investor news - july 2010
DESCRIPTION
Newsletter for Mid-America Association of Real Estate InvestorsTRANSCRIPT
JUNE 2010
u MEMBER BENEFIT HOME DEPOT
PAGE ............. 15
u CALL TO ACTION
LEGISLATIVE ACTION COMMITTEE
PAGE .......... 10
u MONTHLY MEETING
JUNE 13
PAGE ............. 8 Investment news NEWSLETTER OF
MID-AMERICA ASSOCIAT ION OF
REAL ESTATE INVESTOR S
For Real Estate Investors & Property Owners
Get Involved
New at this months meeting is our feature “Haves and Wants” . Here’s how it works. For all members who have a real estate in-vesting “want” like they need private funding, need a recommendation on a contractor, or help in some way or a member who has a “Have” like a house for sale, an extra screened tenant buyer, or an over abun-dance of rehab supplies,
this is the time to share.
First I would prepare a flyer or business card regarding the have or need and have it on the “Deal Table”.
Second prepare a 30 sec-ond pitch, what you have or need and how to contact you.
Third at 7:00 get up in front of the room and give us your pitch.
MARKET WATCH What was the affect of the tax credit? Are prices going up or down? Are we on our way to recovery? Check out our Mar-ket Update on Page 18 for a brief over view of the local mar-ket and the nation as a whole as well as a few predictions. Tell us what you think, please commend on Linked In.
Page 2 MAREInet.com
Member Profile
Attorney
David Nachman Active Member of MAREI
since 2004
NACHMAN
LAW
Attorney for
Entrepreneurs
Services for business &
individuals.
Business organizations
Mergers & acquisitions
Strategic planning
Real estate investments
& financing
Commercial
Entertainment law
Employment law
Restrictive covenants
Commercial litigation
Arbitration & mediation
Not for profit
Estate planning
Durable powers of at-
torney
Probate
Creditors' rights, fore-
closures, bankruptcy
claims
Buy-sell agreements
Business divorces
Confidential info & trade
secrets
Distribution agreements
Franchise agreements
Construction law
Zoning and title issues
MAREI Member Special
FREE 30 Minute Consultation in July
www.NachmanLaw.com T: 816.285.6029
F: 816.756.1999
Investing as a Private Lender
for acquisition and rehabs with
investors who have a proven
track record, David has focused
mainly on residential single
family homes because it is the
best way to minimize risk. If a
problem should arise, these are
the easiest to sell or to develop
other exit strategies.
When asked about mistakes he
sees new investors making, he
comments that some novice
investors rely on information or
statements of others that are
unreliable. It’s essential to
know your market and your
property so that you know your
project is likely to be success-
ful. Every deal has two major
parts: the buy and the sell.
The investor should have sev-
eral exit strategies developed in
case the first one does not
work.
With experienced investors, the
problem seems to be over lev-
eraging. Using OPM (other
people’s money) is a great way
to maximize profits, but it can
also
drag
you
down if
the
market
turns when you have too many
properties and too much debt.
The investor needs several
business plans that anticipate
changing markets, so that cash
can be raised and debt paid off
if necessary.
The most important thing he
stressed for new investors
starting out is that if you intend
to hold property and rent it,
nothing is more important that
thorough screening of your ten-
ant.
He left us with the concept that
when contracting for the pur-
chase, the rehab, the lease,
and the sell, it’s essential that
all terms be addressed in your
written contracts. You want to
anticipate likely problems and
clearly define who is bearing
the risk so there are no sur-
prises if something changes.
Don’t rely on unreliable
information from others.
Advertiser’s Directory
Investment News Page 2
Features ׀ June 2010
Nachman Law 2 kcmoHome Buyer 21
Market Report 9 T.O.T.L. Renovations 21
Accurate Title 11 July meeting 23
Rockstar Investor 11 Rentals.com 25
MAREI Profiles 13 Absolute Auction 27
Home Depot 15 Get Licensed 28
16
Insurance cov-
ering why we
need insurance
and what it
does for us.
Provided by
Tim Norris our
National Insur-
ance Provider
20
Marketing
Espionage
from Jason
Hanson ex-
plains why
we need
business
cards and
how to de-
sign them
for the best
results.
In This Issue
Member Profile 2
Staff 5
MAREI 2.0 6
Inside Secrets 8
Day on the Hill 10
Get Involved 12
Membership Has it’s Privileges 14
Insurance, a Necessary Evil 16
Market Update 18
Marketing Espionage 20
Calendar 22
Investment Opportunities 24
Vendor Night 2010 Tool Box 26
Contents MAREI News
New Website
Coming
We are still working out
the bugs, check it out,
tell us about broken
links.
Go to
www.MAREInet.com
Click on New
Website
Page 4 MAREInet.com
Organization
MAREI Notes
Contact Information
Mailing Address PO Box 8685, Prairie Village KS, 66208
Phone: 816-523-4400 x 222 Fax: 816-523-4440
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 renter and does not give legal, tax, economic or investment advice and dis-
claims 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 con-
cerning real estate and other investments.
Content Disclaimer
The views and opinions expressed by authors of articles contributed to this newsletter do not necessar-
ily reflect those of the association, the board of directors or the staff.
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Kim Tucker 816-523-4400
Director
Don Tucker 816-523-4400
President
Robin Sage
Meeting Ambassador
John Welchert
Meeting Ambassador
816-268-3849
Steve Burns
Audio Visual
Dan Goodwin 913-642-5218
Meeting Ambassador
Shelda Goodwin
Meeting Ambassador
Investment News Page 4
MAREI Staff
Page 6 MAREInet.com
Director Notes
have a goal of having a Legislative Action
Committee and a Community Affairs Commit-
tee in place by the end of the year.
Third, at the Meeting level, want to facilitate
more interaction and networking. Starting
this month we are adding a “Haves and
Wants” session at 7:00 and we would like to
add an extra hour in the future from 5:00 to
6:00 for a 30 minute mini seminar taught by
members or business associates on a specific
topic and a market review of a particular mar-
ket in the city.
Last, we want to see more interaction and
deals being done through the web site. We
are currently updating the web site to make
our property classifieds more prominent and
to make the site easier to find online for out of
area buyers looking to buy in Kansas City.
And we are adding a Blog feature to the page
and would like to solicit articles on real estate
and the metro from the members for the web
site.
Please watch the new blog or email me for
more info.
Kim Tucker
Director
MAREI
By now we all know about the internet and
more than likely have heard the term “Web
2.0”. “According to Wikipedia, the term “Web
2.0” is commonly associated with web applica-
tions that facilitate interactive, information
sharing, interoperability, user-centered de-
sign, and collaboration on the World Wide
Web.”
After attend the National REIA Convention in
June and finding out what is going on all over
the nation in Real Estate Communities of all
kinds, it seems we need to have a MAREI 2.0.
So what is a “MAREI 2.0”?
Well I have to define is as a real estate inves-
tor association that facilitates interactive
members, the sharing of information between
members, members working together for the
common good, with programs that are de-
signed with the member in mind, and where
the members collaborate to improve the com-
munity.
That’s a long winded paragraph, but what is
that going to mean to you the member.
First, at the leadership level, we want to get
more of you involved with leading different
types of groups. So if you have a few extra
hours a month to devote to the real estate in-
vestment community, consider becoming a
leader of a subgroup or a committee leader.
Second, at the community level, we need to
band together to combat all the bad press that
real estate investors receive as the result of
scammers and the economy. To that end
MAREI 2.0 Interactive
Investment News Page 6
Get Involved
Admission to Monthly Meeting . . .
Free (For Members)
Volunteering Monthly at the General meeting
Acquiring enough MAREI Bucks to pay for Membership
Volunteer in MAREI Office
Real Live Working Real Estate Investor Office
Sponsor a Sub Group
Your own Private Coaching Group
Teach a Class
Be the Expert in Your Field
Join a Committee
Give Back
For more information on becoming a volunteer,
Page 8 MAREInet.com
July Guest Speaker
emails automatically from any web site out
there.
Property Analyzer: Enter basic information
and have access to sales and rental compa-
rables to analyze your deal and look at what
if scenarios to make sure you get the best
deals.
Property Alerts: from other investors in
your area, across the country, and from REO
sellers. Be the first to find out about houses
before they get listed or even prop-
erties that never hit the MLS
Network: It’s still about who
you know and having an easy to
use and understand networking
platform to talk to other investors is
a must.
Feedback: Having the ability
to vendors so others can see the
good, the bad, and the ugly about
all recommended contractors
Hey guys, I have spent two years looking at all
the tools I leverage and my clients leverage to
be top real estate investors in their markets.
These are the top tools we came up with that
you need to have in your tool box along with a
good understanding of your local market and
financing programs for you and for your buyers.
Join me on at the MAREI meeting on Tuesday
July 13th to find out more about my private
Black Book and Financing in the Market today. I
(Continued on page 9)
Did you . . .
. . . ever wonder why some investors seem to
always get the best deals, the best contractors,
even the best loans? Why some get deals done
almost daily while others struggle to get a single
deal closed?
Leverage is a big part of every investors suc-
cess, but when it comes time to really taking
your investing to the next level, smart investors
know its as much about the tools in your tool
belt as it is about what and who
you know!
Successful investors focus on
their three core dollar producing
tasks, which are finding money,
finding deals, and executing the
exit strategy. The rest needs to
be outsourced or automated
with a real estate assistant that
NEVER calls in sick.
So what are some must have
tools?
Property Marketing Engine: That submits
your properties to all the top property for sale
web sites the realtors use plus investor data-
bases nationwide.
One-Click Craigslist Ads: Automatically
Create and Update your ads on Craigslist
with professional high end ads that includes
tons of photos in under 60 seconds.
Buyer or Seller List Builder to collect
Get Access to Jason’s
Coveted ―Black Book‖ .
. .
Inside information and
contacts to win in the
real estate investing
Inside Secrets Why some succeed faster
Investment News Page 8
Sneak Peak . . .
Get Your FREE Copy of The Money Report NOW
Do you have a hard time committing to real estate (and being able to quit your
job) because you have an agonizing time raising money for your investment
properties?
Do you want your passive real estate income to surpass your job income —
but you don’t know how to get started with your first few investments (and lack
of cash is the main reason)?
Would a step by step blueprint on how to raise money (and all the other nu-
ances) enable you to finally buy that first investment property?
Are you worried about a low credit score? Whether you have an credit score of 400 or
800, you can find cash for all your real estate deals — you just need to learn how to do it!
Would you like to know how someone with a credit score of 400 and only $50 to invest could raise
more money faster than someone with an 800 credit score and $250,000 already lined up to invest?
It’s outlined in the FREE investment property money report!
Get your copy now click here (that’s why we do this digitally)
Or type in: http://reiactionplan.com/kc-money-report/?a_aid=TUCKER
am driving in from St. Louis where
I work in a market much like the
one in Kansas City. I have invited
some of my top team players from
Kansas City to visit the MAREI
meeting as well so you can see
who I turn to when I do deals in the
Kansas City Market.
I think Kim has changed a little bit
of the scheduling to bring you
some new an exciting ideas we
learned at the National REIA Con-
vention in Vegas in June.
See you there . . .
Jason Palliser
(Continued from page 8) about
$400,000,000. in
residential and
$100,000,000 in
commercial.
On the Investor
side of things, he
has had up to 34 properties at one
time, all cash flow positive!
He is has came to us highly rec-
ommended by his home town
REIA Street in St Louis. He will be
joining us to talk about real estate
investing financing and tools to
make your business take less time
and run smoother.
Speaker Bio
The July 13th Monthly Meeting will
one of the nation’s leading expert
on Real Estate Investors Financ-
ing.
With 15 years of lending experi-
ence, Jason Palliser has spoke for
4 national companies on Investing
including Robert Kiyosaki and
Donald Trump University and Busi-
ness Mastery (the nation’s largest
mortgage convention).
Jason has trained over 5,000 stu-
dents in the past 12 years on the
loan officer side of things. He
closes an average of 300 transac-
tions a year that shakes out to
Page 10 MAREInet.com
Legislative
(i) is fully amortizing;
(ii) is with respect to a sale for which the seller
determines in good faith and documents that the
buyer has a reasonable ability to repay the loan;
(iii) has a fixed rate or an adjustable rate that is
adjustable after 5 or more years, subject to rea-
sonable annual and lifetime limitations on inter-
est rate increases; and
(iv) meets any other criteria the Federal banking
agencies may prescribe.
This says that if you want to sell more than one
property with seller financing every three years
the law applies. That means you must undergo
the same licensing, ongoing testing, bonding,
proof of net worth, and reporting required of
mortgage loan originators.
In order to propel the fight against this poten-
tially harmful legislation National REIA would
ask that you contact your Congressman and
Senators, NOW, to inform them of your opposi-
tion to the efforts to require private property
owners to secure and maintain the same licens-
ing as mortgage loan originators who loan
money every day for a profession. It is impor-
tant to note the negative impact that these ef-
forts, if passed, will have on the same consum-
ers that the Anit-Predatory Lending legislation is
supposed to be protecting.
National Real Estate Investors Association 3rd
Annual Day on the Hill was officially deemed a
success by President, Linda Muscarello, but our
fight is not over! Our efforts to communicate
with legislative officials from across the country
were targeted and we were able to conduct
nearly 30 meetings we had scheduled with con-
fidence and veteran-like poise.
During the meetings with legislators and many
staffers, we discussed several pieces of legisla-
tion including the Senate Finance Reform legis-
lation S 3217—Restoring American Financial
Stability Act of 2010, which is currently being
debated in the Senate Banking, Housing, and
urban Affairs Committee, under the direction of
Senator Christopher Dodd (D-CT). This 1,400+
page legislation is one that seeks to increase
regulatory oversight of many industries, includ-
ing the mortgage industry. While there is no
harmful language in the S 3217 to date, the
worry is that the same language from Anti-
Predatory lending legislation which has passed
the house will find its way into the text.
HR-4173—Wall Street Reform and Consumer
Protection Act is the current bill in which that text
can be found, in Title VII. The specific language
that has investors across the country worried is
in Section 101(3)(e):
(e) does not include, with respect to a residential
mortgage loan, a person, estate, or trust that
provides mortgage financing for the sale of 1
property in any 36-month period, provided that
such loan-
Call to Action Day on the Hill
Investment News Page 10
To find your congressman:
Visit http://www.house.gov
and put in your zip code in
the top left hand corner of
the screen.
To find your senators:
Visit http://senate.gov/
general/
contact_information/
senators_cfm.cfm
ACCURATE TITLE COMPANY
―When You Need Timely, Top-Quality Service . . . ―
Owners and Loan Policies
Endorsements
Ownership & Encumbrance Reports
Foreclosure Reports
Ownership Information
Tax Information
Buyer’s Closing Services
Seller’s Closing Services
Lender’s Closing Services
Recording Services
Funds Disbursement Services
1031 Exchange Services
Special Requests
www.AccurateTitleCo.com P: 913-338-0100 F: 913-338-0107
PRIVATE LENDER
Locally Owned & Operated Private Money Lender
We are a Direct Lender, not a Broker
Rehab Loans up to 100% of Costs
Up to 65% of the After Repaired Value
Terms from 30 Days to 1 Year
Rates from 12 to 16% Interest Only
Points from 6 to 10 in Lieu of Equity
Appraisals Required
Draw Requests on Wed.
Paid on Friday
RockStarInvestor.com
Jeff Basler
913-221-9080
Watch the MAREI Blog for Updates . . .
Page 12 MAREInet.com
Membership
tional 30 minutes to the meeting. Then we would need experts to create the 30 minute presentation and teach it. Again by evaluating what you do in your chosen field and breaking it down to teach to others give you more knowl-edge and being an ―expert‖ gains you more rec-ognition and business.
Do you know someone at MAREI who has a lot of knowledge to share who would be a good trainer? Please email us their contact informa-tion.
Legislative / Government Affairs Committee: We are under attack! Okay, you hear that often, but it’s truer now than ever. Our governments at all levels need money and they will take the path of least resistance. This means that people or groups that are not represented, will be targeted for increased fees and taxes. So while we do not currently have funding to employee a full time lobbyist, we need to form a committee to at least be a watch dog for local and state legisla-tion and report back to the membership as a whole. Allowing us to be proactive rather than reactive. Get involved here as a member and have a great impact on your business.
Community Involvement: Will be designed to involved the associate, it’s members and the broader real estate investing community in worthwhile community programs or project that delivers a valuable service to the community, creates a ―sense of community‖ within MAREI, provides value to our members that generate and promotes MAREI’s positive vision and mis-sion. Get involved by being part of the commit-tee that selects what we become involved in and give of your time or money to help support these worthwhile charities. We are currently support-
(Continued on page 13)
One of the best ways to grow your real estate business is to GET INVOLVED. From volun-teering at events, serving on committees, to just giving back to the community your business will grow. When you get involved, you meet more people, you learn new things, and you gain rec-ognition in the community, all resulting in either more business or more profitable business or both.
Here at MAREI we have a goal for the 2010 – 2011 year, to get more members involved and more interaction at all levels. We would like to share with you a few of our goals that are also opportunities for you to become involved.
Quarterly Market Report: We would like to of-fer a 30 minute state of the market in the Kan-sas City Metro area once a quarter or divide up the metro into 3 areas and offer one a month at the monthly meetings. Would need to add an extra 30 minutes to the meeting.
We need to locate 3 – 6 people who are experts or who could become the expert on the markets in Kansas City and be able to provide a detailed report to the group. We are getting examples from other REIA’s across the country. The Vol-unteers here would become much more knowl-edgeable about the market as a whole and by being the ―expert‖ gain recognition and business in the community.
Do you know someone who we be a good ex-pert on the Market? Please email us their con-tact information.
Educational Session: We would also like to offer up a 30 minute educational session pro-vided by one of our expert investors or business associates on a specific topic of interest. Can be basic real estate concepts to advanced ex-change techniques. Will need to add an addi-
Give Back Get Involved
Investment News Page 12
Online Networking
Update Your Profiles!!!
Use MAREInet.com to update
Your profile and ensure your
Information is correct.
MAREI is a networking organization and part of the MAREI 2.0 plan is that we interact. One of the best ways to ensure interaction is to make sure (1) you know how to access member profiles (2) make sure that members know WHO you are and HOW TO REACH YOU!
1. Log into the Member Area of www. MAREInet.com
2. Update your information by going to ―My Info‖
Be sure your contact info is correct
Be sure you include what you do
Be sure your profile is turned on at the top
3. After updating your info, check off the boxes on the right side to dis-play the contact info in your ―Member Profile‖ in our online member directory
4. Make sure to hit the update button at the bottom of the screen
5. Get fancy
Add a Photo
Preview your Profile
Edit Your Bio
Once your profile is updated, click on Profiles to find out more about your fellow member! MAREI staff cannot provide any member’s contact info to another member if it is not on your profile.
ing: Harvesters Food Bank, Habi-tat for Humanity, and Habitats Re-store.
Subgroups: Group leaders do not have to be experts in the topic, but have some general working knowledge. More importantly they need to be organized and able to secure a speaker from time to time, locate and reserve space to meet, communicate with our Mar-keting team to get the word out, and control the meetings.
Could meet monthly, twice a month, or quarterly. Meet at a lo-cal eating establishment for FREE space.
Proposed Sub Groups
Women in Real Estate Wholesale Investors Rehab Investors Short Sale Investors Lease to Own / Subject To Private Funding Note Buyers Self Directed IRA Investing REO Buyers Apartment Investors 1031 Exchange Group Landlords Other Topics Groups based on Location in
Metro our other cities Cash Flow Investors Advanced Investors Realtors who are Investors
Page 14 MAREInet.com
Benefits
Office Max: From printing & binding,
to finishing & customizing - to reduc-
ing time & money with discounts from
10% to 60%, Office Max ImPress of-
fers solutions for the full range of your
needs.
Rentals.com: Save time and money
while shortening the duration of va-
cancies between tenants with our mar-
keting and save time with our tools.
Members receive 20% discount off
regular pricing. Number 1 in the
search engines.
Travel Discounts with avis, Budget,
and Enterprise.
Real Estate Books by the nation’s larg-
est provider of real estate training ma-
terials—Dearborn, Nolo, and Kaplan.
To find out complete details on all these
member discounts log into the member
area and look at the Benefits Section in
the Library. We also mail a complete
booklet with all discounts and instructions
on how to access when you renew or join
or upon request. To request email
[email protected] and ask for the
member benefits booklet.
Besides getting awesome deals on train-
ing programs on our webinars and at our
seminars, are you taking advantage of
everything MAREI has to offer you? As a
Member of MAREI you are also a member
of the National Real Estate Investors As-
sociation (MAREI). These and many more
benefits are available to you for FREE!
Home Depot: A biannual rebate of
2% of your net sales for your pur-
chases at The Home Depot and Home
Depot Tool Rental through an unparal-
leled Material Purchase Rebate Incen-
tive Program. Many members across
the country have cashed checks for
$1,000, $2,000 and $3,000.
Sherwin-Williams: One of our most
popular and most used benefit, Sher-
win-Williams offers unbeatable pricing
to National REIA members. Enjoy
deep discounts on paint, applicators,
floor covering, paint sundries, wall
covering, spray equipment, and even
window treatments! Your discount
card is in your membership package.
FedEx: Receive significant inbound
and outbound discounts on small
package shipments through FedEx, as
well as copying and printing services
through FedEx Office.
Membership Has Privileges!
Investment News Page 14
Roger Holyfield
(816) 510-9199
George Neal
Volume Pricing
Volume Pricing at The Home Depot offers Pros the Lowest possi-
ble price on large orders, with additional savings available on pur-
chases as low as $2,500*.
Volume Pricing does not require bulk purchases of the same
item. Items across all departments – building supplies, plumb-
ing, electrical, hardware, landscaping and others – can be
mixed together to reach the Volume Pricing minimum.
The Benefits
The Volume Pricing team is able to determine the maximum
possible discount for your specific order. There are no restric-
tions regarding the type of merchandise that can be consid-
ered for a discount. By buying in volume, Pros receive a lower
price, giving you the competitive edge when bidding on a job.
For additional time and cost savings, use Volume Pricing in
conjunction with our direct ship program and have large orders
delivered from our vendors direct to your job site.
How it Works
Receiving Volume Pricing is a simple 3-
step process:
1. Compile and place an order at the Pro Desk for mer-
chandise totaling $2,500 or more
2. Your order is entered into the Volume Priding Program
to determine the discount.
3. Your Volume Pricing quote is returned, with the discount
automatically updated in each line item.
How You Qualify
As a Pro, you automatically qualify for Volume Pricing from
The Home Depot. There are no special requirements other
than meeting the minimum dollar amount.
How Long it Takes
Most Volume Pricing Program orders are returned
immediately. Complex orders or specialty items can
require additional time to process, with the average
time on orders that require extra research being only
1 hour and 15 minutes.
All MAREI members can register through our
special link to receive a 2% rebate on all pur-
chases made at Home Depot. From a $5 item
for a week end project to a $10,000 rehab:
kitchen, lights, appliances, Etc.
Page 16 MAREInet.com
Tim Norris
getting the lowest rate makes the most sense. Unfortunately, when you really need it, this
planning, or lack thereof, has hurt more con-sumers than it has ever helped.
Too many of us, when building our real estate investing portfolios, consider our insurance program an afterthought. Those of us who do
understand some of it's value, may not fully comprehend it's place in our business plan/model. I consistently receive calls and emails
from people who ask if I think an LLC, an S-Corporation, a Land Trust, or any other entity created to buy/own real estate is the best op-tion over another for them. These bevy of
inquiries bolster my theory that the right ad-vice is still not promulgated in our industries
(insurance AND real estate investing) to a
sufficient degree. Contrary to most opinion, insurance should not be the foundation of an asset protection strategy. Think of your as-sets, whether personal or business, as the
items within your castle that you desire to protect. The legal entities that you create, with the advice and assistance of a legal pro-
fessional, are the castle walls, the moat, and the watchtower you build to help protect them. What you choose to create is a sum-
mation of the needs and issues in which tax, financial, and even estate planning must be taken into consideration. Acknowledge that
insurance is the archer in the watch tower, or
the knights with the boiling oil, that attempt to keep nasty things like liability claims, fire, windstorms and other catastrophes at bay.
We all know insurance does not cover every-thing. The list of exclusions in most policies is more than a paragraph. Likewise, the archer does not hit every target. That stated, the
archer and knights (insurance) need to work
(Continued on page 17)
. .Or Is it?
As consumers, let alone real estate investors,
we tend to flinch whenever the insurance bill arrives. Many times, for good reason: rates
are higher, coverages seem to diminish, and for what? We have never even filed a claim! However, if we stop thinking of our insurance
policies as just another drain on our cash-flow, and more as a legitimate part of our business plan, that premium notice may be a little bit easier to open...
Most of us consider insurance as a
“purchasing endeavor”. That is, we either buy it, or it is sold to us. Therein, in my opinion, is the foundational fault of the process. The
misconception is still prevalent: insurance is mysterious, difficult to understand, and, at best we hope we can trust the person that is selling it to us. We buy it, because we “have
to have it”:... As a licensed “agent” in over 40 states, I cringe whenever I hear the word “quote”. Not that getting the best rate for
appropriate coverage shouldn't be our goal, but “quoting” tends to lead to, in many situa-tions, an inadequate transaction between seller (the agent) and end-user (the policy-
holder). Inadequate, because the agenda for the agent may not fit the needs of the cus-tomer (or, as I prefer, client). Please do not
misconstrue this as a generalization that all insurance agents are inherently indifferent, or less than legitimate. The attitude that insur-
ance should be treated as a commodity can be blamed on the industry itself, who, as a knee-jerk reaction and effort to grow market share, seem to not really understand the
needs of the public. Their Contact us to save $XXX on your Coverage advertising campaigns reinforce the public attitude that
insurance is a “one size fits all” industry and
Insurance The Necessary Evil . .
Investment News Page 16
in conjunction the walls and the moats legal entities) to appropri-ately protect your “stuff”. Pro-tecting your assets is more com-
plex than simply finding the cheapest insurance rate.
“That is a nice explanation, and worth consideration, but how
does that help me when my next premium comes due”, you may be thinking... Inadequate cover-age, whether relating to your
property or liability, may be just as damaging to your business model as no coverage at all.
There are many cost-saving mechanisms that you can em-ploy, far short of short-changing coverage.
These are but a few:
Higher deductibles---Take a
glance at the deductible you
have on all your insurance poli-cies. Chances are, if you in-
crease each of them to the next higher incremental level, the premium savings generated will more than offset the difference.
A solid rule-of-thumb is to take the minimum claim you would file, double it, and use that as
your preferred deductible on any policy. If you would never file a $1000 claim, then certainly don't carry a $500 deductible. Be-
sides, as real estate investors,
we typically don't pay “retail” for supplies or labor when it comes
to construction/rehab/repair...A deductible is, by definition, “self-insurance”. I am an advocate of
self-insuring that which you can control or is of a known amount (a deductible, or even the vacant property you got at a tax sale for
$10,000). However, self-
(Continued from page 16) With multiple vehicles at home, do we really need to pay for the
“rental car coverage”? If our ve-hicles are newer, many times “Roadside Assistance” is built in to our purchase or lease. If you
are still paying for “Towing” cov-erage on your auto insurance policy, it's probably a waste of a
few dollars. I realize that many of these items are “nickels and
dimes”. However, they are yours, and you should spend
them on things that you need. Consider re-allocating these pre-mium dollars into higher liability
limits, for instance.
Find an insurance “Advisor” that understands what it is you need/desire to protect. Let them work with appropriate advice from all
of your business team members (attorney, CPA, and financial planner) to develop a fluid
adaptable model that makes sense for you. As part of your business plan, insurance can
help you when you need it, but not drain you when you do not.
Article provided by Tim Norris with National Real Estate Insur-ance Group. NREIG was built to
specifically address the unique needs of the real estate inves-tor. Tim Norris is an investor
and NaREIA, OREIA and Cincin-nati REIA member. We can be reached at 513-275-1350, 888-
741-8454, or . Check out
www.nreinsurance.com for more information.
insuring unknown risk, such as liability, even with an asset-
protection strategy in place, is rarely a good idea.
Combining coverages---The more opportunity you have to combine coverages on either the
same policy, or with the same carrier, usually the better rate you get. If you have 6 rental
properties on 6 different policies, not only are you potentially pay-ing a higher rate due to internal policy fees, etc... on each, you
may end up paying far more than you think in the event of a catastrophe, such as a wind or
hailstorm. On separate policies, you have separate deducti-bles...If multiple locations are damaged, your deductible will
apply per location. On a master, or “blanket”-type policy, where all properties are combined, the
deductible usually applies per occurrence. Knowing this, and choosing a deductible that is ap-
propriate for your business, goes a long way in helping you when you really need it...In the recent windstorms as a result of Hurri-
cane Ike, I had one client that had over 150 properties dam-aged. She had a $5000 deducti-
ble. Thank goodness she only had to deal with it once, because her properties were combined on one policy. Otherwise, her 10
years of building a large portfolio
of properties may have been wasted...
Dropping coverages you do
not need---A quick review of a policy will usually indicate how much you are paying for unnec-essary coverages. As real es-
tate investors, many of us have been financially blessed, even in the current economic turmoil.
Page 18 MAREInet.com
Trends
“inventory” and dividing it by the 1”2
month average of number of sales.” As a rule of thumb a 5-6 month supply of
homes on the market is balanced, over 6 months is a buyer’s market and less than 5 months is s sellers market. Combined
supply of homes in the metro is at about 7.5 which is up slightly over the 7.4 in
April. Existing homes is at 7.4 the same as last month and the new home supply was 8.3 the same as April. The good
news is that these numbers are lower than 2009 and the existing and combined
totals are nearing a bal-
anced market.
Local data is from www.KCRAR.com where you can read the complete report.
4 Myths from Stan Humphries Zillow.com’s chief economist
1. The housing recession is over. Nope, he is predicting we won’t hit bottom till 3rd qtr.
2. After markets hit bottom, prices will rebound. He feels prices will remain flat for a long time.
3. The worst of the foreclosure mess is behind us. Again he disagrees and thinks it will be later in the year and not stabilize until late 2011.
4. Tax credits saved the housing market. He thinks the people that bought would have bought anyway with the low interest rates, low prices and all the lending from FHA.
So if we look at housing trends in the nation as
(Continued on page 19)
May 2010 Housing Trends
The Homebuyer Tax Credit seemed to im-
pact the market with a rush to get con-tracts signed by the April 30th deadline
and now Lenders are struggling to get them all closed by the June 30th deadline,
which resulted in an extension on closing to September 30th. And according to Real Trends, surveys show declines in
sales in most markets in May.
If we look at the Kansas City Market:
Average Sales Price of a new home in May was $285,328 which is about the
same as a year ago. There were price in-creases in all metro counties except John-son and Jackson. Existing home prices
averaged $157.476 which was a 5% in-crease over last year. All counties except
Johonson saw an increase in the average sale price for existing homes over May of
last year.
Home Sales saw sales of New homes of 236 properties which is a 3% increase from 2009 and New home sales increased
in May by 20% over April . Existing home sales were up 28% over last year and up
8% over last month. Mays combined total
sales were up 25% over last year.
Inventory saw a 39% decrease in new homes from last year and existing is 9%
higher that last year and just 3 % higher than April. Overall for May we have a 1 %
increase in total inventory for 2010 over
2009.
Supply of Homes in the Kansas City Re-
gion is determined by taking the
Market Update
Investment News Page 18
a whole we see that Unit sales were up 19.8% in May 2010 over 2009. The average home price was up 6.9% over last May and we saw a continued 9 month trend of stronger sales and raising prices
On the National Level we have pulled information from Real Trends June 2010 issue. Com-plete digital issue is in the member library. Be sure to log in and read.
(Continued from page 18)
From Real Trends June 2010 Market Report
Market Experts Wanted
Are you an expert on the market in your area or
field of expertise? We are looking for experts on
Residential, Apartments, and Commercial to
contribute to the newsletter, the blog, and the
meeting. Be seen an expert in your Niche.
Contact [email protected]
Page 20 MAREInet.com
Marketing
House in 11 Days Or Less No Matter Your
Current Financial Situation". And then I would go on to say. "And if you happen to
own rental property, make sure to ask for our FREE Special Report "The Five Little-
Known Ways to Eliminate Tenant Hassles Forever. Call 555-555-5555 to get both of these reports today with no-obligation
whatsoever."
Right there you have a turnkey
"professional" business card. All you have to do is "cut and paste" the above infor-mation and you will have a better and
more unique card than 99% of real estate
investors.
Off the Wall Marketing Cards Now, on to the second business card
you're going to have. This is where you can get crazy and let your imagination run wild. This card can be ugly and does-
n't have to look professional at all. You will want to make this card bright pink,
bright orange or bright yellow. You can use big lettering to let the world know that "WE BUY HOUSES AND CHARGE NO
FEES". Of course, on this card you will still want to offer free reports on the
back. And don't forget, these cards are for leaving at the gas station, dry clean-
ers and tacking up on bulletin boards. Do anything you can to have these cards at-
tract attention.
What I want you to do is pull out your current business card(s). How does it
look? Does it offer any reason to give you a call? Does it suck? Or is it awesome and
(Continued on page 21)
Marketing Espionage . . How to Cre-
ate the Ultimate Business Card (s)
How much thought do you really put into
the creation of your business cards?
I'll admit when I first started in this busi-
ness I didn't know diddly squat about marketing and I created boring business cards like everyone else. I had my com-
pany name, phone, address, email and
website--that was it.
Luckily I hung around some pretty smart fellows and quickly learned the correct way to use business cards. First, I recom-
mend having two different types of busi-ness cards. The first one is going to be a
very professional card that you can hand out to sellers. This card is going to be the
closest thing you have to a "boring" busi-ness card but there are still a few ways
you're going to make it stand out.
Professional Cards On the front of the card put some type of
catchy slogan so that sellers know that you're a real estate investor. Such as "we provide real estate solutions" or "we will
buy your house in 30 days or less". And then on the back of the card I would give
the sellers a reason to pick up the phone
and call you.
What reason should you give them? The most reliable reason there is: The Free Special Report. Here's what I would do:
On the back have it say "Call 555-555-5555 today to get a FREE copy of our
amazing Special Report "How To Sell Your
Espionage Business Cards
Investment News Page 20
you don't need to change a
thing. If your card needs a few changes go to vis-
taprint.com and make up some new cards. Business cards don't cost much, so
don't be cheap about this. In fact, business cards can be
one of the best investments you make if you get a $10,000 deal off a 5 cent
card.
And to increase your chances
of getting that deal, you should play the "business
card game" with yourself.
Every day, you should prom-
(Continued from page 20) able real estate investing busi-ness.
He is the author of The Covert Guide to Real Estate Wealth:
Confessions of a Former CIA Officer. He is also the founder of National Real Estate Inves-
tor Month.
Jason’s specialty is his Market-ing Espionage method which is
the #1 way to attract a never ending stream of motivated
sellers.
In addition to his investing business, he does privacy and
security consulting, where he helps people become “invisible” and also better pro-
tect their homes and families.
ise yourself to hand out five
business cards or tack up five
business cards---and you
can't come home until you
do. Getting 25 cards a week
into other people's hands
(100 per month) will put you
on the fast track to deals,
money and less time spent
working for "THE MAN".
- Article reprinted from REI-
Club.com
Author Bio
Jason R. Han-son is a former CIA Officer who
left the govern-ment to run his highly profit-
PROPERTY LEADS WANTED
NOTICE:
WHOLESALERS, INVESTORS
Our company money is sitting idle for
lack of houses. Looking for rehabs
to retail in Lee’s Summit, Blue Springs,
and Johnson County.
www.kcmoHomeBuyer.com
816-523-4400 x 223
NEED TO FLIP A
PROPERTY FAST?
T.O.T.L. RENOVATIONS
Top of the Line Renovations for all your rehab needs quickly, at a reasonable price.
We specialize in: Make-ready Siding & Windows Carpentry & Roofing Plumbing and Electrical Painting & Flooring Drywall & Doors Fences & Decks Kitchens & Baths
Licensed and Insured Call Anthony @ 816-606-0266
or Emily @ 816-252-0095 [email protected]
Page 22 MAREInet.com
Calendar
Upcoming Events
July
1
Webinar: Open Road (www.MAREIOpenRoad.com)
Want a ton of real estate tools at your fingertips? Cash
buyers, seller match, blast your property to over 20 web
sites, need squeeze pages, and more. Join us for this July
1st Webinar Register: www.OnlineREIexpo.com
July
10
Lee’s Summit Investor Breakfast Lee’s Summit Investors
Networking Group meets the 2nd Saturday of the month for
coffee, breakfast, and conversation at the Panera Bread on
Douglas in Lee’s Summit. Open to MAREI Members &
Guests.
July
12
Table
Deadline
Industry Partner Expo Table Deadline MAREI members
may reserve table space for the Expo & Networking time
from 6 to 7pm at the Monthly MAREI Meeting. Must be
reserved by July 12th. Reserve through the calendar at
http://www.MAREInet.com
July
13
Monthly
Meeting
MAREI Monthly Meeting MAREI meets for networking &
education on the 2nd Tuesday of the month from 6pm to 9
pm. At the Sylvester Powell Jr Community Center. No
Charge for Members, Guests $25 at the door, $15 if pre-
registered.
July
30
Seminar
Insurance Proper Protection MAREI’s own Tammy
Robb with the Robb Agency and her staff have as-
sembled some of the areas leading experts for this
afternoon seminar on Insurance. Also the topic of
Children & College Students
Is your child interested in real
estate? Is ready to learn?
Add your child aged 12 to 18
to your membership.
College Students with student
ID, we have internships
available. Work in the
MAREI office for $10 in MAREI bucks to use for
Membership & Workshops
Contact
MAREI Office for more info. [email protected]
Investment News Page 22
Monthly Meeting
Sylvester Powell Jr
Community Center
6200 Martway, Mission KS
913-722-8200
Tuesday, July 13 Doors open at 5:45
Members: FREE
Guest Fees: $25 at door . .
Pre-register online for $15
If guests join with in two days of
the meeting, their guest fee will be
applied to the membership fee with
proof of payment.
Please call 816-523-4400 x 222.
5:45 Set Up / Registration
6:00 Industry Partner Expo
6:00 Member Networking
7:00 Haves & Wants (new
feature)
7:30 Presentation w/ Jason
Palliser
See Page 8 & 9
9:00 Informal Q & A
9:00 New Member
Registration
Invite your friends
colleagues to visit the
Monthly Meeting for
with a Guest Pass
(available online at
www.MAREInet.com).
For each new member you
refer, earn MAREI Bucks
which can be used towards
seminars, advertising,
or membership fees.
Location
6200 Martway
Mission, KS 66210
North of Shawnee Mission Pkwy
South of Johnson Dr
East of Lamar
Park in North Lot
2nd from the Building
Less Kids & Door Dings
Page 24 MAREInet.com
Properties
Investment Opportunity
Address City Offered as Price Bed / Bath Contact Phone
Silver Lake Rd Topeka Turn Key $45,000 2 / 1 Home Ann Socolofsky 785-256-0619
Washburn Topeka Turn Key $80,000 Duplex Ann Socolofsky 785-256-0619
2912 Lockridge Kansas City, MO Rehab $29,000 6 Plex Candace Vanice 816-268-4722
6009 Cherry St Kansas City, MO Wholesale $55,000 1 + Home Maggie Sheehan propertyloca-
Truman Library Independence Wholesale $105,000 3 duplexes Bill Textor 913-206-0979
Market Your Properties
Do you have investment properties to market to the membership? Be sure to log into the
MAREI member area and post your properties on the classified page.
Be sure to include:
Address: Street & City, State
Type of sale: Wholesale, Listing, Turn Key
Price: Your asking price
Type of Property: Single, Duplex, Multi, Etc
Contact: Name & Phone Number
Web Link: For more info and more photos
You can include 1 photo, but make sure it is not too high quality a photo or it will have too
many pixels to load. New web site will have direct link on the main page to the properties
on the Classified section of the web site. You may also want to list on the message board
as well and post links on our social media pages.
Investment News Page 24
Discount Code in the Member Library in the Benefits Section
Page 26 MAREInet.com
Tool box
Vendor Night 2010
Jackie White & Tina Wagner
Accurate Title Company
913-338-0100
AccurateTitleCo.com
Closing & Escrow Services
BreAnn Stephenson
Renovators Insurance
913-599-2020 x 64
RenovatorsInsurance.com
Vacant & Rental Properties.
JJ Pawlowski
P: 816-916-4593
www.EquityDevelopmentCorp.com
Offering 100% financing up
to 70% of ARV.
J.J. Pawlowski
816-916-4593
Chartwell Realty
UncommonRealEstate.Com
All Real Estate Investment Needs.
Tammy Robb
Robb Insurance Agency
913-268-6060
RobbAgency.com
Ask me how to protect your assets.
Pete Mendenhall
MyStarSolution.com
336-442-5802
Lease Option Alternative
Turn a No Into a Yes & Get Paid
Robert J Wise Attorney at Law 816-942-5925
Ask me more about Landlord - Tenant Law & Eviction
BobWiseLaw.com
Big Bobs
Cleo Johnson & Greg Mussellman
913-362-2627
www.BigBogsFlooring.com
Ann Wilkinson
Argentine Federal Savings
913-402-1500 / ArgentineFed.com
Investor & Rehab Loans
Raul Rodriguez / Alpha Title
913-498-8999
AlphaTitleLLC.net
I speak Spanish
Jeff Basler
913-221-9080
RockstarInvestor.com
Private Rehab Loans
David Ono & Andy Ono
Ono Brothers Properties, LLC
816-399-4994
InvestmentDealsKansasCity.com
Mike Quinn
Casa Bonita Roofing & Exteriors
P: 816-399-8101
CasaBonitaRoofing.com
JD Asbell / HomeVestors
We offer Funding
913-980-1866
www.FinanceThisOnline.com
Mike Nield / Miracle Method
Surface Refinishing
816-224-4355
www.MiracleMethod.com
Roger Holyfield
Home Depot
Phone: 816-510-9199
Ask me how to save $$
Investment News Page 26
ABSOLUTE
REAL ESTATE AUCTION!
19 Bank Owned Homes & Investment Properties
EVERYTHING SELLING TO THE HIGH BIDDER
REGARDLESS OF PRICE! NO MINIMUM BIDS!
Held at Holiday Inn
45th & Main, Kansas City MO
August 7th, 10 AM
All properties open for viewing Saturday July 31st
Auction registration starts 8:30 AM Saturday August 7th
Free breakfast for all registered bidders!
TERMS:
$5,000 down day of sale, cash or cashiers
check. Balance due in 30 days. Seller guar-
antees clear title.
All properties sell at the Holiday Inn location.
Title Commitments, photos and property in-
formation available at www.billfair.com.
For questions call 800-887-6929
For the Real Estate Investor . . . .
Your Real Estate License
Access to Accurate Sales Values in MLS
Browse & View Listings on Your Schedule
Control the Purchase or Sale of Your Property
Supplemental Income Stream
License to Wholesale without Purchase Commitment
Take Control today
Call John Welchert today (816) 268-3849