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Transcript of The Real Estate Investment News: January 2013
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2014RE investment News
REinvestmentinvestmentinvestmentNEWSNEWSNEWS
January 2014 Volume 1January 2014 Volume 1January 2014 Volume 1
SUCCESSFUL
Real Estate InvestorsNine Characteristics
LEASEPURCHASEFive Common MistakesAnd How to Avoid Them
fFINANCIALLY FITPlanning for Real EstateSuccess in 2014
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2 RE investment News 2014
MAREI, through its partnership with the Home Depot, offersits members a 2% Bi-Annual Rebate on top of any discountsyou already receive through the Home Depot & its ProDesk.
Join MAREI Today, and start saving THOUSANDS TODAY . . .Rebates Start Tracking from the Day Registered Forward.
PRO DESKGet the job done withHelp from the Pro Desk.
Visit MAREI at www.MAREInet.com for more infor-mation on Membership Meetings, Discounts on Prod-ucts and Services, and education for Real Estate Inves-tors, Landlords, and Industry Service Providers.
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2014RE investment News
MAREIMid-America Association of Real Estate Investors
A Real Estate Community
FAST IN AND OUTTime is money well get you back to work quickly.
Dedicated Pro Desk Associates.
Two hour advance order pulling.
In Store Hands OnHow To
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4 RE investment News 2014
From the Publisher
CONTENTS
Ten Years!
The years have crept up on us and MAREI
and the Real Estate Investment News is cele-
brating our 10 year anniversary.
We have came a long way since that long ago
Sell-A-Thon Real Estate Convention at
Wealth Builders in Tampa Bay where it rainedfor 4 days straight, forcing us to bypass the
beach and enjoy 100% of the entire confer-
ence.
We were subjected to training speakers from
8 am to 10pm every day for 3 1/2 days and
we spent many hours networking with the
members Wealth Builders finding out what it is
that they liked about their group why they at-
tended.
We also spend many hours talking to their
group leaders before, during and after the
event getting tips on how they managed their
REIA group. The result was after four days
that we came home with a course on how to
Wholesale Houses, which made me $10,000
after I finally implemented it and that I still re-
fer. Plus we came home with a business plan
for our own Group.
With the help and support of a few key friends
and business associates, we launched MAREI
in January of 2004 with $300 for a marketing
budget and my 3000 member buyer database.
At the high of the market in early 2008 we were
approaching the 500 mark in membership andwe weathered the downturn quite well. We
could not have survived with out the help and
support of our Members who Attended, our
Business Members who provided services and
Volunteers who helped in many capacities.
We have recently added an Executive Director
to manage the MAREI office, websites and coor-
dinate events. We hope with this addition we
will be better able to serve our membershipbase.
In the next 10 years we want to work with our
members to have more involvement in the com-
munity and a stronger voice in our local, state
and government affairs. We know that with your
support we will be able to reach that goal. We
are looking for committee volunteers to take part
in both of these projects.
Kim A. TuckerPublisher & Founder of MAREI
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2014RE investment News
cover story
28SUCCESSFULReal Estate Investors Nine Characteristics
34LEASE
PURCHASEFive Common MistakesAnd How to Avoid Them
40 FINANCIALLY FITPlanning for Real Estate Success in 2014
CONTENTS
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2014RE investment News
Industry Services
Dont Toss another Seller Leadfor Lack of Buyers!
Let Us Review Your Lead . . .Assign to us or partner with us.
Submit kcmoHomeBuyer.com
Houses & Notes
WANTED
APIAProtects.com
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8 RE investment News 2014
Market
Kansas City Real Estate Market Report
Sales Prices Up, Sales Up, Inventory DownYear end reports for the Kansas City Housing Industry support that 2013 was a good year for Real Es
in Kansas City.
Permits for single family construction was at
4087, the first time they were over 4000 since
2007 and up 24 percent over 2012 according to
the Home Builders Association. Multi Family
permits were up 62.2 percent over last year.
The year also closed strong with the existing
home prices up 95% and new homes up 3%
over 2012. According to the KCRAR we are
now in a sellers market with only a 4.1 supply of
existing homes on the market at the end of 2013
after having a balanced market for most of the
past year
Get involved: MAREI is looking to partner with our mem-bers and business Associates for a Habitat for HumanityHouse Project, a Summer in July Type Project, a BloodDrive, Project Warmth and/or a Food Drive for Harvesters.If this is a project your company has been considering, or
you might be willing to chair a committee to organize acommunity project, please email [email protected].
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2014RE investment News
Advocacy
The New Rules
For 2014 . . . Are You Ready?
Qualified Mortgages
Consumer, Owner Occupied Loans
Verify and Document Borrowers are Qualified
Must be fully amortizing, no Balloon Payments
Fixed Interest Rate for First Five Years
Can adjust no more than 2 points per year with cap of six
points from original rate. And it must be tied to the Prime
Rate at the Start.
Have to Prove and Document the Borrowers Ability to Re-
pay, not just the initial rate, but the Adjusted Rate
Standard Debt to Income Ration of 43%
If borrower goes into Default
For the Life of the Loan, if it goes into foreclosure, the Bor-
rower can claim faulty underwriting and go payments, in-
terest, fees, and all legal fees.
More Information:
See Article Page 38
See Website: www.MAREInet.com/QM
Dodd Frank E-Book from Alan Cowgill
MAREInet.com/AC-Dodd-Frank
ForeclosuresDecline 26%The Kansas City Star reports that
hoe foreclosures at the national
level are at their lowest level since
the early stages of the mortgage
crisis.
RealtyTrac reports that default no
tices, schedule auctions and bank
repossessions are down 26 per-
cent in 2013 from the previous
year.
Shadow cast by the foreclosure
crisis is shrinking according to
Daren Blomquist at RealtyTrac an
he predicts a greater drop in fore-
closures in 2014.
Foreclosure rates have also
dropped in the KC Metro area with
Kansas down 39 percent and Mis-
souri down 40 percent in 2013over the previous year.
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MOLDWhat YOU Need to Know
Hairy, black mold isnt just unattractiveits un-
safe. Whether in your home or place of business,
mold could be an issue and your health at stake.
Sure, the idea of throwing a dinner party at your
moldy home isnt an optionwho wants to show
off their hairy, black regions? But, the risk of
grossing out your friends is just superficial. The
real concern is the underlying risks youre taking
by living in moldy conditions.A mold problem can usually be seen or smelled
but not always. Mold growth may often appear as
slightly furry, discolored, or slimy patches that in-
crease in size as they growor it could be danger-
ously hidden out of site. Often times they produce
a musty odor, which may be the first indication of
a problemor when hidden, the first sign is your
failing health.
The best way to find mold is to examine areas forvisible signs of mold growth, water staining, or fol-
low your nose to the source of the odor. If you can
see or smell mold, you can assume you have a
mold problem. Other clues include excess mois-
ture and water damage. It may be necessary to
look behind and underneath surfaces, such as
carpets, wallpaper, cabinets, and walls. There are
some areas of the home that are always suscepti
ble to mold growth and should be part of routine
cleaning to keep them under control.
The EPAs: Ten Things You Should Know
About Mold
1. Potential health effects and symptoms associ-
ated with mold exposures include allergic re-
actions, asthma, and other respiratory com-
plaints.
2. There is no practical way to eliminate all mold
and mold spores in the indoor environment;
the way to control indoor mold growth is to
control moisture.
3. If mold is a problem in your home or school,
you must clean up the mold and eliminate
sources of moisture.
4. Fix the source of the water problem or leak to
prevent mold growth.
5. Reduce indoor humidity (to 30-60%) to de-
crease mold growth by: venting bathrooms,
dryers, and other moisture-generating sources
to the outside; using air conditioners and de-
humidifiers; increasing ventilation; and using
10 RE investment News 2014
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2014RE investment News 1
exhaust fans whenever cook-
ing, dish washing, and cleaning.
. Clean and dry any damp or wet
building materials and furnish-
ings within 24-48 hours to pre-
vent mold growth.
. Clean mold off hard surfaces
with water and detergent, and
dry completely. Absorbent ma-
terials such as ceiling tiles, that
are moldy, may need to be re-
placed.
. Prevent condensation: Reduce
the potential for condensation
on cold surfaces (i.e., windows,
piping, exterior walls, roof, or
floors) by adding insulation.
. In areas where there is a per-
petual moisture problem, do not
install carpeting (i.e., by drink-
ing fountains, by classroom
sinks, or on concrete floors with
leaks or frequent condensa-
tion).
0.Molds can be found almost any-
where; they can grow on virtual-
ly any substance, providing
moisture is present. There are
molds that can grow on wood,
paper, carpet, and foods.
(Sourced from epa.gov)
OT MOLD? Call Titan Environmental at816-
61-0959today for a free consultation. Or visit
em online at www.titankc.com!
Who is Titan?
Titan Environmental Services, Inc.
(TES) was established with the pri-
mary purpose of offering more effi-cient and personalized client ser-
vices. They are a Minority and
Women owned business based in
Kansas City, Missouri serving both
the private and public sectors
throughout the Midwest region and
beyond.They are the go-to envi-
ronmental agency, which can assist
your firm, agency or organization
with any environmental management
and/or regulatory compliance issuefacing your existing and future pro-
jects.
Titan is dedicated to serving its cli-
ents in a professional and cost-
effective manner. Their highly
skilled team includes industrial hy-
gienists, inspectors, various level
abatement and remediation project
managers, and field technicians
years of environmental consultin
testing and contracting experi-
ence. This combination of techn
expertise, multi-variable project
management experience and a
cated industrial hygiene staff allo
all TES employees to serve as a
of a well-rounded, professionally
powered team.
What does Titan do?
As a full-service environmental c
sulting, testing and contracting c
pany, they provide a wide-rangeenvironmental management and
spection services for asbestos, l
based paint, mold and suspecte
meth labs. Though they are bas
in Kansas City, Missouri, they se
the entire Midwest region; from
neapolis to Omaha, St. Louis to
Wichita, Little Rock and beyond
2014RE investment News
Member Spotlight
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2014RE investment News 1
Marketing
2014RE investment News 1
NetworkingNine Effective &Efficient Steps to Success
By Patti DeNucci and Ed Rigsbee, CAE, CSP
Ever wonder why some people are so powerfully connected, are the first to hear about great
opportunities, and earn more quality referrals? The answer may surprise you. To attract more
success in business, you dont have to networkmore; you just have to network
moreintentionally. This means becoming more focused, engaging, trusted, and memorable.
And not necessarily with more people, but with your peoplemeaning the people who natu-
rally bring the most value into your world.
After years of experience and study, weve discoveredyour networking successboils down tonine critical steps. Here they are for you, presented in their most basic form and derived from
Pattis award-winning bookThe Intentional Networker: Attracting Powerful Relationships, Re-
ferrals & Results in Business.
1. Know yourself.
Ittruly is notselfish or narcissistic to practice self-awareness. This involves knowing your
strengths, weaknesses, beliefs, passions, preferences, and traits. Fact is, knowing yourself is
a key component to creating success and building connection. It breeds authenticity, enthusi-
asm, and discernment, which helps others see and get the real you more readily.
2. Know what you want.
If you arevague, ambivalent, scattered, or unsure of your vision, intention, and goals, then you
are likely drifting along, preserving the status quo, and possibly even invisible to others. Clarity
and focus go a long way to helping you become more memorable, which in turn means others
are clearer and more focused on how to help you.
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3.Show up in alignment withthe
above two points.
Everything about you, from your
attitude and appearance to your
correspondence and conversation,
gives off messages. Whats more,
you have mere seconds to make a
first impression. If your image
doesnt line up withwhomyou say
you are and what you aspire to,
then confusion, disengagement,
and distrust can result. Be sure
everything associated with you and
your career or business is congru-ent with who you are and what you
want.
4. Focus onquality, not quantity.
People often believe that doing lots
of networking and having hundreds
of contacts and connections
equalgreater success. Not so fast!
Rather than adding more new peo-
ple to your network, invest some
time identifying your most valuable
connections; the ones who not only
bring you referrals and opportuni-
ties, but also provide you with valu-
able insights, information, and sup-
port. Focus on these top connec-
tions fora while. The same goes for
your networking activities. Which
ones really bring energy, value, and
results to your career or business?
Next, make a list of the traits thatmake these top people and events
valuable to you.Note for future ref-
erence how you originally met or
heard about them. This information
will help you recognize and attract
more of the same. Youve just cre-
ated a faster track to your success!
5.Say no with grace.
Once you identify your top contacts
and networking activities, youll start
to see who and what no longer
serves you. It will be easier to priori-
tize, which iscrucial to your net-
working efficiency and suc-
cess.Figure out who and what
needs to be edited out (or given
less attention). Gradually
andgraciouslybackaway from
those who drag, drain, and disena-
ble you.
6.Focus on your best connec-
tions.
Stay in touch with your best con-
nections.Thismeans reaching out
and staying top-of-mind on a regu-
lar basis.Invest a few minutes each
day to sending friendly, helpful,
grateful, congratulatory, or suppo
ive notes to your valued connec-
tions. Set up one ortwoweeklystrategic coffee or
lunchdates. Attend a few targeted
business or association events
each month. Organize and make
time in your weekly routine to follo
up and succeed utilizing the
above.The key is doing these
things regularly and consistently.
7. Stand out in the crowd.
You just never know where or wh
an important conversation will tak
place, when an opportunity will
arise, or when you will run into a
valued colleague or customer. Be
ready, alert, and aware. Live your
brand and allow it to guide how yo
show up and conduct yourself.
Show genuine interest in other pe
ple by being the first to say hello,
offering a professional handshakeand engaging in friendly conversa
tion. Ask questions that show inte
est. Then take the time to actively
listen to what others have to say.
With a little extra effort and courte
you can make connections and
meetings so much more memorab
Marketing
New to MAREI, Meeting Tips
1. Taking Your Seat: Remember during the networking portion, this is your time to get up and speakto several new people you dont know. By all means mark the seat you want to take for the presetation portion, but dont sit for an hour and wait. Get up and visit with vendors, browse the deals othe marketing table, visit with people you know, AND go meet 3 or 4 new people.
2. Business Cards: Spend $20 at Vista Print and get something that you can use. It does not have tbe perfect. Include your name, company name if you have one, contact information and a bit abowhat it is that you do. If you have a business outside of real estate, that you would like to share ,utilize that business card.
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2014RE investment News 1
and valuable, for you and for oth-
ers.
8. Give first.
This isnt about giving away your
expertise or time randomly. Its
about offering a positive attitude
and a willingness to listen and offer
ideas to those you meet. This dra-
matically separates you from peo-
ple who focus only on themselves.
Certainly its okay to be purposeful
and focused on what youre seek-
ing, but sincere acts of generosity
are rare and endearing.
9. Reap your reward.
Consistently practicesteps 1
through 8and youll be on your way
to making more powerful connec-
tions, earning more likability and
trust, and attracting more referrals.
But add one more step: thoughtful-
ly, concisely, and most of all humbly
(and without assumption) educateothers on what youre seeking and
what constitutes good opportunities
and referrals for you. If you are gen-
erous in giving to others, help them
respond in kind.
Copyright 2013 by Patti DeNucci & Ed
Rigsbee
Marketing
3. Deals: If you have real estate deals, print flyers for the General Marketing Table. All attendeescan place a stack of flyers for their own products and services or business cards. Be sure yourName and contact information is included. Have a lot to share, then please reserve vendor table.
4. Traffic Flow: We want you to get the most of networking. So please check in and get a name tagquickly then move out of the check in table traffic. If we cause a traffic jamb, the harder it is forpeople to get in, and the fewer people you will get to meet.
These are just a few basics that can help you slow down, get focused, an
the seeds of more powerful relationships and quality referrals. Take the n
step to learning even more by requesting your free sample chapter from P
bookThe Intentional Networker. Email her
Patti DeNucciis a business networking and referral attraction expert, prosional speaker, and award-winning author ofThe Intentional Networker: A
tracting Powerful Relationships, Referrals & Results in Business.
She is afounding board member and current president of theAustinchapter of thetional Speakers Association.www.IntentionalNetworker.com
Ed Rigsbee, CAE, CSP,is the author of several books and over 2,000 aron business growth through collaboration and strategic alliance developmHe travels internationally lecturing on the topic and helps organizations toreach farther through alliance relationships.www.rigsbee.com
mailto:[email protected]:[email protected]://www.intentionalnetworker.com/http://www.intentionalnetworker.com/http://www.rigsbee.com/http://www.rigsbee.com/http://www.rigsbee.com/http://www.intentionalnetworker.com/mailto:[email protected] -
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The First Two MonthsAre the Hardest
Chris Lengquist:
The first two months are always the hardest. Im talking about when we take
over a rental property for the first time. Whether its already been managed
by your or we have just finished rehabbing the house and now its ready to
rent (well,e specially if its being rented after rehab) we find that the first two
months, from aproperty management standpoint are always the hardest.
Why?
If we are taking over the property the tenants usu-
ally will want to tell us why. Lets face it. If we are
taking over a property it is probably because
someone else hasnt been doing a bang-up
job. So first we have to clean up the deferred
maintenance issues that are no doubt present,
smooth over the tenant and do all this without
freaking out your check book too much.
If we are renting a house that just got through with
an extensive rehab then there are all sorts of
things that may not have shown up in the re-
hab. For instance, you can run drains and flush
toilets for construction crews but until you have a
house full of people using toilet paper and using
the toilets often you cannot know if there is a prob-
lem somewhere deep down the drain line. Or per-
haps the furnace only works intermittently because
of some weird deal. We always find at least a few
things like this.
The caution here? Just make sure you have some
repairs dollars still set aside for the first couple
months of new tenancy. After that it usually slows
down to just an occasional trickle of problems. But
those first couple months I can almost guarantee
you we will speak quite often.
Monthly Speaker
Setting Goals in 2014
Instead of making resolutions you may never in-
tend to keep, may I suggest setting your 2014
goals for your real estate investing ventures? How
many properties do you own? How many would
you like to own? Here are some things to thinkabout as you are setting 2014 goals;
Should you sell or exchange in 2014?
Should you buy?
Should rents be moved up or down?
Is it time to change who manages the property
Is this the year to catch up on deferred mainte-
nance?
Have a good tenant? Maybe its time to send
them a thank you letter.
Any value-added improvements that could be
done?
Hopefully those few things can get you started on
your planning for next year.
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Industry Services
Insurance forVacant PropertiesRehab Properties
Renter Insurance for Your TenantsBusiness Insurance
Umbrella LiabilityHealth Insurance
Life Insurance
www.MOFB.comStephanie Cunliff
816-781-4370
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Small Claims CourtDealing with Deadbeat Tenants Cynthia SchmiWhat if the tenant vacates the rental property owing back rent, damages above the security deposit an
or an unpaid utility bill?
The majority of real estate investors across the country will rationalize to themselves I got my place
back or I don't care about the money.
That was not good enough for me, I didn't get into real estate investing to have my profits stolenfrom a
non-paying tenant. I deserve every dime the tenant owes me and I knew I had to get aggressive to pro
to the non-paying tenant that I mean business!
This is when a Small Claims lawsuit is filed with the clerk of the court. The average time allowed to file
after the infraction in the 50 states is 5 years. So, the investor has 5 years to pull the judgment debtor
into Small Claims to obtain the judgment.
At the court hearing, the Judge or Magistrate will have to be presented the rental agreement to render
money judgment concerning any back rent owed. When seeking a judgment concerning damages abo
the security deposit, he/she will want to see a copy of the itemized statement concerning the deposit th
was sent to the tenant 30 days vacating and all pictures and receipts of the excessive damages. If it is
for the unpaid utility bills, he/she will ask for the rental agreement that states the tenant's responsibilitie
concerning the utilities and the unpaid utility bills.
Once the judgment is awarded in Small Claims Court, the Judgment Creditor will have to proceed to th
post-judgment proceedings to collect. So, when I hear through the grapevine that it isn't worth the pap
it is written on-I challenge that statement! I have collected 90 satisfied judgments and I haven proven
those 90 tenants that I want my money!
Monthly Speaker
March Main Meeting
Cynthia Schmidt
Collecting
Back Rent
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Monthly Speaker
Have you ever evicted a tenant and received a judgment for back rent?
Were you able to collect on the judgment? No?
Would you like to know how to collect all the back rents due you?
If so you will not want to miss hearing Cynthia Schmidt at our Main March MAREI
Collecting Back Rent and Judgments!?Now I know what you are thinking --this will not work in Texas!
That is what I thought too! But after five minutes on the phone with Cynthia Schmidt--she had me con-
vinced that this should be a very interesting meeting.
You owe it to our profession and yourself to give the Schmidt's 90 minutes to enlarge your vision. A must
for the serious investor that wants to change the mindset when dealing with a non-paying tenant.
Here is just some of what will be covered...
--> Serving of the Notices
--> Forcible Entry and Detainer
--> Small Claims
--> Abstract of Judgment
--> Writ of Execution-Personal Property
--> Writ of Garnishment (Bank Levy)
--> Subpeona Duces Tecum
--> Show Cause Hearing
--> Contempt to Judgment Satisfied
--> And much much more
Tuesday March 11th Main Meeting. Register on the
calendar of events at MAREInet.com
About the Speakers
Cynthia and Gary Schmidt have been landlords
for 20 years with over 500 tenants. Fifteen years
ago, they ventured into post-judgment proceed-
ings and has collected 90 satisfied judgments. In
2005, they wrote their first Collect Back Rent
Manual and the filming of their first DVD.
Today, after constantly improving they havecomprised the 50 State Overview Books-Dvd's
with an additional book for each of the 50 states.
They have been endorsed by Jeffrey Taylor
(Mrlandlord) and have spoken on his 22nd An-
nual Cruise and Convention this year with great
reviews.
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www.KCInvest.com
Looking for cash-flowing
or fix and flip
investment property
for your Self Directed IRA?
The KCInvest Team
offers one of the topselections in the KC Market.
Visit our Website
view our Current Properties
and Mortgage Notes
Register Yourself and
Your Buying Criteria.
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2014RE investment News 2
Industry Services
A Full Services
EnvironmentalConsulting, Testing &Contracting Service
www.TitanKC.com816-561-0959
See Web for RRP Training
-
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ChangesThe New FHA
MAREI St
The Federal Housing Administration recently announced they were going to reduce loan limits, one of
their high costs areas. They raised these limits back in 2008 when the financial markets just were not
making loans and the economy was entering the recession. The FHA raised the limits to help
support our failing housing industry and the economy at large.
Since that time, the economy and the housing sector has recovered and the government wants to minimize their exposure to losses from higher end loans.
So here is what to expect for 2013
1. Loan Limits will be reduced. That means that
on average the maximum price of a house they
will finance in the Kansas City Metro area be
$278,300.
2. Jumbo Mortgage Loans will be coming back,
but with harder qualifications in terms of credithistories and debt to income ratios. So while
FHA will finance people sooner out of foreclo-
sure, short sale or bankruptcy, the Jumbo bor-
rowers will in most cases have to wait the full
seven years or have a 30 percent down pay-
ment.
3. Credit Scores are going to need to be higher.
The higher the score the better the loan you are
going to be ble to obtain.
4. Borrowers May Need a Minimum 20 Percent for
Down Payment. If you are not getting an FHA
loan you are going to see that 20 percent down
is going to be the new normal in many markets.
5. With larger down payments and harder FHA
standards, borrowers are going to be turning to
friends and family for documented gift money to
help them purchase the property.
6. Lenders are going to be looking at the borrow
ers reserve funds to cover future payments.
While FHA does not have a requirement on r
serves, most jumbo loans do. For example y
may need six months of mortgage payments
your post closing escrow account.
7. Buyers may have to buy houses they can act
ally afford rather than buying the big house a
hoping their income grows to afford the large
house. Or they may want to
wait to buy while they spend time to save up
substantial down payment.
8. Keep in mind that the housing market is show
ing a strong improvement and while FHA is re
ducing limits, other types of loans are steppinup to fill the gap.
Real Estate Investors need to keep a strong eye
what is going on in the mortgage markets as this
will affect how hard it is for buyers to get tradition
bank and mortgage company lending.
Investors who retail houses to owner occupant
buyers will often have to jump through special
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2014RE investment News 2
hoops to help make sure the sale goes
through the are channels.
Other real estate investors are offer crea-
tive financing options for their buyers
through lease options and seller financing.
These options are also being challenged by
new rules.
Join us on Wednesday February 19th when
MAREI Business Member Beth Langston, a
loan officer at Pulaski Bank in Lees Sum-
mit hosts MAREIs roving meeting for the
month. We will have an open house for
networking and a discussion about chang-
es in FHA lending and how this will affect
us as home sellers.
2014RE investment News 2
MAREIROVING
MEETINGNew for 2014:
Starting in January 2013, MAREI will
no longer hold the secondary north-
land meeting.
The main monthly meeting will con-
tinue on the 2nd Tuesday of the
Month, as it has been for the past 10
years.
The secondary meeting will vary by
month.
Januarys secondary meeting will
be hosted by Chris Lengquist of
Keller Williams in Olathe.
Februarys will be hosted by Beth
Langston of Pulaski Bank in Lees
Summit.
March on the 5th Monday we will
be going back up north for a net-
working and discussion. Location
and topic yet to be determined,
watch the MAREI calendar.
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24 RE investment News 2014
Learn how to save money at Home De-pot and register for a 2% Rebate for all
purchases & rentals across the US.
Plus 20% Discount on Paint in KansasCity. And coming in 2013 the New
Home Depot App for iPad exclusively forChapter Members to use in project esti-
mation on home repair and remodel.
All members receive a discount cardto access our exclusive discounts up
to 40% off all paint, supplies, andflooringnationwide.
Websites for investors, landlords, andother services. FREE trial.
Email and Social Media Marketing, FreeTrial and Discounts for paying in ad-vance.
Screening for tenants & workers with20% discount for members.
FORMS & DOCSMember Library is packed with formsand docs to use in your real estate
business.
Market your rentals on the nations topranked rental site. Member discount
is 20% off Regular Prices.
Save on select FedEx Office copy andprint services up to 20% and on Fed-
Ex Shipping up to 22%.
Receive discounts up to 65% on over12,000 products you use the most
online and in store.
MAREIS MEMBER BENEFITS PROGRAM
YOUR MEMBER BENEFITS
AT-A-GLANCEUSE THIS PAGE AS A GUIDE TO VALUE ADDED DISCOUNTS TOOLS AND SAVINGS CREATED JUS
FOR YOU ON GOODS AND SERVICES YOU USE EVERY DAY.
E-UpdateMAREIs award winning weekly emaupdate with whats happening in rea
estate including properties for sale, goernment affairs and local market data
Investment NewsThe award winning newsletter for Mid
America Association of Real Estate In
vestors: published monthly and distriuted both in print at our meetings andigitally to our database of over 5000people. One of the best ways to geyour message in front of a targetedgroup of real estate professionals.
Free issues of both magazinesavailable at the monthly
meetings of MAREI.
Landlord Services
Office Solutions
Suppliers
Marketing
News & Information
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2014RE investment News 2
We have several services as part of our
website to help you grow your business.
Calendar of Events to stay up to date with
all of our activities.
Browse the member properties to find
your next deal. Take the time to post your
investment opportunities for other mem-
bers and site visitors to browse.
The Member Library is packed and ever
growing with pdf versions of entire books,
EBooks, Articles, Forms, and Documents.
Nearly 70% ofQuickBooksusers say
that it makes their business more prof-itable. Get your Accounting on track.Buy at a 20% discount our speciallinks from the MAREI Web Site.
REAL ESTATE BOOKS
The nations largest provider of real estate
training materials,DEARBORN is
Americas Premier Real Estate Publish-
er. Members receive up to 40% off.
Special member discounts for members at
Avis, Budget, and
Enterprise Rentals.
The Local Market Monitor tracks real
estate sales and economic trends nation
wide. Offering 25% Discount for Mem-
bers.
MAREIs Political Advocacy Group ac-
tively 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 timelyCalls to Action
when there is a
time for our mem-bers to take action
on an important
vote.
Members also have
access to the latest in Market Data.
Other Discounts
VISIT
www.MAREInet.com
Look under Resources
& Members Only
Member Service
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26 RE investment News 2014
Why You Should Join
Your Local REIAGroup Tim Herriage
HomeVestors & RE
Just recently I returned from a National REIA mid-year conference in Pittsburgh. Needless to say, I was very im-pressed with the organization and all the hard work and dedication put forth into the event to make it a success.
was a coming together type of mastermind group of REIA leaders so that they could compare notes and ideas
to hopefully do a better job with their local REIA groups.
For me personally, my REIA experience started in 2003 when I was struggling with additional financing for my R
Estate investing. The irony was not only did I find additional financing but I found a whole new career in note inv
of which I can attribute directly to the education I had received from my local REIA in Philadelphia.
So take note from me, if youre in the note business, you need to be a part of your local REIA. And here are 3 r
sons why:
1.) Education this was the beginning for me as I was introduced to people like Jimmy Napier, Donna Bauer,
Fortunato, and later on Eddie Speed. My local REIA offers monthly meetings with guest speakers and Saturdayshops. When I was getting started, I took every single weekend workshop I could. Im glad I did it too because I
wouldve networked or learned as much as I did in such a short amount of time. Some of these speakers and fe
REIA members became mentors to me, and in turn I did the same to others. If youre looking for a coach or men
youre REIA group is a great place to start.
2.) Sources of Capital Not only to build relationships with like minded investors, I made a lot of friends who s
vest in my Real Estate projects as well as my current note funds today. And its not just the people Ive met, but
the sources I have learned about. 37% of the capital that we raise is from Self-Directed IRAs, a technique I lear
about at a REIA meeting.
3.) Networking My REIA group has turned into a great distribution network for my deals, both hard real esta
notes. Its funny, now when I go to a meeting I see two groups note investorsand everybody else. Being in sniche business is great because within our REIA weve built a little community where we can see each other at l
every month to discuss deals and give advice. I love it!
Now if youre in the note business and youre not in a REIA group, I strongly urge you to consider joining and m
even actively participating. Im not saying you have to be a speaker like me, but maybe you can become a vend
volunteer that just helps out. Youll not only help out your local REIA, but you and your business could get mo
recognition. If you dont have a meeting in your area, you could start one yourself. As Tom Hennigan p
out theres over 38,000 members in National REIA, with chapters both for profit and non-profit alike. So
you want to get an education, sell a note, or meet like minded investors join or start a local REIA today
Membership
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2014RE investment News 2
MAREIMid-America Associationof Real Estate InvestorsHave a Product or Service
To Promote to Real Estate ProfessionalsWho Live or Invest in Kansas City
Business MembershipBy far the best bang for your buck when targetingthe Real Estate Professional for your product or ser-vice in the Kansas City Metro would be a BusinessMembership with Mid-America Association of RealEstate Investors.
The business membership includes all the access toour website and all the discounts that our StandardInvestor Membership. However, unlike the InvestorMembership that is for the person, the BusinessMembership follows the Business. So as a Busi-ness you receive two guest passes to every monthlymeeting (20+ meetings a year) that can be used bythe same two people or interchanged among sever-al people each month.
Advertise in our NewsletterAlso included in a Business Membership is an ad-vertisement in our monthly newsletter, the Invest-ment News. This is published once a month andposted on our website, our social media pages, sev-eral online file sharing sites and emailed out to our5000+ database. We highly recommend submittingeducational articles for the newsletter for maximumexposure.
Advertise on our Website
Our website has a Service Provider Section thatprovides you with a home on our website where youcan create a full page advertisement of your choos-ing and link it to your website. Some examples ofad pages might include: a photograph, two or threeshort paragraphs, an embedded video, contact in-formation and a sign up page for your product orservice. We can make it as elaborate or as simpleas you would like. Also submit educational articlesand videos for our blog.
Industry Services
Residential & Single FamilyCommercial & Multi FamilyInstitutional & Bank OwnedFarm & Development Land
www.CatesAuction.comMissouri:816-781-1134Kansas:913-378-1134Toll Free:877-781-1134
Karl Dunivant
816-343-8887 (work)816-500-1527 (mobile)
ChoiceCabinet.com
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28 RE investment News 2014
REHAB FUNDING
28 RE investment News 2013
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2014RE investment News 2
SUCCESSFULReal Estate Investors
Nine CharacteristicsVena Jones Co
In my 18 years in the real estate business, I bet I've met 100,000 investors at all levels of knowledge and experi-
ence. Some have become amazingly successful, while others have lost steam or experienced dramatic failures. I
this time, I've noticed that there are certain characteristics that come with real estate investing success. As a mat
ter of fact, that I have come to believe that I can predict with fair accuracy whether a particular investor will be suc
cessful. All I have to do is find out a little about their attitudes and actions, and I'll know what their chances of be-
coming successful are.
Before I outline the specific characteristics that I've found in successful investors, Id like to define what I mean by
"successful investor". A successful investor is NOT the person who owns the most properties or does the most
deals, or who has the most zeros in his net worth. A successful investor is simply a person who knows what he
wants -financially, personally, and in terms of what he wants to contribute to the world -and uses real estate in-
vesting as a way to get those things. For a successful real estate investor, real estate is a means to an end, not
an end unto itself. A successful real estate investor works to become as financially secure as is necessary for his
peace of mind and who is happy and comfortable with his investment activities.
Successful investors I've known include high school dropouts and PhDs, men and women of all races and back-
grounds, people born into poverty and people born with trust funds, guys who started investing at 19 and those
who started in their 70's, part-timers and full timers. There is no single predictor of success, but there are things
that I've found that all successful investor have in common. Here are a few.
1. Successful investors have a plan -and work it.
It's simple enough to put pen to paper and figure out how to become financially independent in 2 or five or ten
years. It's another thing altogether to wake up each morning and do the things you need to do to reach this goal.
Somehow, your real life always seems to get in the way of your long-term goals. Successful investors battle this
tendency to get caught "in the thick of thin things" by creating not just a list of goals, but a daily plan for getting
there.
COVER STOREY
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30 RE investment News 2014
2. Successful investors net-
work.
Real estate investing must be
the only profession in the coun-
try that has no accepted curricu-
lum of formal training. Since
your success as a real estate
entrepreneur relies in no small
part on your ability to get reliable
information and advice when you
need it, and since your local
community college doesn't teach
courses on important topics like
how to evict a non-paying ten-ant, the only answer is for you to
find a mentor who can teach you
the ropes.
Choose a mentor who is knowl-
edgeable, motivating, accessi-
ble, and is known for high ethical
and business standards. Don't
abuse your mentor by constantly
asking for information that youcould get from a simple trip to
the library. And don't forget to
thank your mentor by taking him
to lunch, giving him gift certifi-
cates to his favorite restaurant,
and, of course, letting him in on
good leads when you find them.
Where do you find mentors? Try
your local non-profit real estate
investment or landlording associ-
ation. It's full of people who are
there to share.
3. Successful Investors Cull
Their Herds.
When I was a little kid, I read an
article about chicken farmers.
This article mentioned that when
the new chicks hatched, the
farmer killed the weak, under-
sized, and deformed chicks be-fore they had a chance to grow
up. I was, of course, horrified,
and immediately began making
plans to open an orphanage for
runt chickens. Unfortunately, my
home in the suburbs and my in-
sensitive parents conspired to
keep my project in the planning
stages to this day.
Most real estate investors look at
selling their "dud" properties with
the same horror with which I
view the wholesale slaughter of
slightly imperfect baby chicks.
They will keep a property year
after year despite the fact that it
loses money, doesn't fit the own-
er's goals, is a huge manage-
ment hassle or is in a neighbor-
hood that has become a
warzone. Successful investors
review their portfolios at least
once a year, and aggressively
get rid of their loser properties
before they can damage the
profits from their winners.
4. Successful Investors Pro-
tect Their Assets.
What's the use of building a
huge real estate portfolio if a sin-
gle lawsuit could wipe it all out?
Why bother to achieve financial
independence if the bulk of your
estate will end up in the hands of
the government? And why is it
that the average real estate in-
vestor does absolutely nothing
reduce their #1 yearly expense
taxes?
Arranging your affairs to prote
your assets from creditors, pla
tiffs, and the taxman is tedious
complicated, and time consum
ing. Yet every successful real
estate investor takes the time t
do it, thus assuring that their
hard-earned money stay theirs
5. Successful investors have
code of ethics.
We tend to think of our invest-
ment activities in terms of brick
and cash. In fact, the real esta
business is about PEOPLE.
Without sellers, renters, contra
tors, agents, and so on, you
would have no real estate bus
ness. And since your businessactivities affect so many other
people, I think it's important to
decide how you are going to
treat the people you come into
contact with each day.
Since there is no formal code o
ethics for real estate investors
it's up to each of us to decide
how we'll behave toward cus-tomers, tenants, sellers, worke
etc. Instead of using as a mea
ure, "what can I get away with?
or "what allows me to sleep at
night?, perhaps the proper
question is, "whats FAIR?".
Take the time to think about yo
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2014RE investment News 3
COVER STOREY
activities and how they affect peo-
ple that you come into contact with.
6. Successful Investors Involve
Their Families.
In ten years, I have yet to meet a
truly successful investor who did
not have the support of his (or her)
significant other. Because your
real estate activities generally in-
volve spending (or promising to
pay back) tens of thousands of dol-
lars at a time, and since your busi-
ness will take time away from your
family, I think it's very important to
sit down with everyone who's old
enough to feed themselves and
explain what you're doing, and
why, and that you'd really like to
have their help or at least their un-
derstanding. If you have a spouse
who's reluctant to allow you to take
out a second mortgage on your
home in order to invest in the dealof a lifetime, try sending him or her
to a beginner's seminar on invest-
ment. Some of your significant oth-
ers very natural fears may be
overcome by an understanding of
what you're doing.
7. Successful Investors Treat
Everyone Better than They Ex-
pect to Be Treated.
What goes around comes around.
If you think that your reputation as
a buyer or landlord doesn't pre-
cede you, think again. When you
go the extra mile to solve people's
problems, both profit and success
will follow.
8. Successful Investors Stay Ed-ucated.
Since I began investing in real es-
tate full time in 1989, my state has
passed a mandatory seller disclo-
sure law. The federal government
has made lead-based paint disclo-
sures mandatory and expensive to
ignore. Congress has changed the
rules for capital gains taxes twice.
HIV-positive people have become
a "protected class" in terms of fair
housing. My city has passed ordi-
nances that say that I can be fined
or jailed for renting to drug deale
Mortgage money for high-risk bo
rowers has become cheap and
easy to get. The Fair Credit Re-
porting Act has been revised to iclude landlords. Things change.
Your business is affected. Stay o
top of it.
9. Successful Investors Pass O
What They've Learned.
Just as successful investors hav
mentors, successful investors be
come mentors. By passing on th
knowledge to novices, they keep
our industry alive, give others at
chance a financial independence
and get a wonderful sense of the
own accomplishments. Now that
what I call success.
Reprinted from The Real Life Real Est
e-letter with permission of Vena Jones
Cox. Get a free subscription at
www.TheRealEstateGoddess.com
Listen to Vena and her gue
speakers on her real estate
radio show: Real Life Real
Estate Investing, find in pod
casts on iTunes. Join Vena
to learn Real Estate 101 in
Her Express Success
Training Program pre
sented here at MARE
MAREInet.com/ES
http://www.therealestategoddess.com/http://www.therealestategoddess.com/http://www.therealestategoddess.com/ -
8/13/2019 The Real Estate Investment News: January 2013
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32 RE investment News 2014
How to Retail Houses, Sell Creatively
and when to Rent Properties.
How to Screen Sellers for Motivation an
Negotiate the Best Deals.
Understand Due Diligence, Disclosures
and What Happens at the Closing
How to Protect Your Assets and the Ba-
sics of Using Land Trusts
Understanding Contracts and all Those
Clauses and Addendums
Time Management, Planning and the Importance of Systems
The Real Estate Goddesss GuideTo Getting Your First Deal
Learn Property Evaluation for Single
Family & Multi Family Properties.
How to Inspect Properties Efficiently &
Estimate Repair Costs.
Buying Creatively with Seller Financing
and Alternative Financing.
How to Find and Utilize Private Funding
and When to Use Hard Money
How to find desperate sellers with direct
mail, bandit signs and internet marketing.
How to Wholesale Houses
EXPRESSSUCCES
S
6MonthsWednesdayW
ebClasses
Featuring
20 Year Vetteran Real Estate Investor
Vena Jones Cox
-
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2014RE investment News 3
BONUSES
for Paying in Full
Saturday MAREI WorkshopsMAREI has 1 Saturday Workshop plannefor every month except November & De-cember, thats 10 Live Workshops
Real Estate 101Vena will mail out her Real
Estate 101 Training Course:-a 200 Page Manual-10 hours audio-CD Rom of Forms & Docs
Venas Email Coaching
Register
Online MAREInet.com/ES
Call 913-815-0111
12 Month Curriculum of Education,Support & Accountability to takeyour Business to the Next Level
Two Payment Plans
Pay in Full
1 MAREI Member $599
2 MAREI Members $799
Financing Options
1 MAREI Member $100 Up FrontThen $55 a month for 11 months
2 MAREI Members $100 Plus
$75 a month for 11 months
Ever wonder why some of the folks at MAREI are doing really well and others just cant quite get startedAfter all, they have the same info and opportunity.
We sat down with Vena to find out and we recordedDownload and Listen now at www.MAREInet.com/E
-
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34 RE investment News 2014
If you think you can be successful in real estate investing without making mis-
takes, you have a lot of surprises in store!And in fact, if you are afraid to make
mistakes, you will probably never be successful in this business. Its a crazy
world out there, and you are going to make mistakes. Its time to face up to it
and get used to it. Its a crazy reality, but you will probably learn more from your
mistakes than anything else.
Along with all the success I have had, I have made a lot of mistakes in my busi-
ness. I list only a few of them here in hopes that I can help you avoid the same ones. But if you ar
hard-headed like me, you will read this list and think, OK yeah, thats great. Thats really good
stuff. But I wouldnt do anything like that. I already know that. Im cool. Whatever
The most successful people in this business learn from their mistakes, and they are wise enough to
learn from the mistakes of others. When they fail, they fail falling forward. So here are some mista
I have made. I hope you will learn from them so you can avoid them yourselves!!!
Mistake #1 Slowing Down Your Marketing
Its tempting. You have been doing some marketing and you are getting some success. Now you
starting to get sellers to call you. Congratulations your marketing is working! You might be gettin
real excited.All of the sudden, you are busy. Youre starting to wheel and deal. Youre a deal-
maker now! You find a motivated seller and you get a house under contact. You start seeing dolla
signs. You start advertising and marketing the house all over the internet. You take a ton of calls f
tenant-buyers. You drive around all over town, meeting the tenant-buyers at the house. You stick
Lease PurchaseF i v e C o m m o n M i s t a k e
A n d H o w t o A v o i d T h e mJoe Mc
I believe there is no easier way than Wholesaling Lease Options to
make quick chunks of cash in 2-4 weeks. Its so easy to do, doesnt require any money, and involved very little risk. Join me at my Whole-
saling Lease Options Full Day Seminar on March 22nd, being hostedby MAREI.
Success Strategies
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36 RE investment News 2014
signs and flyers all over the neighborhood. Then final-
ly, you sell the house! You breathe a big sigh of re-
lief. The tenant-buyer is happy. The seller is hap-
py. You are happy. You just made $5,000! Congratu-
lations!And then you look around you and say to your-
self, Awesome! Lets do another one!
But what just happened? You just wasted 3 weeks
spending all your time & effort selling a home while
your marketing for sellers has completely ground to a
halt. Now what are you going to do for new
leads? Well, okay, you start marketing again for
sellers. But now it takes another 2 weeks to find anoth-
er seller.And then it takes another 4 weeks to sell that
property.All of the sudden, its been 6 weeks since
your last paycheck and youre starting to freak out!
This mistake is real easy to avoid, and it should be ob-
vious how to avoid it Dont stop your market-
ing! Keep doing it consistently, systematically, reli-
giously, etc!
Mistake #2 Trying To Sell Houses People Dont
Want to Buy.
I get a lot of investors that call me and ask me to help
them sell their investment property on a lease op-
tion. They are usually extremely frustrated by a lack of
results. I ask them what they have been doing to sell it
and usually, they are doing all the right things. Then I
find out where the house is located and discover imme-
diately what their problem is. They bought a good
house in the wrong neighborhood. The numbers work,
but no one wants to live in the home at least no one
who wants to eventually buy it.And dont you think
that might be a problem? There is usually nothing I
can do to help investors sell these types of homes.
Heres one of the most important keys you can everlearn in this biz whether you learn it from me or you
learn it after you buy the wrong property You can
only sell homes people want to buy! Stay away from
ugly houses in bad neighborhoods! Only lease pur-
chase nice homes in nice neighborhoods.
What are buyers looking for in your area? I run most of
my lease purchase business in St Louis, Missouri. Ob-
viously, each market is different. But here is a list o
what buyers are looking for in my area:
1. 3+ bedrooms & more than one bathroom
2. Homes in good school districts
3. Homes in the median price range ($120,000
$175,000)
4. Homes that have a basement and a garage
So its logical to see which homes I stay away from
the plague:
1. Anything less than 2 bedrooms & only 1 bathro
2. Houses with no garage and/or no basement
3. Houses in bad school districts
4. Houses in rental neighborhoods
If you follow these simple rules when marketing for
Lease Purchase homes, you will save yourself a toheadaches and you will make more money!
Mistake #3 Not Treating Your Investing Busin
Like a BUSINESS
Real estate investing should not be a hobby to
you. You need to treat it and run it like a business.
you have a business plan? What are your busines
goals? If you dont have something in writing, crea
business plan today! It doesnt have to be an epic
tome. What type of real estate investing business dyou want to have? How many homes do you need
sell a month? How much marketing do you need to
every week to meet your goals? What cash flow do
you need every month to break even? What type o
sellers and tenant-buyers are you looking for?
There is so much that could be said about this topic
that I dont have the time to write it all our here. Th
main point is that you need to have a plan. You ne
to have something in writing that guides everything
do. Whats the saying If you dont know whereyoure going, I can guarantee you will get there. G
plan and work the plan!
Also, one final important tid-bit learn to manage y
cash flow. Cash flow will make you or break you.
have to know whats coming in and out every mont
Mistake #4 Being Too Hard For Your Sellers a
Success Strategies
36 RE investment News 2013
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2014RE investment News 3
Success Strategies
Buyers to Reach.
Does it really need to be
said? Would you ever do business
with someone who is impossible to
reach? If you look at any successful
investor in your area, I can almost
promise you they do not use all
those expensive & elaborate voice
mail systems and websites that all
the gurus try to sell you
on. Why? Those systems pre-
screen everyone out. If you want to
be successful in this business, you
must be easy to talk to. When a
seller calls, dont make them jump
through 100 hoops and answer
1,000 questions before you call
them back. When a tenant-buyer
calls, dont make them listen to a 10
minute message that tries to answer
every question they have about
Lease Purchasing. Be accessible!
On all my marketing and in all my
voice mails, I have a way for people
to reach me at my office. They canleave a message if they want, but
they also all know that they can be
re-directed to my office if they want
to talk to a live person.
Now I am not talking about answer-
ing the phone at all hours of the day
and night. I am just talking about
basic, simple customer service. You
wouldnt believe how much business
I used to throw away before Ichanged this part of my business
and became easier to get a hold of.
If youre worried about spending too
much time on the phone with tire
kickers, your focusing on the wrong
thing! Youre focusing on yourself
and not your customers. Heres the
key youre going to waste more
time playing phone tag than you
would if you just answered the stu-
pid phone and answer their 3 ques-
tions! Usually, I am not on the
phone more than 2 minutes with atenant-buyer, and not more than 5-
10 minutes with a seller. But before
they ask me all their questions, I ask
them my questions first. I stay in
control of the conversation. I only
talk to motivated sellers and tenant-
buyers. If they are not motivated, I
thank them for their time, and I get
off the phone as quickly as possible.
Mistake #5 Not Outsourcing
Your Marketing.
I have a virtual assistant that does
ALL my marketing for sellers and
tenant-buyers. Yes, you heard that
right.Actually, I have 3 virtual assis-
tants but thats a different story. I
have already talked about how im-
portant marketing is. But this is one
of the easiest parts to outsource yet I dont understand why so few
investors are actually doing it!
You think its too expensive to hire a
virtual assistant? Guess how much I
pay my VA? $2.78 / hour. She lives
in the Philippines, has excellent
English, and is very happy with
$2.78/hour.
What do I have her do? Well, you
need to subscribe to my course to
find out! In my course, I will give
you the exact instructions, check-
lists, and videos I give to all my virtu-
al assistants. Its not rocket sci-
ence.All you need to do is write
down everything you do for market-
ing, and have your VA do it. Here
are two tools that I use all the time
my outsourcing:
www.oDesk.com I like the VAfrom the Philippines
www.JingProject.com a freetool where you can record videos
and instructions for your VAs
Listen, you have more important
things to do than researching the
internet, stamping envelopes and
addressing postcards. Hire some-
one else to do all your marketing.
will be some of the best money you
ever spend on your business.
Summary
This list of mistakes could easily be
2-3 times longer. These are just A
FEW of the lessons I have learned
along the way. You can learn mor
about the mistakes I made and how
to avoid them by subscribing to ou
membership site and gaining acce
to all our great content.
Happy investing!
2013RE investment News 3
Saturday SeminarSaturday SeminarSaturday Seminar
WholesalingWholesalingWholesaling
Lease OptionsLease OptionsLease Options
WithWithWith
Joe McCallJoe McCallJoe McCall
Saturday March 22ndSaturday March 22ndSaturday March 22nd
Details atDetails atDetails at
MAREInet.com/JMMAREInet.com/JMMAREInet.com/JM
http://www.odesk.com/http://www.odesk.com/http://www.jingproject.com/http://www.jingproject.com/http://www.jingproject.com/http://www.odesk.com/ -
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38 RE investment News 2014
Full Day Workshop Saturday March 22nd
Joe McCall has been investing for over 7 years and he says there has probably never been abetter time to invest than right now. In the last 24 months, he has seen his part-time businesstake off by using a simple strategy he calls Wholesaling Lease Options.
Discover why "Wholesaling Lease Options" is one of the easiest, cheapest, fastest, and safestways to make big chunks of cash in real estate today. You can get started right away with zeroprior experience, no sales skills, and no big down payments (just $10)... because you are notbuying and selling houses.
Lets look at some facts
1) There are TONS of sellers out there who cant sell their home.
2) There are TONS of buyers out there who cant buy a home.
3) Creative Investors have the solutions these people need!
Most Sellers cant discount their home to 70 cents on the dollar to compete with all the dis-tressed houses in their neighborhood.And most Buyers cant get a loan because the bankswont lend them any money! Its a vicious, downward spiral.
So, Joe asked himself, why am I throwing away all these leads? Why cant I do anything withthem? Why cant I plug Lease Options and Wholesaling together, and start making moneywith these two strategiesat the same time?
So thats exactly what Joe did. Within 3 months, He started consistently making $10,000 -$15,000 every month,working part-time, spending very little money on marketing, and hardlythrowing away any leads!
Watch the MAREInet.com Blog ove
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2014RE investment News 3
I believe there is no easier way than Wholesaling Lease Op-
tions to make quick chunks of cash in 2-4 weeks. Its so easy to
do, doesnt require any money, and involves very little risk.
Join me on February 22nd, when I am in Kansas City for a full
day workshop with me and I will teach you how to do it!
Joe Mc all
For Low Equity Deals & Very Little Capital!
REGISTER BEFORE FEB 19th for EARLY BIRD PRICING
Member Price $39 (early $25) Non-Member $49
Member Price for 2 $49 (early $35) Non-Member for 2 $69
$99 Add Membership for 1 Person $149 Add Membership for Two People
_______________________________________ ____________________________________
Student Member #1 Email #1
________________________________________ ____________________________________
Student Member #2 Email #2
________________________________________ _____________________________________
Address City State Zip
______________________________________ ______________________________
Phone Credit Card #
_____ / ____ __ _________________________________
Expire Date / Sec Code Signature
Included
in Express
Success
Program!
Register Online MAREInet.com/JM Scan & Email to [email protected] / Fax to 201-574-2969 /
Or Call 913-815-0111 Mail to MAREI : 8014 State Line, Suite 210, Leawood, KS 66208
More Information at MAREInet.com/JM
days for quick tips and articles from Joe
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2014RE investment News 4
Wholesale
So what are your plans for 2014? Are they writtenout and scheduled? Do you have an effective sup-
port group and coach to keep you on task?
FINANCIALLY FIT:
PLANNING FOR REAL ESTATE
SUCCESS IN 2O14
A brand new year with brand new possibilities!
Kim Tucker, KCInvest
THIS TIME, 2014 is the year I will reach my Goals.
I have read time and again that in order to reach goals, you need to be able to visualize what it you want to ac-
complish and have bench marks to be able to determine if you have met your goal. Next you need to outline the
steps needed to reach those goals, breaking a big goal into smaller portions that need to be completed. You
need to take the time to schedule all of these steps and probably most importantly, you need a support structure
to help keep you on task. Lets face it, life happens, stress and schedules get in the way and if you dont have thesupport you need to keep you motivated and to offer assistants, you might lose sight of the prize.
To give you an example that everyone can relate to we will turn to the most common New Years Resolution: Get
ting Fit / Losing Weight. We can all probably relate to getting fitter. We can all visualize what we want to look like
and feel like when we do get fit. We can set down with a doctor, nutritionist and / or exercise coach to help us
come up with a written plan of what we need to do. Eat the right things, limit the bad things we do to our body an
have an exercise routine. We jump in week 1 in January and we work real hard and follow the plan to a T.
Week 2, you are so busy on Tuesday that you grab some fast food not on the plan and you are so tired on Satur-
day that you skip the exercise. Week 3, you screw up even more and by Week 4, you have given up.
Sound familiar? What was missing in our exercise example? We left out the support structure, if we dont have
the support we need from our friends and family as well as from outside sources we might get discouraged when
we deviate from our plan and eventually give up.
Do you remember way back when to one of the times that Oprah lost a bunch of weight and looked so great?She did it several times, as did many famous people. How do they so dramatically change their lives? Well firstthey have the money to hire someone to help them. They decide I want to do X, then they hire a coach to helpthem define what X is and to create a plan to attain X, then they hire support staff and coaches to keep themon track until, they achieve X. We also know that Oprah, while she lost all the weight and looked so awesome,also gained it all back, why? Well, I dont know the real reason, but I am going to bet that once she reached the
2013RE investment News 4
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42 RE investment News 2014
Success Strategies
goal, she didnt need the chef and
the exercise coach at her house
daily to support her in her efforts
and to keep her on track. The
coaches stopped coming, the exer-
cise and the diet slipped and back
came all the weight.
How can we apply these to our real
estate goals for 2014? Well, keep
reading and lets see if I can trans-
late . . .
I have heard this several times from
new investors this past month. I
have been thinking about getting into
real estate and this year is the year.
I have also heard that This is the
year I take my real estate to the next
level!
These are both great statements, but
what is the goal? Do you want to be-
come a Realtor or the guy who drives
around and takes photos of houses
or the gal who goes in and stages
houses? All three are Getting into
Real Estate but might not be exactly
what you had in mind.
So you need to define what you want
to do and put in measurable bench-
mark points. So for example if you
want to build your rental portfolio you
might say: I want to buy 5 Rental
Properties using Creative Financing
Techniques in 2014 that Cash Flow
$300 a month so that at the end of
2014 I have only $2,000 out of pocketon each house and a net cash flow of
$1500 by December. If your goal is
to become a house flipper, you might
state that I want to flip 6 houses with
a minimum profit of $3,000 each to
add $18,000 to my IRA by the end of
December.
Next, take that goal and break it
down, from the goal of what you want
to achieve over the whole year and
put it into monthly or quarterly goals.Then define the necessary steps you
need to take to reach the smaller
goals. After you have the steps de-
fined, put in deadlines and get them
on your calendar so you can make
sure they happen and that life will not
get in the way.
You may need some help finding
breaking down the goals and outlin
ing the steps that need to be taken
acquire the goals. One way to get
the help is to purchase a training p
gram or hire or partner with a men
Where can you find courses, coac
and others in the business to partn
with? I would suggest getting in-
volved and meeting people at your
local Real Estate Investor Associa
tion. The local REIA will be filled w
people who are doing exactly what
you want to do as well as have rec
ommendations on training and coa
es.
You might also find that you alread
have a course from past years gat
ering dust on your shelf. Or you
might find a great resource in one
the many online sites for Real Esta
Investors.
If you purchase a training course a
it is not step by step, then get busy
and convert it into a step by step
plan. Set deadlines for each item
your plan and schedule it out on yo
calendar.
Then once you have the plan, you
need to go out and do it. This is
where things often slip through the
cracks, its easy to plan out the tas
but much harder to go out and get
them done.
As you look at each step, be it sen
ing out marketing letters, posting
craigslist ads, returning seller calls
posting property ads or whatever,
make sure each step is scheduled
your calendar. And make sure it g
completed. If you just dont have t
time to complete the steps, then yo
might have to give up some other
activity or hire someone to do som
of the steps.
So for example, if you know for a f
that you will not physically print ou
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44 RE investment News 2014
Regulations
Owner FinancingD o d d F r a n k & t h e S a f e A cWilliam Bron
LegalWiz
Owner Financing, Dodd-Frank and the SAFE ActIf you are selling properties to owner occupants and doing
ing financing, you ought to be aware of some comprehensive new regulations that have been in effect for a fe
years, and a real zinger that goes into effect on January 10, 2014.
A few years ago, the SAFE Act was passed on the federal level, then was implemented on a state-by-state
sis. The SAFE Act basically required that you be a mortgage loan originator, or use a mortgage loan originato
sell properties with owner financing. This means getting a loan application like a FNMA 1003, comply with Tru
Lending, and have the buyer sign the thick pile of other lender disclosures.
People panicked when the SAFE Act came out, and declared that seller financing was all but dead. I simplywalked down the hall of my office building and asked a mortgage guy if he could originate my seller financin
loans. He printed the stack of documents from his lender software and charged the buyer $400 as a loan orig
tion fee. No big deal, just a waste of good trees in my opinion.
The SAFE Act was later amended in my state (and many others) to allow you to do three or so deals a year w
having to do all this nonsense. The Act did not address using different entities every three deals, so, as a pra
matter, the issue was put to bed for us in Colorado. In other states, however, there were NO exemptions, me
unless you were selling your own principal residence, you had to be a mortgage loan originator, or use one in
transaction, even for one deal. Technically, you cant even ADVERTISE the seller-financing feature the mo
loan originator has to do so. But, again, as a practical matter I dont think the powers that be are searching th
craigslist or looking for owner will finance signs on houses, and the likely scenario is a cases and desist let
from your state agency, giving you a chance to get licensed. No fines, no jail time.
Enter two corrupt, knucklehead politicians named Dodd and Frank. They managed to pass the Dodd-Frank r
tions that go into effect January 10, 2014. This one is a bit more complex and difficult to deal with, largely bec
it is confusing and has regulations that have yet to be clarified.
Well start with who is exempt and who is not. If you are selling raw land, commercial property, or to a person
is not going to a live in the property, you have nothing to worry about. If you are a person or a trust, you can d
deal a year, so long as its not a funky loan, like a reverse amortization, etc . I know, youre thinking, Ill use
ferent land trusts for each property, but that may end up blowing up in your face if you get caught. Admittedl
Reprinted from William Bronchicks website http://legalwiz.com/owner-financing-d-frank-safe-act/.
Please visit his website for a video on the subject as well as a lengthy discussion
over the past few months between Bill, readers of his blog and other experts in thindustry.
http://legalwiz.com/owner-financing-dodd-frank-safe-act/http://legalwiz.com/owner-financing-dodd-frank-safe-act/http://legalwiz.com/owner-financing-dodd-frank-safe-act/http://legalwiz.com/owner-financing-dodd-frank-safe-act/http://legalwiz.com/owner-financing-dodd-frank-safe-act/http://legalwiz.com/owner-financing-dodd-frank-safe-act/http://legalwiz.com/owner-financing-dodd-frank-safe-act/http://legalwiz.com/owner-financing-dodd-frank-safe-act/http://legalwiz.com/owner-financing-dodd-frank-safe-act/http://legalwiz.com/owner-financing-dodd-frank-safe-act/http://legalwiz.com/owner-financing-dodd-frank-safe-act/http://legalwiz.com/owner-financing-dodd-frank-safe-act/http://legalwiz.com/owner-financing-dodd-frank-safe-act/http://legalwiz.com/owner-financing-dodd-frank-safe-act/ -
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2014RE investment News 4
Regulations
however, nothing clearly in the Dodd-
Frank regulations address this. We
certainly are anticipating a controlled
group definition to come out
soon. One federal regulator com-mented that the rule was 25% com-
mon ownership, but nothing in the
regs back that up.
If you are a corporate entity, then you
can do up to three deals a year, if the
deals meet the following three crite-
ria:
1. Theres no balloon in the note(meaning it must be fully-
amortizing)
2. The interest rate is fixed for atleast five years, and
3. You qualify your buyer.Of course, these geniuses did not lay
out what the qualifications are sup-
posed to be, except for the debt-to-
income ratio (43%) In my opin-
ion, youd be a fool if you sold a
property and did not check the buy-
ers credit, verify their income (withtax returns and employment), and
make sure their gross income is at
least THREE times their total monthly
debt payments, including the mort-
gage. Personally, Ive always done
this and I dont object to making this a
rule, other than the fact that there are
already too many regulations in this
Country. On a practical note, if you
are selling to a tenant or lease/option
tenant, you can use their rental histo-ry as strong proof of their ability to
repay.
Again, it is not clear if you form a new
LLC or corporation for every three
deals you can get around all of this,
but nobody wants to be the test
case.Also, if you want to have a
balloon after five years, simply pop
the interest rate up so it hurts the
buyer enough for him to want to re-
finance and pay you off anyway
(note: you can only increase the rate
2% a year for a maximum of 6%above the original rate).
So, effectively you can do three deals
in an entity, and one deal in a trust or
your own name if you are strictly fol-
lowing the law. A second entity
owned by your IRA and a third owned
by your spouse would add six more
deals, in theory. If you buy and sell
with owner financing more than 10
times a year, you will likely need to
become a licensed mortgage loanoriginator or hire one on staff, which
may not be a bad idea, just a bit of a
hassle because the slew of other nit-
picky regulations that come with
it. Also, when you are beyond the 4
deal limit, you must not only prove
ability to repay, you must DOCU-
MENT it. Tax returns, W-2s, bank
statements the works. Thus, if you
have a self-employed person who
looks broke on paper but has 30%cash to put down, you really cant
document his ability to repay
(suggestion lease/option for 2
years, then convert to a owner-carry
sale).
Are the Feds going to be chasing
down real estate investors for
this? No, the SAFE Act already co-
vers that at the state level. What the
Dodd-Frank Act does is provide a
buyer who is being foreclosed orevicted with a counterclaim recouping
all their interest paid, plus their down
payment, attorneys fees, and court
costs. I always recommend that peo-
ple settle out of court when a buyer
defaults, using the cash for keys
method. But on the off chance that
they arent paying you and can still
afford a lawyer, then you will be fa
ing a fight. One investor I met in
Houston recently commented, If t
happens, Ill just give them the pro
erty. Since he was dealing in $60homes, that would be a simple sol
tion. Its really rare that youd end
in court over this Dodd Frank issue
anyway, butwhat keeps me up at
night is the slimy consumer protec
tion lawyer who puts out an ad tha
says, Have you bought a house w
owner financing? Call 1-800-BAD
LOAN. Yikes! Even so, if you do
every deal in a separate LLC, then
you are limited in exposure to the v
ue of the equity in the home. If yo
bought the property subject-to the
existing loan with little or no equity
then all you really risk losing is the
cash flow from the deal.
So, to sum it up:
You can do one deal per year as a
natural person or trust, three deals
per year in an entity without being
licensed under Dodd-Frank. HOWER if your state has no exemptio
under the SAFE Act, you still have
use a