Embed Size (px)
DESCRIPTION
The Investment News is the newsletter for Mid-America Association of Real Estate Investors a Trade Association for Real Estate Professionals.
Citation preview
MI D - A ME R I C A A S S O C I A T I O N O F R E A L E S T A T E I N V E S T O R S
November 2012
MAREI wins Awards of Excellence at National REIA Mid Year for 2nd Year in a Row!
NETWORKING : EDUCATION : COMMUNITY : GOVERNMENT
Investment News Pa
ge 1
0
This Month at MAREI:
Tax Tune Up & Quick Books Workshop
Page 2 MAREInet.com
Page 3 Business Members Build your team with our Service Providers & In-dustry Partners
Page 4 MAREI Info
Page 5 Staff Page 6 How I Did the Deal
Page 8 Making Money Page 10 Benefits at a Glance Page 12 Disclosure Statement Page 14 Welcome New & Returning Members
Page 16 So What’s Your Script Page 18 Get Down to Business Page 20 Real Estate, It’s Time Page 22 For Sale Investment Opportunities Page 25 Tax Tune Up Monthly Meeting Page 26 Use your LLC Properly
Page 27 Quick Books Training
Page 28 Calendar of Events
contents
2011 2012
Investment News Page 3
BUSINESS MEMBERS
MAREI Business Members are here to serve you in your Real Estate Business.
They specialize in Real Estate Professionals and have joined our association as a
Business. You can find out more about each of our Business Members at
www.MAREInet.com/Services . Don’t see a service you need? Ask on the Forum!
Foundations
Cornerstone Foundation Joe Williams
913-220-5253 CornerstoneFoundationRe-
Your Company Here
$499 annual
Or $135 a Quarter
Insurance
www.APIAprotects.com Lisa Goodner
1-877-752-2742 [email protected]
Insurance
www.NREInsurance.com Jim Jrolf
913-915-3232 1-888-741-8454
Investors
www.kcmoHomeBuyer.com The Tuckers
816-200-2198 kcmoHomeBuyer.com
Property Management
www.JamiesonHomeTeam.com Kevin Jamieson 816-503-4671
kevin-
Property Management
www.MyPremierleasing.com Jeff Wood
816-841-9500 [email protected]
Real Estate Brokerage
www.RealtyResourceKC.com 816-523-4400
Staging
www.ShowHomesKC.com Michelle Davis 913-449-3593
Suppliers: Building
www.CabinetGiant.com Josh Burns
1-877-484-4268 [email protected]
Suppliers: Building
www.HomeDepot.com
Suppliers: Building
www.Sherwin-Williams.com Mike Steiner
Title Company
www.AccurateTitleCo.com Jackie White / Mary Peterson
913-338-0100 [email protected]
Title Company
www.Coffeltlandtitle.com Bud Whisler
816-581-2299 [email protected]
Page 4 MAREInet.com
read anytime
Read the Investment News anywhere, anytime, on your
iPad, Mac and PC:
MAREInet.com/Newsletter
Look for us Online
Search for
“Kansas City Real Estate Investors”
Contact Information
PO Box 8685, Prairie Village KS, 66208
Phone: 913-815-0111
Our Mission Statement Mid-America Association of Real Estate Investors is dedicated to promoting ethical real estate
investing and to protect and promote the best interest of our membership through educational
and networking opportunities as well as community, legislative and public relations.
Legal Disclaimer MAREI does not exist to render and does not give legal, tax, economic or investment advice and
disclaims all liability for the action or inaction taken or not as a result of communications from or
to its members, officers, directors, employees and contractors. Each individual should consult
his/her own counsel, accountant and other advisors as to legal, tax, economic, investment and
related matters concerning real estate and other investments.
Content Disclaimer The views and opinions expressed by authors of articles contributed to this newsletter do not
necessarily reflect those of the association, the board of directors or the staff.
Advertise in the Investment News
Rate Schedule
Size Non-Member Member Business Associate
Full Page $175 $140 $115
1/2 Page $145 $105 $85
1/4 Page $75 $65 $50
1/8 Page $55 $35 $25
A 10% discount is given on ads pre-paid for 6-12 months. Any changes to a pre-paid ad will
incur a minimum charge of $20. The deadline to submit ad copy is the 1st of each month. All
ads must be prepaid. Contact to verify ad format can be accepted. PDF preferred. There is an
additional charge of $25 to typeset a business card ad or 1/4 page ad layout, $60 for a 1/2
page or full page lay-out. Opportunities also exist for advertising on www.MAREInet.com. Call
913-815-0111 for more information. Email ad copy to [email protected]. Mail payment to
MAREI, PO Box 8685, Prairie Village, KS 66208 or request an online payment for to use credit
or debit card.
www.calameo.com
Search for “MAREI”
To subscribe
Investment News Page 5
MAREI STAFF
& Volunteers
Executive Director
Kim Tucker
Investor : Realtor
Advisory Board
Donald Tucker
Investor
Focus Group Leader: Blue Springs / Lees Suumit
Debra Felderhoff
Landlord : Investor
Focus Group Leader: Weekly Wednesdays
Michelle Winberry
Investor : Realtor
Focus Group Leader: Weekly Wednesdays
Brian Winberry
Investor :
Advisory Board / Membership Desk
Scott Tucker
Realtor
Advisory Board / Membership Desk
Dan Goodwin
Realtor : Short Sales
Advisory Board / Membership Desk
Shelda Goodwin
Realtor : Short Sales
Focus Group: Eddie Speed Mentoring Students
L. Scott Ficinus
Realtor
Advisory Board / Membership Desk
John Welchert
Realtor : Investor : Landlord
you can write out a short success story article and walk us through how you did the deal. You submit it to us here at the Investment News and we publish it here in this publication. Note that this publication is syndicated out to 4 different online publication sites as well as social media and emailed out to the MAREI list. So you get a lot of action through the newsletter.
We know that you are probably like most investors who want to attract as many people as you can, so we need to take the next step and go online and seek out a few other real estate investor websites that will allow you to submit your success story and include your contact information.
So for example, go out there to a site like REI Club or CREOnline and find their success story page. There should be a link for you to be able to submit your story. So after you send us the success story, submit it online to these sites and gain even more exposure across the country, for free!
You can get into the big time real estate investor magazines, but note that most of the time, they will want you to either buy so much advertising from them or flat out pay to have your story included. This can get very expensive.
We know that you still need to do the normal net-working and marketing activities, but taking the time to share your success with others can direct a whole new group of people to you. Take some time to think about your past deals, pick out a few that really stand out, and write them down. Share your knowledge and your experience with others through this feature here and similar features online. Be-come famous, if only in the Real Estate Industry.
Do you have a deal, we would love to hear
about it. Email it to us at [email protected]
Calling all MAREI members:
Let’s face it, there are three key tasks that all inves-tors need to work on daily:
Prospecting or Marketing for Buyer Leads
Prospecting or Marketing for Seller Leads
Prospecting or Marketing for Private Money.
We often talk about the standard ways of prospecting as calling a list, emailing a list and posting ads on signs, in print media, or online.
Now, you could spend more time and money on all those time consuming tasks or you could take a dif-ferent approach. Become famous!
If you pick up any magazine targeted to an industry, you will note that the movers and shakers in that in-dustry work to have a magazine article. A movie star has a new movie coming out, they get it in several magazines and make appearances on Talk Shows.
Our business is no different. You want to attract buy-ers, sellers, and lenders so you need to do your own stint on the Daily Show and talk about what you do!
Obviously, you probably can’t get on TV (yet) but we do have a very valid alternative. To attract local in-vestor buyers and at least potential private lenders,
Page 6 MAREInet.com
How I did the
DEAL!
Kim Tucker
Member
Benefit
Investment News Page 7
Packed Library of Forms
Purchase and Sale Agreements
Assignments & Authorizations
Credit & Rental Applications
Leases & Lease Addendums
Contractor Forms
Log into the member library today!
MAREInet.com
Property Insurance for
Rental, Vacant & Construction
Residential & Commercial
Pay-As-You-Go
Jim Jrolf
Toll Free: 888-741-8454
Direct: 913-951-3232
NREInsurnace.com
MAREInet.com/NREIG www.AccurateTitleCo.com
913-338-0100 phone
Title Services Provided for:
FSBO, Wholesale, & REO Transactions New Construction Closings Commercial Purchases and Refinance All Types of Loan Closings 1031 Exchanges FHA, VA, USDA, Conventional Loans, and
Hard Money Loan Closings Refinance & Reverse Mortgages Doc Prep, Prelim HUDS, Curing Issues Short Sale Closing & Assistance 100 Years of Combined Service!
accurate
Accurate Closings: Smooth, Timely, Professional.
HOUSES WANTED
Built After 1950
Minimum 3 Bed, 1.5 Bath
Eastern Jackson County
MO or Johnson County KS
Retail Value $100k-$200k
No Rental Local Cash Buyer Looking for 2 to 4 Houses a month to purchase,
rehab and sell. Money Partners want their money placed quickly so
they can turn their money fast and make a profit. Can’t do that
with out houses! Bring us a deal!
Email: [email protected]
Submit Online: kcmoHomeBuyer.com
Page 8 MAREInet.com
Details:
Tuesday November 13
6:00 pm to 9:00 pm
Career Education Systems
Ward Parkway Shopping
Center—8600 Ward Pkwy
Kansas City Missouri
Top Floor
Don’t miss this event!
Monthly Meeting Agenda
5:30 pm Pre Meeting / Setup
5:50 pm Orientation
6:00 pm Networking / Vendor Hall
7:00 pm Speed Networking
7:15 pm Presentation
8:30 pm Q & A / Networking
9:00 pm Adjourn
Guest Speaker:
MAREI Member
Joe Martin CPA with
Citizen Tax Service
MAKING MONEY WITH THE LAW
WRITTEN ON SEPTEMBER 20, 2012
BY AZREIA.ORG
Your ability to make money on business and
real estate deals is directly related to your
knowledge of the law. Whether it is structur-
ing the deal or trimming the tax burdens, the
law can turn a bad deal into a good deal and
a good deal into a great deal. In fact, if you
use the law to leverage what you do, you can
make money faster than you ever thought
possible. In your business, your professional
practice, or real estate investing you don’t
need to work harder, use the law to leverage
what you do to make more money. No more
work – no more time – no more risk, just
more money to spend!
Not only can you get ahead financially a lot
faster, using the law, when problems strike,
you can keep what you have worked your
whole life for. In today’s society, if you
don’t take the opportunity to protect your-
self and your assets, somebody is going to
take your assets away from you. It might
be the government, the IRS, the lawyers,
your tenants, your partners, your patients,
your clients, or any one of a dozen other
people or problems you face, but somebody
is going to take your hard-earned money
away from you, unless you protect it.
You undoubtedly hope and pray that you
won’t have a lead paint problem, get sued
by a tenant, or have the lawyers come after
you for some insignificant reason. You do
more than just hope and pray that you
won’t lose your household property to a
common thief. You lock your doors, put se-
curity lights around your house, and set up
alarm systems. Your financial investments
and real estate investments are a lot more
Making Money
Investment News Page 9
valuable than your household
property. Have you done any-
thing to protect those assets
from the thieves that could
take them away from you
through a legal or financial at-
tack?
The legal system is the most
powerful system we have in
our nation today. When you
get sued, you are going to
spend every dime you’ve got
just defending the lawsuit. Ei-
ther that or you lose. That is
the way the system is set up.
The biggest mistake you’re
going to make in your finan-
cial careers is to say that you
don’t have enough to worry
about yet. It doesn’t matter
how much or how little you
have, in today’s lawsuit happy
society, you had better worry
about how to protect your as-
sets, or they will be taken
away from you.
If you are going to protect
your assets, you need to be
able to identify the financial
threats you face. The sad part
is, the general public doesn’t
even know what the threats
look like, and they certainly
don’t have a clue how to pro-
tect themselves from those
threats. The first thing you
have to do is identify the
threats, and then you have to
systematically eliminate them.
The IRS is one of the major
threats you face. Your tax
payments over your lifetime
could dwarf your mortgage
payments, your medical ex-
penses, the retirement money
you stoke away, and the cost
of sending your kids to college
–all combined. Taxes are by
far the biggest constant drain
on your financial resources. If
you know the tax laws, can
you make money? Certainly!
You can cut 10 – 15 – or even
25% off your tax bill every
year. Think about it. How
much would a 25% reduction
in your taxes be worth to you
just this year?
You attend seminars, practice
improvement fairs, scour the
real estate market, and do
everything else you can think
of to find a way so that you
can make more money. The
irony of it all is, if you learn
the rules of law and to use
various legal structures, you
can make more money in eve-
rything you do. You don’t
have to change what you are
doing now. All you have to do
is change your position in the
law. Think about the rich peo-
ple you know. It doesn’t mat-
ter what they are doing, they
use the tax laws and all the
other laws to their advantage
and they make money. You
can do that, just like they do.
But, you have to have a legal
foundation to build on.
You can’t build a house from
the roof down. What do you
have to build first? The foun-
dation! You can’t build a fi-
nancial fortune from the roof
down either. You’ve got to
have the foundation first. If
you study the wealthy, you
will find that every one of
them has a legal foundation
that they have built
The reason you don’t have a
legal foundation and shields
around your property is be-
cause of the cost, time and
frustration. If you have a law-
yer set up such a shield, it will
cost many thousands of dol-
lars, and you probably won’t
really get the protection you
want. The process isn’t hard,
but the lawyers make it very
complicated to “protect their
turf.” Most successful people
learn that they have to under-
stand what the opportunities
in the law are, and many of
them actually end up doing a
lot of the “legal work” for
themselves. Every wealthy
person makes use of certain
legal tools and principles. If
you want to be rich, you have
to learn to use the legal tools
that the rich use.
Whatever you are doing to-
day, if you understand the
laws, you can make more
money. Think about it. The
rich make money at whatever
they do. And, the rich just get
richer. One of the major rea-
sons they can do this is their
use of legal techniques and
structures. Their use of the
laws puts them on the fast
track to riches and lets them
protect what they already
have. Your use of the laws will
do the same things for you.
Page 10 MAREInet.com
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 Kansas
City.
All members receive a discount card to access our exclusive discounts up
to 40% off all paint, supplies, and flooring—nationwide.
Websites for investors, landlords, and
other services. FREE trial.
Email and Social Media Marketing, Free
Trial and Discounts for paying in ad-
vance.
Screening for tenants & workers with 20% discount for members.
Electronic collection for bounced rent checks. No charge to you.
FORMS & DOCS
Member Library is packed with forms and docs, plus 15 % discount at EZ Landlord Forms for premium forms.
Market your rentals on the nations top ranked rental site. Member discount
is 20% off Regular Prices.
Save on select FedEx Office copy and print services up to 20% and on Fed-
Ex Shipping up to 22%.
Receive discounts up to 65% on over 12,000 products you use the most
online and in store.
MAREI’S MEMBER BENEFITS PROGRAM
YOUR MEMBER BENEFITS
AT-A-GLANCE USE THIS PAGE AS A GUIDE TO VALUE ADDED DISCOUNTS TOOLS AND SAVINGS CREATED JUST
FOR YOU ON GOODS AND SERVICES YOU USE EVERY DAY.
Discount card for all members providing
a 10% discount on all services..
E-Update
Our weekly email update with what’s
happening in real estate including
properties for sale, government af-
fairs and local market data.
Investment News
The newsletter for Mid-America Associ-
ation of Real Estate Investors: pub-
lished monthly and distributed both in
print at our meetings and digitally to our
database of over 5000 people.
Magazine for the real estate investor. With discount subscriptions for MAREI
members.
Continued . . . .
Landlord Services
Office Solutions
Suppliers
Marketing
Service Provider
News & Information
Investment News Page 11
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 op-
portunities for other members
and site visitors to browse.
The Member Library is packed
and ever growing with pdf ver-
sions of entire books, EBooks,
Articles, Forms, and Documents.
Nearly 70% of QuickBooks users say that it makes their business more prof-itable. Get your Accounting on track. Buy at a 20% discount through Na-
tional REIA.
REAL ESTATE BOOKS
The nation’s largest provider of
real estate training materi-
als, DEARBORN is America’s
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 Members.
MAREI’s Government Affairs ac-
tively monitors national legisla-
tion and rule-making that im-
pacts the real estate industry and
harnessing the strength of MAREI
members at the grassroots level.
MAREI mem-
bers also re-
ceive timely
Calls to Action
when there is a
time for our
members to
take action on
an important vote.
Members also
have access
to the latest
in Market Da-
ta.
Other Discounts
VISIT
ww.MAREInet.com
Look under Resources -
Discounts
Member Service
Page 12 MAREInet.com
Private Lending: The Disclosure Statement
Written by Alan Cowgill, Colby Properties
Reprinted from REIClub
When I was getting my real estate education and
started to learn about using private lenders, ALL of my
instructors left out a HUGE piece of the equation. It
was the part about being in compliance with the SEC
and their regulations.
I realized recently that there is a basic item that you
need when borrowing money from Private Lenders
that some of you might overlook. It is a DISCLOSURE
DOCUMENT and every one of your lenders should
get it. This is such an important item I thought I would
dedicate this investing article to covering as much as
can - so here we go...
Private Borrowing & Lending Rules:
1. A promissory note is a security.
2. If you want to advertise, or pool money you had
better have 'registered' with your states SEC.
3. Don't pay commissions to find private lenders un-
less it is to a licensed broker.
4. Don't use the word 'guarantee' in your advertising.
Or anytime.
5. Every lender should get your disclosure docu-
ment.
What Is A Disclosure Document?
Whether you have no private lenders yet or a bunch
of them, you must have a disclosure document. This
is a "no option item". When you are looking to get a
new private lender, the first thing you hand them is a
disclosure document.
You see all investments are risky. Therefore you have
to tell your private lenders that in your disclosure doc-
ument. If you are ever asked by the SEC to show
them yours, you had better be able to produce it and
prove that every lender got a copy of it. If you don't
have one, then you need to start immediately on cre-
ating one. Then I'd run it by a SEC attorney to see if it
is good enough. They are roughly 10 pages long for a
basic one.
When you are offering private lenders the opportunity
to work with you, you must be sure to disclose to them
the risks and rewards of the business. You should
prepare a disclosure document. A disclosure docu-
ment has legal consequences. If a private lender is
not given sufficient, material information and suffers a
loss, he may have a claim against you and your busi-
ness. The information you give private lenders must
be accurate and not misleading. The key test is if you
have given private lenders all "material" (significant)
information about your business at the time the invest-
ment was made. It is therefore important to follow the
SEC's disclosure regulations in your document.
What Are The Guidelines For Creating a Disclo-
sure Statement?
In general a disclosure statement should have at least
the following included information:
The Business of the Company - This information
generally includes a description of your private
lending business, location of the company's facili-
ties, trends in the industry, and the company's
marketing strategies.
An example would be...
"Integrity Home Buyers, Inc. is a real estate
investment company. We work with private
lenders and put their funds to use in residential
property investments that are secured by mort-
gages. These transactions are done in compli-
ance with relevant laws and regulations and in
compliance with appropriate securities regis-
Disclosure Statement
Investment News Page 13
trations or exemptions in every state in which
we do business..."
Risk Factors - These factors vary depending upon
the company and the nature of its business. They
may include cash flow difficulties, market competi-
tion, inexperience of management, and depend-
ence upon an unproven product, absence of oper-
ating history or profitable operations. The real es-
tate industry is particularly sensitive to economic
downturns. The value of securities of issuers in the
real estate industry can be affected by changes in
real estate values and rental income, property tax-
es, interest rates, and tax and regulatory require-
ments.
Use of Proceeds - The use of the funds to be re-
ceived from the offering should be set forth with a
high degree of specificity. Categories of expendi-
tures may include such items as leases, rent, utili-
ties, payroll, and purchase of equipment, payment
of notes, advertising costs, insurance, supplies,
and payments to be made immediately to officers.
Key Personnel and Shareholders - Individuals
who direct the company's operations or who make
significant contributions to the business of the com-
pany as employees, independent contractors, con-
sultants, or otherwise are identified and important
background information such as education, age,
and business experience of these persons is dis-
closed. Principal shareholders of the company are
identified with a description of the number and per-
centage of shares beneficially owned.
Financial Statements - Financial information, such
as balance sheets and statements of income and
cash flows that accurately describes the financial
condition of the company, is typically provided. In
some circumstances, these financial statements
must either be audited or reviewed by a Certified
Public Accountant.
Other key points -
This is where you
should give people
access to information about your business. If
you're new to this business, give people some
projections of what you hope to do with the busi-
ness that is reasonable and conservative. It's
good business to under-promise and over-deliver.
You should distinguish between facts and beliefs in
your disclosure. Restrained language should be used
throughout the text. At the practical level, many inves-
tors are accustomed to reading carefully worded dis-
closures and they are suspicious of broad, unqualified
claims. An understated, factual disclosure can deliver
a powerful message to private lenders.
Avoid arcane jargon and technical terms. Provide def-
initions for terms that might not be easily understood.
Don't make private lenders learn a new language if
they want to understand your disclosure document.
Private Lending Lesson Conclusion - The All Im-
portant Disclosure Statement
The bottom line... by giving your lender a disclosure
document, it shows the lender exactly what is going
on with their loan. You will have a meeting of the
minds and everything is on the table. You will be a
huge step forward by being professional and in avoid-
ing potential problems in the future. Besides, it's re-
quired in every state.
I now see it as my goal to make sure real estate in-
vestors are aware that when they borrow money from
private individuals, it is not the Wild West. There are
rules that come into play. The rules are there to pro-
tect the lender and the rules are good rules. The
above guidelines were compiled through my SEC at-
torney.
Page 14 MAREInet.com
Jon & Stacy Bichelmeyer: Lenexa, KS (since 2010)
Barbara Danuser: Pleasant Hill, MO (since 2010)
Glenn Davis: Lexington, SC (since 2010)
Alan Goke: Kansas City, MO (since 2011)
James Jemmerson: Kansas City, MO (since 2011)
Jacquie Lombard: Shawnee, KS (since 2011)
Larry Myer: Kansas City, MO (since 2007)
Mark Pantak: Houston, TX (since 2012)
Michael & Lisa Rabbe: Kansas City, MO (since 2012)
Bill Textor: Leawood, KS (since 2007)
Renewing Hank Arendt: Lee’s Summit, MO
Terence Benson: Lee’s Summit, MO
Caroline Boyd: Kansas City, MO
Mike Cantrell: Kansas City, MO
Ryan Day: Raymore, MO
Bill Fowler: Leawood, KS
Matt Graham: Kansas City, MO
Dan Gregg: Tonganoxie, KS
Gerry Hamment: Kingsville, MO
Gregory Harris: Olathe, KS
David Morgan: Lee’s Summit, MO
Freud Musanu: Kansas City, MO
Ralph Robles: Norwalk, CA
Randy Rott: Overland Park, KS
Carolyn Shaw: Shawnee, KS
Dustin Shay: Perry, KS
Joshua Smithson: Kansas City, MO
Jose Suarez: Staten Island, NY
Sherri Tabron: Kansas City, MO
Kevin Tan: Kansas City, MO
Randy Whitehead: Lenexa, KS
New Members
WELCOME NEW MEMBERS To the premier trade association representing
Kansas City Area Real Estate professionals
MAREI continues its growth with
a total of 308 members to-date.
JOIN NOW (MAREInet.com/join)
Investment News Page 15
JoinJoin In!In!
Mid-America Association
of Real Estate Investors
Network & Learn
Stay Informed
Build Teams
Do Business
Save Money
Join Today!
$99 Annual
Real Estate Community
Page 16 MAREInet.com
This past week-end, members and attendees of MA-
REI were put through their paces in learning that its
“not what you say, but how you say it” and the im-
portance of having a script that you practice and prac-
tice and practice.
Our instructor for the Communication / Negotiation
training event was Bill Twyford and he spent two days
of hands on instruction with the group going over his
NLP Cheat Sheet.
NLP, which stands for Neuro Linquistic Programing
speaks to the subconscious brain and wakes the
brain up to make people want to hear what you have
to say, was the topic for the entire week end with mul-
tiple examples of sentences for Real Estate Investors.
We started each segment by learning a specific type
of phrase, reviewing it in sample sentences and then
writing out our own scripts and reading them aloud for
the group and working in suggested improvements.
So what were just a few of types of phrases:
Embedded Commands that tell us to do some-
thing for example: Decide Tonight, to take my
offer.
Adverb Presuppositions that you put in front of
the sentence to show that you assume it to be
true. For example: Obviously, you need to take
care of your situation.
Temporal Presuppositions that allows you to
presume or assume beforehand that something is
true. An example: During the time we work on
this transaction you will begin to understand.
Direct Cause and Effect show that two things
are related. For example: Making a
decision creates a feeling of relief.
Implied Cause and Effect that
shows that if “x” happens, then “y” will
follow. For example: Because you are
So What's Your Script
behind on payments, the bank will foreclose.
Binds are used often in implied cause and ef-
fect. So if you do more of “x” then more of “y”
will happen. So the more deals you bring me,
the more money we will make. Or the more you
procrastinate, the less time we will have.
Double Bind is an implied cause and effect
where both x and y are bad, forcing them to pick
one over the other. You can sell your house to
me today for $20,000 or you can wait a month
or so and my offer may be less.
Assumptive Tag Phrases are used to show
that you assume the other person agrees with
you. It makes sense to be a private lender ra-
ther than putting your money in the stock mar-
ket, don’t you agree.
We wrote out scripts and practiced, practiced, and
practiced. We also discussed body language, up
swing and down swing and more.
So figure out what it is you say in business every
day. Take 5 typi-
cal scenarios in
your daily busi-
ness and write
them out. Then
write out some
scripts one sen-
tence to a whole
paragraph. Use
several or even all
of these phrases. And practice.
For more information you can Google NLP and
study up. MAREI members will find Bill’s NLP
Cheat Sheet in the member library. And if you want
your scripts for real estate investing already written
out, give us a call here at the office, we have a spe-
cial price on Bill’s Sales Talk Training Program.
Investment News Page 17
Do the math. Your vacancy is costing you every day. Fill your vacancy faster and save money
with Rentals.com!
Discounts for MAREI Members:
Receive 20% off all Regular
Priced Advertising. Log into
Member’s Area, click on Member
Discounts and look for MAREI’s
Discount code!
Property Management
Section 8 Housing
KC Metro Wide
Jeff Woods
Broker
www.MyPremierLeasing.com
816-849500
Property Management
Rental Services
Kansas City Metro
www.JamiesonHomeTeam.com
Kevin Jamieson
816-503-4671
Cornerstone Foundation Repair
Kansas Cities Real Estate Investor’s
#1 Foundation Repair Contractor
Joe Williams
913-220-5253
Ask about our Investor Pricing
Steel Push to Bedrock Piers @ $850 ea
Steel Wall Restraints Starting @ $180 ea
Crack Injection @ $25 per foot
Sump Pumps @ $800 each
We are proud to say that we have become real
estate investors 1st call for major foundation
repair issues. We offer 25 year and lifetime
transferable warranties for piering only.
Page 18 MAREInet.com
offline as well as in email to accumulate all the
stuff in so that when we need a document on
this transaction we can find it in print and online
and have a back up just in case.
Prioritize. Look at your to do list and focus on
the ones that must be done first. Also look at
simple repeatable tasks that you might be able
to outsource to a third party.
Clear the decks: Only have out items that you
are working on. Having a bunch of other pa-
pers on your desk or a bunch of other websites
open online will distract and slow you down.
As entrepreneurs we may also find ourselves doing
all the tasks in the business and as a one or two
person business, this sometimes is impossible. So
as you are clearing and organizing, look at the
tasks you have and start writing out a process for
the task. You may find that the tasks that you do
each and every day are taking up way too much of
your time and slowing you down. Yes, those tasks
must be done, but should they be done by the CEO
of your company - YOU. Or should someone be
hired to complete them.
Hiring someone does take some thought as to hir-
ing a person who works for you in your small or non
-existent office or who might work for themselves
on your behalf. Virtual Staffing can be an excellent
alternative to an employee as they work for them-
selves, maintain their own office space and equip-
ment and deal with taxes, insurance, and payroll,
thus saving you money. It may be that the virtual
staff is in town, in another state, or even in another
country.
With a little work, you can be organized and get
more done and make more money! So let’s get
down to business.
Entrepreneurs everywhere are working from home or
a very small office. Others are working during breaks
and lunch hour from their current job. So here are a
few tips to keep you focused and on task.
Consistent Work Place: Be it your spare bedroom,
the table at the coffee shop, or your desk at work,
make sure you work in the same place. This repeat-
ed action will help you learn to associate working and
getting things done with that spot.
Specific Hours: Set specific hours to work in and
on your business. Block them off on your calendar
that these times are specifically for this type of task.
If they are not on your calendar they may tend to get
filled up with other obligations.
Routine: Set up your routine of tasks that you com-
plete daily or weekly and do them the same time
each day or each week. With this structure you will
know when things are supposed to be completed.
Next you need to have an organized office. If you
work from a home office it needs to be organized and
likewise if you operate from an smart phone and a
back pack at Starbucks, those need to be organized
as well. So how can we get organized;
Throw out the trash. If you have no use
for it be it empty take out or junk mail sit-
ting on your desk, to spam emails or doc-
uments you no longer need on your
computer. Get rid of them, they just
clutter up your activities.
Put things where they be-
long. Have a filing system for
everything in the desk, the
back pack and online. In
our real estate office we
have a file per transac-
tion both online and
Get Down to Business
Investment News Page 19
The best place on the entire
planet to buy kitchen cabinets.
We Have The Best Prices
Everything Is In Stock
We Ship Fast
Free Design Help
www.CabinetGiant.com
Josh Burns
1-877-484-4268
Selling on Terms?
Need Cash Now?
We specialize in the purchase of owner financed notes and contracts from real estate investors
across the nation. By selling on terms you create a note or contract which can be sold for cash. We can purchase all or part of your payments right at the closing table to provide you with your profits in
cash now so you can move on to your next deal.
Request a Quote Today!
Email us at [email protected]
www.CoffeltLandTitle.com
Bud Whisler
816-380-3441
For title, escrow,
1031 & foreclosure.
www.APIAProtects.com
1(877) 752-2742
Lisa Goodner
Because APIA sells only Real Estate Owned
(REO) and Forced Lender insurance coverage,
we've become the industry leader in providing
comprehensive, affordable coverage to inves-
tors, financial institutions and mortgage compa-
nies.
Our company specializes in Real Estate Owned
(REO) and Forced Lender insurance coverage
for property investors, servicers, financial insti-
tutions and mortgage companies. Standard in-
surance companies also turn to us for our ser-
vices.
Page 20 MAREInet.com
repairs, maintenance, and Realtor Costs as well as
insurance and taxes. So rather than foreclosing, the
banks are packaging up all this bad debt and selling it
at a loss to the highly funded financial companies who
are then breaking these packages open and selling
the notes in smaller bundles and rehabbing the note.
Next we look at the mortgage lending industry and we
find that the easy money of yesterday is gone. Rule
and regulations have tightened up so it is harder to
qualify for a loan for both the owner occupant buyers
and the real estate investor. This opens avenues for
the anxious money to become the bank from buying
assets to sell owner finance to purchasing already
performing debt.
So because it is harder to get a loan, more people are
renting a home or purchasing through a seller fi-
nanced scenario such as a lease to own, contract for
deed or an outright seller financed transaction. The
anxious money in the real estate industry is filling the
void that banks have left behind.
So where do you fit in all of this? Well if you can find
a way to find to work your way into a niche, you are
ready to make money in this industry.
Wholesalers: Those people that specialize in track-
ing down good deals from home owners in distress
can buy fixer uppers, free and clear and short sale
properties to sell to cash investors. You don’t need
cash to do the wholesale deal, you just need to be
able to do the leg work to find and negotiate the deals.
Note Buyers: Can purchase non-performing 1st and
2nd lien mortgages and take a low cash buy out from
the owner, sell through a short sale or negotiate a
deed in lieu or foreclose and then sell to landlords and
wholesalers or end users. Here again, you don’t have
Real Estate
It’s Time Let’s face it, the economy is improving, but not very
quickly. Investors are not happy with the low interest
rates in insured investments or with the return they
are receiving in the stock market. According to the
Federal Reserve there are over $9.9 Trillion in sav-
ings in cash accounts.
So what does that mean . . . It means that investors
are taking their cash out of the stock market and look-
ing for other investments for their money and right
now it’s sitting there in very low risk, low return ac-
counts. These investors are looking for new places to
invest their funds and these investors may be YOU,
your family, and friends and other people that you can
approach to be cash investors. They may be located
locally or they may be from out of state or even out of
the country. We are going to refer to this cash as
anxious money.
So what is this anxious money doing? They are a
paying CASH. According to the National Association
of Realtors, 30% of home buyers paid cash for their
homes, real estate investors paid cash 49% of the
time and investors getting financing put an average of
27% down.
Investors are also buying distress houses at todays
record low prices for cash with the plan to hold them
for five years of appreciation.
On the flip side, the housing inventory is dropping
down from the record highs of the burst bubble. In-
vestors are working harder and harder to find that
good deal, and prices are going up, not a lot, but it is
going up.
We also see that banks are finding that it costs them
at a minimum of $25,000 to do a foreclosure, from the
lost payments and interests for several years, to the
to have the cash yourself, but you need a ready source
of private funding from those that do.
Turn-Key Operators: Can purchase the low end
($20,000 to $80,000) stock from the wholesalers and
the note buyers as well as bank owned REO to get rent-
ed out and cash flowing and then sell to the anxious
money investors. Turn key operators need to have a
system to fund the initial transaction, source the hous-
ing stock, and to manage the rentals. This can even be
done with no money, if you are getting paid to act on
behalf of the anxious money investor.
Rehabbers: Can purchase the higher mid range stock
($80,000 to $150,000) to renovate and sell to the end
buyer. Because the house inventory has shrunk, there
are less good properties for those who can buy to
choose from. So there is still a need for quality renovat-
ed homes.
Hands Off: Those who want to invest, who have anx-
ious money, but lack time and knowledge, well they can
partner with any of the folks above for a decent, more
reliable return than the stock market. So if you have the
cash, you can fund any one of the investors above or
partner with them.
And right around the corner, according to industry ex-
perts, we see the commercial real estate market looking
to fall into line right behind the residential market.
All these factors work to create the perfect storm for real
estate investing. The question becomes are you going
to find your way into the industry or let it pass you by?
———————-
Ready to get started? Then it’s time to take action!
Step 1: Get involved in the industry. Make it a priority
to meet with people in your area in the industry on a
regular basis.
Step 2: Get educated. You can learn more about
any of these types of investing at your local real
estate investors association through live and online
classes, blogs and libraries.
There are many fly by night companies that see a
whole new industry to sell you education. They
come into town for a week, sell, sell, sell and then
they are gone with your money. By going to the
local real estate investor association, you can be
assured that you are working with a known educa-
tor and because you are working through an asso-
ciation who talks to other associations, you are in a
better position if the education turns out to not live
up to be all that is promised.
Step 3: Take Action. Get out of your comfort zone,
look at deals, analyze them, get advice and put a
deal together.
So what are
you waiting
for? It’s time
to take ac-
tion. You
can’t make
any mon-
ey setting
on the
side-
lines.
Investment News Page 21
Page 22 MAREInet.com
$148,500 Seller
Financed Note—on
home in Blue
Springs, MO
$140,000 8% Int.
20 yr
Am
Property Value
$170,000, good
equity position,
over 8% Return
Don Tucker
GBIFunding.com
816-523-4400
6040 E 14th ST
Kansas City, MO
$15,000 3 Bd
1 Bat
Good 2/1/1 in
North East
Bemate
Sakal Investing
913-735-9997
3509 Kimball Ave
Kansas City, KS
$18,000 3 Bd
1 Ba
Fixer Upper in KCK
3509 Kimball, KCK
Bemate
Sakal Investing
913-735-9997
6016 E 12th St
Kansas City, MO
$18,500 3 Bd
1 Ba
Looking for a great
home in Kansas
City Mo.?
Bemate
Sakal Investing
913-735-9997
2557 Cissna St
Kansas City, KS
$15,500 2 Bd
1 Ba
Looking for a Great
Home in KCK
Bemate
Sakal Investing
913-735-9997
1348 Georgia Ave
Kansas City, KS
$15,000 3 Bd
1 Ba
Awesome # Beds,
1 Bath in KCK -
Only $15,000
Bemate
Sakal Investing
913-735-9997
3301 Bales Ave
Kansas City, MO
$10,000 3 Bd
1.5 Ba
1 Car
Walk
Out
$10K Wholesale 3
bdrm, 1.5 bath,
Wholesale Proper-
ty, Needs TLC
Christoph Becker
Blue Print Properties [email protected]
816-419-1165
MAREI Member Properties
MAREInet.com/Properties
Investment News Page 23
Raytown $167,000 7 Unit Raytown Cash Flow
Property—Assignment
Terrance Benson
RTBHomeBuyers.com 816-804-5287
Rogersville, MO Negotiable 4 Units 4 property package
for sale
Kathleen Stegman
913-208-0979
836 E 82nd St
Kansas City, MO
$69,000 3 Bed
1 Bat
For Sale 2010 BWG
Kansas City Properties Site
5109 E 41st ST
Kansas City, MO
$18,000 3 Bed
2 Bath
3 Beds 2 Bath
House for sale—Only $18,000
Bemate
Sakal Investing 913-735-9997
1910 S Lees
Summit Rd, Independence,
MO
$35,000 3 Bed
2 Bath
Looking for a fixer
upper in Independ-ence
Bemate
Sakal Investing 913-735-9997
2316 Blue Ridge
Tr, Independ-ence, MO
$55,000 2 Bed
1 Bath
Seller Financed In-
vestment Property in Independence
Nancy Hoover
Hoover Property Management
816-853-2110
5501 W 98th Pl
Overland Park, KS
$119,000 3 Bed
2 Bath 2 Car
Great JOCO Rental Chad Bartlett
HomeRemedyKC.com 913-735-5598
Page 24 MAREInet.com
5107 E 26th St
Kansas City, MO
$34,500 3 Bed
2 Bath 2 Car
Cash Flow! Section
8 Turn-Key Rental, $900 a month.
Rehabbed
Christoph Becker
Blue Print Properties [email protected]
816-419-1165
Raytown House $69,400 3 Bed
1 Bath 1 Car
Great house in
Raytown with ex-cellent Tenant
Legacy Investment
Properties. nick@KCLegacyGro
up.com
4333 Bellefon-
taine Ave, Kan-sas City, MO
$12,500 3 Bed
1 Bath
Great 3 Beds at
4333 Bellefontaine KCMO—$12,500
Bemate
Sakal Investing 913-735-9997
3006 E 37th St
Kansas City, MO
$9,500 3 Bed
1 Bath
Need to Sell
ASAP—Great 3 Beds, 1 Bath,
$9500
Bemate
Sakal Investing 913-735-9997
3612 E 59th St
Kansas City, MO
$10,000 3 Bed
2 Bath
Awesome 3 Beds 2
Baths in KCMO—Only $10,000
Bemate
Sakal Investing 913-735-9997
3010 E 60th St
Kansas City, MO
$28,000 3 Bed
1 Bath
2 Bed 1 Bath Rent-
to-Own—5K Down!
Bemate
Sakal Investing 913-735-9997
Olathe $84,000 3 Bed
3.5 Ba 2 Car
Slab
Great Potential in
Olathe!!!
Chad Bartlett
HomeRemedyKC.com 913-735-5598
Currently 23
Investment Opportunities
MAREInet.com/Properties
Investment News Page 25
It’s time for a… It’s time for a…
TAX TUNE UP!TAX TUNE UP!
If you’re looking to put more money in your pocket, knowing how to maximize deductions is essential. If you’d like to make sure you are not leaving money on the table, you need to be at
this meeting. We will be discussing:
In-effective Bookkeeping
Maximizing Deductions
Ever Changing Regulations
Having a Plan
Let’s face it . . . as they debate in the Presidential Race, we all need to pay our fair share of taxes . . . but only our fair share and not a penny more! That’s why we are very excited to have MAREI’s own Joe Martin CPA come and share his knowledge with us in November, so we can wrap up our tax year and start planning for 2013...
MAREI’sMAREI’s November Meeting
Special GuestSpecial Guest
Joe Martin CPAJoe Martin CPA Citizen Tax ServiceCitizen Tax Service
Location:
Career Education Systems
Ward Parkway Shopping Center
Top Floor
8600 Ward Parkway
Kansas City, MO
Times:
Tuesday November 13
6pm to 9pm
Agenda for Tuesday November 13th
5:30 pm — Pre-Meeting & Set Up
5:50 pm — Orientation
6:00 pm — Networking & Vendor Hall (reserve vendor table)
7:00 pm — Speed Networking
7:15 pm — Presentation: Tax Tune Up
with MAREI’s own Joe Martin CPA
from Citizen Tax Service
8:30 pm — Wrap Up and One on One Q & A
9:00pm — Meeting Ends
Cost
Investor Member—No Charge
Business Member—No Charge
Internet Member—Guest Fee
Guest Fee
$25 Per Person at the Door
$15 Per Person on Web
Go to
MAREInet.com/September
All Guest Fees Paid will
Be credited toward membership
when you join at the Meeting.
Register for this meeting NOW!
MAREInet.com/November
Page 26 MAREInet.com
MAKE SURE TO USE YOUR LLC PROPERLY
WRITTEN ON SEPTEMBER 20, 2012
BY MARK ZINMAN : AZREIA.COM BLOG
Many investors know about the asset protec-
tion that they can obtain by setting up LLCs in
which to hold their investment proper-
ties. There are differing positions on whether
each property should have its own LLC or
whether an investor should have one LLC which
holds all of the person’s properties. I believe
that the answer lies somewhere between those
two positions, and is based upon the amount of
risk the investor can handle after weighing a
number of factors. The purpose of this article
is not to address that issue; the focus of this
article is on making sure investors get the ben-
efits of their LLCs once they are set up.
First, a common mistake investors make is
transferring title of a property to the LLC but
then failing to name the LLC as the landlord on
any lease they enter into with a tenant.
For example, many investors put their own
name on the top of the lease where the
“landlord” is identified. However, that is
wrong. The landlord is the owner of the prop-
erty and the entity getting the benefit of having
the lease. Therefore, the LLC should be named
as the owner and landlord.
On the other hand, the investor is an agent for
the owner, getting tenants and managing the
property. Under Arizona law, an agent does
not have any liability for acts taken on behalf of
a disclosed principal. Ferrarell v. Robinson, 11
Ariz.App. 473, 475, 465 P.2d 610, 612 (1970).
On a lease, the LLC should be listed as the
owner. If the investor wants to include himself
on the lease, he should be identified solely as
acting as an agent for the owner. Otherwise, if
the investor names himself personally as the
landlord and fails to identify that there is a
different owner of the property, the investor
may personally be liable in the event of a law-
suit. In other words, the investor lost all of
the protections he sought by forming the LLC
in the first place.
This same theory is important when you are
managing properties for someone else. If you
are a property management company, your
company should not be listed as the landlord
on a lease – the owner is the landlord. The
property manager should be identified as the
person to handle all issues, but noting that he
is only acting as an agent for an owner. If a
lease is properly completed, and the tenant
sues the property manager for a return of
their security deposit, the property manager
should summarily be dismissed from the com-
plaint as he is only an agent and have no lia-
bility.
Second, if the investor personally does work
on the property they can personally be liable
for to the tenant for any work done negligent-
ly. For example, even if the home is properly
transferred into the LLC, and the LLC is
named on the lease, the investor may be per-
sonally liable if he negligently repairs a water
heater on the property and the tenant gets
injured. It’s important that the LLC hire inde-
pendent contractors to undertake such repair
work, so that the LLC is not liable.
An LLC can serve as a great means of asset
protection. Investors need to make sure that
they properly use the LLC to gain that protec-
tion.
Your LLC, Use it Properly
Quick Books Training for
Real Estate Professionals
Make 2013 the year you tackle the pile of paper in your receipt
drawer. If you are running any kind of business and do not have
a way to track all of your income and expenses, you are not only
loosing money, but you are loosing valuable data. Here’s why:
1. You can track your income and expenses much more quickly
with a software system that is easy to use so that you or a staff member can input data. This input of data saves time and mon-ey spent at year-end paying your accounting person to compile everything, saving you money and time.
2. By tracking in a software system, you can find the information
you need quickly rather than hunting through piles of pa-per. Know how much you spent on an advertising campaign or a rehab, so you can see where your money is going and where you could save money. Likewise see where your income is com-ing from so you can focus efforts on what is doing the best. One of the easiest software programs to use is Quick Books Pro. Join MAREI member Joe Martin CPA for an introductory workshop on how to use QuickBooks. With a few tips on how to set up your accounts, how to input credit card charges, checks, and deposits, and you will be ready to have a much more orga-nized 2012.
Location:
Career Education Systems
Ward Parkway Shopping Center
8600 Ward Parkway
Kansas City, MO
When:
Saturday December 1st
9am to Noon
Check in 8:30 to 8:50
Limited SEating
Registration Information for Quick Books Workshop
1 MAREI Member $45 1 Non-Member $45
________________________________________ ____________________________________ Attendee 1 Attendee 2 ________________________________________ ______________________________________ Email Email ________________________________________ ______________________________________ Address City State Zip ________________________________________ ______________________________________ Phone Fax ________________________________________ Credit Card Number ___________________________________ __________ Signature Expire Date
Scan & Email to [email protected]
Fax: 1-201-574-2969 (email first)
Call 913-815-0111
Register Online
MAREInet.com/QBT
Subscribe & Sync
MAREInet.com/Calendar
The MAREI calendar is hosted on Google Calendars. This allows you to subscribe
to our calendar and sync it with your own Google Calendar, Mobile Calendar, or
Outlook Calendars. Check calendar for times and locations.
November 2012
Sun Mon Tue Wed Thu Fri Sat
SG: Weekly Wed.
Networking
1
Newsletter Published
2
SG: Connected Inves-
tors—NEW
3
SG: Blue Springs /
Independence Inv.
Wichita REIA
4
SG: Lees Summit
Investors Network
5
6
7
SG: Weekly Wed.
Networking
8 9
10
SG: Blue Springs /
Independence Inv.
11
SG: Lees Summit
Investors Network
12
Deadline: Vendor
Tables
13
Monthly Meeting
14
SG: Weekly Wed.
Networking
15 KCIG Meets
Shawnee County LL
16
17
SG: Blue Springs /
Independence Inv.
18
SG: Lees Summit
Investors Network
19
Omaha REIA
20 21
SG: Weekly Wed.
Networking
22
23
24
SG: Blue Springs /
Independence Inv.
25
SG: Lees Summit
Investors Network
26 27 28 Halloween
SG: Weekly Wed.
Networking
29 30 1 Quick Books Train-
ing
Other local and online train-
ing events added as we find
out about them to the online
calendar, check it weekly for
new events.
