This action might not be possible to undo. Are you sure you want to continue?
NETWORKING : EDUCATION : COMMUNITY
DO NOT PASS
REAL ESTATE INVESTORS
to acquire wealth
our generation may ever see! Andy Heller Is teaching long term wealth building model October 22nd
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.
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
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 email@example.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
ei ar m
Type Attorney Contractor Insurance Lender Prop Mgr Prop Mgr Prop Mgr Realtor Security Supplier Title Wholesale Company Wise / Anderson Te-Tee Light APIA Argentine Federal Savings Abraxas Prop Mgmt Jamieson Home Team Premier Leasing Realty Resource Devcon Security Canyon Stone Accurate Title Company kcmoHomeBuyer Web BobWiseLaw.com MAREI Vendor REOIns.com
ADDRESSING THE NEEDS OF
Phone 816-942-5925 816-356-1870 877-752-2742 913-402-1500 816-474-8800 816-503-4671 816-841-9500 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 Jeff Woods Kim Tucker Marian Collins Matt Puckett Jackie White Don Tucker
ArgentineFed.com AbraxasMgmt.com JamiesonHomeTeam.com MyPremierLeasing.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.
Page 4 MAREInet.com
Speed Networking In December
In This Issue
MAREI Business Members MAREI Meeting Staff Notes from Director Fraud in Real Estate Real Estate: the Perfect Storm Risk vs Reward: Protect Yourself as a Landlord Coalition for Sensible Housing Policy Market Data: Investing Research Top Tips for Landlords MAREI Calendar of Events Registering for MAREI Events Classifieds New & Renewing Members , Guests 2 5 6 8 10 12 14 16 20 22 24 25 26
Join the Conversation ׀
https://www.facebook.com/ KansasCityRealEstateInvesting https://www.facebook.com/ groups/kcrei/
I recently opened my mail box to find a special invitation to a “Private PreAuction Event”. “The invitation goes on to say “smart investors are making millions from tax deed auctions, foreclosure flips, and pre-auction events.” As I read through the invitation I can’t quite figure out what I am being invited too? Is it an pre-auction event in advance of a tax deed auction, where the speaker is going to train me on tax deed auctions. Hmm, those have already passed for 2011 here, so that can’t be it. They might be going to train me, or sell me training on how to do a foreclosure flip before an auction, but still when is the auction? There are no large auctions planned in Kansas City as those always end up in the Kansas City Star and in my email in box. So back to the invite. It also says we can make millions from attending this pre-auction events. But again I am stumped as to what this event is—is it how to make money or is it an auction. What ever it is, I can go for free, it’s limited to 100 attendees, I could win an I-pad, and it will be “eye opening.” Great, but what is it. So my next task was to check this event out a bit more. As we will talk about at the Tuesday Meeting we should check out everything before we spend, and I am sure at this event, what ever it is, they will have a huge eye on my credit card and check book. . . So let’s check this out and see what he is all about. So my next step was to head off to my good friend “Google” and see what it had to say about this event. After a few clicks I start seeing a lot of promos for this guy and others with similar events all across the country. Not really any positive feedback, but a lot of negative feedback. In fact on one webpage from this promoter, there is a notice that he is violating Canadian real estate laws by acting as a broker in a real estate transaction without a real estate license. Then I found a blogger that described a past pre-auction event from last year. He said it really did not feature the guests speakers promoted except via recorded video. That it was presented by polished pitch people telling you how easy it is to get rich in real estate and how much banks want to sell you their houses. Now if you have a couple of hours to kill and want to go get your free camera (and it looks like a free one in the photo too) and a chance to win an I Pad, well great. But from what I am seeing you are not going to learn a whole lot and a few people are going to leave with less money in their pocket. As a practicing real estate investor for almost 12 years now, I am all for education: go buy a book, go to your local real estate investment groups meetings and trainings, even buy a training course or a bootcamp, or check out MAREIU on the next page. The trainers in these places might charge you $500 to $2000 for a home study course, maybe $1000 to $3000 for a bootcamp. What you need to realize is that these pitch people, who are bypassing your REIA group and going straight to your newspaper, TV, mailbox, or email in box, bypass your REIA group for a reason. If they came through the REIA group (1) they probably would not get pass the REIA groups gate keeper because of the quality of their training and cost and (2) if they did get in to speak at your group, the REIA leaders would probably be telling you it was a big rip off. Myself I have seen these pitch people offer a free 2 hour hype at a local hotel on how easy it is to get rich. The sell you into a $300—$500 week-end with some books and a lot more hype on how easy it is. What I don’t get is that if it is so easy and if you can get so rich, why I need to spend another $10,000, $20,000 or more to find out how to do it, why can’t I figure it out from the 3 day training I just attended and all the books and tapes they already sold me. These weekends sometimes have good material, and sometimes don’t. But still you really need to spend another $5,000, $10,000, $20,000, and more because you really can’t get rich unless you invest money in your education. And I agree, you do need to invest in training, but why spend $20,000 on something that really is basically the same training you could buy from trainers vetted by your REIA group for much less. It probably has a fancier package and comes with some highly trained sales people following up with you to tell you that you are going to be rich in real estate, but you really need to spend another $20,000 for this or than! To top it all off, many of these pitch people don’t invest in real estate . . . Imagine that . . . And are just repackaging materials they bought from the guy that spoke at your REIA last month. For example, this month MAREI has a training person coming in to speak: Andy Heller. He will be offering real, valuable training at the Saturday event and he will be selling his training course that he and his partner created. But know this, His course runs around $2000 according to his website and I know he does not have a staff of phone sales people following up with you trying to sell you something else. He comes highly recommended from many REIA’s and their members from across the country and he does in fact invest in real estate. .
Fraud in Real Estate Kansas City
The Kansas City Star reported on 10/4 that ―A former Lee’s Summit real estate agent will spend 20 months behind bars and must pay more than $5.6 million in restitution for a mortgage fraud scheme that left banks holding bad loans and caused property values to plummet.‖ The ―builder involved in the scam was sentenced to 2 1/2 years in prison and ordered to pay restitution of more than $5 million for his role in the scheme including mortgage fraud, wire fraud, and transferring funds obtained across state. The FBI found that a woman from California and a man from Florida helped three people build false credit histories so they could obtain fraudulent loans. These were the straw buyers and all were sentenced for using false numbers to artificially raise their credit scores, allowing them to purchase six properties worth more than $2.7 million.
October Monthly Meeting: Tuesday October, 2011, 6pm to 9pm
Don’t miss this event!
Career Education Systems, FREE for members, Guests $25 at the door, $15 if you pre-register
Agenda 5:40 Premeeting—Market Report 6:00 Check in / Vendors / Networking 7:00 Announcements / Q & A w/ Andy Heller 7:30 Presentation MAREInet.com
Leawood Attorney pleads guilty to participating in a conspiracy to commit wire and mail fraud. Investors lent $52.5 Million to this attorney and others through a Real Estate Ponzi scheme where they thought they were lending for legitimate real estate development projects, but most of the money was being kept or used to pay interest to other lenders. Look up British Lending Program Online or BLP. August 2010, Kansas City Kansas man sentenced to 145 months in prison and ordered to pay more than $5.8 million in restitution for mortgage fraud. Plead guilty to mortgage fraud, wire fraud, money laundering, and aggravated identity theft. Conspirators obtained loans for purchasing and refinancing properties by submitting fraudulent loan applications with false statements, false sales contracts, and false appraisals by unlawfully making use of the identity of a licensed appraiser. Scammers using Craigslist to target would be renters in an Identity Theft Con. They steal another persons photos and property information from a house for sale to create a new rental ad on Craigslist with a very attractive rent and amenities. Then once a potential renter contacts them, they ask for them to fill out an application online. When they stop by the
property to see it, they are told the house is not for rent and they know nothing about the rental application. You can search for stories about fraud in real estate and mortgages on the internet for hours and never run out of stories. In an effort to educate our members and guests, we have invited in FBI Special Agent Julia Jensen for her 3rd presentation at MAREI. Her first two were very informative and very well attended. As she has cut way back in her speaking engagements due to an increased case load with her investigations, we are very lucky to have her join us for this meeting. WE EXPECT A PACKED ROOM! So get there early to reserve your seat. We hope that you take away information from this presentation that will keep your name out of the paper as a person taken in by a scam or the person going to jail for committing fraud. We have seen numerous people in trouble over the years with fraud schemes on both side of the scam due to their lack of knowledge about the situation. So we ask you to pay close attention, take notes, and if ever faced with anything you don’t understand, ask for help.
Considering a Transaction Considering doing business with someone. Check them out First ———————— Check County Records for Ownership of Property Check Secretary of State Website for Company Ownership Use ZabaSearch.com to match names with phone numbers GOOGLE a Name See if they are on Facebook or LinkedIn Check for people or company names in CaseNet in Missouri or JocoCourts.com in KS Check for licensing with State Regulatory Boards: Realtors, Mortgage Brokers, Appraisers Check with the State Attorney Generals Office Look on the FBI’s website to see if they have been in trouble Don’t fill out online applications with companies or people you don’t know. Ask lots of questions and get answers that make sense. Ask for references and check them out, don’t take them at their word, especially if they use well known people’s names.
The Perfect Storm!
Today: The “Perfect” Time to Invest By Andy Heller, Co-Founder, Regular Riches Investment System Should an investor swim or reach for a life preserver? Just a few years ago, the number of real estate investors was growing by leaps and bounds; however, today many investors that were attracted to real estate in the early part of this decade due to skyrocketing property values have retreated to the sidelines. The market has been cooling nationwide, and so it seems has the appetite of many investors. The million dollar question is, are they right? Should other investors follow their lead? To help answer this question, let’s look at a similar occurrence that happened in the late 1990s in the stock market. Stocks began to appreciate rapidly in the mid 1990s. In response, stock investment clubs popped up all over the country. The increased interest in the stock market drew more attention to stocks from previously inactive and novice investors. This brought more money into the stock market, which in turn drove prices even higher. The bubble burst on the stock market in the early 2000s. Stock investment clubs closed and interest in the stock market waned in response to the declining values. The end of the bull market and start of a bear market in the early 2000s sent many of these new stock investors to the sidelines, just as real estate investors attracted to skyrocketing property values earlier this decade have also just recently retreated to the sidelines. As we asked above, are the retreating investors right? The answer is a resounding NO. An astute stock market investor makes good money in both a bull market and a bear market. The same occurs in the real estate market. There is a GREAT opportunity for today’s real estate investor. Today’s investor is unlikely to find and profit from skyrocketing prices that dominated many real estate markets just a short time ago. Therefore, investors who plan only to profit from property appreciation are right to retreat if that is their primary means to profit. But today’s market provides an even greater opportunity to real estate investors than years past. It is just a DIFFERENT, and very special, investing opportunity. Large profits will not come from only property appreciation but from other sources. We refer to the special opportunity that is just starting to develop in Today’s real estate market as a ―Perfect Storm.‖ The Perfect Storm is the name of a movie staring George Clooney and Mark Wahlberg that depicted the most violent storm of our generation. This once-in-a -generation storm occurred in the mid-1990s and was caused by three separate and distinct weather patterns that occurred simultaneously. One happened a lot, two every couple decades, and all three together was something seen once in a lifetime. This created what was nicknamed ―The Storm of the Century‖ or ―The Perfect Storm‖. So what in the world does that have to do with today’s real estate market? Like the Perfect Storm, today we find three things happening in this real estate market that is the start of what is potentially a once-in-
a-generation investing opportunity. Three market developments that have never occurred all at the same time: 1. Record Foreclosures — With foreclosures today at record numbers and going even higher, this in short means that the pool of properties available for investors to purchase at a discount is INCREASING. Also, because many communities across the United States are seeing added foreclosures coming onto the market, this is forcing the average homeowner to also discount their home in order to attract a buyer. Foreclosures are up all across the United States, with annual increases of 100% in many parts of the country. In short, it is easier today to get a huge discount on investment property that it has been in years. 2. Rising Rents — With loan standards tightening up the past months, fewer people can qualify for home loans and therefore demand for rental property is increasing. In response to this rising demand, landlords are able to rent their properties faster, keep their properties rented longer, and raise rental rates. So investors who like to rent, lease/purchase, or are unable to flip a property, can take advantage of a rapidly strengthening rental market. 3. Less Competition — Without the attraction of profits from skyrocketing property values, fewer investors are active today. Fewer investors means less competition and even more opportunities for big profits. How is today’s investor able to take advantage of this Perfect ―Real Estate Investor’s‖ Storm? Simple, on the purchasing end, an investor today will be able to use the increased supply of properties at a discount, and the lack of competition, to achieve investor discounts that were very hard to achieve before. Where two to three years ago an investor may have been happy to secure a discount of 10 percent on a
Maximize your profits in Today’s Perfect Storm
Invest TODAY in establishing your network of realty contacts and property
Seek a much greater investor discount upon acquisition than you would have
accepted a couple of years ago.
Secure an exit strategy that allows you to acquire cash out every now and
then (such as a lease/purchase)
Do frequent rental analysis wherever you have rental property (i.e., don’t be
so quick to ask for $1500 when today you might be able to get $1700 because of the growing number of renters).
Consider locking in tenants to two, and even three, year leases (our shortest
is three years). This gives you a chance to get rents up with annual increases, and hold onto enough properties in anticipation of property values going up again (which they eventually will).
Seek out educational products (books, seminars, home study courses) that
teach investing strategies where the investor’s profits are not dependent solely upon property appreciation.
given property, that same property can be purchased in a softening market 40 percent or more below market. On the marketing end, investors who rent or lease/purchase will be able to achieve greater profits from less vacancy periods and rising rents. For those investors who try to flip can use the huge discounts they obtained when they purchased their property to discount the property more than they could have a few years ago and attract an buyers quickly. If a buyer does not purchase quickly, the investor can simply fall back on a rapidly strengthening rental market and attract a quality tenant, and patiently wait for property values to head up again.
How is this playing out today all across the USA? I have been investing for approximately 20 years. In the early part of this decade, I admittedly paid a bit more for properties than I would have liked, mainly due to the intense competition due to so many new investors competing for discount properties. Today, there are more good opportunities to buy than I could have ever imagined just a few years ago. My world is a microcosm of the overall real estate investing market today. I can sum this up in 3 words: Deals, Deals, Deals! Throw away the life preserver, dive in, and enjoy the best swimming an investor has had in decades.
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.
Risk Vs Reward
Protect yourself as a Landlord
There are numerous ways to invest, but the more you read and study, you will find that all routes to real wealth is through making a profit day in and day out through rent payments. You may be a landlord and rent out houses, small multi family, apartments, or commercial properties. You might do a more advanced approach and look at lease options, contract for deed, or seller financing. All choices allow an investor to make money in several ways. First when you buy it under value, instant profit. Second, when you improve the property through renovations or rental increases. Third through rent income. And Fourth trough appreciation. Now you may hear the old veterans talking about different types of problems from tenants tearing up their properties to not getting their rent on time. But remember they are old veterans and are still out there renting properties, so there must be something to this being a landlord or they would have thrown in the towel long ago. What these people know and that you need to learn if you are new, is that whether you are a landlord managing your own properties, or a landlord who has hired a property manager, or you are one of those people with a huge rental property portfolio, you have less problems and make more money when you know more about your tenant. You can learn how to spot a good property or hire a realtor and property inspector to help you. You can hire a contractor to do the repairs and maintain the property. You can even hire a property manager to manage the property. But to actually learn more about your tenants, you have to find a way to screen them thoroughly and not discriminate against them at the same time. Risk in being a landlord is minimized by renting a property quickly and further keeping the good tenants as long as possible. You don’t want your units setting empty any longer than is necessary, but you don’t want to be just inserting warm bodies into your properties that will flee in the night or need to be evicted in a couple of months. The answer is to turn to tenant screening. This should not be something you learn and do it yourself, you want a formal process that works every time and to do that you need a professional screening service. While we can’t know with 100% accuracy that a person will make a good tenant, but we can know with a percentage of accuracy if a person will have a higher likely hood of paying rent, not causing problems, and making you more money. There are numerous screening services that you can turn to that do as little as a credit check, to an online screening, to a full blown background check. Prices can vary greatly, but for a good screening for one person expect to pay between $25 and $35, which by the way can be an application fee paid for by the prospective tenant. Which once upon a time, a burly old landlord told me was a screening function in itself. If the tenant is not willing to pay $25 to $35 per adult in the property for screening, that tells you right there that they would not be a good tenant and you would not be receiving a good report. So what should a good screening company provide? A lot more than a credit score as a credit report is about the persons credit, but how much does the way a person pays their visa bill have to do with how well they will take care of your property and pay rent and not set up a crack lab in your basement. So be sure to look for a screening company that will look at all aspects of the tenant history and provide you with:
Credit History that is easy to read and understand so you can see what they pay and what they don’t. Civil History and evictions from court records so you can see why they have been sued including rent, damages, and possession of property. Criminal History so you can see what type of crimes they may have committed. The guy who shoplifted 20 years ago might be ok, they guy who was convicted of dealing drugs or as a sexual predator might not be. Employment and Income Verification to make sure they do work where they say they do and in fact make what they reported to you on your applica
tion. And statistically speaking, is that enough income for the amount of rent you are charging. Rental references from current and prior residences so you might find that the current landlord who wants this person out gives you a glowing report and the three landlords before that tell you how bad they were.
to be a step by step process applied to each and every potential tenant. It needs to be objective and repeatable. And last you need to document your process and the objective results so you have a paper trail should a fair housing audit or investigation come to light. As we talk about formal, objective, and documented, all of these aspects point to using a screening service to provide you the formality, the yes and no answers, and a paper trail to put in your tenant and rejected application files. One last item that you can use to protect yourself is rental payment insurance to make sure you get paid rent should the tenant skip before the lease expires or if you need to evict the tenant.
Some screening companies might offer a risk rating factor to help you in the process, but in the end you need to make sure you form a formal screening criteria you apply to each and every potential tenant so you do not find yourself in violation of any fair housing regulations. Formal Screening Criteria means it needs to be written down, it needs
More Information . . . More Confidence
Do the math.
Your vacancy is costing you every day. Fill your vacancy faster and save money with Rentals.com!
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
For Sensible Housing Policy
You may have heard of Qualified Residential Mortgage Requirements, or QRM, which proposes rules that would in essence require borrowers of higher risk loans to make a 10 to 20% down payment. In an effort to make sure the general public understands what QRM is and the drawbacks that it will cause, MAREI through it’s membership as a part of National EIA has joined forces with the Coalition for Sensible Housing Policy (www.SensibleHousingPolicy.org) which is made up of 46 key associations across the country including: National Association of Realtors, the National Association of Homebuilders, American Bankers Association, the Mortgage Bankers Association, the NAACP and other consumer groups, civil rights groups, lender, real estate professionals, insurers and local governments. This coalition was established to combat the possible passage of the proposal by federal regulators that would raise costs for creditworthy homebuyers, deny 25 million current homeowners the ability to refinance into lower rates because they lack 25 percent equity, slow the economic recovery by further stifling the housing market and ensure a large government strangle hold of housing markets for a very long time. While in the past the requirement of 10 percent to 20 percent down payments was very common, we have seen that well –underwritten, low down payment home loans have been a significant and safe part of the mortgage finance system for decades. The proposed QRM exemption ignores historical data and imposes minimum down payments of 10 to 20 percent and equity requirements for refinancing of 25 to 30 percent equity. This would result in responsible consumers who have good credit and seek good loan products to be forced into more expensive mortgages under the new proposed rule just because they do not have 10 to 20percent to put down. These mortgages will be more expensive for consumers because the capital and other costs of retaining the risk will be passed onto them, if the private lending market chooses to offer loans outside of the QRM standards at all. What are the proposed rules and their potential effects:
For consumers, the QRM was intended to prove creditworthy borrowers access to well-underwritten products at good prices. Although Congress intended for the QRMs to be accessible to a broad range of borrowers, the regulators acknowledge that they crafted this rule to make the QRM‖ a very narrow slice‖ of the market. Despite specific Congressional rejection of down payment requirements in the QRM legislative provisions, a fact attested to by the QRM sponsors, the regulators have insisted upon a punitive down payment requirement, even when confronted with ample historical loan performance data that show low down payment loans perform well provided the loan has been properly underwritten and has consumer-friendly features. For the housing market, the statutory intent of the QRM was to provide a framework for sound and responsible liquidity provided by private capital that would be broadly available to support a housing recovery. However, the QRM definition in the proposed rule will force the vast majority of both first-time and existing homeowners to face potentially significantly higher interest rates, or to postpone purchases and refinances. For the structure of the housing finance market, the QRM was intended to help shrink the government presence in the market, restore competition and mitigate the potential for further consolidation of the market. Again, the proposed rule is likely to have the opposite impact.
Coalition Recommendations Regulators should redesign a QRM that is consistent with Congressional intent: encourage sound lending behavior that supports a housing recovery, attract private capital and reduce further defaults without punishing responsible borrowers and lenders. For more information visit, www.SensibleHousingPolicy.org and for more information on MAREI’s Legislative Affairs go to www.MAREInet.com and look under the Government Tab.
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!
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.
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
In life as they say ―knowledge is power‖. The more you know about market statistics in your given field of business and the better able to interpret and apply the data, the better business person you will be. Real Estate is no different than any business, you need to gather data, study it and use it to plan your business. There are virtually 100’s of source of data for the real estate investor from the local MLS service, the local Real Estate Association, the Regional Federal Reserve Boards, the US Census and others. We have just started tracking several different factors gleaned from all of these services and combined them into a market data report that you will find on the Member’s Only side of the MAREI website and that we will be looking at briefly at the October 11th PreMeeting from 5:40 to 6:00. If you are like many real estate investors, knowing what you are looking at is a bit tough, because if you were lucky enough to have some sort of formal training on statistics it was a long time ago, and in many cases, you may have never had any training. So we are going to look at the chart below and see if we might be able to figure out what we are looking at. This data came from both the Hearland MLS and KCRAR websies. Below you will find three sets of information including Inventory (how many houses are on the market), Days on Market (the number of days properties have been formally listed for sale), and the Average Sales Price as reported by the selling agent. It also is looking at residential properties only and where possible breaks down New Construction Homes from Existing Resale Homes and then Combines the two. But looking at just these numbers we can see how much inventory is increasing and decreasing. Which when you are looking at just one particular point in time will not tell you a whole heck of a lot. But if you track it over time as we have shown in a spreadsheet below or in a full year chart, as you will find in our Market Report, you will see trends that can help you. So in this chart looking at August Numbers, we see that number of new homes in inventory is going down compared to last year and that the inventory of existing homes is a little less than last month and about 10% less than last year. If we look at the number of days it takes to sell a house on Average, we see that in August this was 110 days, which is just a bit better than last month, but a little longer than it took last year. When we look at average sales prices, we again see a bit higher than last month, yet a bit lower than last year. Keep in mind that the numbers below are an overall photo of all areas of the Kansas City Metro and all price ranges, which can be a good snap shot. But if say for example you are primarily concerned with first time home buyer houses between $100,000 and $200,000 in suburban Kansas City Metro, you might want to look at raw data and factor out high end homes and the 100’s of urban core, bank owned properties that are selling for almost nothing and affecting the overall numbers. If you watch data like this over time you will be able to see how rising and shrinking inventory will affect price and how quickly homes will sell. Once you have mastered the basics of tracking your market specific to your investing needs you might want to add in other trends such as:
Employment or Unemployment Numbers more people looking for jobs will create less of a demand, while a new business opening with 100’s of new jobs could create a demand in an area. Rental Demand and Rental Rates: If there is a shortage of rental units, rental rates might be rising, while if there are too many rentals, you might see rental rates go down and move in incentives go up. Aging of the population, is very important to the investor because if your main population is older, you might want to focus on properties for older tenants or buyers. Yet if you are in say a college town where you have an
Inventory Change Aug New Resale Total
Days on Market
Average Sales Price
Mo/Mo Invent. Change 1312 0.46% 15165 -3.46% 16477 -3.14%
Yr / Yr Change -22.10% -10.74% -11.65%
Mo/Mo Yr/Yr Mo/Mo Yr / Yr DOM Change Change Price Change Change 307839 -0.51% 3.73% 146381 0.52% -3.71% 110 -0.91% 10.0% 157372 0.32% -3.94%
unusually younger population, you may want to focus on housing for college students or families with small children. One chart to pay particular attention to is one that looks at numbers of homes sold by month over a several year period so you can note when sales drop off and sales values go down. For example here in the Kansas City metro, if you look at such a chart you will see values and sales drop off from December to February. So as a person in the real estate business you would need to plan for less sales and income during those months. Some other great resources for real estate market trends:
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
www.KCRAR.com www.RealTrends.com www.Realtor.org
Are you building a Kansas City Area Real Estate Portfolio? Start with MAREI 1. Build your Team 2. Find Your Property 3. Manage your Investment
When investing in the Kansas City Metro whether you live here or are out of state, start your investing with Mid-America Association of Real Estate Investors: Our members are from all areas of the real estate industry and are ready to help you plan your Real Estate Portfolio, find the perfect property, do all the necessary repairs, and manage those purchases for maximum performance over time. Before you invest your time and money, start with MAREI and connect with our members!
Property Management Section 8 Housing KC Metro Wide
Jeff Woods Broker
(Continued from page 20)
Stay capitalized. One of the most serious problems small landlords face is lack of cash, as being a landlord involves unexpected expenses. These range from tenants suddenly ceasing to pay their rent, to unexpected repairs, to lawsuits, but the only predictable aspect to these unexpected expenses is that they will happen, and with some frequency. Set aside a hefty amount of cash specifically for rental expenses, and resist the temptation to use it for anything else. Understand the eviction process. Although many of us don’t wish to think about worse case scenarios, it is important to become familiar with the eviction process and be ready to start the process immediately when a tenant violates the lease. While the specific docu-
ments required are different in each state, all states involve the same general eviction process. The landlord or property manager must serve the defaulting tenant with a particular notice, wait a specified period of time, file in court, attend a court hearing, schedule a date for the actual eviction, and so on, and landlords are well advised to understand this process before actually having to go through it, because it is extremely expensive and takes far longer than most landlords anticipate. Understand the Fair Housing Act and how it applies to your rental. When advertising for a new tenant, it is critical that landlords and property managers understand and comply with the Fair Housing Act. The Fair Housing Act prohibits landlords from using any of the following criteria when evaluating
potential tenants: race, color, national heritage, religion, gender, disability, and familial status. While that may sound simple on the surface, consider that stating in a rental listing "perfect for a single professional" is a violation of the Act (bias against familial status). Advertising only in your church's newsletter discriminates by religion. What landlords can and should use to evaluate potential tenants is financial data, credit histories, and other background data. Author Brian Davis is a seasoned landlord and marketing professional. As Vice President of online company EZLandlordForms, Brian Davis works to empower landlords and property managers across the United States with valuable information and documents to support their work.
2011 National REIA Honors of Merit Winner
Kansas City’s Premier Resource for Successful Real Estate Investing
Education, Training & Support Networking for team & skill building Discounts from local & national vendors Government & Community Involvement
TE-TEE LIGHT ELECTRICAL SERVICES
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
For New Landlords
Building a strong relationship with a new tenant and protecting your real estate investment is of paramount importance when crafting a lease agreement. There are a multitude of considerations at this juncture that are essential to understand. As a seasoned landlord and top expert on landlord-tenant relationships here are my top tips for new landlords as a helpful tool for navigating lease creation and the ongoing considerations of managing a rental property. How to Build a Strong Lease & Relationship with Your Tenant Build an airtight lease agreement by knowing the laws that apply in your state through a state-specific lease. Each state has slightly different laws that impact a landlord-tenant relationship. Accordingly, use a state-specific lease instead of a general lease to best protect your real estate investment. For example, California requires all lease agreements to include clauses mandated by Megan's Law, and every state has different limits on security deposits, late fees, etc. While not an exhaustive list, other elements a lease agreement should clearly define include: Who is responsible for paying the utilities, which appliances are included and who is responsible for maintaining them, whether the lease auto-renews and for what term, details surrounding fees and deposits, and whether is there an option to purchase - and if so what are the terms? Know your tenant by thoroughly screening each prospective renter to avoid problems down the road. This can be accomplished by a few simple steps. First, conduct a professional credit check to learn an applicant’s credit history and if they have been fiscally responsible in the past. Bad credit can serve as a red flag and you may wish to avoid such tenants. Next, ask for references from past landlords. However, be on notice that while references from prior landlords are worth a quick phone call, they aren't particularly telling, because tenants can give fake names and numbers, and even if they don't, the old Page 20 landlord may well be painting a rosy picture of the tenant in order to get rid of them. What a landlord should verify are the rental applicants' credit, employment/income (and historical stability), criminal background, and eviction history. When landlords run these checks, not only can they determine the best rental applicant, but the landlord can defend against any discrimination lawsuits by producing hard data used to choose one rental applicant over another. Devise a Moving In and Moving Out procedure and be sure it is clearly defined. One helpful tool is a comprehensive walk-through checklist. This document will be used for the landlord/manager to walk through the rental unit with the tenant and document the condition of the unit upon move-in and move-out. Offer performance incentives: While most lease agreements include a late fee, landlords can further incentivize timely rent by offering a reward for early rent payment, renewing for a longer term period, and/or any other behavior you want to encourage. Rewards can range from the simple, such as rent discounts, to the complex, such as point systems where tenants earn points and exchange them for rebates, gift cards, updates to the rental unit, etc. Establish a relationship with at least two good contractors. Landlords and property managers need at the very least a licensed contractor who can handle large jobs, and an inexpensive handyman who can affordably fix minor issues. Don't wait until your tenants' heating system stops working in January, or the roof collapses, as the time lost in trying to find a contractor by that time will cost real money. Instead form these relationships before you actually need them, and then you will simply be able to make a phone call and have the problem resolved immediately.
(Continued on page 18)
More Information . . . More Confidence
Do the math.
Your vacancy is costing you every day. Fill your vacancy faster and save money with Rentals.com!
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
“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 firstname.lastname@example.org
Investment News Page 21
www.JamiesonHomeTeam.com Kevin Jamieson 816-503-4671
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 Creating Welath - 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 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 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 Crime Free: Fair Housing Seminar & Premise Liability Seminar www.KCCrimeFree.com Weekly Wednesdays: 103rd & State Line 9 am to 11 am : Michelle Winberry Last Day for Early Bird Pricing for the Buy Low, Rent Smart, Sell High Seminar Buy Low, Rent Smart, Sell High Seminar—All Day Training Workshop with Andy Heller Independence / Blue Springs: Panera Bread 40 Hwy & 291 4pm to 6pm: Debra Felderhoff
Details, Times, Locations, Cost & Registration at www.MAREInet.com
Monthly Meeting Networking
Oct 12th Oct 15th
Lee’s Summit: Panera Bread on Chipman Road in Lees Summit: Debra Felderhoff CESKC.com 1031 Exchanges - 1pm –4pm 1 PHP, 3 Hours Realtor C E CESKC.com Commercial Leasing - 9am12pm1 Credit PHP, 3 Hrs Realtor Contin. Ed CESKC.com Commercial Lawsuits - 1pm4pm 1 Credit PHP, 3 Hrs Realtor Contin. Ed Weekly Wednesdays: 103rd & State Line 9 am to 11 am : Michelle Winberry Weekly Wednesdays: 103rd & State Line 9 am to 11 am : Michelle Winberry CESKC.com Credit Scores - 6pm-9pm 1 PHP, 3 Hours Realtor C E 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
Networking & Education
Details, Times, Locations, Cost & Registration at www.MAREInet.com
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
To register for an event, first you need to log in using the instructions from page 4 of this guide, which as page 4 says, lands you on the calendar of events. Find the event you want to register for and click on it, in this example, click on MAREI Monthly Meeting on the 14th. This lands you on the event page with the Mem-
ber Registration Button at the top.
Click on the member registration button. And you end up with the registration options. Pick the one you want, which as a member in this case would be the FREE
option using the drop down button, and click continue.
Continue clicking the Continue Buttons until you hit the final screen below
See more details on each property in the Classifieds at www.MAREInet.com.
Offered As Leased Turn Key Fixer Fixer Fixer Rental Address 2 Houses 2 Houses N 47th & Georgia 2904 E 35th St Waldo 4132 Agnes City Lake Ozarks South KCMo Kansas City KS Kansas City, MO Kansas City, MO Kansas City, MO $15,000 Price $58,000 $76,00 $18,000 varies 2/1 5/1.5 3/1 2/1 4/2 Kansas City, MO Kansas City, MO Kansas City, MO Kansas City, MO Kansas City, MO KCMO KCMO KCMO Raytown Lenexa KCMo KCMO KCMO Smithville KCMO KCMO Overland Park No city Independence $23,000 3/1 3/1 Bed/Bath Contact Danny Hammond Christoph Becker Paul Redmond Christoph Becker Maggie Sheehan Christoph Becker Laura Johnson Sue Robertson Adrian Williams Bilal Hazziez Joseph Grimm Joseph Grimm Christoph Becker JD Asbell JD Asbell JD Asbell JD Asbell Christoph Becker Christoph Becker Christoph Becker Rajeev Verma Joey Kramer 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 Phone 816-985-4950 816-419-1165 913-626-2967 816-419-1165 email@example.com 816-419-1165 732-670-4940 816-589-0975 816-616-2475 816-686-4805 913-489-9566 913-489-9566
Lease Option North of River Rehab Turn Key Fixer Rehab Turn Key Wholesale Wholesale Wholesale Wholesale Rehabbed Wholesale Wholesale Wholesale Owner Fin Wholesale Renal Turn Key Fixer Rental 2327 NE 45th Place 2005 E 58th St 701 E 70th St 3509 Lexington 300 Kensington 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 7411 Forest 8516 W 69th Tr No address 1811 S Cedar
You Name 3/2 $22,000 25000 $13,500 $48,000 $115,000 $48,000 $85,000 $17,500 $17,500 $14,500 5/6 4/2.5 3/2 2/1 4/3 4/2 2/1 3/1 3/1 3/1
Not priced 2 / 1.5 14,999 39900 119,900 No price No price 5/ 1.5 2/2 3/1.5 3/2 NA
Scott Tucker, Realty Resource 913-620-7934 Don Tucker owner/ broker Kevin Jamieson Reece & Nichols Kevin Jamieson Reece & Nichols 913-208-3017 816-686-2955 816-686-2955
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!
Noelle Bear: Bonner Springs, KS Carol Cutler: Kansas City, MO Gregory Dorrel: Overland Park, KS Jason & Angela George: Oak Grove, MO Joseph Grimm: Bonner Springs, KS Bill Loftus: Kansas City, MO Rod & Karen Messier: Independence, MO Lauren Norwood: Grandview MO Paula Swenson: Overland Park, KS Eric Wayne: Pleasant Hill, MO
Dean Bammer Brandon Jackson Amanda Palomba Julie Schoemeht Lisa & Mark Stang Ray Stuck Chris Zembrenski
Glenn Davis: Lexington, SC Johanna Koppen: Kansas City, MO Mara Meade: Lee’s Summit, MO Ariel Moore: Overland Park, KS Marcus Painter: N Kansas City, MO Ben Rao: Lee’s Summit, MO Mike Reid: Shawnee, KS Scott Shore: Independence, MO Tim Stauffer: Kansas City, MO Luke Weber: Olathe, KS Roy Worley: Kansas City, MO
Premier Leasing: Lees Summit, 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
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
informed MAREI Professionals
From Motivation to How To
MAREI members are above the crowd. They enjoy a informative newsletter, blog, and social media experience. They connect, ask questions, and share opportunities through the Member’s Message Board. And they save $100 using the many member discounts.
targeted group Of Clients
Optimization of Your
MAREI sets the standard for real estate investor networking and education, drawing the type of client you want to do business with. Our meetings and online presence gathers targets the qualified leads your business needs. But there is only one way to get in front of them . . become a Business Member today!
$99.00 / year
Additional Member $50
$499.00 / year
See the Membership Benefits tab under Membership on our web site at www.MAREInet.com for more info and look for our orientation webinar on the calendar of events.
See the Business Benefits tab under Membership on our website at www.MAREInet.com for more info or call the office at 913-815-0111 .
Mid-America Crime Free Inc. Proudly Presents!
Date: 10/19/2011 Time: 7AM to 5PM
FAIR HOUSING & PREMISE LIABILITY SEMINAR
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 firstname.lastname@example.org
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.