Академический Документы
Профессиональный Документы
Культура Документы
Investment News
90 Day Challenge
Analyze Deals
You make your profit when you buy! So be sure to buy right!
Assigning a Contract
Double closes and finders fees are gone, so how do I get paid?
Market Conditions
Be an investor in the know, take a look at the data.
MAREI
Notes
2011 National REIA Awards of Excellence Contact Information
PO Box 8685, Prairie Village KS, 66208 Phone: 913-815-0111
Legal Disclaimer
MAREI does not exist to render and does not give legal, tax, economic or investment advice and disclaims all liability for the action or inaction taken or not as a result of communications from or to its members, officers, directors, employees and contractors. Each individual should consult his/her own counsel, accountant and other advisors as to legal, tax, economic, investment and related matters concerning real estate and other investments.
Content Disclaimer
The views and opinions expressed by authors of articles contributed to this newsletter do not necessarily reflect those of the association, the board of directors or the staff.
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.
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MAREI
Staff
volunteers:
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. Need: Blog Articles, Newsletter Articles, Workshops for Members, Guest Speakers, Office Assistance, Web Master . . . If this might be you, let us know!
Investment News
Scott Tucker Meeting Ambassador STucker319@gmail.com
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ei ar m
Type Insurance Lender Partnering Prop Mgr Prop Mgr Prop Mgr Realtor Security Staging Supplier Title Company APIA Argentine Federal Savings kcmoHomeBuyer Abraxas Prop Mgmt Jamieson Home Team Premier Leasing Realty Resource Devcon Security ShowHomesKC Canyon Stone Accurate Title Company Web REOIns.com
BUSINESS MEMBERS
ADDRESSING THE NEEDS OF
Phone 877-752-2742 913-402-1500 816-523-4400 816-474-8800 816-503-4671 816-841-9500 816-523-4400 913-907-4942 770-853-3506 913-254-9301 913-338-0100 Contact Lisa Goodner Ann Wilkinson Don Tucker Meka Cayce Kevin Jamieson Jeff Woods Kim Tucker Marian Collins Amanda Palomba Matt Puckett Jackie White ArgentineFed.com kcmoHomeBuyer.com AbraxasMgmt.com JamiesonHomeTeam.com MyPremierLeasing.com RealtyResourceKC.com DevconSecurity.com ShowHomesKC.com Canyon-Stone.com AccurateTitleco.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.
http://mareinet.com/associates
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Contents
In This Issue
The Fine Print MAREI Meeting Staff Business Members Contents
MAREI News
2 3 4 5 6 8 10 12 14 16 18 20 22 23 23
Directors 90 Day Challence Analyze & Submit Offers on Properties Member Benefits at a Glance Assigning a Contract Market Conditions Association Update Welcome New Members Calendar of EventsSubGroups ClassifiedsHow to submit part 2 ClassifiedsHouses for sale 10 Ways to Build Your Buyer List
Member Benefits
New member orientation will cover many of our member benefits. If you are new to MAREI or just have some questions please join us at 6:30 at the January Meeting when we will go over all the benefits of being a member. Members and Guests welcome!
Investment News
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Directors
As we head into a new year with many opportunities for new beginnings I am reminded of a Facebook Post I read just before Christmas! A friend of mine while watching an infomercial about a weight loss exercise training video came to the realization that she had a shelf full of training videos that she was not using. At that time she set forth for herself a 90 day challengeif she could exercise in some way for 1 hour for 90 days, then she would spend the money to buy the new exercise program. She completed the 90 days last week. Each and every day for 90 days she found a way to exercise, from going to the gym for an hour, to taking a walk, to using some of the exercise videos she already had in her house on the shelf. You see she knows one important key factor, if you do something for 90 days it becomes a habit. So fast forward to today, January 4th as I sit at my desk trying to figure out new and improved ways for buying houses. Searching for one new key way to find the next great deal, while in front of me I have a vast library of real estate training materials and I know for a fact that the golden key is already in front of me if I would just pick one new thing out of one of those books and try it for 90 days. What is it you want to change or improve. I would be willing to bet that you have much of the necessary tools right in front of you, it is a matter of actually implementation. So go to your library, be it books on a shelf, notes you have taken at a training, stuff on the internet and pick one thing you know you should be doing and commit to it for 90 days. Do you need to write a blog post a day for 90 days? Interact with 1 person on social media per day? Make 5 calls to your circle of influence a day for 90 days? Sending out 20 letters a day to motivated sellers? What is it you need to do in your business, your life, or your family? One way to help you with your challenge if to have a partner who has a challenge of well and work to keep each other accountable. You might join us on Facebook and tell us what your challenge is.
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877-752-2742
Jeff Woods Broker ww.MyPremierLeasing.com 816-849500 Real Estate Owned / Forced Placement For Investors & Finance Institutions
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
ShowHomesKC.com
Amanda Palomba 913-227-4364
Investment News
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Monthly Meeting
January Monthly Meeting: Tuesday January 10th, 2011,
6pm to 9pm Career Education Systems, FREE for members, Guests $25 at the door, $15 if you preregister We will be analyzing deals!
Agenda 5:00 Set Up 6:00 check in 6:00 vendor hall 6:30 new member orientation 7:00 mini speed networking 7:15 guest panel:
Deal Analysis
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thumb. And I want you to keep in mind that they are just what I said... rules of thumb. Deal Finder Rule #1: The first rule of thumb when analyzing a deal is very simple: "If you need a calculator, it's probably not a deal". Let me explain. If you can look at a deal, knowing the after repaired value, the repair cost and how much they are asking then you should be able to tell whether or not it is worth pursuing. If the profit numbers are so close that you have to figure it on the calculator then you probably need to say "NEXT" and move on to the next property, after making your low ball offer of course. Deal Finder Rule #2: The next rule of thumb is also very simple. "If you have to ask someone if it's a deal it probably isn't". Lets face it, you have at least read some books, been to a seminar or two, taken an investor to lunch, listened to a webinar or training audio or something. You know what to do for the most part. YOU can tell whether it's a deal or not so if you have to ask someone then it probably isn't. 4 Key Deal Finding Questions Now, how do we put all this stuff to use? As I mentioned I only need to ask a few specific ques-
fer: Deal Finder Question #1: I need to know the after repaired value of the property or the current comps in the area Deal Finder Question #2: What is the estimated amount of repairs or types of repairs. Deal Finder Question #3: The associated closing costs Deal Finder Question #4: If it is a rental property then I want to know the rent or potential rent. Sure I will eventually find out more information but we are talking about getting our offer out there on the first call. These basic four questions will give you all the info you need to make an offer and be on your way to a deal. How Much Should You Offer? I know what your asking...How much should I pay. This is very simple. If you are looking at a fixer upper then you don't want to have any more than 70% of after repaired value in-
vested and this includes the purchase price, repair cost and closing cost. Keeping a margin of 30% insures that when you are finished making the necessary repairs, after closing cost you will still have 30% equity. Then you can sell it, refinance it, lease option the property or rent it for cash flow as well. Now, if you are looking at what I call an "instant landlord" property then you can pay a little more than 70% of value. After all there are no repairs to do on your part. My rule is not to pay anymore than 80% of value and maybe 85% of value if the cash flow is good and there is good possibility of appreciation. All you need to have is a simple calculator to figure what to offer while on the phone with a seller or submitting an offer by email. Let me mention here that it is extremely important that your deals are home runs, especially your first few. That is the critical stage in your investing career that will make you stay in or get out. . . . Larry Goins
tions before making my first offer right over the phone. Here is what I need to know before making an of-
Want some help analyzing your deals . . .Be sure to pick up your FREE Copy of Larry Goins Ulitimate Property Analyzer Software. We will have a free copy for the first 25 people in the door! Be sure to Arrive Early. Want to learn more about Buying and Flipping Properties? Visit the education page for a free webinar with Larry Goins on buying and selling houses.
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AT-A-GLANCE
USE THIS PAGE AS A GUIDE TO VALUE ADDED DISCOUNTS TOOLS AND SAVINGS CREATED JUST FOR YOU ON GOODS AND SERVICES YOU USE EVERY DAY.
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Screening for tenants & workers with 20% discount for members.
Learn how to save money at Home Depot and register for a 2% Rebate for all purchases & rentals across the US.
Affordable Landlord Websites with a 15% discount or free trial for members.
All members receive a discount card to access our exclusive discounts up to 40% off all paint, supplies, and flooringnationwide.
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Discount card for all members providing a 10% discount on all services. Market your rentals on the nations top ranked rental site. Member discount is 20% off Regular Prices. Members have access to many great tools and savings including discounts of up to 7% - nationwide.
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Save on select FedEx Office copy and print services up to 20% and on FedEx Shipping up to 22%.
Investment News
The newsletter for Mid-America Association of Real Estate Investors: published monthly and distributed both in print at our meetings and digitally to our database of over 5000 people.
Membership
Receive discounts up to 65% on over 12,000 products you use the most online and in store.
FREE membership in Community Buying Group for all MAREI members to bring you even more great discounts.
Continued . . . .
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Member Service
We have several services as part of our website to help you grow your business. MAREIs Government Affairs actively monitors national legislation and rule-making that impacts the real estate industry and harnessing the strength of MAREI members at the grassroots level. MAREI members also receive timely Calls to Action when there is a time for our members to take action on an important vote. Members also have access to the latest in Market Data.
Magazine for the real estate investor. With discount subscriptions for MAREI members.
Other Discounts
Nearly 70% of QuickBooks users say that it makes their business more profitable. Get your Accounting on track. Buy at a 40% discount through National REIA.
Browse the member classifieds to find your next deal. Take the time to post your investment opportunities for other members and site visitors to browse.
Special member discounts for members at Avis, Budget, and Enterprise Rentals.
The Member Library is packed and ever growing with pdf versions of entire books, EBooks, Articles, Forms, and Documents.
VISIT
MAREINET.COM/DISCOUNTS TO LEARN MORE
Investment News
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Assigning A Contract
We were discussing at the MAREI office if in fact assignment of contract was still a viable way to flip a property. But we have found that Diana Jackman from Chicago Title and the Arizona Real Estate Investors Association believes that they are still here. As Diana points out the whole concept of being a bird dog and getting a finders fee or referral fee is no longer an option, not only is this against most state laws the title companies will not pay them. Ask your title company to do a double close where you as the wholesale seller in the middle pay for your purchase from the original seller with the proceeds from your sale to the end buyer, and they will again tell you no. Diana also tell us that Some investors are under the assumption that if you close on a double you can somehow hide the profit you are making on a file. This is a costly misconception in more ways than one. Not only are you increasing your liability on a double close but you are also increasing your cost (in some cases). When she refers to increasing your liability by hiding the fact that you are buying and selling to make a profit, she is referring to the fact that many investors dont want the original seller to know they are selling to make a profit and at the same time dont want their end buyer to know how much profit they are a making. Not really a problem, until that one time someone finds out what you made, gets upset and takes you to court. With the assignment everyone is put on notice as to exactly how much you are making in the way of the assignment fee. So nothing is hidden. The extra costs comes in to play because with the double close you have just that: two closings one for you to buy and one for you to sell and the title company gets paid for title twice and two sets of closings. With an assignment you as the wholesaler have absolutely no costs, you just get paid. Diana gives us this scenario: You sign a contract with the owner of the property and show as buyer John Doe, LLC, and or assignee. You now have the right to assign the contract. You will also disclose in your contract that you are an investor and plan to assign the contract/property for profit. If one or more of the members of your LLC holds their real estate license in the state of Arizona then that disclosure should also be made in the contract. Now you have full disclosure! You find a buyer (assignee) to take over your interest in the contract for an assignment fee of $4,000.00. You would supply the buyer MAREInet.com
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(assignee) a copy of the contract and an assignment agreement. The assignment agreement will dictate the terms of the assignment. Dont leave your earnest money on the table remember to include the replacement or reimbursement of earnest money in your assignment agreement. All parties will sign off on this agreement, you, (the assignor), the
buyer (assignee), and the seller. Again full disclosure on this gives you very limited liability. The other selling point for you as assignor is that you pay no fees, you just collect your initial deposit back and whatever assignment fee is agreed upon. Your title company will require a 1099-m form from you, the signed assignment forms and where to send your money.
She does point out that most banks in REO and short sales specifically write into their contracts that they are nonassignable. But for the most part other sellers do not have an issue with it. We also did a little research online and found that some title companies are saying they do not want to conduct a closing with the assignment of contract, so far the title companies that we have worked with still close them.
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
Investment News
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Market Conditions
The housing market data is out for November and it is showing that the Pending home sales are continuing to gain and in November it reached its highest level in 19 months, according to the National Association of Realtors. The last time the index was higher was in April 2010 when it reached 111.5 as buyers rushed to beat the deadline for the home buyer tax credit. The data reflects contracts but not closings. NARs chief economist, Lawrence Yun attributed these gains to both buyers who have been on the sidelines waiting for the economy to get better and to buyers who had contract and financing issues that have now been resolved and are now buying a house again. This data on pending home sales is telling us that closed home sales should continue to improve. If we step back and look at the date for the Kansas City area we see that the average sales price of a new home was $323,146 according to the Kansas City Regional Association of Realtors (KCRAR). This value is almost identical to the same average price last year. Existing homes saw an average price of $147,386, just 4% higher than the $142,071 price of last year. KCRAR also reported that on the number of home sales that in November we saw 136 new home sales this year compared to 135 in 2010. And for existing home sales we sold $1566 this year, 5% more than we did in 2010 but down 8% from October 2011. It is important to note that sales generally taper Page 14 off going into December and January in the Kansas City area. It is also important to note that we are going into our second spring sales period with out the tax credits. So when we look at sales figures for 2009 and the first part of 2010 through April 30th the numbers were all scewed by the $8,000 home buyer tax credit and then the spring 2011 sales and appraisals were still being affected by tax credit sales from a year ago. Our inventory of homes in the Kansas City metro is down all the way around with our new home inventory at 1264 a decline of 3% from October and a 16% declined from a year ago. Existing home inventory was at 12,505 with is down 9% from October and 14% lower than 1 year ago. Here I have to think that this is affected by the slow down in foreclosures while the mega banks go through and verify paperwork and foreclosure procedures and as I recently read on a blog post from Mark Beauvais, that the banks are holding back inventory to limit supply, increase demand, and raise prices. This is the Shadow Inventory that you keep hearing about in the media. We can look to RealtyTrac to see that foreclosure activity is trending down over the past 6 months in Kansas while foreclosures seem to be trending up in Missouri. Looking at the make up of foreclosures in both states, we see in Kansas That about 1/3 are homes in pre-foreclosure, 1/3 are ready to go to auction, and 1/3rd are bank owned. Looking at the pie chart in Missouri is vastly different with almost no homes in pre-
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foreclosure, 70% ready to go to auction, and 30% bank owned. If this data on the RealtyTrac website is correct, we have almost 3/4 of the foreclosure inventory waiting for sale so either the banks are just letting houses go to sale a little trickle at a time to control assets on their books and inventory of REO available, or we have a lot of properties that will be coming to market in the spring of 2012 on the
Missouri side. So what does this all mean for real estate investors in the Kansas City market? It seems we are in for more of the same across the metro with higher prices for bank owned houses continuing. Add in that two or three years ago investors were the primary buyers of bank owned properties while today the investors are competing against owner occupant buyers looking for a
great deal where they can invest sweat equity. This is further driving up the prices of bank owned properties. Tough for those of us working to get a great deal, but on the flip side if we are looking for prices to increase, this is helping on that side of the coin. Please visit http:// www.MAREInet.com/Market to see more on this data.
accurate
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
www.MAREIU.com
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Investment News
Association Update
In real estate as in business, you have to adapt to the ever changing market or become obsolete and go out of business. MAREI is a very important part of the real estate market here in Kansas City and we have to be responsive as well. We may be biased, but we doubt that there is anyone else out there working to provide Kansas City Metro real estate investors with the extent of market information, government affairs updates, networking opportunities, deal opportunities, expert service providers, education and more at MAREI. And in todays economy where the real estate investor is a very important cog in the community wheel, MAREIs role to the community is growing. We need to strive to serve our current members, motivate new members, and improve our services. So we have some new improvements that have kicked in and others that we are working on for 2012. First in the last 1/2 of 2011 we have updated our membership offerings: Annual Full Membership Privileges first quarter and $30 every quarter after.
$99 First Year & $99 Renewal Family Member / Business Partner $50 Break to Quarterly with only $35 for
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and just convert your membership over to the recurring dues. Other changes coming:
working to complete the main presentation of the meeting closer to 8:30 rather than 9:00.
ter format and allow us to market them to our email and post to our social media pages automatically gaining you more exposure.
Do the math.
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Discounts for MAREI Members: Receive 20% off all Regular Priced Advertising. Log into Members Area, click on Member Discounts and look for MAREIs Discount code!
Investment News
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New Members
Renewing
Carol Babcock: Kansas City, MO Kevin Boggs: Overland Park, KS Steven Glaze: Lees Summit, MO Melanie Gomez: Kansas City, MO Diane Hastings: Liberty, MO Jane Mahoney: Kansas City, KS Michael Linn: Kansas City, MO Dena Odom: Mission, KS David Watson: Topeka, KS
Steve Burns: Shawnee Mission, KS Brian Gates: Leawood, KS Dan & Shelda Goodwin: Overland Park, KS Dee Grisamore: Overland Park, KS Bilal Hazziez: Kansas City, MO Scott Tucker: Kansas City, MO
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HOUSES WANTED
Built After 1950 Minimum 3 Bed, 1.5 Bath Eastern Jackson County
MO or Johnson County KS
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Tenant Screening Pre Employment Screening Contractor Screening Collection Services
Presentation is Everything!
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Investment News Page 19
Canyon-Stone.com
CALENDAR
Locations, Cost & Registration at www.MAREInet.com/Calendar
events
,
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Sub Groups meet more often than the monthly meeting. Residential Groups
Blue Springs/ Independence: Every Saturday from 4pm to 6pm at the Panera Bread at 40 Hwy and 291 Hwy, Independence. Lees Summit: Every Sunday from 9am to 11 am at the Panera Bread on Chipman Road in Lees Summit. Weekly Wednesdays: Every Wednesday from 9am to 11 am at the Panera Bread at 103rd and State Line.
THANK Y
OU!
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.
Group Facilitators for the following Groups wanted: Northland Investors, Joco Investors, Short Sale Investors, Landlords, Note Buyers.
Investment News
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Classifieds
The Mechanics Part 2
Once you click post classified, you get the input screen above. Fill it out and click Submit Classified. You might note as you look through other peoples classifieds that they look real fancy. These folks have created their posting in an HTML (web site editor) and pasted the HTML code in the Description Box. Doing this you can add color, formatting, links to your website, and photos. You are only allowed 1500 characters and HTML takes up a lot of those. We are not here to teach you HTML, but if you use something like Google Sites or Wordpress, you can create a page in that service, switch to the HTML view and copy and paste here (and also into craigslist as well) and have a beautifully formatted classified advertisement.
Caution: if you edit your classified, it will always default to vehicle, so be sure to check that before you Submit. See Part 1 in December 2011 Investment News
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CLASSIFIEDS
See more details on each property in the Classifieds at www.MAREInet.com.
Offered As Address City KCMO KCMO KCMO (Raytown) KCMO Lees Summit Kansas City Price $19,500 $17,500 $12,500 $14,500 $99k Each $38,700 7 units Bed/Bath Contact Phone 816-419-1165 816-419-1165 816-237-8696 816-419-1165 816-985-4950 Fixer / Rental 4206-4212 E 7th Fixer /Rental 1812 E 70th St Fixer / Rental 5713 Palmer Fixer / Rental 5161 Hardesty Rental Fixer ShiloEstates 8300 E 104th Tr 4 plex 2bd Christoph Becker 3 bed Christoph Becker 3 bed/1ba Bilal Hazziez Christoph Becker Danny Hammond
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Many thanks to our members & guests for a great 2011! Please join us for an even better 2012!