MAREI launches their 2nd monthly meeting. Starting January 2013, look for 2 monthly meetings each month from MAREI.

1. MAREI launches their 2nd monthly meeting. Starting January 2013, look for 2 monthly meetings.
MID-AMERICA ASSOCIATION OF REAL ESTATE INVESTORS
Investment News NETWORKING : EDUCATION : COMMUNITY : GOVERNMENT
January 2013
Pa
ge
10

2. CONTENTS
Effective Mailing Lists
How to locate and Create Effec-
8 tive Mailing Lists
Embracing Mistakes
Tom Zeeb, Traction REIA tells us
12 to Learn From Our Mistakes.
Marketing Trends
Important Trends in 2013 and
14 how to Capitalize on Them.
Note Sales
What you should know about
16 Note Sales.
Anti –Redlining
Did the Community Reinvestment
18 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 Exclusive
@
Check out our Website
MAREInet.com
Contact us by Phone Emerging
913-815-0111
Trends in
Email US
info@MAREInet.com
Real Estate
2013
Join The Conversation
MAREInet.com/Blog MAREInet.com/
Trends2013
Join Association
MAREInet.com/Membership
Page 2 MAREInet.com

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AND INVESTORS FIRST
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Home Depot nationwide.
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made through all registered accounts.
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Coming in 2013, the Home Depot Project Estimator App for
iPad, a business changing tool for National REIA Chapter
members nationwide. Watch your local REIA Chapter for
Investment News Page 3
more information.

4. Mid-America Association of
Real Estate Investors
The only National REIA Chapter
in the Tri State Region
Serving KS, MO & NE
Honor’s of Merritt Winner
National REIA
Contact Information
Awards of Excellence
2011 & 2012 PO Box 8685, Prairie Village KS, 66208
Phone: 913-815-0111 Email: info@MAREInet.com
Read Newsletter
Online Anytime
MAREInet.com/Newsletter Our Mission Statement
Mid-America Association of Real Estate Investors is dedicated to promoting ethical real estate
investing and to protect and promote the best interest of our membership through educational
Connect with us Online and networking opportunities as well as community, legislative and public relations.
LinkedIn Group:
Kansas City Real Estate Investors Legal Disclaimer
MAREI does not exist to render and does not give legal, tax, economic or investment advice and
disclaims all liability for the action or inaction taken or not as a result of communications from or
to its members, officers, directors, employees and contractors. Each individual should consult
Facebook Page: his/her own counsel, accountant and other advisors as to legal, tax, economic, investment and
related matters concerning real estate and other investments.
Kansas City Real Estate Investing
Content Disclaimer
Facebook.com/Groups The views and opinions expressed by authors of articles contributed to this newsletter do not
necessarily reflect those of the association, the board of directors or the staff.
Kansas City Real Estate: /kcrei/
Mid-Missouri Real Estate: /MidMo/ Advertise in the Investment News
Omaha Real Estate: /OmahaRE/
Rate Schedule
Topeka Real Estate: /TopekaRE/ Size Non-Member Member Business Associate
Wichita Real Estate: /WichitaRE/ Full Page $175 $140 $115
Special Groups Facebook 1/2 Page $145 $105 $85
KCMO Water Dept Issues: /badbilling/ 1/4 Page $75 $65 $50
1/8 Page $55 $35 $25
MO Creative Finance Legislation
Find us on Twitter A 10% discount is given on ads pre-paid for 6-12 months. Any changes to a pre-paid ad will
incur a minimum charge of $20. The deadline to submit ad copy is the 1st of each month. All
@MAREInet ads must be prepaid. Contact to verify ad format can be accepted. PDF preferred. There is an
additional charge of $25 to typeset a business card ad or 1/4 page ad layout, $60 for a 1/2
Tweet #KCREI page or full page lay-out. Opportunities also exist for advertising on www.MAREInet.com. Call
913-815-0111 for more information. Email ad copy to info@MAREInet.com. Mail payment to
MAREI, PO Box 8685, Prairie Village, KS 66208 or request an online payment for to use credit
or debit card.
Page 4 MAREInet.com

5. From carpeting to sheet vinyl, our representatives are trained to help you select the right floorcovering
specific to your needs. For floorcovering for units, hallways, party rooms and even pool and exercise
areas, Sherwin-Williams offers:
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Installation by professional, insured installers.
Find a Sherwin-Williams Store Near You: SherwinWilliams.com
Member Tip: Use your exclusive discount card from Mid-America Association of Real Estate Investors
to get the absolute best pricing Sherwin Williams has to offer on all their products including floor cover-
ings. If you have trouble keeping track of your Member Discount Card . . . Snap a photo with your smart
phone of both sides and you will always have your discount card with you . . . If your Card Expires in
2012, you can request a new one from the MAREI office, we mail out new ones with your membership
renewal and we post copies of the new card in the MAREI member Guide.
Sherwin Williams Floor Covering Center
14531 W 101 Terrace : Lenexa, KS 66215
Phone: (913) 888-4909 : Fax: (913) 888-5003
Recycling: Carpet & Pad*
Investment News Page 5

6. ow I di d the
H
Don & Kim Tucker
www.GBIFunding.com
D EA L!
This deal was a package of 23 houses that were marketed did have was a huge buyer list and the ability to move
in the area to a lot of investors for over a year. This deal the properties. So we made a rough intent to purchase
has a ton of learning opportunities. at about 65% of the asking price on their spreadsheet if
we could buy them over 5 months and one at a time.
First this package of homes were rental homes owned by a
With the properties under contract to buy I would then be
local real estate investor who was murdered. He managed
able to start marketing them for sale.
everything himself and did not have a plan to deal with the
rentals should anything happen to him. His left these 23 We toured the properties and ended up adjusting prices
plus several others to his 16 year old daughter. down a bit more. The attorney drafted a contract be-
tween us as buyers and the estate that we would buy the
As there was no plan for his estate they went into probate
properties one at a time and that in 5 months time we
and his attorney, who really did not have any expertise in
would have purchased all of the properties. We were
managing properties took over. At the time of his death, I
then able to start marketing the properties to wholesale
believe that most were in good livable condition and were
them. When we had a buyer, we would then purchase
rented and cash flowing. The attorney ordered appraisals
the property and immediately wholesale it to our buyer.
and proceeded to market them at full appraisal price. The
No money needed.
attorney did not hire a property manager but attempted to
maintain and collect rent themselves. Due to poor man- We also had in our agreement that we could change the
agement, tenants moved out, houses went vacant and buyers name on the final individual purchase contracts.
were vandalized, and the homes that stayed occupied did So some of these properties were wholesaled by our
not have tenants that were very faithful about paying rent. company and some of them were actually purchased and
Needless to say in less than 6 months the homes were wholesaled by our self directed IRAs.
worth way less than the appraised values.
Some other things we learned about—the joy of selling a
They attorney also did not hire a Realtor to market the home where the previous owner was murdered. Selling
properties. Granted he was a member of MAREI and new rental houses that had been rented to drug dealers. That
investors, but his expertise was not in marketing of proper- two one bedroom houses side by side are not as easy to
ties. His marketing was to send out an excel list of proper- sell as a duplex.
ties and basic details and the appraised value. Any moti-
We learned about seller financing as we ended up seller
vation as to sale price was never really mentioned.
financing 1 individual houses and the 2 side by side one
This list hit our email quite often. We inquired as to what bedroom homes. We learned that seller financing is a
the asking price was several times and were told that the great way to increase the number of potential buyers on
appraised values were listed and to make an offer. I am home to sell it faster.
sure this is what everyone else was being told and no one
By the way, I am teaching two wholesaling workshops on
was making an offer.
January 26. If you decide to join me, we can talk about
Finally after about a year of seeing this come across our this deal over lunch. See details about the workshop
email I emailed back and said we were interested in the online at www.MAREInet.com/WorkShop or see page
package if they could tell me a rough price, that we would 22.
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 How I did the deal is back, submit your deals to
would need to be about 65% less. This was about 2007, info@MAREInet.com. Deals selected for publi-
so prices were quite a bit higher, but prices are not really cation will receive a $25 credit on account to
relevant. What was important was that I really had no way
to actually purchase these properties with cash. What we apply to trainign workshops.
Page 6 MAREInet.com

7. Cornerstone Foundation Repair
Kansas Cities Real Estate Investor’s
#1 Foundation Repair Contractor
 Steel Push to Bedrock Piers @ $850 ea
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We are proud to say that we have become real Rental Services
estate investors 1st call for major foundation
repair issues. We offer 25 year and lifetime Kansas City Metro
transferable warranties for piering only.
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ConerstoneFoundationRepair@yahoo.com Kevin Jamieson
913-220-5253
816-503-4671
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Josh Burns
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Investment News Page 7

8. Effective Mailing Lists
How to Locate & Create
Kathy Kennebrook
The Marketing Magic Lady
Where can I find a good mailing list to find moti- direct mail because they think the list is too
vated sellers? How can I create my own list to difficult to get, or they only send the mailings
find highly motivated sellers? These are the big once and quit. They don’t take the time to cre-
questions that I get a lot from Real Estate Inves- ate the machine that will bring them deal after
tors! The true secret to success for a Real Estate deal.
Investor is finding sellers who really need to sell.
These are some of the easiest lists for you to
I use different direct mail campaigns to locate
get and it will be very profitable for you to do
different types of motivated sellers: out of state so. You can contact a list broker or your local
owners, properties quit-claimed from one person property assessor’s office and ask them for
to another, expired listings, burned out land- these lists, or you can create the lists yourself.
lords, vacant properties, military transfers, and It’s fairly easy to do. You can go to the court-
pre-foreclosures, just to name a few. house and research divorce cases, death notic-
The best part is that you can customize your di- es, liens and judgments, tax liens, marriage
rect mail piece and your list to reach exactly the licenses, bankruptcies or Lis Pendens, which is
kinds of motivated sellers you want to deal with the first step toward foreclosure. Let me share
in order to create the kinds of deals you want for a few pointers here.
your real estate investing business. This is best  Do your homework when picking a list bro-
done by locating mailing lists and refining them ker. How current is the list? Does it have all
to meet your individual criteria, then mailing to the information you need to create your di-
these potential sellers again and again, thus cre- rect mail campaign? Does it reach the audi-
ating a multitude of profitable deals. ence you are targeting?
Investors often neglect to market to sellers using  Do a test mailing of 100 pieces to test any
Page 8 MAREInet.com

9. new list. How many re- just another way to build ongo- relationship with your target
sponses did you get? How ing lead sources using direct market, which makes it easy for
many letters came back mail. You only have to create you to follow up with formerly
with a bad address? this direct mail campaign once inflexible or unmotivated
to create an ongoing source of sellers. Since these mailings are
 Don’t waste your marketing leads for your Real Estate In- so targeted and so residual,
dollars marketing to a bad vesting business. there is virtually no competition
list that won’t get you the for these properties. It puts
result you want. If you own any kind of business
your lead generating system on
and you need certain types of
 Create continuity with your “auto-pilot,” leaving you more
leads, think about unique re-
direct mail campaigns. You time to make offers, do more
sources that can provide you
can mail a lot of letters or a deals, and make more money.
with the leads you need and
few letters but you need to create a direct mail campaign Most importantly, be consistent
have a flow of mail going targeting these resources. This in all your efforts. The success-
out at all times in order to can be really profitable. For ex- ful Real Estate Investor has a
create a funnel of incoming ample; if you own an alarm network of people and strate-
leads. company or a lawn mainte- gies at their fingertips at all
 Never mail more pieces than nance service it would behoove times. If you don’t develop con-
you are comfortable getting you to create a direct mail cam- tinuity to your marketing cam-
responses to. If you do a paign targeting owners of prop- paigns, you’ll see your results
huge mailing and you get erties in your area who live out begin to drop off immediately.
tons of responses you can’t of state. These are potential This is true no matter what
get to, you are wasting mar- customers who need your ser- business you are using direct
keting dollars. Put systems vices. mail to target to.
in place to help you respond The main reason that direct When you implement multiple
to the mailings and grow mail works so well is that you techniques and several different
your business gradually. are reaching highly targeted direct mail campaigns, you will
Another way to find motivated leads. You become the potential have more opportunities than
sellers is to cultivate relation- seller’s first option when they you’ll be able to handle and the
ships with individuals who can need to sell. Even if you are on possibilities become almost
help you find deals. One of the a limited budget, direct mail is endless. Using direct mail to
ways I do this is to create a di- an excellent source of leads for develop a “cookie cutter” sys-
rect mail campaign targeting you since you can buy more tem to accomplish this is one of
attorneys who handle family houses from fewer leads, thus the most affordable, reliable,
law, estate planning and pro- maximizing your marketing dol- and effective ways I know to
bate law, divorce and marital lars. As your business grows, build your lead base quickly and
law, and corporation and busi- you can increase the number of have all the business you will
ness law and I let them know mailings you do. You can also ever need.
we are in the business of buy- target specific neighborhoods or Be sure and visit my website at
ing houses. dominate certain parts of town. www.marketingmagiclady.com for all the
In doing so, you become a information you need on developing highly
Once you develop relationships “property value expert” in those effective direct mail campaigns and finding
with some of these attorneys, all the list brokers you need to increase
areas, which makes the offer- the number of leads coming into your real
they will call you when they making process that much easi- estate business. I have done all the work
have a client who needs to sell er for you. for you and can provide you with all the
a property quickly no matter tools you need to be successful using di-
what condition it’s in. This is You end up creating an ongoing rect mail in your business.
Investment News Page 9

10. MAREI’S MEMBER BENEFITS PROGRAM
YOUR MEMBER BENEFITS
AT-A-GLANCE
USE THIS PAGE AS A GUIDE TO VALUE ADDED DISCOUNTS TOOLS AND SAVINGS CREATED JUST
FOR YOU ON GOODS AND SERVICES YOU USE EVERY DAY.
Landlord Services Suppliers News & Information
E-Update
MAREI’s award winning weekly email
update with what’s happening in real
estate including properties for sale, gov-
Screening for tenants & workers with ernment affairs and local market data.
20% discount for members. Learn how to save money at Home De-
pot and register for a 2% Rebate for all Investment News
purchases & rentals across the US.
FORMS & DOCS Plus 20% Discount on Paint in Kansas The award winning newsletter for Mid-
Member Library is packed with forms City. And coming in 2013 the New America Association of Real Estate In-
and docs, plus 15 % discount at EZ Home Depot App for iPad exclusively for vestors: published monthly and distrib-
Landlord Forms for premium forms. Chapter Members to use in project esti- uted both in print at our meetings and
mation on home repair and remodel.
digitally to our database of over 5000
people. One of the best ways to get
your message in front of a targeted
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Market your rentals on the nations top
ranked rental site. Member discount All members receive a discount card
is 20% off Regular Prices. to access our exclusive discounts up
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Marketing Magazine for the real estate investor.
With discount subscriptions for MAREI
members and FREE copies available
at our monthly meetings.
Save on select FedEx Office copy and
print services up to 20% and on Fed-
Ex Shipping up to 22%. Websites for investors, landlords, and
other services. FREE trial.
Receive discounts up to 65% on over Free issues of both magazines
12,000 products you use the most available at the monthly
online and in store. Email and Social Media Marketing, Free meetings of MAREI.
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vance.
Page 10 MAREInet.com

11. Other Discounts Member Service
We have several services as part
of our website to help you grow
MAREI’s Political Advocacy Group
your business.
actively monitors national legisla-
tion and rule-making that im-
pacts the real estate industry and
harnessing the strength of MAREI
Nearly 70% of QuickBooks users say members at the grassroots level.
that it makes their business more prof-
itable. Get your Accounting on track.
Buy at a 20% discount our special MAREI mem-
links from the MAREI Web Site. bers also re-
ceive timely
Calls to Action
REAL ESTATE BOOKS Calendar of Events to stay up to
when there is a
date with all of our activities.
The nation’s largest provider of time for our
real estate training materi- members to
als, DEARBORN is America’s take action on
Premier Real Estate Publish- an important vote.
er. Members receive up to 40%
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Members also
have access
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Browse the member properties to in Market Da-
find your next deal. Take the ta.
time to post your investment op-
portunities for other members
Special member discounts for and site visitors to browse.
members at Avis, Budget, and
Enterprise Rentals.
VISIT
ww.MAREInet.com
The Member Library is packed Look under Resources &
and ever growing with pdf ver- Members Only
The Local Market Monitor tracks
real estate sales and economic sions of entire books, EBooks,
trends nation wide. Offering Articles, Forms, and Documents.
25% Discount for Members.
Investment News Page 11

12. Embracing Mistakes
and Learning from Failure
Tom Zeeb
Traction REIA.com
Are you the kind of person who hates making constantly learn more and improve yourself
a mistake? Would you rather not take any and you will achieve the success you are
action than risk making a mistake? Does the striving for.
thought of messing up and making a mistake
Try letting your advance worrying become
make you want to crawl into a hole and
advance thinking and planning. Action is by
hide?
far the greatest fear killer.
DROP THIS HABIT RIGHT NOW!
Get in over your head and swim to the top.
It is often said that success lies just past fail- Nothing worth having in life comes easy. Cli-
ure. Therefore, you will never succeed if you ché? Yes. But it is true.
do not fail first.
Think about how very little you appreciate
Get this fact into your head and recognize the things in life that came easily to you, but
that it is through your mistakes that you will how much pride and respect you have for
learn discipline, toughness, persistence and things that you fought for or struggled to at-
what it takes to succeed. tain.
You simply cannot be successful if you do not This isn’t true just for material things, it is
make mistakes. Errors, mistakes and adver- also true for the more important things in
sity are far better teachers than success. life, like health and relationships.
Success is going from failure to failure with- Successful athletes, mountain climbers, busi-
out losing enthusiasm. Stay in the game and ness owners, husbands, wives and parents
Page 12 MAREInet.com

13. all know that they wouldn’t be where they are Tom Zeeb has been featured by CNBC, The
today if they hadn’t gone through some rough Washington Post, Kiplinger's Magazine, The
times. Washington Examiner, Financial Lifeline Radio
and National Real Estate Investors Associa-
Winston Churchill once said, “This is no time tion's Magazine among others. He is the Presi-
for ease and comfort. It is time to dare and dent of the former Capital Area REIA, the Re-
endure”. cipient of the National REIA "2010 & 2011
So dive in. Accept that you will make some Honors of Merit" and the "2009 Award of Ex-
mistakes, but acknowledge that you will learn cellence" for Best Real Estate Investor Associa-
from them and get better and stronger in tion! Capital Area REIA now known as Traction
business or whatever endeavor you are pur- REIA serves the Greater Washington DC Metro
Area.
suing.
Www.CoffeltLandTitle.com
www.APIAProtects.com
For title, escrow, 1(877) 752-2742
1031 & foreclosure. Lisa Goodner
Because APIA sells only Real Estate Owned
(REO) and Forced Lender insurance coverage,
we've become the industry leader in providing
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tors, financial institutions and mortgage compa-
nies.
Our company specializes in Real Estate Owned
(REO) and Forced Lender insurance coverage
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tutions and mortgage companies. Standard in-
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Bud Whisler
816-380-3441
Investment News Page 13

14. Marketing Trends
Important 2013 Marketing Trends
wаѕ used on just 8.2 million
and How to Capitalize on them mobile devices in this period,
іt shows a һυɡе level οf activi-
Duncan Wierman
ty bу tһеіr mobile audience.
WһіƖе tһе headline figures аrе hugely exciting, іt’s
On Tuesday last week, London hosted tһе Local і‫ח‬tеrеѕtі‫ח‬ɡ tο note tһаt ο‫ח‬Ɩу 10% οf Internet usage
Social Summit 2012, tһе fourth year tһіѕ ɡrеаt іѕ done on mobile,** ѕο a lot fewer pages/visits
(а ԁ‫ח‬growing) summit һаѕ bее ‫ח‬рυt ο.‫ח‬ аrе being consumed bу mobile users. AƖѕο, tһе
I want tο υѕе tһіѕ post tο highlight ѕοmе signifi- mοѕt рοрυƖаr рƖасе fοr using a smartphone іѕ in
cant trends discussed аt tһе Summit. I аƖѕο want the home. Sο, wһіƖе mobile іѕ undeniably a game
tο warn tһаt tһе rapid pace οf innovation mау in- changer , tһе behavior οf mobile users isn’t neces-
deed leave real estate investors, agents, business- sarily wһаt wе mіɡһt presume іt tο bе.
es struggling tο keep up. *Based ο ‫ח‬number οf users accessing Internet ο ‫ח‬a mobile
Key Trends device
**Based ο ‫ח‬number οf pages consumed ο ‫ח‬a mobile device
1. Mobile іѕ king
Tһе Rise οf ‘Local Discovery’
2. Rise οf ‘Local Discovery’ ‘Local Discovery’ іѕ а ‫ח‬evolution οf ‘Local Search.’
Data Purity & Ubiquity Tһе ԁіffеrе‫ח‬се being tһаt ‘Search’ іѕ broad and
Mobile Iѕ King requires tһе user tο invest time and effort і ‫ח‬
narrowing down and identifying tһе content tһеу
Tһіѕ topic һаѕ bее ‫ח‬done tο death, ѕο I’m ‫ח‬οt going
want.
tο dwell ο ‫ח‬іt tοο much. Wе ѕһουƖԁ һаνе аƖƖ read
tһе key facts bу now, bυt аѕ a qυісk refresher: ‘Discovery’ іѕ аbουt presenting users wіtһ pre-
filtered results based on tһеіr preferences, location
 Mobile Internet usage tο surpass desktop Inter- and οtһеr elements οf personalization. It means
net usage і‫4102 ח‬ less effort on tһе part οf user, more curation аnd
 50% οf smartphone users һаνе used a local editorial involvement bу site/application owners.
app It’s hard tο ԁο tһіѕ well ο ‫ח‬large sites wһісһ cover a
broad set οf verticals а ԁ‫ח‬locations (e.g.,
 Mobile advertising spend tο hit US$15 billion і ‫ח‬
Superpages, YP.com) bесаυѕе οf tһе need fοr de-
2015 wаѕ US $1 billion in 2014*
tailed understanding οf each industry οr market.
Anecdotally, a representative frοm Yelp tοƖԁ every- Fοr a consumer tο рυt tһеіr trust і ‫ח‬a service wһісһ
one tһаt approx 45% οf searches ο ‫ח‬Yelp аrе done pre-filters results, tһе consumer needs tο know
via tһеіr mobile apps. Given tһаt Yelp һаԁ 84 mil- tһаt site/app іѕ a specialist і ‫ח‬tһеіr field.
lion unique visitors і‫ח‬in Q3, 2012, wһіƖе tһеіr app
Page 14 MAREInet.com

15. Marketing Tips fοr real es- Google maps on уουr PC (all users. Sο, іf уουr information іѕ
tate investors : Keep a look differences aside). And many οf inaccurate οr (worse) absent
out fοr ‫ח‬еw sites and mobile tһе data aggregators wһісһ sup- frοm a site, tһе ‫ח‬уου wіƖƖ bе
apps wһісһ аrе dedicated tο ply business info tο websites missing out ο ‫ח‬more а ԁ‫ח‬more
уουr industry and city. Mаkе аƖѕο feed mobile sites а ԁ‫ח‬ potential customers.
sure уουr business іѕ correctly applications — wіtһ a few others Marketing Tips fοr real es-
listed ontһеm (see ‘Data Purity wһісһ уου mау ‫ח‬οt һаνе tate investors: Double уουr
& Ubiquity’ below) and engage considered (e.g., TomTom feeds
citation efforts ѕο tһаt уου сƖеа‫ח‬
wіtһ tһеѕе sites tο supply deals і‫ח‬tο Apple Maps, Nokia һаѕ іtѕ
incorrect listings and build out
and content wһісһ wіƖƖ convert οw ‫ח‬solution) ‫ח‬еw listings on data aggregators
tһеіr users і‫ח‬tο уουr customers. Wе аƖƖ appreciate tһе need tο and directories. Bе sure tο add
Data Purity & Ubiquity build ‘citations’ and ensure tһаt уου listings tο services
tһе data shared аbουt ουr busi- like TomTom & Nokia ѕο уου
WһіƖе tһе mobile Web and tһе
ness іѕ ассυrаtе and consistent ɡеt і‫ח‬tο tһеіr ecosystem а ԁ‫ח‬
desktop Web mау compete wіtһ
асrοѕѕ аѕ many directories data supply chain.
each οtһеr fοr a user’s time, tһе
and ԁ‫ח‬data aggregators аѕ
data wһісһ drives tһеm іѕ es- —-
possible.
sentially tһе same. Reprinted from Duncan
Well… tһіѕ task јυѕt ɡοt more
Yelp’s apps υѕе tһе same data- Wierman’s website DuncanWier-
іmрοrtа‫ח‬t. Mobile Internet users man.com—published originally
base аѕ yelp.com. Google maps
consume less pages and take
app uses tһе same database аѕ on November 25th.
action qυісkеr than PC Web
New & Renewing MEMBERS
Renewing New Members
 Christoph Becker: Overland, KS (since 2010)  Jim Brashears: Shawnee, KS
 Rebecca Flaig: Overland, KS
 Christina Kanas: Grandview, MO (since 2006)
 Thomas & Sylvia Gill: Kansas City, MO
 Brenda Linstra: Kansas City, MO (since 2009)  Bill Kennedy: Greenwood, MO
 Kyle Luetjen: Overland, KS
 Curt Linstra: Kansas City, MO (since 2009)  Tim McCleary: Shawnee, KS
 Brett & Brenda Richman: Kansas City, MO
 Matthew Ritvo: Oak Park, CA
 Austin Siemens: Olathe, KS
 Jeanann Spore: Overland, KS
Investment News Page 15

16. Note Sales:
What You Should know
DiAnna Jackman
Reprinted from Azreia.org Chicago Title
Due to the current lack of inventory, many in- are buying the
vestors have been thinking outside the box to ability to exer-
obtain investment property in the valley. One cise the rights
thing I have started to see more and more of granted to the
are note sale transactions. To most, note sales beneficiary to
seem like easy money but there are a lot of foreclose on the
twists and turns that you need to be careful of. loan. Keep in
I would highly recommend if you are new to mind though that in order to foreclose, the
working with these types of transactions that substituted trustee must be able to define the
you have an agent or attorney assist you. default, and the trustee must be able to sub-
stantiate the terms of the note and define the
As the purchaser of a non performing note, you
default. If you miss one item you have just
will need to collect a lot of information from
bought a piece of paper not worth much more
the seller of the note. These items would be
to you than the ink it is written on. You have to
things like the promissory note, the deed of
remember as the purchaser of a non perform-
trust, the assignment of beneficial interest, etc.
ing note you are stepping into the shoes of the
One of the things I have seen that will kill the
lender. Arizona revised statute 813-D reads
deal is when the buyer fails to obtain the finan-
that the trustor (borrower) or any person with
cial status of the account. Usually the lender
a recorded interest in the property shall have
will supply a payoff statement for you to pre-
the right to expect from the trustee the exact
sent to the trustee but the best thing is to
amount necessary to reinstate the trust deed,
have an account statement that discloses the
separately specifying costs, fees and any other
payment history of the account. When you are
amounts that are required to be paid as a con-
buying a non performing note, typically you
Page 16 MAREInet.com

17. dition to the reinstatement of sense and use your experts to has many experienced Escrow
the trust deed. You do not help do it right. As with any Officers for these types of
want to give any opportunity transaction, I do not recom- transactions and it is IM-
to the trustor to object to the mend you close a note sale PERITAVE that you work with
completion of the trustee sale. without title insurance. You someone that knows how to
You really do not want to fight would be buying a loan policy close this type of transac-
it out in court. If you get all instead of an owner’s policy tion. Title insurance will add
the information prior to close because you are considered a an additional (and in my
and use a trustee that knows lender not an owner. Title in- eyes), an invaluable layer of
what they are doing (you can surance will ensure you have protection from the unknown.
always ask your favorite title no liens that would cause you
Remember, Chicago Title is
company for a referral), note a headache in the foreclosure
here to help with anything
sales can be very lucrative. process and that you are not
you need and just a phone
inheriting anything that would
Remember as you approach call away!
survive the trustee sale like
new investment opportunities
city liens, etc. Chicago Title
keep your same business
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Investment News Page 17

18. Anti Redlining
Redlining is the practice of denying, or charging Did it cause this mess?
more for services such as banking, insurance, ac-
cess to healthcare, stores, jobs to residents of a
particular, often racially determined areas. The Lenders that were not under the quotes to meet the
term “redlining refers to the practice of marking a CRA lender requirements, like Countrywide also
map in red to show the areas where banks would jumped into the party too. Countrywide and other
not invest or lend. lenders that were regulated by HUD signed con-
tracts with the government supporting lending prac-
In 1977, the Community Reinvestment Act, an anti-
tices similar to the CRA rules.
redlining law that went into effect. It was updated
in 1995 and again in 2005. Since subprime mort- The report shows that Banks that did not meet the
gage crisis and the resulting recession, the question lending quotas were denied plans for merger and
has been, did the Community Reinvestment Act other penalties until they pledged to make more
(CRA) cause the whole mess. Democrats and many loans to help credit challenged and poor minorities.
media say no, but a recent study by the National Some banks, such as Washington Mutual say that
Bureau of Economic Research finds that by follow- they wanted to tighten lending standards, but were
ing the CRA banks got into riskier lending. afraid they would not be able to meet their CRA rat-
ing.
In short banks were required to serve all their cus-
tomers from all neighborhoods in the areas where They were out there making loans after loans with
they were in business, including the areas where ever increasing easy standards. The more loans
low and moderate income. Banks were required to they made available to credit challenged people, the
make affordable housing loans. Congress forced more buyers in the market buying houses and the
Fannie Mae and Freddie Mac to back more and higher the prices of homes kept going . . . . . and
more CRA grade loans and had HUD enforce quotas the bubble was growing, and the growing selling of
with fines if they were not met. these loans on wall street as very complicated secu-
rities. The securities in turn were pledged to bor-
They ran into a problem. With quality underwriting
row short term money by the big Wall Street Banks.
standards, they could not qualify the borrowers in
the low and moderate income areas at a rate that Then when these poorly underwritten loans started
would allow them to meet the quotas. So Fannie going bad in droves, the big banks could not renew
and Freddie went to work and came up with new the short term loans, could not get credit and that’s
loan products with much looser lending standards. when first banks Bear Stearns and Lehman failed.
In 2000, Fannie went to the lenders and told them
Here in Kansas City our urban cores were devastat-
to use the new mortgages with less than 3% down ed by the very loans that were being offered to help
and flexible underwriting so Fannie could buy up
the area. Banks using fancy loan products that had
the loans, meet their quotas and then package
almost no lending standards made loans to borrow-
them and sell them as Securities.
ers with very marginal credit. For example they
Page 18 MAREInet.com

19. would offer a loan with a low in- The real estate investor was pro- houses. Cutting out the majority
troductory rate that would be set vided just as out of whack loans. of the buyers in our urban core
meant that there were a lot fewer
to adjust up in 2 to 3 years, the Only here, the investor did have buyers for those foreclosures.
quote to the borrow being that in “good” credit, but no reportable Priced dropped . . . what would
2 to 3 years you will be earning income. So in came the liar loan have sold for $80,000 to
more money and have better where the investor who had good $100,000 at the high dropped
credit you will be able to re- credit could basically make up a down to $15,000 to $20,000 at
the low as the only one buying
finance out. Never mind that the income number with nothing to was the investor buyer who had
people getting these loans had substantiate it and get a loan. cash.
poor work history and a very So as the urban core was one of While having a law against not
lengthy history of bad credit and the lowest priced homes availa- offering loans period in a specific
no one was helping them im- ble, they were buying up houses area is good, having one with
prove their income or credit so and putting tenants in them for quotas that require banks to
they would be able to refinance cheap and pulling cash out of the make loans and lowering stand-
ards to be able to do so is really
in 2 to 3 years. When the 2 to 3 house with a liar loan cash out stupid. What would have helped
year time frame came, the loans refinance. The demand by the would have been those banks
started adjusting their rates up investor further raised the value and lenders saying, “Hey wait a
and the defaults started and of the homes. minute, let’s modify those loans
grew. in an effort to keep from a glut of
When the home owners started bad loans all at once” But no
All these newly made borrowers defaulting in the urban core, the way no how were they going to
banks choose to foreclose and do that back in 2008 and 2009.
that really could not afford to buy start tightening lending stand- Today, they would love to modify
a home and did not have the ards. Tightened standards meant the loan and keep in performing
credit to handle a home loan, in- no more loans for the home as long as they can . . . but hind
creased demand for our urban owners with no money down and sight is 20/20.
core. More demand made the questionable credit and the stat-
ed income loan. These two loans Learn more . . . Google
prices go up and up. Enter our were how the majority of the “Community Reinvestment Act”
fellow real estate investors. buyers in our urban core bought and “Risky Lending.”
Webinar!
Communications Expert &
Real Estate Investor
Bill Twyford
What to Say!
Property Management How to Say It!
With everyone offering you the next, best,
Section 8 Housing “make a million dollars while you sleep”
KC Metro Wide program – people have forgotten that this is
a people business and without the proper
COMMUNICATION SKILLS you are dead
in the water!
Jeff Woods
Register: MAREInet.com/Webinar
Broker Thursday
January 10th
www.MyPremierLeasing.com 8pm CST
No Charge
816-849500
Investment News Page 19

20. 2803 S Norwood $59,900 3 Bed Renovated & Ready Scott Tucker
Independence, MO 1 Bath for your Tenant Realty Resource
Crawl RealtyResourceKC.com
816-523-4400
2120 SE 3rd St $135,000 3 Bed Updated, 3 bedroom John Welchert
Lee’s Summit, MO 2 Bath 2 bath raised ranch in Platinum Realty
Lee's Summit. MLS# 816-522-0002
1807386
6149 Harvard $89,900 4 Bed Two Living Spaces, Scott Tucker
Raytown, MO 3 Bath Pre-Negotiated Short Realty Resource
Ranch Sale RealtyResourceKC.com
816-523-4400
438 S. Kentucky Ave. $22,000 3 Bed Great Cash Flow Chad
Independence, MO 2 bath Potential, raised HomeRemedyKC
Partial ranch, 20% ROI HomeRemedyKC.com
Bsmt 913-735-5598
803 S Brookside Av $20,000 2 bed Cash Cow Inde- Christoph Becker
Independence, MO 1 Bath pendence Whole- Blueprint Properties, Inc
Full sale Deal 50% un- BlueprintPropertySoltions.com
Bsmt der market value! (816) 419-1165
3301 Bales $10,000 3 Bed Rehabbed about a Christoph Becker
Kansas City, MO 1.5 Bath year ago. Va- Blueprint Properties, Inc
2 Sty cant.eeds TLC to BlueprintPropertySoltions.com
bring back to life. (816) 419-1165
3343 Bellefontaine Ave $34,500 3 bed Newly Rehabbed Christoph Becker
Kansas City, MO 1 bath Kansas City IN- Blueprint Properties, Inc
Full VESTMENT PROP- BlueprintPropertySoltions.com
Bsmt ERTY 20% NET ROI (816) 419-1165
3829 Benton Blvd, $39,500 3 Bed FRESH REHAB Christoph Becker
Kansas City, MO 1.5 Bath Prestigious BEN- Blueprint Properties, Inc
TON BLVD. 20% BlueprintPropertySoltions.com
NET ROI (816) 419-1165
7708 E 110th St $19,500 3 Bed Structurally Sound Christoph Becker
Kansas City, MO 2Bath Ruskin Fixer Upper Blueprint Properties, Inc
Ranch in need of Remod- BlueprintPropertySoltions.com
eling/Rehab TLC (816) 419-1165
Page 20 MAREInet.com

21. MAREI Member Properties
MAREInet.com/Properties
836 E 82nd St, $53,000 3 Bed South KC Super Hot Christoph Becker
Kansas City, MO 2.5 Bath Deal! 50% under Blueprint Properties, Inc
Full Bsmt market value E. 82nd BlueprintPropertySoltions.com
St. 3bd 2.5ba (816) 419-1165
3810 College Ave, $20,000 3 Bed 90% Rehabbed – Christoph Becker
Kansas City, MO 2 Bath 3brm, 2bath Whole- Blueprint Properties, Inc
sale Midtown Proper- BlueprintPropertySoltions.com
ty (816) 419-1165
5527 Euclid Ave, $29,500 3 Bed 55th & Euclid Com- Christoph Becker
Kansas City, MO 1 Bath pletely Rehabbed of- Blueprint Properties, Inc
fering a proposed BlueprintPropertySoltions.com
NET ROI of 23% (816) 419-1165
11325 Sycamore Tr, $39,000 3 Bed Ruskin Gem Turn- Christoph Becker
Kansas City, MO 1 Bath Key 19%NET ROI – Blueprint Properties, Inc
INVESTMENT PROP- BlueprintPropertySoltions.com
ERTY (816) 419-1165
703 S Cherry St, $24,000 3 Bed OLATHE Fixer Upper Christoph Becker
Olathe, KS 1 Bath+ Only $24K! -Priced Blueprint Properties, Inc
1 partial To Sell – Huge Profit BlueprintPropertySoltions.com
Potential (816) 419-1165
5839 Euclid Ave, $29,500 3 Bed 3bdrm KC Invest- Christoph Becker
Kansas City, MO 1 Bath ment Property Turn- Blueprint Properties, Inc
Key 19% NET ROI BlueprintPropertySoltions.com
(816) 419-1165
806 S Scott $75,000 4 Bed Great for first time Mike or Terea Moeller,
Belton, MO 2 Bath home buyer, Rehab- Laura & Donna Bullock
Finished ber or landlord to memoeller@att.net
bsmt hold, built in equity 816–509–3771
4021 Crossgate Ct $125,000 2 Bed Great Rental or Michelle Frye
Lawrence, KS 2 Bath home for your KU Reece & Nichols
Loft STudent 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.
Investment News Page 21

22. 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:
Wholesaling 101: Wholesaling 102:
Getting Started Marketing for Motivated Sellers
1. What is a Wholesale Deal? 1. What is a Motivated Seller
2. What are the best houses? 2. Where do you Find Motivated Sellers
3. How much to pay? 3. Marketing For Motivated Sellers
4. How do you get paid? 4. Websites
5. What happens at closing 5. Direct Mail Marketing
6. Who Should be on your Buyers List 6. Craigslist Advertising
7. How to Build a Buyers List - Fast 7. Screening Sellers
8. 8:30 to Noon 8. 1pm to 4:30
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
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
Scan & Email to info@MAREInet.com
___________________________________
Fax: 1-201-574-2969 (email first)
Signature
Call 913-815-0111 Online www.MAREInet.com/WorkShop

23. January!
Monthly Meetings
KC North: The Top 10 Ways to find Real Estate Deals
As we learned at the MAREI KC South
North Kansas City
meeting in December, the Real Estate
Community Center Industry has changed immensely in the
1999 Iron Street past year. Home Buyers and Investors
are paying cash more causing more de-
Kansas City, MO
mand for REO properties. Banks are
not foreclosing and selling the notes,
Times: lowering the number of REO proper-
ties. So with more demand and less
Thursday January 3rd: 6pm to 9pm supply, the price is going up. So finding
6:00 Registration & Networking non MLS deals is going to be even more important going for-
7:00 Deal a Minute ward than it has in the past.
7:15 Presentation Join us tonight to find out what’s working and what’s not
8:45 Final 15 Networking working when it comes to finding deals.
MAREInet.com/KCNorth
The Top 3 Mistakes that New Investors Make KC South:
The December meeting was packed
Career Education Systems
with so much information that we could
not fit it all into one meeting. So we Ward Parkway Shopping Center
asked Debra Felderhoff to come back in 8600 Ward Parkway
January and share her top 3 (or more) Kansas City, MO
mistakes new investors make. We
wanted to make sure she had time to
share her knowledge and answer your Times:
questions.
Tuesday Jan 8th: 6pm to 9pm
You may know Deb from past appear-
6:00 Registration & Networking
ances on guest panels at MAREI as well
as from her networking groups on Sat- 7:00 Haves & Wants
urday and Sunday. She is in the medi- 7:15 Presentation
cal field by day and later afternoons 8:45 Final 15 Networking
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

24. 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 3 4 5
SG: Weekly Wed. KC Northland on the SG: Connected Inves- SG: Blue Springs /
Networking 1st Thursday of the tors Independence Inv.
Month
6 7 8 9 10 11 12
SG: Lees Summit Deadline: Vendor KC Metro South on SG: Weekly Wed. NLP Webinar with Bill SG: Blue Springs /
Investors Network Tables for KC South the 2nd Tuesday of Networking Twyford Independence Inv.
Meeting the Month
13 14 15 16 17 18 19
SG: Lees Summit SG: Weekly Wed. Deadline: Newsletter SG: Blue Springs /
Investors Network Networking ads & articles for Feb Independence Inv.
20 21 22 23 24 25 26
SG: Lees Summit Omaha REIA SG: Weekly Wed. SG: Blue Springs /
Investors Network Networking Independence Inv.
Wholesaling 101
Wholesaling 102
27 28 29 30 31 1 2
SG: Lees Summit SG: Weekly Wed. SG: Connected Inves- SG: Blue Springs /
Investors Network Networking tors Independence Inv.
3 4 5 6 7 8 9
SG: Lees Summit Deadline: Vendor KC Northland on the SG: Blue Springs /
Investors Network 1st Thursday of the Independence Inv.
Tables for KC North
Month
Meeting