortgage News reported Aug. 31.

President Obama has signed the Budget Control Act of 2011 (more commonly known as the Debt Ceiling Bill) into law. After careful analysis of the bill NAR has concluded that it contains no direct impact on real estate tax rules or spending provisions. No tax laws of any kind were changed, nor were any housing programs cut. But what will happen now that congress is now back in session

———————————— Missouri Legislators went back to work in a special session to create new jobs in Missouri.

FREE Gift!
Be sure to use your discount card for savings of up to 40% off regular pricing in all stores nationwide. This is all part of a NATIONAL Contractor Account for awesome price savings! Card is in your membership package! Investment News

Get instant access to 3 great FREE Bonuses. Valued at $200: Must Know RE Terms Glossary, Think & Grow Rich Book , and Training eCourse.

2% Rebate, Get Registered. Instructions in the member area of MAREInet.com. Log in, click on Member Library and look for Home Depot in the Benefits Section.

Page 15

Market Data
MAREI’s New Market Report
On the National Level from Realtor.org “Pending home sales declined in July but remain well above yearago levels, according to the National Association of Realtors®. All regions show monthly declines except for the West, which continues to show the highest level of sales contract activity.” Lawrence Yun, NAR chief economist, said sales activity is underperforming. “The market can easily move into a healthy expansion if mortgage underwriting standards return to normalcy,” he said. “We also need to be mindful that not all sales contracts are leading to closed existing-home sales. Other market frictions need to be addressed, such as assuring that proper comparables are used in appraisal valuations, and streamlining the short sales process.” “Looking at pending home sales over a longer span, contract activity over the past three months is fairly comparable to the first three months of the year, and well above the low seen in April,” Yun said. “The underlying factors for improving sales are developing, such as rising rents, record high affordability conditions and investors buying real estate as a future inflation hedge. It is now a question of lending standards and consumers having the necessary confidence to enter the market.” Commercial Areas from KCRAR.com “The commercial real estate market is bouncing back with a vengeance and exceeding forecasts from analysts. The signs are clear: The number of troubled loans are dropping, occupancy is soaring, and office building sales are rising in some of the country’s largest commercial real estate markets.” Locally from KCRAR.com The average sale price of a New Home is 8% lower that a New Home a year ago and the prices of existing or resale homes is down 2% from the same time as last year. When you look at number of home sold this year compared to the same month of July last year, we have a 54% Increase, compared to one month ago we have a 18% decrease which reflects the normal slow down we see in summer months PLUS the tighter lending standards and the consumers reluctance to buy given the current issues in the economy and a wait and see attitude in regards to our government – this is a time period over which our legislators in Washington were arguing over the debt ceiling limit increase. When we look at new home inventory, it is down 16 % from last year, but up about 1% over last month. And we currently have 9.4 months supply of homes listed for sale – a flat market is represented by a 5 month supply. Click here to Read full our full Market Report

                   

US New Homes Sold and For Sale US New Home Inventory US Homebuilder’s Confidence US Building Permits & Housing Starts KS & MO Building Permits (& KC Metro) KS & MO Housing Starts (& KC Metro) KC Metro Home Sales & Average Sales Price US Existing Home Sales & Pending US Months Supply of Homes Bankruptcy Numbers Nationally & KS & MO Unemployment Numbers US & Local Interesting Debt & Budget Numbers Commercial Update Pay Scale Index Median and Average KC Prices KC Sales by Price Range & Days Inventory  KS & MO Stat Chart – just numbers KC Average Sale Price by County National Foreclosure Rate Heat Map KS & MO Foreclosure Activity

Page 16


Mobile Media
Easy to Use / Customizable

MAREI Internships
Managing Websites Booking Events Selling Advertising Graphic Design

       

Multiple Templates to Choose PreFilled Text or Write Your Own Unlimited Pages as Needed Properties Descriptions & Photos Tools to Build your Buyer’s List Data Collection Tools Your Own Domain Keyword Rich for SEO

FREE Site / Hosting $19.95 Month www.MAREInet.com/360REIStart

Find Out What YOU Can Do with Mobile Media Marketing



Accurate Closings: Smooth, Timely, Professional.
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!
www.AccurateTitleCo.com 913-338-0100 phone

go to MAREInet.com/LMT For Examples

Investment News

Page 17


A quick glance at the spreadsheet for the June 2011 Payouts shows some interesting facts:

   

Smallest Payout was $0.31 Largest Payout was $17,180* Average Payout $565.92 Members of the Kansas City REIA Chapters saved $63,948.49


Members of the Kansas City REIA Chapters spent $3,197,424.35 in the time covered for the June payouts Combined Membership of all the REIA and Landlord groups that are a part of this payout is estimated at about 500 members.

Did you sign up? More info at: www.MAREInet.com/HD
 

Only 113 out of the estimated 500 members participated. Our goal for the next 6 months is to double all of those numbers above. So if you are not yet participating go to the link at the left and find out how to get started!

Reports of: $777.44 (above), $103.45 (left), $25, $103.06, and $338.93.

Page 18


Asset Protection
Keeping you ―In-Powered‖ with Superior Electrical Service!
 FREE Estimates  FREE Consultations on Non-Emergency  24-hour Same Day Emergency Service

Insurance Agency www.REOIns.com 877-752-2742

Licensed, Insured, Bonded Serving Kansas & Missouri

George Z. Bai, Sr. - Owner Office (816) 356-1870 Cell (816) 210-4710 TeTeeLight@gmail.com

Real Estate Owned / Forced Placement For Investors & Finance Institutions

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!

“Flexible rehab options and purchase financing for qualified investors! Ann Wilkinson Vice President Mortgage Loan Production 12501 Antioch Rd Overland Park, KS 66213 Ph: (913) 402-1500 Fax: (913) 402-0673 AnnW@ArgentineFed.com www.ArgentineFed.com

Realty Resource 115 E Gregory, KCMO 816-523-4400


Investment News

Page 19

  

the next two decades into the hands of Boomers. 1 in 4 Boomers own more than one piece of real estate. 1/2 of Boomers own their home free and clear. 60% of Boomers plan to move to a

rural setting. Since 1 in 4 Baby Boomers own more than one property, the logical conclusion is they will allocate a portion of their investment portfolio and buy land in the near future. Baby Boomers are buying land, but most unlikely to ever move on the property Where are Boomers going to relocate when they retire? In a poll commissioned by the National Association of Realtors, 60% plan to move to a rural area upon retirement. The operative word is PLAN. Many are in the process of purchasing small and large tracts of land all around the country to fulfill their future dream. Chances are that they will never move on to the property. Nonetheless, everyday there are more and more Boomers entering into the land arena to buy their dream property – and they are ready to buy soon!

Stock market and the drive toward buying land As in most economic cycles, there are times when the stock market has not performed to investor’s expectations. When the stock market is doing well there is no reason for investors to look elsewhere to secure a modest return on investment. But, as we know, the stock market is mired in uncertainty. Because of this, some investors look for other investment options such as hard assets. Both individual and institutional investors are looking to land as one safe haven to relocate part of their investment portfolio. This translates that billions of dollars will be moved into land over the next few years. As an example, the demand for hard assets appeared in FL in 2004 and 2005. In 2003 and 2004 the overall stock market results were flat. Investors were unsatisfied with the returns and began to look for investments outside the stock market. Some turned to real estate, (i.e. condos, preconstruction projects, rehabs etc.) particularly a drive to buy land. At the time, I was associated with a real estate office in rural Florida that only brokered land. By early 2005, the office received contact from a new buyer every 15 minutes! They learned investors wanted to buy for two reasons: (1) for investment and; (2) to build on the property at retirement. 80% of the buyers bought site unseen and lived far away from the property. The brokerage (as well as many other brokers in Florida) could not keep pace with the demand as there were more buyers than sellers. So, I and a few other investors went out to coax landowners to sell their property. In the end, this one office brokered 1000’s of land deals ranging from a .25 acre to 500 acres. The demand for land is reoccurring again but this time it is happening na-

tionwide! Also, there are brokers reporting around the country that they have more buyers than sellers. That is a great dilemma to have! If the stock market continues to be volatile, more and more investors are going to look to land to fulfill a part of their investment needs. Some are buying land like it is a stock and betting that it will increase in value over the next 5 to 10 years and beat stock market returns. Don’t be left behind! Be a part of the next great land rush! When the dust settled, many walked away from the Oklahoma land rush disappointed and empty handed. Don’t sit on the sidelines any further waiting for the next opportunity. You can say to your children that you were part of THE greatest land rush in US history! There simply isn’t a better time to profit from land! In the next few years there will be millions and millions of land transactions. I specialize in finding sellers – and you can too. The marketplace needs investors like me to find affordable land for this new generation of buyer. Some of you are saying, “Can I really buy and sell land?” Land is by far the simplest, easiest form of real estate on the planet. Don’t be intimidated because you have never done something like this before. The marketplace desperately needs more investors to step into this once-in -a-lifetime opportunity. Won’t you join me? Buy land. They’ve stopped making it. - Mark Twain

Page 20


More Information . . . More Confidence

Do the math.
Your vacancy is costing you every day. Fill your vacancy faster and save money with Rentals.com!

More Profits
Tenant Screening Pre Employment Screening Contractor Screening Collection Services

Discounts for MAREI Members: Receive 20% off all Regular Priced Advertising. Log into Member’s Area, click on Member Discounts and look for MAREI’s Discount code!

Discounts for MAREI Members
www.AAAScreening.com 816-436-0085

“Presentation is Everything!”
Property Management Rental Services Kansas City Metro 550 E. 56 Highway, Suite B Olathe, KS, 66061 Phone: (913) 254-9300 Fax: (913) 254-9301 info@canyon-stone.com
Investment News Page 21


www.JamiesonHomeTeam.com Kevin Jamieson 816-503-4671

Sept 3rd


Independence / Blue Springs: Panera Bread 40 Hwy & 291 4pm to 6pm: Debra Felderhoff Lee’s Summit: Panera Bread on Chipman Road in Lees Summit: Debra Felderhoff Weekly Wednesdays: 103rd & State Line 9 am to 11 am : Michelle Winberry CESKC.com Mortgage Fraud - 6pm-9pm,1 Credit PHP, 3 Hrs Realtor Contin. Ed Independence / Blue Springs: Panera Bread 40 Hwy & 291 4pm to 6pm: Debra Felderhoff Lee’s Summit: Panera Bread on Chipman Road in Lees Summit: Debra Felderhoff Deadline to Reserve a Vendor Table for Tuesday Meeting by Noon Monthly Meeting: Career Education Systems South East side of Ward Parkway 6pm-9pm Advanced Property Management—Mid America Crime Free—All Day CESKC.com Mortgage Fraud - 9am-12pm,1 Credit PHP, 3 Hrs Realtor Contin. Ed CESKC.com Appraisal Essentials - 1pm4pm,1 Credit PHP, 3 Hrs Realtor Contin. Ed Weekly Wednesdays: 103rd & State Line 9 am to 11 am : Michelle Winberry Commercial Sub Group: 103rd 7 State Line 5:30 to 7:30 : Larry Prato / Spencer Cullor CESKC.com Lawsuits - 1pm-4pm,1 Credit PHP, 3 Hrs Realtor Contin. Ed CESKC.com Credit Scores - 1pm-4pm,1 Credit PHP, 3 Hrs Realtor Contin. Ed Independence / Blue Springs: Panera Bread 40 Hwy & 291 4pm to 6pm: Debra Felderhoff Lee’s Summit: Panera Bread on Chipman Road in Lees Summit: Debra Felderhoff

Sept 4th



Sept 7th


Details, Times, Locations, Cost & Registration at www.MAREInet.com

Sept 7th


Sept 10th


Sept 11th


Sept 12th


Sept 13th


Sept 13th


Sept 14th Sept 14th

Training Training

Sept 14th


Sept 14th


Sept 15th


Sept 17th


Sept 17th


Sept 18th


Page 22


Sept 19th


CESKC.com Lawsuits - 1pm-4pm,1 Credit Scores PHP, 3 Hrs Realtor Contin. Ed CESKC.com Short Sales / Foreclosures 9am-1pm 1 PHP, 3 Hours Realtor C E CESKC.com Creating Wealth - 1pm-4pm,1 Credit PHP, 3 Hrs Realtor Contin. Ed Weekly Wednesdays: 103rd & State Line 9 am to 11 am : Michelle Winberry Independence / Blue Springs: Panera Bread 40 Hwy & 291 4pm to 6pm: Debra Felderhoff CESKC.com Negotiating - 1pm-4pm,1 Credit PHP, 3 Hrs Realtor Contin. Ed Lee’s Summit: Panera Bread on Chipman Road in Lees Summit: Debra Felderhoff CESKC.com Short Sales / Foreclosures 6pm-9pm 1 PHP, 3 Hours Realtor C E Weekly Wednesdays: 103rd & State Line 9 am to 11 am : Michelle Winberry Commercial Sub Group: 103rd 7 State Line 5:30 to 7:30 : Larry Prato / Spencer Cullor Special Saturday workshop, Buy Low, Rent Smart with Andy Heller

Networking & Education

Sept 21


Sept 21


Sept 21


Details, Times, Locations, Cost & Registration at www.MAREInet.com

Sept 24


Sept 24


Sept 25


Sept 26


Sept 28


Sept 28


Oct 22nd




Larry Prato Commercial Subgroup

Spencer Cullor Commercial Subgroup

Many thanks to our Volunteers who sponsor a Networking. If you need more networking and interaction, please check out the Networking Group on the Calendar. First Networking event is free and does not require membership. After that if you want to continue as a part of the subgroup, we request that you become a member of MAREI to gain more knowledge and access all the tools and benefits of membership

Debra Felderhoff BS, LS, Indep Subgroup

Michelle Winberry Weekly Wednesdays

Investment News

Page 23

Your Info
Other Buttons
Members can find each other through the Search Member’s by Specialty section. So that they can find you, be sure to edit this information in your ―My Info‖ section.

    

View / Edit Profile will let you see what your profile will look like to other people Edit Photo will allow you to load a photo or other item in a photo format so that when people look at your profile they can see what you look like and know who you are when they see you at meetings. Search Member’s by Specialty in this area, we have already talked about, as the place where you can tell people a bit about what you do. My Newsletter Subscriptions we don't utilize much as we don’t send newsletters through this system, but rather through an outside source. My Affiliate Members lets you see the other people who have been added onto your membership

Page 24


See more details on each property in the Classifieds at www.MAREInet.com.
Offered As Wholesale Wholesale Wholesale Wholesale Rehabbed Wholesale Wholesale Wholesale Owner Fin Wholesale Short sales Renal Turn Key Fixer Rental Fixer Owner Fin Listing Listing Listing Listing Listing Listing Listing Turn Key Address 2510 Myrtle 310 E 81st ST 8701 N Troost 8413 E 85th Tr 9436 Hakins 5500 College 5241 Olive 5161 Hardesty Townhome 2904 E 35th St 3 houses 7411 Forest 8516 W 69th Tr No address 1811 S Cedar 9900 Countryside No address 3125 Spruce 3813 E 53rd Tr 6124 S Benton 6931 Jackson 4931 Chestnut 2402 NE 59th St 8321 Wabash City KCMO KCMO KCMO Raytown Lenexa KCMo KCMO KCMO Smithville KCMO KCMO KCMO Overland Park No city Independence Lenexa Raytwon KCMO KCMO KCMO KCMO KCMO NA KCMO Price $13,500 $48,000 $115,000 $48,000 $85,000 $17,500 $17,500 $14,500 Bed/Bath 3/2 2/1 4/3 4/2 2/1 3/1 3/1 3/1 Contact Christoph Becker JD Asbell JD Asbell JD Asbell JD Asbell Christoph Becker Christoph Becker Christoph Becker Rajeev Verma Joey Kramer Eric Deeter, Realty Resource 2/2 3/1.5 3/2 NA 3 / 1.5 3/2 2/2 3/1 3/1 2/2 2/1 NA 2/1 4/2 3/2 Phone 816-419-1165 913-583-1199 913-583-1199 913-583-1199 913-583-1199 816-419-1165 816-419-1165 816-419-1165 913-735-5234 816-510-4259 913-579-3354

Not priced 2 / 1.5 14,999 $9k each 39900 119,900 No price No price No price No Price $19,750 $22,750 $22.750 $22,750 $17,750 $47,000 $38,400 $109,900 $27,000 5/ 1.5

Scott Tucker, Realty Resource 913-620-7934 Don Tucker owner/ broker Kevin Jamieson Reece & Nichols Kevin Jamieson Reece & Nichols Rick Zeitun Michael Bryant Chris Pinkepank, Keller Williams Chris Pinkepank, Keller Williams Chris Pinkepank, Keller Williams Chris Pinkepank, Keller Williams Chris Pinkepank, Keller Williams Chris Pinkepank, Keller Williams Chris Pinkepank, Keller Williams Don Tucker owner / broker Steve Summers 913-208-3017 816-686-2955 816-686-2955 913-461-8560 816-226-7299 816-892-3533 816-892-3533 816-892-3533 816-892-3533 816-892-3533 816-892-3533 816-892-3533 913-208-3017 816-350-7200

2204 SW Keystone Pl Blue springs KCMO

Seller Finance 2547 Denver

Investment News

Page 25

We would like to welcome the New Members and Guests from the past month and to thank our New and Returning Members for being a vital part of this association!

New Members
         
Greg Billeisen, Kansas City, MO Alex Duckworth, Lee’s Summit, MO Karl Dunivent, Liberty, MO Jeannie Esteves, Lee’s Summit, MO Kamal Fuleihan, Olathe, KS Kerry & Tami Hardinger, Overland Park, KS Scott Kilpatrick, DeSoto, KS Michael Lanning, Kansas City, MO Ervin Middleton, Las Vegas, NV Valerie Minnear, Lees Summit, MO

        
Caral Burton Jim Easton Brett Gossen Phil Jensen Antonio Jones Miles Krivena Keith Mace Doug Neu Don Watson

Returning Members
        
Page 26 Scott Doherty, Leawood, KS Jeffrey Forster, Independence, MO Norm Kinnaugh, Lawrence, KS Steve Kolb, Kansas City, MO Joey Kramer, North Kansas City, MO Curt & Brenda Linstra, Kansas City, MO James Maffuccio, Kansas City, MO Candace Vanice, Kansas City, MO Kelley Weston, Lee’s Summit, MO

New Business

Abraxas Property Management

  

Meka Cayce, Kansas City, MO Lacha Palomino, Kansas City, Mo

Jamieson Home Team - Reece & Nichols

 

Kevin Jamieson, Independence, MO Joe Clark, Independence, MO


Wireless Security Systems
Keypad, 3 doors, 1 motion, 1 primary & 1 door siren

On Demand Training 30 Minute Segments Top Investor Trainers From the Comfort of Your own Internet Connection $39.00 Training Courses
REO & Lease Option Creative Financing Automated Investments Auctions & Foreclosures Short Sales Government Grant Money

One time Charge of $99 plus tax Includes installation Requires 36 month contract. Monthly Monitoring Fee $39.99 Sell house transfer to new owner or move to new house DevconSecurity.com Marian Collins: 913-907-4942 Gary Hartman: 913-991-1612


―Recommended by Fortune Magazine!‖
On Saturday October 22nd, real estate expert Andy Heller will show you why TODAY’S real estate market is the best time EVER for investors, and this window of opportunity will be open only so long. Learn how to use Andy’s Fortune Magazine recommended strategy. Andy will show you how to buy bank-owned properties directly from banks and REO Agents for pennies on the dollar BEFORE the properties hit MLS, and how to cash in on today’s strengthening rental market with his ―Rent Smart‖ lease/option program. The workshop will include:
Free Copy for all who register Early—see calendar on MAREInet.com

 Why today’s COOLING market is a
RED HOT opportunity for investor

 How the ―typical‖ lease options minimize, not maximize, an investor’s profit

 Buying Low: Learn about the untapped fortunes with bank-owned real estate

 How to make a fortune in real estate
AND help your tenants at the same time

 What types of properties can you buy
from banks

 How to sell for top dollar WITHOUT
paying real estate commission

 How to buy REOs BEFORE they are
listed on MLS Investment News

 Achieve your REGULAR RICHES: Real
estate fortunes for regular people . . . . without the hassles. Page 27

What makes MAREI Different?


You have a lot of choices in Kansas City for Real Estate and Landlord Groups. There are many reasons why MAREI is different, unique and better for you than other groups in the area.

Monthly Meetings Saturday Training Seminars Monthly Webinars and Recorded Events Meet Local Vendors National Speakers Deal Makers Quick Pitch (Haves and Wants) Local Market Updates (at Meetings and Oline) Heavy Emphasis on Networking Very Active in Social Media Robust Monthly Newsletter Blacklist of Undesirable Speakers Rigorous Vetting Process Member Focused Mindset REIA Leaders Who Invest Full Time Robust Member Benefits Manual State of the Art Member & Guest Website Active in National REIA Active in Legislative Efforts to Protect Our Industry Packed Member Resource Pages & Online Library Non-Stop Sales Pitch Group Leader Focused Poorly Run, Poorly Organized Meeting

Mid-America Crime Free Inc. Proudly Presents!

Date: 10/19/2011 Time: 7AM to 5PM

Seminar Schedule
08:00-09:30 Registration / Buffet Breakfast (Fresh Fruit, Pastries, Eggs, Biscuits & Gravy) 09:30-11:45 Fair Housing w/ Robert J Wise 11:55-12:30 Foreclosure Issues w/ Wise & Anderson 12:30-1:30 Buffet Lunch (Beef Brisket & Blackened Chicken) 01:30-02:30 Premise Liability w/ Julie Anderson 02:30-02:45 Afternoon Break (refreshments) 02:45-03:15 Bed Bugs w/ Det. Todd Butler 03:15-03:25 Break (refreshments) 03:25-05:00 Physical Security / Lighting Issues w/ P.O. Mike Betton 05:00 Seminar Concludes This is YOUR chance to learn and discuss all the aspects of FAIR HOUSING in an OPEN FORUM with landlord/eviction ATTORNEYS Robert J. Wise and Juli Anderson. Also DISUCSS the ever changing ideas that surround PREMISE LIABILITY with ATTORNEY Julie Anderson. We also will have a presentation on the BED BUG infestation with Detective Todd Butler and then wrap it all up with updated information on PHYSICAL SECURITY with P.O. Mike Betten. All of this great information, breakfast and lunch for one GREAT PRICE of $99.00. Don’t miss out on this great SINGLE DAY SEMINAR. Location: Holiday Inn Kansas City CoCo Key Water Resort 9103 East 39th Street Mid-America Crime Free Inc. Metro Patrol Division 7601 Prospect Ave Kansas City, Mo 64130

To Register Go Online to www.kcCrimeFree.com If you have any questions please contact P.O. Aaron McKie at 816-581-0723 or aaron.mckie@kcpd.org