2013 1 investment news
TRANSCRIPT
Page 10
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
January 2013
MAREI launches their 2nd monthly meeting. Starting January 2013, look for 2 monthly meetings.
NETWORKING : EDUCATION : COMMUNITY : GOVERNMENT
Investment News
Page 2 MAREInet.com
CONTENTS
Effective Mailing Lists
8 How to locate and Create Effec-
tive Mailing Lists
Embracing Mistakes
12 Tom Zeeb, Traction REIA tells us
to Learn From Our Mistakes.
Marketing Trends
14 Important Trends in 2013 and
how to Capitalize on Them.
Note Sales
16 What you should know about
Note Sales.
Anti –Redlining
18 Did the Community Reinvestment
Act Cause the Housing Crisis.
Every Issue
06 How I Did the Deal
10 Benefits at a Glance
14 Membership
20 Investment Opportunities
22 January Member Training
23 January Monthly Meetings
24 Monthly Calendar
Web Exclus ive
Emerg ing Trends in
Real Estate
2013 MAREInet .com/
Trends2013
@ Check out our Website MAREInet.com
Contact us by Phone 913-815-0111
Email US [email protected]
Join The Conversation MAREInet.com/Blog
Join Association MAREInet.com/Membership
Investment News Page 3
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Page 4 MAREInet.com
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did have was a huge buyer list and the ability to move the properties. So we made a rough intent to purchase at about 65% of the asking price on their spreadsheet if
we could buy them over 5 months and one at a time. With the properties under contract to buy I would then be
able to start marketing them for sale.
We toured the properties and ended up adjusting prices down a bit more. The attorney drafted a contract be-
tween us as buyers and the estate that we would buy the properties one at a time and that in 5 months time we would have purchased all of the properties. We were
then able to start marketing the properties to wholesale them. When we had a buyer, we would then purchase the property and immediately wholesale it to our buyer.
No money needed.
We also had in our agreement that we could change the buyers name on the final individual purchase contracts.
So some of these properties were wholesaled by our company and some of them were actually purchased and
wholesaled by our self directed IRAs.
Some other things we learned about—the joy of selling a home where the previous owner was murdered. Selling
rental houses that had been rented to drug dealers. That two one bedroom houses side by side are not as easy to
sell as a duplex.
We learned about seller financing as we ended up seller financing 1 individual houses and the 2 side by side one bedroom homes. We learned that seller financing is a great way to increase the number of potential buyers on
home to sell it faster.
By the way, I am teaching two wholesaling workshops on January 26. If you decide to join me, we can talk about
this deal over lunch. See details about the workshop online at www.MAREInet.com/WorkShop or see page
22.
How I did the deal is back, submit your deals to
[email protected]. Deals selected for publi-
cation will receive a $25 credit on account to
apply to trainign workshops.
This deal was a package of 23 houses that were marketed in the area to a lot of investors for over a year. This deal
has a ton of learning opportunities.
First this package of homes were rental homes owned by a local real estate investor who was murdered. He managed everything himself and did not have a plan to deal with the
rentals should anything happen to him. His left these 23 plus several others to his 16 year old daughter.
As there was no plan for his estate they went into probate and his attorney, who really did not have any expertise in managing properties took over. At the time of his death, I believe that most were in good livable condition and were rented and cash flowing. The attorney ordered appraisals and proceeded to market them at full appraisal price. The attorney did not hire a property manager but attempted to maintain and collect rent themselves. Due to poor man-
agement, tenants moved out, houses went vacant and were vandalized, and the homes that stayed occupied did not have tenants that were very faithful about paying rent.
Needless to say in less than 6 months the homes were worth way less than the appraised values.
They attorney also did not hire a Realtor to market the properties. Granted he was a member of MAREI and new investors, but his expertise was not in marketing of proper-ties. His marketing was to send out an excel list of proper-
ties and basic details and the appraised value. Any moti-vation as to sale price was never really mentioned.
This list hit our email quite often. We inquired as to what the asking price was several times and were told that the appraised values were listed and to make an offer. I am
sure this is what everyone else was being told and no one was making an offer.
Finally after about a year of seeing this come across our email I emailed back and said we were interested in the
package if they could tell me a rough price, that we would think about it. They came back with a price that was re-
duced from the appraised values, but based on rough com-parables without seeing the properties, were just too high.
My response was thanks for lowering the prices, but I would need to be about 65% less. This was about 2007, so prices were quite a bit higher, but prices are not really
relevant. What was important was that I really had no way to actually purchase these properties with cash. What we
Page 6 MAREInet.com
How I did the
DEAL! Don & Kim Tucker
www.GBIFunding.com
Investment News Page 7
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Page 8 MAREInet.com
Where can I find a good mailing list to find moti-
vated sellers? How can I create my own list to
find highly motivated sellers? These are the big
questions that I get a lot from Real Estate Inves-
tors! The true secret to success for a Real Estate
Investor is finding sellers who really need to sell.
I use different direct mail campaigns to locate
different types of motivated sellers: out of state
owners, properties quit-claimed from one person
to another, expired listings, burned out land-
lords, vacant properties, military transfers, and
pre-foreclosures, just to name a few.
The best part is that you can customize your di-
rect mail piece and your list to reach exactly the
kinds of motivated sellers you want to deal with
in order to create the kinds of deals you want for
your real estate investing business. This is best
done by locating mailing lists and refining them
to meet your individual criteria, then mailing to
these potential sellers again and again, thus cre-
ating a multitude of profitable deals.
Investors often neglect to market to sellers using
direct mail because they think the list is too
difficult to get, or they only send the mailings
once and quit. They don’t take the time to cre-
ate the machine that will bring them deal after
deal.
These are some of the easiest lists for you to
get and it will be very profitable for you to do
so. You can contact a list broker or your local
property assessor’s office and ask them for
these lists, or you can create the lists yourself.
It’s fairly easy to do. You can go to the court-
house and research divorce cases, death notic-
es, liens and judgments, tax liens, marriage
licenses, bankruptcies or Lis Pendens, which is
the first step toward foreclosure. Let me share
a few pointers here.
Do your homework when picking a list bro-
ker. How current is the list? Does it have all
the information you need to create your di-
rect mail campaign? Does it reach the audi-
ence you are targeting?
Do a test mailing of 100 pieces to test any
Effective Mailing Lists
How to Locate & Create
Kathy Kennebrook
The Marketing Magic Lady
Investment News Page 9
new list. How many re-
sponses did you get? How
many letters came back
with a bad address?
Don’t waste your marketing
dollars marketing to a bad
list that won’t get you the
result you want.
Create continuity with your
direct mail campaigns. You
can mail a lot of letters or a
few letters but you need to
have a flow of mail going
out at all times in order to
create a funnel of incoming
leads.
Never mail more pieces than
you are comfortable getting
responses to. If you do a
huge mailing and you get
tons of responses you can’t
get to, you are wasting mar-
keting dollars. Put systems
in place to help you respond
to the mailings and grow
your business gradually.
Another way to find motivated
sellers is to cultivate relation-
ships with individuals who can
help you find deals. One of the
ways I do this is to create a di-
rect mail campaign targeting
attorneys who handle family
law, estate planning and pro-
bate law, divorce and marital
law, and corporation and busi-
ness law and I let them know
we are in the business of buy-
ing houses.
Once you develop relationships
with some of these attorneys,
they will call you when they
have a client who needs to sell
a property quickly no matter
what condition it’s in. This is
just another way to build ongo-
ing lead sources using direct
mail. You only have to create
this direct mail campaign once
to create an ongoing source of
leads for your Real Estate In-
vesting business.
If you own any kind of business
and you need certain types of
leads, think about unique re-
sources that can provide you
with the leads you need and
create a direct mail campaign
targeting these resources. This
can be really profitable. For ex-
ample; if you own an alarm
company or a lawn mainte-
nance service it would behoove
you to create a direct mail cam-
paign targeting owners of prop-
erties in your area who live out
of state. These are potential
customers who need your ser-
vices.
The main reason that direct
mail works so well is that you
are reaching highly targeted
leads. You become the potential
seller’s first option when they
need to sell. Even if you are on
a limited budget, direct mail is
an excellent source of leads for
you since you can buy more
houses from fewer leads, thus
maximizing your marketing dol-
lars. As your business grows,
you can increase the number of
mailings you do. You can also
target specific neighborhoods or
dominate certain parts of town.
In doing so, you become a
“property value expert” in those
areas, which makes the offer-
making process that much easi-
er for you.
You end up creating an ongoing
relationship with your target
market, which makes it easy for
you to follow up with formerly
inflexible or unmotivated
sellers. Since these mailings are
so targeted and so residual,
there is virtually no competition
for these properties. It puts
your lead generating system on
“auto-pilot,” leaving you more
time to make offers, do more
deals, and make more money.
Most importantly, be consistent
in all your efforts. The success-
ful Real Estate Investor has a
network of people and strate-
gies at their fingertips at all
times. If you don’t develop con-
tinuity to your marketing cam-
paigns, you’ll see your results
begin to drop off immediately.
This is true no matter what
business you are using direct
mail to target to.
When you implement multiple
techniques and several different
direct mail campaigns, you will
have more opportunities than
you’ll be able to handle and the
possibilities become almost
endless. Using direct mail to
develop a “cookie cutter” sys-
tem to accomplish this is one of
the most affordable, reliable,
and effective ways I know to
build your lead base quickly and
have all the business you will
ever need.
Be sure and visit my website at www.marketingmagiclady.com for all the information you need on developing highly
effective direct mail campaigns and finding all the list brokers you need to increase the number of leads coming into your real estate business. I have done all the work for you and can provide you with all the tools you need to be successful using di-rect mail in your business.
Page 10 MAREInet.com
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E-Update
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Investment News
The award winning newsletter for Mid-
America Association of Real Estate In-
vestors: published monthly and distrib-
uted both in print at our meetings and
digitally to our database of over 5000
people. One of the best ways to get
your message in front of a targeted
group of real estate professionals.
Magazine for the real estate investor. With discount subscriptions for MAREI members and FREE copies available
at our monthly meetings.
Free issues of both magazines
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Landlord Services
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Suppliers
Marketing
News & Information
Investment News Page 11
We have several services as part
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your business.
Calendar of Events to stay up to
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Browse the member properties to
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Page 12 MAREInet.com
Are you the kind of person who hates making
a mistake? Would you rather not take any
action than risk making a mistake? Does the
thought of messing up and making a mistake
make you want to crawl into a hole and
hide?
DROP THIS HABIT RIGHT NOW!
It is often said that success lies just past fail-
ure. Therefore, you will never succeed if you
do not fail first.
Get this fact into your head and recognize
that it is through your mistakes that you will
learn discipline, toughness, persistence and
what it takes to succeed.
You simply cannot be successful if you do not
make mistakes. Errors, mistakes and adver-
sity are far better teachers than success.
Success is going from failure to failure with-
out losing enthusiasm. Stay in the game and
constantly learn more and improve yourself
and you will achieve the success you are
striving for.
Try letting your advance worrying become
advance thinking and planning. Action is by
far the greatest fear killer.
Get in over your head and swim to the top.
Nothing worth having in life comes easy. Cli-
ché? Yes. But it is true.
Think about how very little you appreciate
the things in life that came easily to you, but
how much pride and respect you have for
things that you fought for or struggled to at-
tain.
This isn’t true just for material things, it is
also true for the more important things in
life, like health and relationships.
Successful athletes, mountain climbers, busi-
ness owners, husbands, wives and parents
Embracing Mistakes
and Learning from Failure
Tom Zeeb
Traction REIA.com
Investment News Page 13
all know that they wouldn’t be where they are
today if they hadn’t gone through some rough
times.
Winston Churchill once said, “This is no time
for ease and comfort. It is time to dare and
endure”.
So dive in. Accept that you will make some
mistakes, but acknowledge that you will learn
from them and get better and stronger in
business or whatever endeavor you are pur-
suing.
Tom Zeeb has been featured by CNBC, The
Washington Post, Kiplinger's Magazine, The
Washington Examiner, Financial Lifeline Radio
and National Real Estate Investors Associa-
tion's Magazine among others. He is the Presi-
dent of the former Capital Area REIA, the Re-
cipient of the National REIA "2010 & 2011
Honors of Merit" and the "2009 Award of Ex-
cellence" for Best Real Estate Investor Associa-
tion! Capital Area REIA now known as Traction
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On Tuesday last week, London hosted tһе Local Social Summit 2012, tһе fourth year tһіѕ ɡrеаt
(а ח.рυt οח ԁ growing) summit һаѕ bееח
I want tο υѕе tһіѕ post tο highlight ѕοmе signifi-cant trends discussed аt tһе Summit. I аƖѕο want tο warn tһаt tһе rapid pace οf innovation mау in-deed leave real estate investors, agents, business-
es struggling tο keep up.
Key Trends
1. Mobile іѕ king
2. Rise οf ‘Local Discovery’
Data Purity & Ubiquity
Mobile Iѕ King
Tһіѕ topic һаѕ bее חdone tο death, ѕο I’m חοt going tο dwell ο חіt tοο much. Wе ѕһουƖԁ һаνе аƖƖ read
tһе key facts bу now, bυt аѕ a qυісk refresher:
Mobile Internet usage tο surpass desktop Inter-
net usage і2014 ח
50% οf smartphone users һаνе used a local
app
Mobile advertising spend tο hit US$15 billion і ח
2015 wаѕ US $1 billion in 2014*
Anecdotally, a representative frοm Yelp tοƖԁ every-one tһаt approx 45% οf searches ο חYelp аrе done
via tһеіr mobile apps. Given tһаt Yelp һаԁ 84 mil-lion unique visitors іחin Q3, 2012, wһіƖе tһеіr app
wаѕ used on just 8.2 million mobile devices in this period,
іt shows a һυɡе level οf activi-ty bу tһеіr mobile audience.
WһіƖе tһе headline figures аrе hugely exciting, іt’s іחtеrеѕtіחɡ tο note tһаt οחƖу 10% οf Internet usage іѕ done on mobile,** ѕο a lot fewer pages/visits
аrе being consumed bу mobile users. AƖѕο, tһе mοѕt рοрυƖаr рƖасе fοr using a smartphone іѕ in the home. Sο, wһіƖе mobile іѕ undeniably a game
changer , tһе behavior οf mobile users isn’t neces-sarily wһаt wе mіɡһt presume іt tο bе.
*Based ο חnumber οf users accessing Internet ο חa mobile device
**Based ο חnumber οf pages consumed ο חa mobile device
Tһе Rise οf ‘Local Discovery’
‘Local Discovery’ іѕ а חevolution οf ‘Local Search.’
Tһе ԁіffеrеחсе being tһаt ‘Search’ іѕ broad and
requires tһе user tο invest time and effort і חnarrowing down and identifying tһе content tһеу want.
‘Discovery’ іѕ аbουt presenting users wіtһ pre-
filtered results based on tһеіr preferences, location and οtһеr elements οf personalization. It means less effort on tһе part οf user, more curation аnd
editorial involvement bу site/application owners.
It’s hard tο ԁο tһіѕ well ο חlarge sites wһісһ cover a broad set οf verticals а ,.ԁ locations (e.gחSuperpages, YP.com) bесаυѕе οf tһе need fοr de-tailed understanding οf each industry οr market.
Fοr a consumer tο рυt tһеіr trust і חa service wһісһ pre-filters results, tһе consumer needs tο know tһаt site/app іѕ a specialist і חtһеіr field.
Market ing Trends
Important 2013 Marketing Trends
and How to Capitalize on them
Duncan Wierman
Investment News Page 15
Christoph Becker: Overland, KS (since 2010)
Christina Kanas: Grandview, MO (since 2006)
Brenda Linstra: Kansas City, MO (since 2009)
Curt Linstra: Kansas City, MO (since 2009)
Renewing Jim Brashears: Shawnee, KS
Rebecca Flaig: Overland, KS
Thomas & Sylvia Gill: Kansas City, MO
Bill Kennedy: Greenwood, MO
Kyle Luetjen: Overland, KS
Tim McCleary: Shawnee, KS
Brett & Brenda Richman: Kansas City, MO
Matthew Ritvo: Oak Park, CA
Austin Siemens: Olathe, KS
Jeanann Spore: Overland, KS
New Members
New & Renewing MEMBERS
Marketing Tips fοr real es-tate investors : Keep a look
out fοr חеw sites and mobile apps wһісһ аrе dedicated tο уουr industry and city. Mаkе
sure уουr business іѕ correctly listed ontһеm (see ‘Data Purity & Ubiquity’ below) and engage wіtһ tһеѕе sites tο supply deals
and content wһісһ wіƖƖ convert tһеіr users іחtο уουr customers.
Data Purity & Ubiquity
WһіƖе tһе mobile Web and tһе desktop Web mау compete wіtһ
each οtһеr fοr a user’s time, tһе data wһісһ drives tһеm іѕ es-sentially tһе same.
Yelp’s apps υѕе tһе same data-base аѕ yelp.com. Google maps
app uses tһе same database аѕ
Google maps on уουr PC (all differences aside). And many οf
tһе data aggregators wһісһ sup-ply business info tο websites аƖѕο feed mobile sites а ԁח
applications — wіtһ a few others wһісһ уου mау חοt һаνе considered (e.g., TomTom feeds іחtο Apple Maps, Nokia һаѕ іtѕ
οw חsolution)
Wе аƖƖ appreciate tһе need tο build ‘citations’ and ensure tһаt tһе data shared аbουt ουr busi-
ness іѕ ассυrаtе and consistent асrοѕѕ аѕ many directories and ԁ data aggregators аѕחpossible.
Well… tһіѕ task јυѕt ɡοt more
іmрοrtаחt. Mobile Internet users consume less pages and take action qυісkеr than PC Web
users. Sο, іf уουr information іѕ inaccurate οr (worse) absent
frοm a site, tһе חуου wіƖƖ bе missing out ο חmore а ԁ moreחpotential customers.
Marketing Tips fοr real es-tate investors: Double уουr
citation efforts ѕο tһаt уου сƖеаח incorrect listings and build out еw listings on data aggregatorsח
and directories. Bе sure tο add уου listings tο services like TomTom & Nokia ѕο уου
ɡеt іחtο tһеіr ecosystem а ԁח
data supply chain.
—-
Reprinted from Duncan Wierman’s website DuncanWier-man.com—published originally
on November 25th.
Page 16 MAREInet.com
Due to the current lack of inventory, many in-
vestors have been thinking outside the box to
obtain investment property in the valley. One
thing I have started to see more and more of
are note sale transactions. To most, note sales
seem like easy money but there are a lot of
twists and turns that you need to be careful of.
I would highly recommend if you are new to
working with these types of transactions that
you have an agent or attorney assist you.
As the purchaser of a non performing note, you
will need to collect a lot of information from
the seller of the note. These items would be
things like the promissory note, the deed of
trust, the assignment of beneficial interest, etc.
One of the things I have seen that will kill the
deal is when the buyer fails to obtain the finan-
cial status of the account. Usually the lender
will supply a payoff statement for you to pre-
sent to the trustee but the best thing is to
have an account statement that discloses the
payment history of the account. When you are
buying a non performing note, typically you
are buying the
ability to exer-
cise the rights
granted to the
beneficiary to
foreclose on the
loan. Keep in
mind though that in order to foreclose, the
substituted trustee must be able to define the
default, and the trustee must be able to sub-
stantiate the terms of the note and define the
default. If you miss one item you have just
bought a piece of paper not worth much more
to you than the ink it is written on. You have to
remember as the purchaser of a non perform-
ing note you are stepping into the shoes of the
lender. Arizona revised statute 813-D reads
that the trustor (borrower) or any person with
a recorded interest in the property shall have
the right to expect from the trustee the exact
amount necessary to reinstate the trust deed,
separately specifying costs, fees and any other
amounts that are required to be paid as a con-
Note Sales:
What You Should know
DiAnna Jackman
Chicago Title Reprinted from Azreia.org
Investment News Page 17
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913-338-0100 phone
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dition to the reinstatement of
the trust deed. You do not
want to give any opportunity
to the trustor to object to the
completion of the trustee sale.
You really do not want to fight
it out in court. If you get all
the information prior to close
and use a trustee that knows
what they are doing (you can
always ask your favorite title
company for a referral), note
sales can be very lucrative.
Remember as you approach
new investment opportunities
keep your same business
sense and use your experts to
help do it right. As with any
transaction, I do not recom-
mend you close a note sale
without title insurance. You
would be buying a loan policy
instead of an owner’s policy
because you are considered a
lender not an owner. Title in-
surance will ensure you have
no liens that would cause you
a headache in the foreclosure
process and that you are not
inheriting anything that would
survive the trustee sale like
city liens, etc. Chicago Title
has many experienced Escrow
Officers for these types of
transactions and it is IM-
PERITAVE that you work with
someone that knows how to
close this type of transac-
tion. Title insurance will add
an additional (and in my
eyes), an invaluable layer of
protection from the unknown.
Remember, Chicago Title is
here to help with anything
you need and just a phone
call away!
Page 18 MAREInet.com
Redlining is the practice of denying, or charging
more for services such as banking, insurance, ac-
cess to healthcare, stores, jobs to residents of a
particular, often racially determined areas. The
term “redlining refers to the practice of marking a
map in red to show the areas where banks would
not invest or lend.
In 1977, the Community Reinvestment Act, an anti-
redlining law that went into effect. It was updated
in 1995 and again in 2005. Since subprime mort-
gage crisis and the resulting recession, the question
has been, did the Community Reinvestment Act
(CRA) cause the whole mess. Democrats and many
media say no, but a recent study by the National
Bureau of Economic Research finds that by follow-
ing the CRA banks got into riskier lending.
In short banks were required to serve all their cus-
tomers from all neighborhoods in the areas where
they were in business, including the areas where
low and moderate income. Banks were required to
make affordable housing loans. Congress forced
Fannie Mae and Freddie Mac to back more and
more CRA grade loans and had HUD enforce quotas
with fines if they were not met.
They ran into a problem. With quality underwriting
standards, they could not qualify the borrowers in
the low and moderate income areas at a rate that
would allow them to meet the quotas. So Fannie
and Freddie went to work and came up with new
loan products with much looser lending standards.
In 2000, Fannie went to the lenders and told them
to use the new mortgages with less than 3% down
and flexible underwriting so Fannie could buy up
the loans, meet their quotas and then package
them and sell them as Securities.
Lenders that were not under the quotes to meet the
CRA lender requirements, like Countrywide also
jumped into the party too. Countrywide and other
lenders that were regulated by HUD signed con-
tracts with the government supporting lending prac-
tices similar to the CRA rules.
The report shows that Banks that did not meet the
lending quotas were denied plans for merger and
other penalties until they pledged to make more
loans to help credit challenged and poor minorities.
Some banks, such as Washington Mutual say that
they wanted to tighten lending standards, but were
afraid they would not be able to meet their CRA rat-
ing.
They were out there making loans after loans with
ever increasing easy standards. The more loans
they made available to credit challenged people, the
more buyers in the market buying houses and the
higher the prices of homes kept going . . . . . and
the bubble was growing, and the growing selling of
these loans on wall street as very complicated secu-
rities. The securities in turn were pledged to bor-
row short term money by the big Wall Street Banks.
Then when these poorly underwritten loans started
going bad in droves, the big banks could not renew
the short term loans, could not get credit and that’s
when first banks Bear Stearns and Lehman failed.
Here in Kansas City our urban cores were devastat-
ed by the very loans that were being offered to help
the area. Banks using fancy loan products that had
almost no lending standards made loans to borrow-
ers with very marginal credit. For example they
Anti Redlining
Did it cause this mess?
Investment News Page 19
would offer a loan with a low in-
troductory rate that would be set
to adjust up in 2 to 3 years, the
quote to the borrow being that in
2 to 3 years you will be earning
more money and have better
credit you will be able to re-
finance out. Never mind that the
people getting these loans had
poor work history and a very
lengthy history of bad credit and
no one was helping them im-
prove their income or credit so
they would be able to refinance
in 2 to 3 years. When the 2 to 3
year time frame came, the loans
started adjusting their rates up
and the defaults started and
grew.
All these newly made borrowers
that really could not afford to buy
a home and did not have the
credit to handle a home loan, in-
creased demand for our urban
core. More demand made the
prices go up and up. Enter our
fellow real estate investors.
The real estate investor was pro-
vided just as out of whack loans.
Only here, the investor did have
“good” credit, but no reportable
income. So in came the liar loan
where the investor who had good
credit could basically make up a
income number with nothing to
substantiate it and get a loan.
So as the urban core was one of
the lowest priced homes availa-
ble, they were buying up houses
and putting tenants in them for
cheap and pulling cash out of the
house with a liar loan cash out
refinance. The demand by the
investor further raised the value
of the homes.
When the home owners started defaulting in the urban core, the banks choose to foreclose and start tightening lending stand-ards. Tightened standards meant no more loans for the home owners with no money down and questionable credit and the stat-ed income loan. These two loans were how the majority of the buyers in our urban core bought
houses. Cutting out the majority of the buyers in our urban core meant that there were a lot fewer buyers for those foreclosures. Priced dropped . . . what would have sold for $80,000 to $100,000 at the high dropped down to $15,000 to $20,000 at the low as the only one buying was the investor buyer who had cash.
While having a law against not offering loans period in a specific area is good, having one with quotas that require banks to make loans and lowering stand-ards to be able to do so is really stupid. What would have helped would have been those banks and lenders saying, “Hey wait a minute, let’s modify those loans in an effort to keep from a glut of bad loans all at once” But no way no how were they going to do that back in 2008 and 2009. Today, they would love to modify the loan and keep in performing as long as they can . . . but hind sight is 20/20.
Learn more . . . Google “Community Reinvestment Act” and “Risky Lending.”
Property Management
Section 8 Housing
KC Metro Wide
Jeff Woods
Broker
www.MyPremierLeasing.com
816-849500
Webinar! Communications Expert &
Real Estate Investor Bill Twyford
What to Say!
How to Say It!
With everyone offering you the next, best,
“make a million dollars while you sleep”
program – people have forgotten that this is
a people business and without the proper
COMMUNICATION SKILLS you are dead
in the water!
Register: MAREInet.com/Webinar
Thursday January 10th
8pm CST No Charge
Page 20 MAREInet.com
2803 S Norwood
Independence, MO
$59,900 3 Bed
1 Bath
Crawl
Renovated & Ready
for your Tenant
Scott Tucker
Realty Resource
RealtyResourceKC.com
816-523-4400
2120 SE 3rd St
Lee’s Summit, MO
$135,000 3 Bed
2 Bath
Updated, 3 bedroom
2 bath raised ranch in
Lee's Summit. MLS#
1807386
John Welchert
Platinum Realty
816-522-0002
6149 Harvard
Raytown, MO
$89,900
4 Bed
3 Bath
Ranch
Two Living Spaces,
Pre-Negotiated Short
Sale
Scott Tucker
Realty Resource
RealtyResourceKC.com
816-523-4400
438 S. Kentucky Ave.
Independence, MO
$22,000 3 Bed
2 bath
Partial
Bsmt
Great Cash Flow
Potential, raised
ranch, 20% ROI
Chad
HomeRemedyKC
HomeRemedyKC.com
913-735-5598
803 S Brookside Av
Independence, MO
$20,000 2 bed
1 Bath
Full
Bsmt
Cash Cow Inde-
pendence Whole-
sale Deal 50% un-
der market value!
Christoph Becker
Blueprint Properties, Inc
BlueprintPropertySoltions.com
(816) 419-1165
3301 Bales
Kansas City, MO
$10,000 3 Bed
1.5 Bath
2 Sty
Rehabbed about a
year ago. Va-
cant.eeds TLC to
bring back to life.
Christoph Becker
Blueprint Properties, Inc
BlueprintPropertySoltions.com
(816) 419-1165
3343 Bellefontaine Ave
Kansas City, MO
$34,500 3 bed
1 bath
Full
Bsmt
Newly Rehabbed
Kansas City IN-
VESTMENT PROP-
ERTY 20% NET ROI
Christoph Becker
Blueprint Properties, Inc
BlueprintPropertySoltions.com
(816) 419-1165
3829 Benton Blvd,
Kansas City, MO
$39,500 3 Bed
1.5 Bath
FRESH REHAB
Prestigious BEN-
TON BLVD. 20%
NET ROI
Christoph Becker
Blueprint Properties, Inc
BlueprintPropertySoltions.com
(816) 419-1165
7708 E 110th St
Kansas City, MO
$19,500 3 Bed
2Bath
Ranch
Structurally Sound
Ruskin Fixer Upper
in need of Remod-
eling/Rehab TLC
Christoph Becker
Blueprint Properties, Inc
BlueprintPropertySoltions.com
(816) 419-1165
MAREI Member Properties
MAREInet.com/Properties
Investment News Page 21
836 E 82nd St,
Kansas City, MO
$53,000 3 Bed
2.5 Bath
Full Bsmt
South KC Super Hot
Deal! 50% under
market value E. 82nd
St. 3bd 2.5ba
Christoph Becker
Blueprint Properties, Inc
BlueprintPropertySoltions.com
(816) 419-1165
3810 College Ave,
Kansas City, MO
$20,000 3 Bed
2 Bath
90% Rehabbed –
3brm, 2bath Whole-
sale Midtown Proper-
ty
Christoph Becker
Blueprint Properties, Inc
BlueprintPropertySoltions.com
(816) 419-1165
5527 Euclid Ave,
Kansas City, MO
$29,500 3 Bed
1 Bath
55th & Euclid Com-
pletely Rehabbed of-
fering a proposed
NET ROI of 23%
Christoph Becker
Blueprint Properties, Inc
BlueprintPropertySoltions.com
(816) 419-1165
11325 Sycamore Tr,
Kansas City, MO
$39,000 3 Bed
1 Bath
Ruskin Gem Turn-
Key 19%NET ROI –
INVESTMENT PROP-
ERTY
Christoph Becker
Blueprint Properties, Inc
BlueprintPropertySoltions.com
(816) 419-1165
703 S Cherry St,
Olathe, KS
$24,000 3 Bed
1 Bath+
1 partial
OLATHE Fixer Upper
Only $24K! -Priced
To Sell – Huge Profit
Potential
Christoph Becker
Blueprint Properties, Inc
BlueprintPropertySoltions.com
(816) 419-1165
5839 Euclid Ave,
Kansas City, MO
$29,500 3 Bed
1 Bath
3bdrm KC Invest-
ment Property Turn-
Key 19% NET ROI
Christoph Becker
Blueprint Properties, Inc
BlueprintPropertySoltions.com
(816) 419-1165
806 S Scott
Belton, MO
$75,000 4 Bed
2 Bath
Finished
bsmt
Great for first time
home buyer, Rehab-
ber or landlord to
hold, built in equity
Mike or Terea Moeller,
Laura & Donna Bullock
816–509–3771
4021 Crossgate Ct
Lawrence, KS
$125,000 2 Bed
2 Bath
Loft
Great Rental or
home for your KU
STudent
Michelle Frye
Reece & Nichols
785-608-9106
Your Property Here, MAREI members post your properties online. Must include an address, price and
contact information and it will appear at least once in the newsletter.
January Workshops
Wholesaling 101 & 102
Wholesaling Real Estate is the real estate niche
whereby investors market to find motivated sellers
and negotiate a purchase price and at the same time match that house up with an end buyer. In
most cases, no money is needed to complete the transaction on the wholesale investors part or
transactional funding can be used.
For new investors just getting started wholesaling is a technique that will serve you well in all the
other niche as it involves mastering the art of finding really good deals that you can wholesale to
other investors (or cherry pick the best and wholesale the rest) .
This Saturday features 2 workshops:
Each qualifies for 2 Hours of PHP Credit (Purchasing for 101 and Marketing for 102)
Each Cost $30 for MAREI members / $45 for Non-Members
Wholesaling 101:
Getting Started
1. What is a Wholesale Deal?
2. What are the best houses?
3. How much to pay?
4. How do you get paid?
5. What happens at closing
6. Who Should be on your Buyers List
7. How to Build a Buyers List - Fast
8. 8:30 to Noon
Wholesaling 102:
Marketing for Motivated Sellers
1. What is a Motivated Seller
2. Where do you Find Motivated Sellers
3. Marketing For Motivated Sellers
4. Websites
5. Direct Mail Marketing
6. Craigslist Advertising
7. Screening Sellers
8. 1pm to 4:30
Registration Information for Saturday Workshop
1 Workshop Member $30 Both Member $55 1 Workshop Non-Member $55 Both Non-Members $85
________________________________________ ____________________________________ Attendee 1 Email ________________________________________ ______________________________________ Address City State Zip ________________________________________ ______________________________________ Phone Fax ________________________________________ _________________ Expire Date Credit Card Number
___________________________________ Signature
Scan & Email to [email protected]
Fax: 1-201-574-2969 (email first)
Call 913-815-0111 Online www.MAREInet.com/WorkShop
KC North:
North Kansas City
Community Center
1999 Iron Street
Kansas City, MO
Times:
Thursday January 3rd: 6pm to 9pm
6:00 Registration & Networking
7:00 Deal a Minute
7:15 Presentation
8:45 Final 15 Networking
Monthly Meetings January!
The Top 10 Ways to find Real Estate Deals
As we learned at the MAREI KC South
meeting in December, the Real Estate
Industry has changed immensely in the
past year. Home Buyers and Investors
are paying cash more causing more de-
mand for REO properties. Banks are
not foreclosing and selling the notes,
lowering the number of REO proper-
ties. So with more demand and less
supply, the price is going up. So finding
non MLS deals is going to be even more important going for-
ward than it has in the past.
Join us tonight to find out what’s working and what’s not
working when it comes to finding deals.
MAREInet.com/KCNorth
The Top 3 Mistakes that New Investors Make
The December meeting was packed
with so much information that we could
not fit it all into one meeting. So we
asked Debra Felderhoff to come back in
January and share her top 3 (or more)
mistakes new investors make. We
wanted to make sure she had time to
share her knowledge and answer your
questions.
You may know Deb from past appear-
ances on guest panels at MAREI as well
as from her networking groups on Sat-
urday and Sunday. She is in the medi-
cal field by day and later afternoons
and weekends she devotes to her full time real estate business
and helping other investors. Deb’s expertise lies in creative pur-
chase with very little if any money in the deal and then renting or selling them lease to own and
keeping all of her very many units occupied.
If you are just getting started in real estate and want to see how a real live local investor does
her deals, please join us to learn from Debra. If you have some specific questions, please come
early or stay late to ask.
MAREI.com/KCSouth
KC South:
Career Education Systems
Ward Parkway Shopping Center
8600 Ward Parkway
Kansas City, MO
Times:
Tuesday Jan 8th: 6pm to 9pm
6:00 Registration & Networking
7:00 Haves & Wants
7:15 Presentation
8:45 Final 15 Networking
January Workshops
Wholesaling 101 & 102
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.
January 2013 Sun Mon Tue Wed Thu Fri Sat
1 2
SG: Weekly Wed.
Networking
3
KC Northland on the
1st Thursday of the
Month
4
SG: Connected Inves-
tors
5
SG: Blue Springs /
Independence Inv.
6
SG: Lees Summit
Investors Network
7
Deadline: Vendor
Tables for KC South
Meeting
8
KC Metro South on
the 2nd Tuesday of
the Month
9
SG: Weekly Wed.
Networking
10
NLP Webinar with Bill
Twyford
11
12
SG: Blue Springs /
Independence Inv.
13
SG: Lees Summit
Investors Network
14
15
16
SG: Weekly Wed.
Networking
17
18
Deadline: Newsletter
ads & articles for Feb
19
SG: Blue Springs /
Independence Inv.
20
SG: Lees Summit
Investors Network
21
Omaha REIA
22 23
SG: Weekly Wed.
Networking
24
25
26
SG: Blue Springs /
Independence Inv.
Wholesaling 101
Wholesaling 102
27
SG: Lees Summit
Investors Network
28 29 30
SG: Weekly Wed.
Networking
31 1
SG: Connected Inves-
tors
2
SG: Blue Springs /
Independence Inv.
3
SG: Lees Summit
Investors Network
4 5 6
Deadline: Vendor
Tables for KC North
Meeting
7
KC Northland on the
1st Thursday of the
Month
8 9
SG: Blue Springs /
Independence Inv.