the investment news: november 2012

7/30/2019 The Investment News: November 2012

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MI D- AME R I CA ASSOCI AT I ON OF R E AL E ST AT E I N VE ST OR S

November 201

MAREI wins Awards of Excellence at National REIA Mid Year for 2nd Year in a Row!

NETWORKING : EDUCATION : COMMUNITY : GOVERNMEN

Investment NewsPa

ge10

This Month at MAREI:

Tax Tune Up & Quick Books Workshop


2/28

Page 2 MAREInet.com

Page 3Business MembersBuild your team with ourService Providers & In-dustry Partners

Page 4MAREIInfo

Page 5Staff

Page 6How I Did the Deal

Page 8MakingMoney

Page 10Benefits at a Glance

Page 12Disclosure Statement

Page 14WelcomeNew & Returning Members

Page 16So Whats Your Script

Page 18Get Down to Business

Page 20Real Estate, Its TimePage 22For SaleInvestment Opportunities

Page 25Tax Tune UpMonthly Meeting

Page 26Use your LLC Properly

Page 27Quick Books Training

Page 28Calendar of Events

2011 2012


3/28

Investment News Page

BUSINESS MEMBERSMAREI 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 atwww.MAREInet.com/Services . Dont see a service you need? Ask on the Forum!

Foundations

Cornerstone FoundationJoe Williams

913-220-5253CornerstoneFoundationRe-

[email protected]

Your Company Here

$499 annual

Or $135 a Quarter

Insurance

www.APIAprotects.comLisa Goodner

[email protected]

Insurance

www.NREInsurance.comJim Jrolf

913-915-32321-888-741-8454

[email protected]

Investors

www.kcmoHomeBuyer.comThe Tuckers

816-200-2198kcmoHomeBuyer.com

Property Management

www.JamiesonHomeTeam.com

Kevin Jamieson

816-503-4671kevin-

[email protected]

Property Management

www.MyPremierleasing.comJeff Wood

[email protected]

Real Estate Brokerage

www.RealtyResourceKC.com

[email protected]

Staging

www.ShowHomesKC.comMichelle Davis913-449-3593

[email protected]

Suppliers: Building

www.CabinetGiant.comJosh Burns

[email protected]

Suppliers: Building

www.HomeDepot.com

[email protected]

[email protected]

Suppliers: Building

www.Sherwin-Williams.comMike Steiner

[email protected]

Title Company

www.AccurateTitleCo.comJackie White / Mary Peterson

[email protected]

Title Company

www.Coffeltlandtitle.comBud Whisler

[email protected]
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Page 4 MAREInet.com

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Our Mission StatementMid-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 DisclaimerMAREI 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 DisclaimerThe 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.

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MAREI STAFF

& VolunteersExecutive Director

Kim Tucker

[email protected]

Investor : Realtor

Advisory Board

Donald Tucker

[email protected]

Investor

Focus Group Leader: Blue Springs / Lees Suumit

Debra Felderhoff

[email protected]

Landlord : Investor

Focus Group Leader: Weekly Wednesdays

Michelle Winberry

[email protected]

Investor : Realtor

Focus Group Leader: Weekly Wednesdays

Brian Winberry

Investor :

Advisory Board / Membership Desk

Scott Tucker

[email protected]

Realtor


Dan Goodwin

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Realtor : Short Sales


Shelda Goodwin

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Realtor : Short Sales

Focus Group: Eddie Speed Mentoring Students

L. Scott Ficinus

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Realtor


John Welchert

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Realtor : Investor : Landlord


6/28

you can write out a short success story article andwalk us through how you did the deal. You submitit to us here at the Investment News and we publisit here in this publication. Note that this publicationis syndicated out to 4 different online publicationsites as well as social media and emailed out to theMAREI list. So you get a lot of action through thenewsletter.

We know that you are probably like most investorswho want to attract as many people as you can, sowe need to take the next step and go online andseek out a few other real estate investor websitesthat will allow you to submit your success story andinclude your contact information.

So for example, go out there to a site like REI Clubor CREOnline and find their success story page.There should be a link for you to be able to submityour story. So after you send us the success storysubmit it online to these sites and gain even more

exposure across the country, for free!You can get into the big time real estate investormagazines, but note that most of the time, they wilwant you to either buy so much advertising fromthem 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 timto share your success with others can direct awhole new group of people to you. Take some timto think about your past deals, pick out a few that

really stand out, and write them down. Share yourknowledge and your experience with others througthis 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:

Lets 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 prospectingas calling a list, emailing a list and posting ads onsigns, in print media, or online.

Now, you could spend more time and money on allthose 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 starhas a new movie coming out, they get it in severalmagazines 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 ownstint on the Daily Show and talk about what you do!

Obviously, you probably cant get on TV (yet) but wedo have a very valid alternative. To attract local in-vestor buyers and at least potential private lenders,

Page 6 MAREInet.com

Kim Tucker


7/28

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Details:

Tuesday November 13

6:00 pm to 9:00 pm

Career Education Systems

Ward Parkway Shopping

Center8600 Ward Pkwy

Kansas City Missouri

Top Floor

Dont miss this event!

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 LAWWRITTENON 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 dont

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 youwhole life for. In todays society, if yo

dont take the opportunity to protect your

self and your assets, somebody is going t

take your assets away from you. It migh

be the government, the IRS, the lawyers

your tenants, your partners, your patient

your clients, or any one of a dozen othe

people or problems you face, but somebod

is going to take your hard-earned mone

away from you, unless you protect it.

You undoubtedly hope and pray that yo

wont have a lead paint problem, get sue

by a tenant, or have the lawyers come afte

you for some insignificant reason. You d

more than just hope and pray that yo

wont lose your household property to

common thief. You lock your doors, put se

curity lights around your house, and set u

alarm systems. Your financial investment

and real estate investments are a lot mor

Making Money
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9/28


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 youve got

just defending the lawsuit. Ei-

ther that or you lose. That is

the way the system is set up.

The biggest mistake youre

going to make in your finan-cial careers is to say that you

dont have enough to worry

about yet. It doesnt matter

how much or how little you

have, in todays 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 doesnt

even know what the threats

look like, and they certainly

dont have a clue how to pro-

tect themselves from those

threats. The first thing you

have to do is identify thethreats, 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. Ifyou 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 thereal 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 dont

have to change what you aredoing now. All you have to do

is change your position in the

law. Think about the rich peo-

ple you know. It doesnt 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 legalfoundation to build on.

You cant build a house from

the roof down. What do you

have to build first? The foun-

dation! You cant build a fi-

nancial fortune from the roof

down either. Youve 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 dont 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 wont

really get the protection you

want. The process isnt hard,

but the lawyers make it very

complicated to protect theirturf. 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 haveto 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 theiruse 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.


10/28

Page 10 MAREInet.com

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Investment News

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database of over 5000 people.

Magazine for the real estate investoWith discount subscriptions for MARE

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Continued . . . .

Landlord Services

Office Solutions

Suppliers

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News & Information


11/28

Investment News Page 1

We have several services as partof our website to help you grow

your business.

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12/28


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 aDISCLOSURE

DOCUMENTand 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 bunchof 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

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 the

the risks and rewards of the business. You shouldprepare 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 inves

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 leas

the following included information:

The Business of the Company - This informatiogenerally 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 residenti

property investments that are secured by mor

gages. These transactions are done in compl

ance with relevant laws and regulations and i

compliance with appropriate securities regis-

Disclosure

Statement
http://www.reiclub.com/articles/real-estate-private-lending-important-disclosure-statementhttp://www.reiclub.com/articles/real-estate-private-lending-important-disclosure-statementhttp://www.reiclub.com/articles/real-estate-private-lending-important-disclosure-statement


13/28


trations or exemptions in every state in which

we do business..."

Risk Factors - These factors vary depending uponthe 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 economicdownturns. 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, paymentof notes, advertising costs, insurance, supplies,

and payments to be made immediately to officers.

Key Personnel and Shareholders - Individualswho 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, suchas 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

-delive

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, unqualifie

claims. An understated, factual disclosure can delive

a powerful message to private lenders.

Avoid arcane jargon and technical terms. Provide de

initions for terms that might not be easily understood

Don't make private lenders learn a new language ifthey 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.


14/28


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: Lees Summit, MO

Terence Benson: Lees 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: Lees 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)


15/28


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Mid-America Association

of Real Estate Investors

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16/28


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 ofthe 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 topresume or assume beforehand that something is

true. An example: Duringthe time we work onthis transaction you will begin to understand.

Direct Cause and Effect show that two thingsare related. For example: Making a

decision creates a feeling of relief.

Implied Cause and Effect thatshows that if x happens, then y will

follow. For example: Because you are

So What's

Your Scriptbehind 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 yo

procrastinate, the less time we will have.

Double Bind is an implied cause and effectwhere both x and y are bad, forcing them to pic

one over the other. You can sell your house tome today for $20,000 or you can wait a month

or so and my offer may be less.

Assumptive Tag Phrases are used to showthat 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, dont 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 allof these phrases. And practice.

For more information you can Google NLP and

study up. MAREI members will find Bills NLP

Cheat Sheet in the member library. And if you wan

your scripts for real estate investing already written

out, give us a call here at the office, we have a spe

cial price on Bills Sales Talk Training Program.


17/28


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18/28


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 onthe 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 youare 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 ofyour 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 lets 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 andon 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 usefor 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 foreverything 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


19/28


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20/28


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

at a loss to the highly funded financial companies wh

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 w

find that the easy money of yesterday is gone. Ruleand 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 ar

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. Theanxious 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 dont need

cash to do the wholesale deal, you just need to be

able to do the leg work to find and negotiate the deal

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 an

wholesalers or end users. Here again, you dont hav

Real Estate

Its TimeLets 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 its 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 apaying 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


21/28

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 realestate 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 its 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 onlin

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 thenthey 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? Its time

to take ac-

tion. You

cant make

any mon-

ey setting

on the

side-

lines.



22/28


$148,500 SellerFinanced Noteon

home in Blue

Springs, MO

$140,000 8% Int.20 yr

Am

Property Value$170,000, good

equity position,

over 8% Return

Don TuckerGBIFunding.com

[email protected]

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 Investing913-735-9997

3509 Kimball AveKansas City, KS

$18,000 3 Bd1 Ba

Fixer Upper in KCK3509 Kimball, KCK

BemateSakal Investing

913-735-9997

6016 E 12th StKansas City, MO

$18,500 3 Bd1 Ba

Looking for a greathome in Kansas

City Mo.?


913-735-9997

2557 Cissna StKansas City, KS

$15,500 2 Bd1 Ba

Looking for a GreatHome in KCK


913-735-9997

1348 Georgia AveKansas City, KS

$15,000 3 Bd1 Ba

Awesome # Beds,1 Bath in KCK -

Only $15,000


913-735-9997

3301 Bales AveKansas City, MO

$10,000 3 Bd1.5 Ba

1 CarWalk

Out

$10K Wholesale 3bdrm, 1.5 bath,

Wholesale Proper-ty, Needs TLC

Christoph BeckerBlue Print [email protected]
http://mareinet.com/properties/performing-note-for-sale-secured-by-blue-springs-home/http://mareinet.com/properties/performing-note-for-sale-secured-by-blue-springs-home/http://mareinet.com/properties/performing-note-for-sale-secured-by-blue-springs-home/http://mareinet.com/properties/looking-for-a-great-home-in-kansas-mo-2/http://mareinet.com/properties/looking-for-a-great-home-in-kansas-mo-2/http://mareinet.com/properties/looking-for-a-great-home-in-kansas-mo-2/http://mareinet.com/properties/looking-for-a-great-home-in-kansas-mo-3/http://mareinet.com/properties/looking-for-a-great-home-in-kansas-mo-3/http://mareinet.com/properties/looking-for-a-great-home-in-kansas-mo-3/http://mareinet.com/properties/looking-for-a-great-home-in-kansas-city-mo/http://mareinet.com/properties/looking-for-a-great-home-in-kansas-city-mo/http://mareinet.com/properties/looking-for-a-great-home-in-kansas-city-mo/http://mareinet.com/properties/looking-for-a-great-home-in-kansas-city-mo/http://mareinet.com/properties/looking-for-a-great-home-in-kansas-city-mo/http://mareinet.com/properties/looking-for-a-great-home-in-kansas-city-mo/http://mareinet.com/properties/looking-for-a-great-home-in-kansas-city-mo/http://mareinet.com/properties/looking-for-a-great-home-in-kansas-mo-4/http://mareinet.com/properties/looking-for-a-great-home-in-kansas-mo-4/http://mareinet.com/properties/looking-for-a-great-home-in-kansas-mo-4/http://mareinet.com/properties/awesome-3-beds-1-bath-in-kck-only-15000/http://mareinet.com/properties/awesome-3-beds-1-bath-in-kck-only-15000/http://mareinet.com/properties/awesome-3-beds-1-bath-in-kck-only-15000/http://mareinet.com/properties/10k-wholesale-property-3bdrm-1-5-bath-3301-bales-ave-kc-mo/http://mareinet.com/properties/10k-wholesale-property-3bdrm-1-5-bath-3301-bales-ave-kc-mo/http://mareinet.com/properties/10k-wholesale-property-3bdrm-1-5-bath-3301-bales-ave-kc-mo/http://mareinet.com/properties/10k-wholesale-property-3bdrm-1-5-bath-3301-bales-ave-kc-mo/http://mareinet.com/properties/10k-wholesale-property-3bdrm-1-5-bath-3301-bales-ave-kc-mo/http://mareinet.com/properties/awesome-3-beds-1-bath-in-kck-only-15000/http://mareinet.com/properties/awesome-3-beds-1-bath-in-kck-only-15000/http://mareinet.com/properties/looking-for-a-great-home-in-kansas-mo-4/http://mareinet.com/properties/looking-for-a-great-home-in-kansas-mo-4/http://mareinet.com/properties/looking-for-a-great-home-in-kansas-city-mo/http://mareinet.com/properties/looking-for-a-great-home-in-kansas-city-mo/http://mareinet.com/properties/looking-for-a-great-home-in-kansas-city-mo/http://mareinet.com/properties/looking-for-a-great-home-in-kansas-city-mo/http://mareinet.com/properties/looking-for-a-great-home-in-kansas-city-mo/http://mareinet.com/properties/looking-for-a-great-home-in-kansas-mo-3/http://mareinet.com/properties/looking-for-a-great-home-in-kansas-mo-3/http://mareinet.com/properties/looking-for-a-great-home-in-kansas-mo-2/http://mareinet.com/properties/looking-for-a-great-home-in-kansas-mo-2/http://mareinet.com/properties/performing-note-for-sale-secured-by-blue-springs-home/http://mareinet.com/properties/performing-note-for-sale-secured-by-blue-springs-home/


23/28

MAREI Member Properties

MAREInet.com/Properties


Raytown $167,000 7 Unit Raytown Cash FlowPropertyAssignment

Terrance BensonRTBHomeBuyers.com816-804-5287

Rogersville, MO Negotiable 4 Units 4 property package

for sale

Kathleen Stegman

913-208-0979

836 E 82nd StKansas City, MO

$69,000 3 Bed1 Bat

For Sale 2010 BWGKansas CityProperties Site

5109 E 41st ST

Kansas City, MO

$18,000 3 Bed

2 Bath

3 Beds 2 Bath

House for saleOnly $18,000

Bemate

Sakal Investing913-735-9997

1910 S LeesSummit Rd,Independence,MO

$35,000 3 Bed2 Bath

Looking for a fixerupper in Independ-ence

BemateSakal Investing913-735-9997

2316 Blue RidgeTr, Independ-

ence, MO

$55,000 2 Bed1 Bath

Seller Financed In-vestment Property

in Independence

Nancy HooverHoover Property

Management816-853-2110

5501 W 98th PlOverland Park,KS

$119,000 3 Bed2 Bath2 Car

Great JOCO Rental Chad BartlettHomeRemedyKC.com913-735-5598
http://mareinet.com/properties/hot-property-for-investors-for-sale-call-today/raytown-cash-flow-property/http://mareinet.com/properties/hot-property-for-investors-for-sale-call-today/raytown-cash-flow-property/http://mareinet.com/properties/4-property-package-for-sale/http://mareinet.com/properties/4-property-package-for-sale/http://mareinet.com/properties/836-e-82nd-kansas-city-mo/http://mareinet.com/properties/836-e-82nd-kansas-city-mo/http://mareinet.com/properties/836-e-82nd-kansas-city-mo/http://mareinet.com/properties/3-beds-2-bath-house-for-sale-only-18000-2/http://mareinet.com/properties/3-beds-2-bath-house-for-sale-only-18000-2/http://mareinet.com/properties/3-beds-2-bath-house-for-sale-only-18000-2/http://mareinet.com/properties/looking-for-a-fixer-upper-in-independence-2/http://mareinet.com/properties/looking-for-a-fixer-upper-in-independence-2/http://mareinet.com/properties/looking-for-a-fixer-upper-in-independence-2/http://mareinet.com/properties/looking-for-a-fixer-upper-in-independence-2/http://mareinet.com/properties/looking-for-a-fixer-upper-in-independence-2/http://mareinet.com/properties/investment-property/http://mareinet.com/properties/investment-property/http://mareinet.com/properties/investment-property/http://mareinet.com/properties/investment-property/http://mareinet.com/properties/great-joco-rental/http://mareinet.com/properties/great-joco-rental/http://mareinet.com/properties/great-joco-rental/http://mareinet.com/properties/great-joco-rental/http://mareinet.com/properties/great-joco-rental/http://mareinet.com/properties/great-joco-rental/http://mareinet.com/properties/great-joco-rental/http://mareinet.com/properties/investment-property/http://mareinet.com/properties/investment-property/http://mareinet.com/properties/investment-property/http://mareinet.com/properties/looking-for-a-fixer-upper-in-independence-2/http://mareinet.com/properties/looking-for-a-fixer-upper-in-independence-2/http://mareinet.com/properties/looking-for-a-fixer-upper-in-independence-2/http://mareinet.com/properties/looking-for-a-fixer-upper-in-independence-2/http://mareinet.com/properties/3-beds-2-bath-house-for-sale-only-18000-2/http://mareinet.com/properties/3-beds-2-bath-house-for-sale-only-18000-2/http://mareinet.com/properties/836-e-82nd-kansas-city-mo/http://mareinet.com/properties/836-e-82nd-kansas-city-mo/http://mareinet.com/properties/4-property-package-for-sale/http://mareinet.com/properties/hot-property-for-investors-for-sale-call-today/raytown-cash-flow-property/


24/28



$34,500 3 Bed2 Bath2 Car

Cash Flow! Section8 Turn-Key Rental,$900 a month.

Rehabbed

Christoph BeckerBlue Print [email protected]

816-419-1165

Raytown House $69,400 3 Bed

1 Bath1 Car

Great house in

Raytown with ex-cellent Tenant

Legacy Investment

[email protected]

4333 Bellefon-taine Ave, Kan-sas City, MO

$12,500 3 Bed1 Bath

Great 3 Beds at4333 BellefontaineKCMO$12,500



$9,500 3 Bed1 Bath

Need to SellASAPGreat 3Beds, 1 Bath,

$9500



$10,000 3 Bed2 Bath

Awesome 3 Beds 2Baths in KCMOOnly $10,000



$28,000 3 Bed1 Bath

2 Bed 1 Bath Rent-to-Own5K Down!


Olathe $84,000 3 Bed

3.5 Ba2 CarSlab

Great Potential in

Olathe!!!

Chad Bartlett

HomeRemedyKC.com913-735-5598

Currently 23

Investment Opportunities

MAREInet.com/Properties
http://mareinet.com/properties/cash-flow-section-8-turn-key-rental-900mo-net-roi-26/http://mareinet.com/properties/cash-flow-section-8-turn-key-rental-900mo-net-roi-26/http://mareinet.com/properties/cash-flow-section-8-turn-key-rental-900mo-net-roi-26/http://mareinet.com/properties/great-house-in-raytown-with-excellent-tenant-great-cash-flow/http://mareinet.com/properties/great-house-in-raytown-with-excellent-tenant-great-cash-flow/http://mareinet.com/properties/3-beds-1-bath-in-kcmo-price-reduced-now-12500/http://mareinet.com/properties/3-beds-1-bath-in-kcmo-price-reduced-now-12500/http://mareinet.com/properties/3-beds-1-bath-in-kcmo-price-reduced-now-12500/http://mareinet.com/properties/3-beds-1-bath-in-kcmo-price-reduced-now-12500/http://mareinet.com/properties/need-to-sell-asap-great-3-beds-1-bath-9500/http://mareinet.com/properties/need-to-sell-asap-great-3-beds-1-bath-9500/http://mareinet.com/properties/need-to-sell-asap-great-3-beds-1-bath-9500/http://mareinet.com/properties/awesome-3-beds-2-baths-in-kcmo-only-10000/http://mareinet.com/properties/awesome-3-beds-2-baths-in-kcmo-only-10000/http://mareinet.com/properties/awesome-3-beds-2-baths-in-kcmo-only-10000/http://mareinet.com/properties/2-bed-1-bath-rent-to-own-5k-down/http://mareinet.com/properties/2-bed-1-bath-rent-to-own-5k-down/http://mareinet.com/properties/2-bed-1-bath-rent-to-own-5k-down/http://mareinet.com/properties/2-bed-1-bath-rent-to-own-5k-down/http://mareinet.com/properties/2-bed-1-bath-rent-to-own-5k-down/http://mareinet.com/properties/awesome-3-beds-2-baths-in-kcmo-only-10000/http://mareinet.com/properties/awesome-3-beds-2-baths-in-kcmo-only-10000/http://mareinet.com/properties/need-to-sell-asap-great-3-beds-1-bath-9500/http://mareinet.com/properties/need-to-sell-asap-great-3-beds-1-bath-9500/http://mareinet.com/properties/3-beds-1-bath-in-kcmo-price-reduced-now-12500/http://mareinet.com/properties/3-beds-1-bath-in-kcmo-price-reduced-now-12500/http://mareinet.com/properties/3-beds-1-bath-in-kcmo-price-reduced-now-12500/http://mareinet.com/properties/great-house-in-raytown-with-excellent-tenant-great-cash-flow/http://mareinet.com/properties/cash-flow-section-8-turn-key-rental-900mo-net-roi-26/http://mareinet.com/properties/cash-flow-section-8-turn-key-rental-900mo-net-roi-26/


25/28


Its time for aIts time for a

TAX TUNE UP!TAX TUNE UP!

If youre looking to put more money in your pocket, knowinghow to maximize deductions is essential.If youd like to makesure you are not leaving money on the table, you need to be atthis meeting. We will be discussing:

In-effective Bookkeeping Maximizing Deductions Ever Changing Regulations Having a PlanLets face it . . . as they debate in the Presidential Race, we allneed to pay our fair share of taxes . . . but only our fair shareand not a penny more! Thats why we are very excited to haveMAREIs own Joe Martin CPA come and share his knowledgewith us in November, so we can wrap up our tax year and startplanning for 2013...

MAREIsMAREIsNovember Meeting

Special GuestSpecial Guest

Joe Martin CPAJoe Martin CPACitizen Tax ServiceCitizen Tax Service

Location:

Career Education SystemsWard Parkway Shopping CenterTop Floor8600 Ward Parkway

Kansas City, MOTimes:

Tuesday November 136pm 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 MAREIs own Joe Martin CPAfrom Citizen Tax Service

8:30 pm Wrap Up and One on One Q & A

9:00pm Meeting Ends

Cost

Investor MemberNo Charge

Business MemberNo Charge

Internet MemberGuest 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
http://www.memberize.com/clubportal/EventDisplayNew.cfm?clubID=755&EventID=172468&mo=9&tDate=%7Bd%20%272012%2D09%2D24%27%7Dhttp://www.memberize.com/clubportal/EventDisplayNew.cfm?clubID=755&EventID=172468&mo=9&tDate=%7Bd%20%272012%2D09%2D24%27%7Dhttp://www.memberize.com/clubportal/EventDisplayNew.cfm?clubID=755&EventID=172468&mo=9&tDate=%7Bd%20%272012%2D09%2D24%27%7D


26/28


MAKE SURE TO USE YOUR LLC PROPERLY

WRITTENON SEPTEMBER 20, 2012

BYMARK 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 persons 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 doesnot have any liability for acts taken on behalf of

a disclosedprincipal. 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 thelandlord 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 y

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 h

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 workon the property they can personally be liable

for to the tenant for any work done negligen

ly. For example, even if the home is proper

transferred into the LLC, and the LLC is

named on the lease, the investor may be pe

sonally liable if he negligently repairs a wate

heater on the property and the tenant gets

injured. Its important that the LLC hire inde

pendent contractors to undertake such repai

work, so that the LLC is not liable.

An LLC can serve as a great means of asset

protection. Investors need to make sure tha

they properly use the LLC to gain that protec

tion.

Your LLC, Use it Properly
http://www.azreia.org/author/mark-zinman/http://www.azreia.org/author/mark-zinman/http://www.azreia.org/author/mark-zinman/http://www.azreia.org/author/mark-zinman/http://www.azreia.org/author/mark-zinman/http://www.azreia.org/investing/make-sure-use-your-llc-properly/http://www.azreia.org/investing/make-sure-use-your-llc-properly/http://www.azreia.org/investing/make-sure-use-your-llc-properly/http://www.azreia.org/investing/make-sure-use-your-llc-properly/http://www.azreia.org/investing/make-sure-use-your-llc-properly/http://www.azreia.org/investing/make-sure-use-your-llc-properly/http://www.azreia.org/author/mark-zinman/


27/28

Quick Books Training for

Real Estate Professionals

Make 2013 the year you tackle the pile of paper in your receiptdrawer. If you are running any kind of business and do not havea way to track all of your income and expenses, you are not onlyloosing money, but you are loosing valuable data. Heres why:

1. You can track your income and expenses much more quicklywith a software system that is easy to use so that you or a staffmember can input data. This input of data saves time and mon-ey spent at year-end paying your accounting person to compileeverything, saving you money and time.

2. By tracking in a software system, you can find the informationyou need quickly rather than hunting through piles of pa-

per. Know how much you spent on an advertising campaign ora rehab, so you can see where your money is going and whereyou 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 BooksPro. Join MAREI member Joe Martin CPA for an introductoryworkshop on how to use QuickBooks. With a few tips on how toset 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 SystemsWard Parkway Shopping Center8600 Ward Parkway

Kansas City, MOWhen:

Saturday December 1st9am to NoonCheck in 8:30 to 8:50Limited 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

_____________________________________________ SignatureExpire Date

Scan & Email to [email protected]

Fax: 1-201-574-2969 (email first)

Call 913-815-0111

Register Online

MAREInet.com/QBT


28/28

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 2012Sun Mon Tue Wed Thu Fri Sat

SG: Weekly Wed.

Networking

1

Newsletter Published

2

SG: Connected Inves-

torsNEW

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.
http://www.mareinet.com/Calendar