Newsletter for Mid-America Association of Real Estate Investors

1. u MEMBER BENEFIT
HOME DEPOT JUNE 2010
PAGE ............. 15
u CALL TO ACTION
LEGISLATIVE
ACTION COMMITTEE
PAGE .......... 10
Investment
u MONTHLY MEETING
J UNE 13
PAGE ............. 8
NEWSLETTER OF
MID-AMERICA ASSOCIATION OF
REAL ESTATE INVESTORS
news
For Real Estate Investors & Property Owners
Get Involved
New at this months meeting this is the time to share.
is our feature “Haves and
First I would prepare a flyer
Wants” . Here’s how it
or business card regarding
works. For all members
the have or need and have
who have a real estate in-
it on the “Deal Table”.
vesting “want” like they
need private funding, need Second prepare a 30 sec-
a recommendation on a ond pitch, what you have
contractor, or help in some or need and how to contact
way or a member who has a you.
“Have” like a house for sale,
Third at 7:00 get up in
an extra screened tenant
front of the room and give
buyer, or an over abun-
us your pitch.
dance of rehab supplies,
MARKET WATCH
What was the affect of the tax credit? Are prices going up or
down? Are we on our way to recovery? Check out our Mar-
ket Update on Page 18 for a brief over view of the local mar-
ket and the nation as a whole as well as a few predictions.
Tell us what you think, please commend on Linked In.

2. Member Profile
N ACHMAN
Attorney LAW
David Nachman Attorney for
Active Member of MAREI
Entrepreneurs
since 2004
Services for business &
individuals.
 Business organizations
also  Mergers & acquisitions
Don’t rely on drag  Strategic planning
unreliable
Investing as a Private Lender you  Real estate investments
for acquisition and rehabs with information down if & financing
investors who have a proven from others. the  Commercial
 Entertainment law
track record, David has focused market
 Employment law
mainly on residential single turns when you have too many
 Restrictive covenants
family homes because it is the properties and too much debt.
 Commercial litigation
best way to minimize risk. If a The investor needs several  Arbitration & mediation
problem should arise, these are business plans that anticipate  Not for profit
the easiest to sell or to develop changing markets, so that cash  Estate planning
other exit strategies. can be raised and debt paid off  Durable powers of at-
if necessary. torney
When asked about mistakes he
 Probate
sees new investors making, he The most important thing he
 Creditors' rights, fore-
comments that some novice stressed for new investors closures, bankruptcy
investors rely on information or starting out is that if you intend claims
statements of others that are to hold property and rent it,  Buy-sell agreements
unreliable. It’s essential to nothing is more important that  Business divorces
know your market and your thorough screening of your ten-  Confidential info & trade
secrets
property so that you know your ant.
 Distribution agreements
project is likely to be success- He left us with the concept that  Franchise agreements
ful. Every deal has two major when contracting for the pur-  Construction law
parts: the buy and the sell. chase, the rehab, the lease,  Zoning and title issues
The investor should have sev- and the sell, it’s essential that
eral exit strategies developed in all terms be addressed in your MAREI Member Special
case the first one does not written contracts. You want to FREE 30 Minute
work. anticipate likely problems and Consultation in July
With experienced investors, the clearly define who is bearing
the risk so there are no sur-
www.NachmanLaw.com
problem seems to be over lev-
T: 816.285.6029
eraging. Using OPM (other prises if something changes.
F: 816.756.1999
people’s money) is a great way
to maximize profits, but it can
Page 2 MAREInet.com

3. Contents
MAREI News
In This Issue
Member Profile 2
New Website Staff 5
Coming MAREI 2.0 6
Inside Secrets 8
We are still working out
Day on the Hill 10
the bugs, check it out,
Get Involved 12
tell us about broken
Membership Has it’s Privileges 14
links.
Insurance, a Necessary Evil 16
Go to Market Update 18
www.MAREInet.com Marketing Espionage 20
Calendar 22
Click on New
Investment Opportunities 24
Website
Vendor Night 2010 Tool Box 26
Features ‫ ׀‬June 2010
Insurance cov- Marketing Advertiser’s Directory
ering why we Espionage
from Jason Nachman Law 2 kcmoHome Buyer 21
need insurance
Hanson ex- Market Report 9 T.O.T.L. Renovations 21
and what it
plains why
16 20
does for us. we need Accurate Title 11 July meeting 23
business Rockstar Investor 11 Rentals.com 25
Provided by
cards and
Tim Norris our how to de- MAREI Profiles 13 Absolute Auction 27
National Insur- sign them Home Depot 15 Get Licensed 28
ance Provider for the best
results.
Investment News Page 2

4. Organization
MAREI
Notes
Contact Information
Mailing Address PO Box 8685, Prairie Village KS, 66208
Phone: 816-523-4400 x 222 Fax: 816-523-4440
Our Mission Statement
Mid-America Association of Real Estate Investors is dedicated to promoting ethical real estate investing
and to protect and promote the best interest of our membership through educational and networking
opportunities as well as community, legislative and public relations.
Legal Disclaimer
MAREI does not exist to renter and does not give legal, tax, economic or investment advice and dis-
claims 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 con-
cerning real estate and other investments.
Content Disclaimer
The views and opinions expressed by authors of articles contributed to this newsletter do not necessar-
ily reflect those of the association, the board of directors or the staff.
Advertise in the Investment News
Reach more than 1000 active real Rate Schedule
estate investors monthly! Size Non-Member Member Business Associate
Full Page $175 $140 $115
1/2 Page $145 $105 $85
1/4 Page $75 $65 $50
1/8 Page $55 $35 $25
A 10% discount is given on ads pre-paid for 6-12 months. Any changes to a pre-paid
ad will incur a minimum charge of $20. The deadline to submit ad copy is the 1st of
each month. All ads must be prepaid. Contact to verify ad format can be accepted.
PDF preferred. There is an additional charge of $25 to typeset a business card ad or
1/4 page ad layout, $60 for a 1/2 page or full page lay-out. Opportunities also exist for
advertising on www.MAREInet.com. Call 407-328-7773 for more information. Email
ad copy to info@MAREInet.com. Mail payment to MAREI, PO Box 8685, Prairie Vil-
lage, KS 66205 or request an online payment for to use credit or debit card.
Page 4 MAREInet.com

5. MAREI
Staff
Kim Tucker 816-523-4400 Don Tucker 816-523-4400
Director President
Kim@MAREInet.com Don@MAREInet.com
Robin Sage John Welchert Steve Burns
Meeting Ambassador Meeting Ambassador Audio Visual
RobinSage38@yahoo.com 816-268-3849 cashflowtreasures@gmail.com
Dan Goodwin 913-642-5218 Shelda Goodwin
Meeting Ambassador Meeting Ambassador
DanGoodwin@kw.com SheldaGoodwin@kw.com
Investment News Page 4

6. Director Notes
MAREI 2.0
Interactive
By now we all know about the internet and have a goal of having a Legislative Action
more than likely have heard the term “Web Committee and a Community Affairs Commit-
2.0”. “According to Wikipedia, the term “Web tee in place by the end of the year.
2.0” is commonly associated with web applica-
Third, at the Meeting level, want to facilitate
tions that facilitate interactive, information
more interaction and networking. Starting
sharing, interoperability, user-centered de-
this month we are adding a “Haves and
sign, and collaboration on the World Wide
Wants” session at 7:00 and we would like to
Web.”
add an extra hour in the future from 5:00 to
After attend the National REIA Convention in 6:00 for a 30 minute mini seminar taught by
June and finding out what is going on all over members or business associates on a specific
the nation in Real Estate Communities of all topic and a market review of a particular mar-
kinds, it seems we need to have a MAREI 2.0. ket in the city.
So what is a “MAREI 2.0”? Last, we want to see more interaction and
deals being done through the web site. We
Well I have to define is as a real estate inves-
are currently updating the web site to make
tor association that facilitates interactive
our property classifieds more prominent and
members, the sharing of information between
to make the site easier to find online for out of
members, members working together for the
area buyers looking to buy in Kansas City.
common good, with programs that are de-
And we are adding a Blog feature to the page
signed with the member in mind, and where
and would like to solicit articles on real estate
the members collaborate to improve the com-
and the metro from the members for the web
munity.
site.
That’s a long winded paragraph, but what is
Please watch the new blog or email me for
that going to mean to you the member.
more info.
First, at the leadership level, we want to get
more of you involved with leading different
types of groups. So if you have a few extra Kim Tucker
hours a month to devote to the real estate in-
Director
vestment community, consider becoming a
leader of a subgroup or a committee leader. MAREI
Second, at the community level, we need to
band together to combat all the bad press that
real estate investors receive as the result of
scammers and the economy. To that end
Page 6 MAREInet.com

7. Get Involved
Admission to Monthly Meeting . . .
Free (For Members)
Volunteering Monthly at the General meeting
Acquiring enough MAREI Bucks to pay for Membership
Volunteer in MAREI Office
Real Live Working Real Estate Investor Office
Sponsor a Sub Group
Your own Private Coaching Group
Teach a Class
Be the Expert in Your Field
Join a Committee
Give Back
For more information on becoming a volunteer,
Investment News Page 6

8. July Guest Speaker
Inside Secrets
Why some succeed faster
Did you . . . emails automatically from any web site out
. . . ever wonder why some investors seem to there.
always get the best deals, the best contractors,  Property Analyzer: Enter basic information
even the best loans? Why some get deals done and have access to sales and rental compa-
almost daily while others struggle to get a single rables to analyze your deal and look at what
deal closed? if scenarios to make sure you get the best
Leverage is a big part of every investors suc- deals.
cess, but when it comes time to really taking  Property Alerts: from other investors in
your investing to the next level, smart investors your area, across the country, and from REO
know its as much about the tools in your tool sellers. Be the first to find out about houses
belt as it is about what and who before they get listed or even prop-
you know! erties that never hit the MLS
Successful investors focus on Get Access to Jason’s  Network: It’s still about who
their three core dollar producing Coveted ―Black Book‖ . you know and having an easy to
tasks, which are finding money, .. use and understand networking
finding deals, and executing the platform to talk to other investors is
exit strategy. The rest needs to Inside information and a must.
be outsourced or automated contacts to win in the
 Feedback: Having the ability
with a real estate assistant that real estate investing
to vendors so others can see the
NEVER calls in sick. good, the bad, and the ugly about
So what are some must have all recommended contractors
tools? Hey guys, I have spent two years looking at all
 Property Marketing Engine: That submits the tools I leverage and my clients leverage to
your properties to all the top property for sale be top real estate investors in their markets.
web sites the realtors use plus investor data- These are the top tools we came up with that
bases nationwide. you need to have in your tool box along with a
 One-Click Craigslist Ads: Automatically good understanding of your local market and
Create and Update your ads on Craigslist financing programs for you and for your buyers.
with professional high end ads that includes Join me on at the MAREI meeting on Tuesday
tons of photos in under 60 seconds. July 13th to find out more about my private
 Buyer or Seller List Builder to collect Black Book and Financing in the Market today. I
(Continued on page 9)
Page 8 MAREInet.com

9. (Continued from page 8) Speaker Bio about
$400,000,000. in
The July 13th Monthly Meeting will
am driving in from St. Louis where residential and
one of the nation’s leading expert
I work in a market much like the $100,000,000 in
on Real Estate Investors Financ-
one in Kansas City. I have invited commercial.
ing.
some of my top team players from On the Investor
Kansas City to visit the MAREI With 15 years of lending experi-
side of things, he
meeting as well so you can see ence, Jason Palliser has spoke for
has had up to 34 properties at one
who I turn to when I do deals in the 4 national companies on Investing
time, all cash flow positive!
Kansas City Market. including Robert Kiyosaki and
Donald Trump University and Busi- He is has came to us highly rec-
I think Kim has changed a little bit
ness Mastery (the nation’s largest ommended by his home town
of the scheduling to bring you REIA Street in St Louis. He will be
mortgage convention).
some new an exciting ideas we joining us to talk about real estate
learned at the National REIA Con- Jason has trained over 5,000 stu-
investing financing and tools to
vention in Vegas in June. dents in the past 12 years on the
make your business take less time
loan officer side of things. He
See you there . . . and run smoother.
closes an average of 300 transac-
Jason Palliser tions a year that shakes out to
Sneak Peak . . .
Get Your FREE Copy of The Money Report NOW
 Do you have a hard time committing to real estate (and being able to quit your
job) because you have an agonizing time raising money for your investment
properties?
 Do you want your passive real estate income to surpass your job income —
but you don’t know how to get started with your first few investments (and lack
of cash is the main reason)?
 Would a step by step blueprint on how to raise money (and all the other nu-
ances) enable you to finally buy that first investment property?
 Are you worried about a low credit score? Whether you have an credit score of 400 or
800, you can find cash for all your real estate deals — you just need to learn how to do it!
Would you like to know how someone with a credit score of 400 and only $50 to invest could raise
more money faster than someone with an 800 credit score and $250,000 already lined up to invest?
It’s outlined in the FREE investment property money report!
Get your copy now click here (that’s why we do this digitally)
Or type in: http://reiactionplan.com/kc-money-report/?a_aid=TUCKER
Investment News Page 8

10. Legislative
Call to Action
Day on the Hill
National Real Estate Investors Association 3rd (i) is fully amortizing;
Annual Day on the Hill was officially deemed a (ii) is with respect to a sale for which the seller
success by President, Linda Muscarello, but our determines in good faith and documents that the
fight is not over! Our efforts to communicate buyer has a reasonable ability to repay the loan;
with legislative officials from across the country
were targeted and we were able to conduct (iii) has a fixed rate or an adjustable rate that is
nearly 30 meetings we had scheduled with con- adjustable after 5 or more years, subject to rea-
fidence and veteran-like poise. sonable annual and lifetime limitations on inter-
est rate increases; and
During the meetings with legislators and many
staffers, we discussed several pieces of legisla- (iv) meets any other criteria the Federal banking
tion including the Senate Finance Reform legis- agencies may prescribe.
lation S 3217—Restoring American Financial This says that if you want to sell more than one
Stability Act of 2010, which is currently being property with seller financing every three years
debated in the Senate Banking, Housing, and the law applies. That means you must undergo
urban Affairs Committee, under the direction of the same licensing, ongoing testing, bonding,
Senator Christopher Dodd (D-CT). This 1,400+ proof of net worth, and reporting required of
page legislation is one that seeks to increase mortgage loan originators.
regulatory oversight of many industries, includ- In order to propel the fight against this poten-
ing the mortgage industry. While there is no tially harmful legislation National REIA would
harmful language in the S 3217 to date, the ask that you contact your Congressman and
worry is that the same language from Anti- Senators, NOW, to inform them of your opposi-
Predatory lending legislation which has passed tion to the efforts to require private property
the house will find its way into the text. owners to secure and maintain the same licens-
HR-4173—Wall Street Reform and Consumer ing as mortgage loan originators who loan
Protection Act is the current bill in which that text money every day for a profession. It is impor-
can be found, in Title VII. The specific language tant to note the negative impact that these ef-
that has investors across the country worried is forts, if passed, will have on the same consum-
in Section 101(3)(e): ers that the Anit-Predatory Lending legislation is
(e) does not include, with respect to a residential supposed to be protecting.
mortgage loan, a person, estate, or trust that
provides mortgage financing for the sale of 1
property in any 36-month period, provided that
such loan-
Page 10 MAREInet.com

11. To find your congressman:
Visit http://www.house.gov
and put in your zip code in
the top left hand corner of
the screen.
To find your senators:
Visit http://senate.gov/
general/
contact_information/
senators_cfm.cfm
Watch the MAREI Blog for Updates . . .
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―When You Need Timely, PRIVATE LENDER
Top-Quality Service . . . ―
Locally Owned & Operated Private Money Lender
 Owners and Loan Policies We are a Direct Lender, not a Broker
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 Ownership Information  Terms from 30 Days to 1 Year
 Tax Information
 Rates from 12 to 16% Interest Only
 Buyer’s Closing Services
 Seller’s Closing Services  Points from 6 to 10 in Lieu of Equity
 Lender’s Closing Services  Appraisals Required
 Recording Services
 Funds Disbursement Services Draw Requests on Wed.
 1031 Exchange Services
Paid on Friday
 Special Requests
RockStarInvestor.com
www.AccurateTitleCo.com
P: 913-338-0100 Jeff Basler
F: 913-338-0107
913-221-9080
Investment News Page 10

12. Membership
Give Back
Get Involved
One of the best ways to grow your real estate tional 30 minutes to the meeting. Then we
business is to GET INVOLVED. From volun- would need experts to create the 30 minute
teering at events, serving on committees, to just presentation and teach it. Again by evaluating
giving back to the community your business will what you do in your chosen field and breaking it
grow. When you get involved, you meet more down to teach to others give you more knowl-
people, you learn new things, and you gain rec- edge and being an ―expert‖ gains you more rec-
ognition in the community, all resulting in either ognition and business.
more business or more profitable business or Do you know someone at MAREI who has a lot
both. of knowledge to share who would be a good
Here at MAREI we have a goal for the 2010 – trainer? Please email us their contact informa-
2011 year, to get more members involved and tion.
more interaction at all levels. We would like to Legislative / Government Affairs Committee:
share with you a few of our goals that are also We are under attack! Okay, you hear that often,
opportunities for you to become involved. but it’s truer now than ever. Our governments at
Quarterly Market Report: We would like to of- all levels need money and they will take the path
fer a 30 minute state of the market in the Kan- of least resistance. This means that people or
sas City Metro area once a quarter or divide up groups that are not represented, will be targeted
the metro into 3 areas and offer one a month at for increased fees and taxes. So while we do
the monthly meetings. Would need to add an not currently have funding to employee a full
extra 30 minutes to the meeting. time lobbyist, we need to form a committee to at
We need to locate 3 – 6 people who are experts least be a watch dog for local and state legisla-
tion and report back to the membership as a
or who could become the expert on the markets
whole. Allowing us to be proactive rather than
in Kansas City and be able to provide a detailed
reactive. Get involved here as a member and
report to the group. We are getting examples
from other REIA’s across the country. The Vol- have a great impact on your business.
unteers here would become much more knowl- Community Involvement: Will be designed to
edgeable about the market as a whole and by involved the associate, it’s members and the
being the ―expert‖ gain recognition and business broader real estate investing community in
in the community. worthwhile community programs or project that
Do you know someone who we be a good ex- delivers a valuable service to the community,
pert on the Market? Please email us their con- creates a ―sense of community‖ within MAREI,
tact information. provides value to our members that generate
and promotes MAREI’s positive vision and mis-
Educational Session: We would also like to sion. Get involved by being part of the commit-
offer up a 30 minute educational session pro- tee that selects what we become involved in and
vided by one of our expert investors or business give of your time or money to help support these
associates on a specific topic of interest. Can worthwhile charities. We are currently support-
be basic real estate concepts to advanced ex-
change techniques. Will need to add an addi- (Continued on page 13)
Page 12 MAREInet.com

13. Online Networking
ing: Harvesters Food Bank, Habi-
tat for Humanity, and Habitats Re-
store.
Subgroups: Group leaders do Update Your Profiles!!!
not have to be experts in the topic,
but have some general working
Use MAREInet.com to update
knowledge. More importantly they Your profile and ensure your
need to be organized and able to
secure a speaker from time to Information is correct.
time, locate and reserve space to
meet, communicate with our Mar-
keting team to get the word out, MAREI is a networking organization and part of the MAREI 2.0 plan is that
and control the meetings. we interact. One of the best ways to ensure interaction is to make sure
Could meet monthly, twice a (1) you know how to access member profiles (2) make sure that members
month, or quarterly. Meet at a lo- know WHO you are and HOW TO REACH YOU!
cal eating establishment for FREE 1. Log into the Member Area of www. MAREInet.com
space.
2. Update your information by going to ―My Info‖
Proposed Sub Groups
 Be sure your contact info is correct
 Women in Real Estate
 Wholesale Investors  Be sure you include what you do
 Rehab Investors  Be sure your profile is turned on at the top
 Short Sale Investors
 Lease to Own / Subject To 3. After updating your info, check off the boxes on the right side to dis-
 Private Funding play the contact info in your ―Member Profile‖ in our online member
 Note Buyers directory
 Self Directed IRA Investing 4. Make sure to hit the update button at the bottom of the screen
 REO Buyers
5. Get fancy
 Apartment Investors
 1031 Exchange Group  Add a Photo
 Landlords
 Preview your Profile
 Other Topics
 Groups based on Location in  Edit Your Bio
Metro our other cities
 Cash Flow Investors
 Advanced Investors Once your profile is updated, click on Profiles to find out more about
 Realtors who are Investors your fellow member! MAREI staff cannot provide any member’s
contact info to another member if it is not on your profile.
Investment News Page 12

14. Benefits
Membership
Has Privileges!
Besides getting awesome deals on train-  Office Max: From printing & binding,
ing programs on our webinars and at our to finishing & customizing - to reduc-
seminars, are you taking advantage of ing time & money with discounts from
everything MAREI has to offer you? As a 10% to 60%, Office Max ImPress of-
Member of MAREI you are also a member fers solutions for the full range of your
of the National Real Estate Investors As- needs.
sociation (MAREI). These and many more  Rentals.com: Save time and money
benefits are available to you for FREE! while shortening the duration of va-
 Home Depot: A biannual rebate of cancies between tenants with our mar-
2% of your net sales for your pur- keting and save time with our tools.
chases at The Home Depot and Home Members receive 20% discount off
Depot Tool Rental through an unparal- regular pricing. Number 1 in the
leled Material Purchase Rebate Incen- search engines.
tive Program. Many members across  Travel Discounts with avis, Budget,
the country have cashed checks for and Enterprise.
$1,000, $2,000 and $3,000.
 Real Estate Books by the nation’s larg-
 Sherwin-Williams: One of our most est provider of real estate training ma-
popular and most used benefit, Sher- terials—Dearborn, Nolo, and Kaplan.
win-Williams offers unbeatable pricing
To find out complete details on all these
to National REIA members. Enjoy
member discounts log into the member
deep discounts on paint, applicators,
area and look at the Benefits Section in
floor covering, paint sundries, wall
the Library. We also mail a complete
covering, spray equipment, and even
booklet with all discounts and instructions
window treatments! Your discount
on how to access when you renew or join
card is in your membership package.
or upon request. To request email
 FedEx: Receive significant inbound info@MAREInet.com and ask for the
and outbound discounts on small member benefits booklet.
package shipments through FedEx, as
well as copying and printing services
through FedEx Office.
Page 14 MAREInet.com

15. Volume Pricing How it Works
Volume Pricing at The Home Depot offers Pros the Lowest possi- Receiving Volume Pricing is a simple 3-
ble price on large orders, with additional savings available on pur- step process:
chases as low as $2,500*.
1. Compile and place an order at the Pro Desk for mer-
chandise totaling $2,500 or more
Volume Pricing does not require bulk purchases of the same
2. Your order is entered into the Volume Priding Program
item. Items across all departments – building supplies, plumb- to determine the discount.
ing, electrical, hardware, landscaping and others – can be 3. Your Volume Pricing quote is returned, with the discount
mixed together to reach the Volume Pricing minimum. automatically updated in each line item.
The Benefits How You Qualify
As a Pro, you automatically qualify for Volume Pricing from
The Volume Pricing team is able to determine the maximum
The Home Depot. There are no special requirements other
possible discount for your specific order. There are no restric- than meeting the minimum dollar amount.
tions regarding the type of merchandise that can be consid-
ered for a discount. By buying in volume, Pros receive a lower How Long it Takes
Most Volume Pricing Program orders are returned
price, giving you the competitive edge when bidding on a job.
immediately. Complex orders or specialty items can
require additional time to process, with the average
For additional time and cost savings, use Volume Pricing in time on orders that require extra research being only
conjunction with our direct ship program and have large orders 1 hour and 15 minutes.
delivered from our vendors direct to your job site.
Roger Holyfield
 (816) 510-9199
 Roger_L_Holyfield@HomeDepot.com
George Neal
All MAREI members can register through our

special link to receive a 2% rebate on all pur-
chases made at Home Depot. From a $5 item  George_R_Neal@HomeDepot.com
for a week end project to a $10,000 rehab:
kitchen, lights, appliances, Etc.
Investment News Page 14

16. Tim Norris
Insurance
The Necessary Evil . .
. .Or Is it? getting the lowest rate makes the most sense.
Unfortunately, when you really need it, this
As consumers, let alone real estate investors,
planning, or lack thereof, has hurt more con-
we tend to flinch whenever the insurance bill
sumers than it has ever helped.
arrives. Many times, for good reason: rates
are higher, coverages seem to diminish, and Too many of us, when building our real estate
for what? We have never even filed a claim! investing portfolios, consider our insurance
However, if we stop thinking of our insurance program an afterthought. Those of us who do
policies as just another drain on our cash- understand some of it's value, may not fully
flow, and more as a legitimate part of our comprehend it's place in our business plan/
business plan, that premium notice may be a model. I consistently receive calls and emails
little bit easier to open... from people who ask if I think an LLC, an S-
Corporation, a Land Trust, or any other entity
Most of us consider insurance as a
created to buy/own real estate is the best op-
“purchasing endeavor”. That is, we either buy
tion over another for them. These bevy of
it, or it is sold to us. Therein, in my opinion,
inquiries bolster my theory that the right ad-
is the foundational fault of the process. The
vice is still not promulgated in our industries
misconception is still prevalent: insurance is
(insurance AND real estate investing) to a
mysterious, difficult to understand, and, at
sufficient degree. Contrary to most opinion,
best we hope we can trust the person that is
insurance should not be the foundation of an
selling it to us. We buy it, because we “have
asset protection strategy. Think of your as-
to have it”:... As a licensed “agent” in over 40
sets, whether personal or business, as the
states, I cringe whenever I hear the word
items within your castle that you desire to
“quote”. Not that getting the best rate for
protect. The legal entities that you create,
appropriate coverage shouldn't be our goal,
with the advice and assistance of a legal pro-
but “quoting” tends to lead to, in many situa-
fessional, are the castle walls, the moat, and
tions, an inadequate transaction between
the watchtower you build to help protect
seller (the agent) and end-user (the policy-
them. What you choose to create is a sum-
holder). Inadequate, because the agenda for
mation of the needs and issues in which tax,
the agent may not fit the needs of the cus-
financial, and even estate planning must be
tomer (or, as I prefer, client). Please do not
taken into consideration. Acknowledge that
misconstrue this as a generalization that all
insurance is the archer in the watch tower, or
insurance agents are inherently indifferent, or
the knights with the boiling oil, that attempt
less than legitimate. The attitude that insur-
to keep nasty things like liability claims, fire,
ance should be treated as a commodity can
windstorms and other catastrophes at bay.
be blamed on the industry itself, who, as a
We all know insurance does not cover every-
knee-jerk reaction and effort to grow market
thing. The list of exclusions in most policies is
share, seem to not really understand the
more than a paragraph. Likewise, the archer
needs of the public. Their Contact us to
does not hit every target. That stated, the
save $XXX on your Coverage advertising
archer and knights (insurance) need to work
campaigns reinforce the public attitude that
insurance is a “one size fits all” industry and (Continued on page 17)
Page 16 MAREInet.com

17. (Continued from page 16) insuring unknown risk, such as With multiple vehicles at home,
liability, even with an asset- do we really need to pay for the
in conjunction the walls and the protection strategy in place, is “rental car coverage”? If our ve-
moats legal entities) to appropri- rarely a good idea. hicles are newer, many times
ately protect your “stuff”. Pro- “Roadside Assistance” is built in
Combining coverages---The
tecting your assets is more com- more opportunity you have to to our purchase or lease. If you
plex than simply finding the combine coverages on either the are still paying for “Towing” cov-
cheapest insurance rate. same policy, or with the same erage on your auto insurance
“That is a nice explanation, and carrier, usually the better rate policy, it's probably a waste of a
worth consideration, but how you get. If you have 6 rental few dollars. I realize that many
of these items are “nickels and
does that help me when my next properties on 6 different policies,
premium comes due”, you may not only are you potentially pay- dimes”. However, they are
yours, and you should spend
be thinking... Inadequate cover- ing a higher rate due to internal
age, whether relating to your policy fees, etc... on each, you them on things that you need.
property or liability, may be just may end up paying far more Consider re-allocating these pre-
mium dollars into higher liability
as damaging to your business than you think in the event of a
model as no coverage at all. catastrophe, such as a wind or limits, for instance.
There are many cost-saving hailstorm. On separate policies, Find an insurance “Advisor” that
mechanisms that you can em- you have separate deducti- understands what it is you need/
ploy, far short of short-changing bles...If multiple locations are desire to protect. Let them work
coverage. damaged, your deductible will with appropriate advice from all
These are but a few: apply per location. On a master, of your business team members
or “blanket”-type policy, where (attorney, CPA, and financial
Higher deductibles---Take a all properties are combined, the planner) to develop a fluid
glance at the deductible you deductible usually applies per adaptable model that makes
have on all your insurance poli- occurrence. Knowing this, and sense for you. As part of your
cies. Chances are, if you in- choosing a deductible that is ap- business plan, insurance can
crease each of them to the next propriate for your business, goes help you when you need it, but
higher incremental level, the a long way in helping you when not drain you when you do not.
premium savings generated will you really need it...In the recent
more than offset the difference. Article provided by Tim Norris
windstorms as a result of Hurri- with National Real Estate Insur-
A solid rule-of-thumb is to take cane Ike, I had one client that
the minimum claim you would ance Group. NREIG was built to
had over 150 properties dam-
file, double it, and use that as specifically address the unique
aged. She had a $5000 deducti- needs of the real estate inves-
your preferred deductible on any ble. Thank goodness she only tor. Tim Norris is an investor
policy. If you would never file a had to deal with it once, because
$1000 claim, then certainly don't and NaREIA, OREIA and Cincin-
her properties were combined on nati REIA member. We can be
carry a $500 deductible. Be- one policy. Otherwise, her 10
sides, as real estate investors, reached at 513-275-1350, 888-
years of building a large portfolio 741-8454, or . Check out
we typically don't pay “retail” for of properties may have been
supplies or labor when it comes www.nreinsurance.com for more
wasted...
to construction/rehab/repair...A information.
deductible is, by definition, “self- Dropping coverages you do
insurance”. I am an advocate of not need---A quick review of a
self-insuring that which you can policy will usually indicate how
control or is of a known amount much you are paying for unnec-
(a deductible, or even the vacant essary coverages. As real es-
property you got at a tax sale for tate investors, many of us have
been financially blessed, even in
$10,000). However, self-
the current economic turmoil.
Investment News Page 16

18. Trends
Market
Update
May 2010 Housing Trends “inventory” and dividing it by the 1”2
The Homebuyer Tax Credit seemed to im- month average of number of sales.” As a
pact the market with a rush to get con- rule of thumb a 5-6 month supply of
tracts signed by the April 30th deadline homes on the market is balanced, over 6
and now Lenders are struggling to get months is a buyer’s market and less than
them all closed by the June 30th deadline, 5 months is s sellers market. Combined
which resulted in an extension on closing supply of homes in the metro is at about
to September 30th. And according to 7.5 which is up slightly over the 7.4 in
Real Trends, surveys show declines in April. Existing homes is at 7.4 the same
sales in most markets in May. as last month and the new home supply
was 8.3 the same as April. The good
If we look at the Kansas City Market: news is that these numbers are lower
Average Sales Price of a new home in than 2009 and the existing and combined
May was $285,328 which is about the totals are nearing a bal-
same as a year ago. There were price in- anced market.
creases in all metro counties except John- Local data is from
son and Jackson. Existing home prices www.KCRAR.com where you
averaged $157.476 which was a 5% in- can read the complete report.
crease over last year. All counties except
Johonson saw an increase in the average
sale price for existing homes over May of 4 Myths from Stan Humphries
last year. Zillow.com’s chief economist
Home Sales saw sales of New homes of 1. The housing recession is over. Nope, he is
236 properties which is a 3% increase predicting we won’t hit bottom till 3rd qtr.
from 2009 and New home sales increased 2. After markets hit bottom, prices will rebound.
in May by 20% over April . Existing home He feels prices will remain flat for a long
sales were up 28% over last year and up time.
8% over last month. Mays combined total 3. The worst of the foreclosure mess is behind
sales were up 25% over last year. us. Again he disagrees and thinks it will be
Inventory saw a 39% decrease in new later in the year and not stabilize until late
homes from last year and existing is 9% 2011.
higher that last year and just 3 % higher 4. Tax credits saved the housing market. He
than April. Overall for May we have a 1 % thinks the people that bought would have
increase in total inventory for 2010 over bought anyway with the low interest rates,
2009. low prices and all the lending from FHA.
Supply of Homes in the Kansas City Re- So if we look at housing trends in the nation as
gion is determined by taking the (Continued on page 19)
Page 18 MAREInet.com

19. (Continued from page 18)
a whole we see that Unit sales
were up 19.8% in May 2010 over
Market Experts Wanted
2009. The average home price
was up 6.9% over last May and we
Are you an expert on the market in your area or
saw a continued 9 month trend of field of expertise? We are looking for experts on
stronger sales and raising prices
Residential, Apartments, and Commercial to
On the National Level we have
pulled information from Real contribute to the newsletter, the blog, and the
Trends June 2010 issue. Com-
plete digital issue is in the member
meeting. Be seen an expert in your Niche.
library. Be sure to log in and read.
Contact info@MAREInet.com
From Real Trends June 2010 Market Report
Investment News Page 18

20. Marketing
Espionage
Business Cards
Marketing Espionage . . How to Cre- House in 11 Days Or Less No Matter Your
ate the Ultimate Business Card (s) Current Financial Situation". And then I
would go on to say. "And if you happen to
How much thought do you really put into
own rental property, make sure to ask for
the creation of your business cards?
our FREE Special Report "The Five Little-
I'll admit when I first started in this busi- Known Ways to Eliminate Tenant Hassles
ness I didn't know diddly squat about Forever. Call 555-555-5555 to get both of
marketing and I created boring business these reports today with no-obligation
cards like everyone else. I had my com- whatsoever."
pany name, phone, address, email and
Right there you have a turnkey
website--that was it.
"professional" business card. All you have
Luckily I hung around some pretty smart to do is "cut and paste" the above infor-
fellows and quickly learned the correct mation and you will have a better and
way to use business cards. First, I recom- more unique card than 99% of real estate
mend having two different types of busi- investors.
ness cards. The first one is going to be a
Off the Wall Marketing Cards
very professional card that you can hand
Now, on to the second business card
out to sellers. This card is going to be the
you're going to have. This is where you
closest thing you have to a "boring" busi-
can get crazy and let your imagination
ness card but there are still a few ways
run wild. This card can be ugly and does-
you're going to make it stand out.
n't have to look professional at all. You
Professional Cards will want to make this card bright pink,
On the front of the card put some type of bright orange or bright yellow. You can
catchy slogan so that sellers know that use big lettering to let the world know
you're a real estate investor. Such as "we that "WE BUY HOUSES AND CHARGE NO
provide real estate solutions" or "we will FEES". Of course, on this card you will
buy your house in 30 days or less". And still want to offer free reports on the
then on the back of the card I would give back. And don't forget, these cards are
the sellers a reason to pick up the phone for leaving at the gas station, dry clean-
and call you. ers and tacking up on bulletin boards. Do
What reason should you give them? The anything you can to have these cards at-
most reliable reason there is: The Free tract attention.
Special Report. Here's what I would do: What I want you to do is pull out your
On the back have it say "Call 555-555- current business card(s). How does it
5555 today to get a FREE copy of our look? Does it offer any reason to give you
amazing Special Report "How To Sell Your a call? Does it suck? Or is it awesome and
(Continued on page 21)
Page 20 MAREInet.com

21. (Continued from page 20) ise yourself to hand out five able real estate investing busi-
business cards or tack up five ness.
you don't need to change a business cards---and you He is the author of The Covert
thing. If your card needs a can't come home until you Guide to Real Estate Wealth:
few changes go to vis- do. Getting 25 cards a week Confessions of a Former CIA
taprint.com and make up into other people's hands Officer. He is also the founder
some new cards. Business (100 per month) will put you of National Real Estate Inves-
cards don't cost much, so on the fast track to deals, tor Month.
don't be cheap about this. In money and less time spent
fact, business cards can be Jason’s specialty is his Market-
working for "THE MAN".
one of the best investments ing Espionage method which is
- Article reprinted from REI- the #1 way to attract a never
you make if you get a
Club.com ending stream of motivated
$10,000 deal off a 5 cent
sellers.
card. Author Bio
In addition to his investing
And to increase your chances Jason R. Han-
business, he does privacy and
of getting that deal, you son is a former
security consulting, where he
should play the "business CIA Officer who
helps people become
card game" with yourself. left the govern-
“invisible” and also better pro-
Every day, you should prom- ment to run his
tect their homes and families.
highly profit-
NEED TO FLIP A
PROPERTY FAST?
T.O.T.L. RENOVATIONS
PROPERTY LEADS WANTED Top of the Line Renovations for all your
rehab needs quickly, at a reasonable price.
NOTICE:
We specialize in:
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Carpentry & Roofing
Our company money is sitting idle for Plumbing and Electrical
Painting & Flooring
lack of houses. Looking for rehabs Drywall & Doors
Fences & Decks
to retail in Lee’s Summit, Blue Springs, Kitchens & Baths
and Johnson County. Licensed and Insured
Call Anthony @ 816-606-0266
www.kcmoHomeBuyer.com or Emily @ 816-252-0095
Totlrenovations@comcast.net
816-523-4400 x 223
Investment News Page 20

22. Calendar
Upcoming
Events
Webinar: Open Road (www.MAREIOpenRoad.com)
July Want a ton of real estate tools at your fingertips? Cash
buyers, seller match, blast your property to over 20 web
1
sites, need squeeze pages, and more. Join us for this July
1st Webinar Register: www.OnlineREIexpo.com
Lee’s Summit Investor Breakfast Lee’s Summit Investors
July Networking Group meets the 2nd Saturday of the month for
coffee, breakfast, and conversation at the Panera Bread on
10 Douglas in Lee’s Summit. Open to MAREI Members &
Guests.
Children & College Students Industry Partner Expo Table Deadline MAREI members
July Table
may reserve table space for the Expo & Networking time
Is your child interested in real from 6 to 7pm at the Monthly MAREI Meeting. Must be
12
Deadline
estate? Is ready to learn? reserved by July 12th. Reserve through the calendar at
Add your child aged 12 to 18 http://www.MAREInet.com
to your membership.
College Students with student MAREI Monthly Meeting MAREI meets for networking &
ID, we have internships July Monthly education on the 2nd Tuesday of the month from 6pm to 9
available. Work in the pm. At the Sylvester Powell Jr Community Center. No
13
Meeting Charge for Members, Guests $25 at the door, $15 if pre-
MAREI office for $10 in
registered.
MAREI bucks to use for
Membership & Workshops
Insurance Proper Protection MAREI’s own Tammy
Contact July Robb with the Robb Agency and her staff have as-
MAREI Office for more info. Seminar sembled some of the areas leading experts for this
info@MAREInet.com
30 afternoon seminar on Insurance. Also the topic of
Page 22 MAREInet.com

23. Monthly
Meeting
Sylvester Powell Jr
Community Center
6200 Martway, Mission KS
913-722-8200
Tuesday, July 13 5:45 Set Up / Registration
Doors open at 5:45
6:00 Industry Partner Expo
Members: FREE 6:00 Member Networking
Guest Fees: $25 at door . . 7:00 Haves & Wants (new
Pre-register online for $15 feature) Invite your friends
7:30 Presentation w/ Jason colleagues to visit the
If guests join with in two days of
Palliser Monthly Meeting for
the meeting, their guest fee will be
applied to the membership fee with See Page 8 & 9 with a Guest Pass
proof of payment.
9:00 Informal Q & A (available online at
Please call 816-523-4400 x 222.
9:00 New Member www.MAREInet.com).
Registration
Location
For each new member you
6200 Martway
refer, earn MAREI Bucks
Mission, KS 66210
which can be used towards
seminars, advertising,
North of Shawnee Mission Pkwy Park in North Lot
or membership fees.
South of Johnson Dr 2nd from the Building
East of Lamar Less Kids & Door Dings
Investment News Page 22

24. Properties
Investment
Opportunity
Address City Offered as Price Bed / Bath Contact Phone
Silver Lake Rd Topeka Turn Key $45,000 2 / 1 Home Ann Socolofsky 785-256-0619
Washburn Topeka Turn Key $80,000 Duplex Ann Socolofsky 785-256-0619
2912 Lockridge Kansas City, MO Rehab $29,000 6 Plex Candace Vanice 816-268-4722
6009 Cherry St Kansas City, MO Wholesale $55,000 1 + Home Maggie Sheehan propertyloca-
tors@yahoo.com
Truman Library Independence Wholesale $105,000 3 duplexes Bill Textor 913-206-0979
Market Your Properties
Do you have investment properties to market to the membership? Be sure to log into the
MAREI member area and post your properties on the classified page.
Be sure to include:
Address: Street & City, State
Type of sale: Wholesale, Listing, Turn Key
Price: Your asking price
Type of Property: Single, Duplex, Multi, Etc
Contact: Name & Phone Number
Web Link: For more info and more photos
You can include 1 photo, but make sure it is not too high quality a photo or it will have too
many pixels to load. New web site will have direct link on the main page to the properties
on the Classified section of the web site. You may also want to list on the message board
as well and post links on our social media pages.
Page 24 MAREInet.com

25. Discount Code in the Member Library in the Benefits Section
Investment News Page 24

26. Tool box
Vendor Night
Roger Holyfield
2010
Home Depot
Phone: 816-510-9199
Roger_L_Holyfield@HomeDepot.com
Ask me how to save $$
Jackie White & Tina Wagner BreAnn Stephenson JJ Pawlowski
Accurate Title Company Renovators Insurance P: 816-916-4593
913-338-0100 913-599-2020 x 64 www.EquityDevelopmentCorp.com
AccurateTitleCo.com RenovatorsInsurance.com Offering 100% financing up
Closing & Escrow Services Vacant & Rental Properties. to 70% of ARV.
J.J. Pawlowski Tammy Robb Pete Mendenhall
816-916-4593 Robb Insurance Agency MyStarSolution.com
Chartwell Realty 913-268-6060 336-442-5802
UncommonRealEstate.Com RobbAgency.com Lease Option Alternative
All Real Estate Investment Needs. Ask me how to protect your assets. Turn a No Into a Yes & Get Paid
Robert J Wise Attorney at Law Ann Wilkinson
Big Bobs
816-942-5925 Argentine Federal Savings
Cleo Johnson & Greg Mussellman
Ask me more about Landlord -
913-362-2627 913-402-1500 / ArgentineFed.com
Tenant Law & Eviction
BobWiseLaw.com www.BigBogsFlooring.com
Investor & Rehab Loans
Raul Rodriguez / Alpha Title Jeff Basler David Ono & Andy Ono
913-498-8999 913-221-9080 Ono Brothers Properties, LLC
AlphaTitleLLC.net RockstarInvestor.com 816-399-4994
I speak Spanish Private Rehab Loans InvestmentDealsKansasCity.com
Mike Quinn JD Asbell / HomeVestors Mike Nield / Miracle Method
Casa Bonita Roofing & Exteriors We offer Funding Surface Refinishing
P: 816-399-8101 913-980-1866 816-224-4355
CasaBonitaRoofing.com www.FinanceThisOnline.com www.MiracleMethod.com
Page 26 MAREInet.com

27. ABSOLUTE
REAL ESTATE AUCTION!
19 Bank Owned Homes & Investment Properties
EVERYTHING SELLING TO THE HIGH BIDDER
REGARDLESS OF PRICE! NO MINIMUM BIDS!
Held at Holiday Inn
45th & Main, Kansas City MO
August 7th, 10 AM
All properties open for viewing Saturday July 31st
Auction registration starts 8:30 AM Saturday August 7th
Free breakfast for all registered bidders!
TERMS:
 $5,000 down day of sale, cash or cashiers
check. Balance due in 30 days. Seller guar-
antees clear title.
 All properties sell at the Holiday Inn location.
 Title Commitments, photos and property in-
formation available at www.billfair.com.
 For questions call 800-887-6929
Investment News Page 26

28. For the Real Estate Investor . . . .
Your Real Estate License
 Access to Accurate Sales Values in MLS
 Browse & View Listings on Your Schedule
 Control the Purchase or Sale of Your Property
 Supplemental Income Stream
 License to Wholesale without Purchase Commitment
Take Control today
Call John Welchert today (816) 268-3849