Investment News MI D - A ME R I C A A S S O C I A T I O N O F R E A L E S T A T E I N V E S T O R S

May 5, 2011 NETWORKING : EDUCATION : COMMUNITY

PUT IT ALL TOGETHER

Join marei today

Utilize all the benefits

Attend the May meeting

Page 2 MAREInet.com

BUSINESS MEMBERS

ADDRESSING THE NEEDS OF

THE REAL ESTATE INVESTOR

marei

Real Estate Investors and Landlords depend on a well

rounded team of professionals. If you are building your

team or looking to make a trade, start your recruiting with

our Vendor Members and Business Associates. See a

complete list of suppliers and any discounts they may of-

fer to MAREI members by visiting, www.MAREInet.com.

Look in under the Toolbox tab under “Service Directory”.

Type Company Web Phone Contact

Attorney Wise / Anderson BobWiseLaw.com 816-942-5925 Bob Wise

Contractor Te-Tee Light MAREI Vendor 816-356-1870 George Bai

Lender Argentine Federal Savings ArgentineFed.com 913-402-1500 Ann Wilkinson

Realtor Realty Resource KCInvest.com 816-523-4400 Kim Tucker

Supplier Home Depot Home Depot 816-510-9199 Roger Holyfield

Supplier Canyon Stone Canyon-Stone.com 913-254-9301 Matt Puckett

Title Accurate Title Company AccurateTitleco.com 913-338-0100 Jackie White

Wholesale kcmoHomeBuyer kcmoHomebuyer.com 816-200-2198 Don Tucker

http://mareinet.com/marei-tool-box/business-associates

Investment News Page 3

Features ׀ May 2011

8

There are 15 good reasons

to buy and hold investment

property according JJ Paw-

lowski, Investor, Broker,

Lender and our guest

speaker in May.

12

The key to making money

is making offers, right. While that’s certainly part

of it, getting offers ac-cepted is what causes the

cash to flow. Transaction engineer Auggie Byllott

shares some secrets.

In This Issue

MAREI Business Members 2

MAREI Staff 5

Notes from Director 6

Purchase and Hold Real Estate 8

Get More Offers Accepted 12

Five Excuses 14

Boom or Bust 16

Realtor Nationwide Open House 18

Training Events 20

Government Affairs 22

Calendar 23

Market Trends 24

Repositioning for Big Profits 26

Squeeze Your Membership 28

Contents MAREI News

Page 4 MAREInet.com

MAREI Notes

Contact Information

PO Box 8685, Prairie Village KS, 66208

Phone: 913-815-0111 Fax: 816-523-4448

Our Mission Statement Mid-America Association of Real Estate Investors is dedicated to promoting ethical real estate in-

vesting and to protect and promote the best interest of our membership through educational and

networking opportunities as well as community, legislative and public relations.

Legal Disclaimer MAREI does not exist to render and does not give legal, tax, economic or investment advice and

disclaims all liability for the action or inaction taken or not as a result of communications from or to

its members, officers, directors, employees and contractors. Each individual should consult his/her

own counsel, accountant and other advisors as to legal, tax, economic, investment and related

matters concerning real estate and other investments.

Content Disclaimer The views and opinions expressed by authors of articles contributed to this newsletter do not neces-

sarily reflect those of the association, the board of directors or the staff.

Advertise in the Investment News

Rate Schedule

Size Non-Member Member Business Associate

Full Page $175 $140 $115

1/2 Page $145 $105 $85

1/4 Page $75 $65 $50

1/8 Page $55 $35 $25

A 10% discount is given on ads pre-paid for 6-12 months. Any changes to a pre-paid

ad will incur a minimum charge of $20. The deadline to submit ad copy is the 1st of

each month. All ads must be prepaid. Contact to verify ad format can be accepted.

PDF preferred. There is an additional charge of $25 to typeset a business card ad or

1/4 page ad layout, $60 for a 1/2 page or full page lay-out. Opportunities also exist for

advertising on www.MAREInet.com. Call 913-815-0111 for more information. Email

ad copy to info@MAREInet.com. Mail payment to MAREI, PO Box 8685, Prairie Vil-

lage, KS 66208 or request an online payment for to use credit or debit card.

Kim Tucker 816-523-4400

Director

Kim@MAREInet.com

Investment News Page 5

Don Tucker 816-523-4400

President

Don@MAREInet.com

Steve Burns

Audio Visual

cashflowtreasures@gmail.com

Dan Goodwin 913-642-5218

Meeting Ambassador

DanGoodwin@kw.com

Shelda Goodwin

Meeting Ambassador

SheldaGoodwin@kw.com

MAREI Staff

John Welchert

Meeting Ambassador

816-268-3849

Larry Prato

Commercial Subgroup

913-227-4693

Spencer Cullor

Commercial Subgroup

913-324-5900

But what does that do for you as an Investor and our

Industry as a whole? It brings you and your business

into a professional light with the general public. We

will be though of as people who improve the commu-

nity, help people obtain the dream of home owner-

ship , or provide quality rental housing for those who

cannot own. In many cases we find that we are still

thought of as grimy, miserly, money grubbing land-

lords who kick granny out in the cold after we steal her

house away from her with lies and trickery.

This industry designation will give you the ability to

show the general public otherwise. You can say, see I

am a PHP which means I have a code of ethics that I

follow and have taken extensive hours to training to

obtain my designation and I continually study to im-

prove myself with continuing education.

So remember when you attend an event and see that

we are handing out certificates of attendance at the

back of the room, that they are for the PHP program.

To participate in the program and obtain credit, you

must be a member of MAREI, you must preregister

and attend the live class in it’s entirety. And then at

the end of the event, collect your certificate, and re-

cord the class in your program folder. Once you ob-

tain your 60 hours of training including the 42 hours of

key core courses, then you will receive special recog-

nition at the MAREI meeting as well as at the National

REIA Mid-Year Event.

To find out more about the program, pick up a bro-

chure at the meeting or see the Education Tab on our

website.

Kim Tucker

Director of MAREI

For more info, go online to:

http://mareinet.com/education/php/

As we look forward to the rest of 2011 and starting 2012

we keep referring back to the brochure on the Profes-

sional Housing Provider Program. This is program we

have started as a part of our membership with National

REIA. We are working to put together meetings and

training events designed to help our Members who par-

ticipate in this program complete the 60 hours of training

including 42 hours of core courses.

As this is a fairly new program at MAREI and as we

have had so many brand new members come on board

in the past few months, I think it is important to review

what the Professional Housing Provider Program or

PHP Program is and how it can benefit our Industry.

As professionals who take the time to

adhere to a code of ethics, to learn

best practices, and be better at pro-

viding housing for sale or rent or even

storage units, mobile homes, or office

space for lease, we have never really

had a way to show the general public

that we have take the time and made

the effort to be better professionals.

Now, with the Professional Housing

Provider program, member profes-

sionals across the country have been

completing the training and adding these three little let-

ters after their name . . . . PHP . . . Or adding that I am a

Professional Housing Provider.

In the not to recent past, real estate agents banded to-

gether to do the same thing. They started a National

Association of Realtors, handed down specific code of

ethics you needed to follow to be able to call yourself a

Realtor and had further training so you earn specific

designations such as ABR, ABRM, or CCIM for exam-

ple. The PHP program is the same for real estate inves-

tors and maybe one day we will have the Investor name

with a capital “I” trademarked and only special real es-

tate investors will be able to call them selves Investors.

Director’s Notes

Photos from the Lead Safe Work Practices

Workshop on April 9th. Students pose in the

latest look: White Jump Suits and Blue La-

tex Gloves.

Page 8 MAREInet.com

Purchase and

HOLD Real Estate

Attend the May MAREI Monthly Meeting and join JJ Pawlowski local Real Estate Investor and Broker as he shares solutions to some of the more common prob-lems facing real estate investors today.

Location: Sylvester Powell Jr Community Center: 6200 Mart-

way in Mission Kansas

Date: Tuesday April 9th: Doors open at 6:00

Cost: Members FREE, Guests $25 at the Door or Pre-Register for $15. See more & Register online.

PHP: 1 Credit Management PHP, members only, must be pre-registered through the website to receive credit.

Don’t miss this event!

Monthly Meeting 1 PHP

CREDITS

Through personal real estate investing experience for the past 8 years, as well as professional experience as an investor's agent representing real estate investors, I've discovered at least 15 good reasons to buy and hold an investment property.

Reason #1 - Necessity

Rental property is a necessity in every community, every city, and every state, everyplace. There will al-ways be people who, for one reason or another, won’t purchase a home and will rent instead. From poor credit, to affordability, to simplicity, to income limita-tions, to not wanting to own anything, the reasons peo-ple have for wanting to rent go on and on.

Reason #2 - Security

The importance of providing for yourself and your fam-ily by having a safe and secure job was demonstrated to me from a very young age. This safe and secure job provides a steady income with benefits, a retirement plan, and so forth. Watching as my parents worked, and my own experience from my work history, I also realized the idea of having this so called safe and se-

cure job was actually a myth. A myth you may ask? Absolutely in my opinion! I believe it is a myth to think your job, or the jobs of your loved ones, are ever 100% secure and safe from the realisms of the corporate, credit, financial, professional, and busi-ness worlds. Life often proves it is rare to find any-thing guaranteed, besides taxes and death.

So how does the average American ever really get ahead of the game of life? Are you ever able to say to yourself, ―My financial future really is safe and se-cure!‖ Yes, you can. I believe based upon my experi-ence, real estate investing can afford you the oppor-tunity to move beyond the rut of the 40 hour work week. Maybe not tomorrow, or next month, or next year, but in the future, when it really matters, should you chose this path, allow yourself the time to pursue it, and then work for it. Do something today and make it happen!

Reason #3 – Passive Income

You have a safe and secure job where you work 5 days, 40 hours a week. This is called active income.

JJ Pawlowski Broker / Agent

Chartwell Realty Equity Development Corp

UncommonRealEstate.com 816-916-4593

Investment News Page 9

involved but the way the planning system is taught and just accepted by most.

Reason #5 - Cash flow

If you think back to the passive in-come example I talked about, you’ll remember the example of owning a rental property for the monthly pas-sive cash flow. Would you be able to use this monthly passive cash flow when you are retired and sup-posed to be enjoying your life?

Reason #6 - Time

Why does it matter you take the time now and plan for your future finan-cial security and success? Because of continuous improvements in health care and quality of life, the average life span for a normal adult continues to increase. If the life span in 2006 is expected to be in the 70s and 80s for males and for females, what will it increase to in 20, 30, 40, or even 50 years from now?

Reason #7 - Leverage

What is leverage? Leverage is the ability to do more with less. Real es-tate is one of the best forms of lever-age an average person can utilize to get off the sidelines as a spectator and start playing in the game of life. How does this work?

Take for example someone walking into a bank and asking for a loan. Let’s say the person wants to buy $100,000 worth of stamps. How much money will the bank tell the person they will need in order to do this? The answer is probably $100,000! Now, using the same ex-ample let’s say the same person wants to buy a house for $100,000. How much money will the person need to do this? The answer de-pends on the credit situation of the individual, but most of the time the money down will be between 3.5% - 20%, or $3,500 - $20,000. This is a lot less than the $100,000 the house is worth and the person owns the house! How is this so? This is so

(Continued on page 10)

speaker

agenda

The May 10th Monthly MAREI meeting will host JJ Pawlowski, local Kansas City area real es-tate Broker and Investor with years of professional experi-ence. He is join us to solve a few problems facing local inves-tors today:

Tenants Trashing Rentals Negative Cash Flow Listing on MLS Determining Scope of Work Dealing with Contractors Notice of Intent to Sell Lack of Lenders Lack of 10% Down Payment Investing with Emotion What is Exit Strategy Where Do I Start Too Much Information Where’s the Magic Bean

If you have had questions on any of these items join us as JJ provides the answers. If you have other questions, bring those along too!.

All attendees will find

out how to get a FREE

ebook: “The 10 Real Es-

tate Investing Hard Les-

sons Gurus and Agents

Will Never Tell You Up-

front and How You Can

Save Time, Headaches

and Money and Avoid

Making the Very Same

Mistakes.

You must show up and work if you want to get paid.

Passive income is money that comes to you time and time again without you showing up for it. Yes, you will have had to do something at some point to create passive in-come. Maybe you had to take 20 hours to learn about real estate in-vesting. Perhaps you had to put in another couple hours to paint the house. All in all you might have more than 50 hours in this home during your ownership years. Who cares? The bottom line is you are not going to work at it every day for 10, 20, 30, or even more years! This is the dif-ference between active income and passive income. Passive income shows up for you without you show-ing up for it!

Reason #4 - Retirement

Retirement, in my opinion, is not about depending on Social Security or your family for your financial sur-vival. Did you know as of 2006, ap-proximately 90-95% of people at re-tirement age were still dependent! This is an easy statistic you can find in about 1 minute of searching the internet. Most retirees are depend-ent on family members, children, their job, or the government for their financial support and survival. This is a very unfortunate fact. Work all your life only to be dependent in the end?

Retirement should not be about wor-rying every day about your 401k or other savings running out and thereby being forced to penny pinch every day. Take a look at how the financial advisors will tell you to plan. They want you to budget, save, plan, and not overspend so you have enough money to outlast your life. Die before you run out of money? Is this serious? You bet it is. Don’t get me wrong, I have nothing against financial advisors, and great ones are worth their weight in gold be-cause their guidance and knowledge can truly make you a lot of money over time. My point is not the people

Page 10 MAREInet.com

because this is leverage.

Reason #8 – Helping Other People

You can help other people by invest-ing in real estate? Yes, you can. There are several ways this works. One, you are providing safe and se-cure housing to someone who needs safe and secure housing. Secondly, by helping yourself become finan-cially free, you will in turn be able to donate money on a regular basis to all the wonderful and worthwhile charities in the world. Third, you are helping your community when you purchase or help others purchase investment property. Finally, be-cause you will be successful and financially free, you will be a health-ier, wealthier, and a wiser person who will be able to better provide mentally, physically, financially, and emotionally to your family, friends, co-workers, and everyone you come across in your life!

Reason #9 – Tax Advantages

I am not an accountant and I cer-tainly recommend you check with your own tax preparer on the various tax advantages you might see from your own real estate investing. Some of the benefits I've been able to utilize are appreciation, deprecia-tion, legally deductible expenses, and carry forward losses. Do I un-derstand what all of these are? No way! I appreciate my accountant.

Reason #10 - Education

You don’t have to have a formal education to become a real estate investor. You don’t need a college degree, you don’t need hours and hours of studying and taking tests, and you don’t need to be an ac-countant, Realtor, or any other type of trained or licensed professional. You don’t need to do any of the above in order to become a suc-cessful real estate investor. I know this to be fact based upon my real personal experience. Although I am a licensee now, I personally did real estate investing for years before get-ting a real estate license. One of the best ways to learn is to work side by

side with someone who has done exactly what you desire to accom-plish.

Reason #11 - Equity

What is equity? In the case of real estate, equity is the difference in the value of the home and the amount owed against the house.

Equity grows and grows when it is untouched over long periods of time. Someone else, your tenant, is help-ing you pay down your mortgage and this is how you become wealthy by investing long term in real estate. Don’t forget the fact that when you bought the house, you probably only put down 10 or 20%, so for the $25,000 or $50,000 you would have spend when looking at the example above, you would now have 7-14X or more this amount in equity! How about that for a great return on in-vestment?

Reason #12 – Permanence

Life is hectic. Luckily, real estate stays put in one place. With few ex-ceptions and Mother Nature, real estate doesn’t go anywhere. Your property will be there tomorrow, next week, and next year, 10 years from now and so forth. I once experi-enced the power of Mother Nature when she took one of my houses completely away in a tornado. Don’t mess with mother!

Reason #13 – Business Owner-

ship

It is said by many one of the easiest ways to become financially free in this wonderful country is to own your own business. Real estate investing is a business and you should treat it as such. Real estate gives the prop-erty owner many great tax advan-tages. Real estate investing gives the property owner the same tax ad-vantages plus the tax advantages of business ownership. You get to de-duct all your expenses associated with your business.

Reason #14 – Pay for Your Child’s

Education

Are you one of the many people (parents) who look at the average cost of a four year college and it makes you cringe and tremble? I just looked today online and found sev-eral sites reporting the average cost of a private college around $30,000 per year. The average cost of a pub-lic college seems to be about $12,000 per year. I believe these numbers include tuition, room, and board. How can the average person save enough money to pay for this?

So, as an example, look at buying a $100,000 piece of real estate when your child is 5 years old. How much is this real estate worth when he or she is 18 years old? Taking into ac-count a measly appreciation of only 2% per year, the value of the house in 13 years is $129,360.66. A better 4% appreciation would yield a value of $166,507.35! Bingo!

At this time, you can either sell the house (a taxable event) or refinance the house (a non-taxable event) and take out some equity to pay for school. By renting the house for 13 years, you have probably been able to pay the initial $100,000 mortgage down by tens of thousands of dol-lars, therefore even increasing the amount of money you have at your disposal.

Reason #15 - Fix what's broken

I just saw headlines that indicated about 13% of homes in the US are vacant. Many of these are foreclo-sures just sitting there for years. Be-coming a real estate investor or helping real estate investors buy va-cant homes will help fix our current real estate situation.

I admit many of the above reasons and benefits of owning investment property I've discussed could each be a blog post in and of themselves. Some might be too simplistic in my examples and explanations. Hope-fully though you've gotten some new ideas you can pass along to your clients or use in your own real estate investing models.

On Demand Training

30 Minute Segments

Top Investor Trainers

From the Comfort of

Your own Internet Connection

Get Started Today

Take a FREE Trial

With Andy Heller

REO’s & Lease Options

www.MAREIU.com

“Presentation is Everything!”

Canyon-Stone.com

550 E. 56 Highway, Suite B

Olathe, KS, 66061

Phone: (913) 254-9300

Fax: (913) 254-9301

info@canyon-stone.com

Investment News Page 23

More Profits

More Information . . .

More Confidence

Tenant Screening

Pre Employment Screening

Contractor Screening

Collection Services

www.AAAScreening.com

816-436-0085

Discounts for MAREI Members

Do the math. Your vacancy is costing you every day. Fill your vacancy faster and save money

with Rentals.com!

Discounts for MAREI Members:

Receive 20% off all Regular

Priced Advertising. Log into

Member’s Area, click on Member

Discounts and look for MAREI’s

Discount code!

Page 12 MAREInet.com

5. Make multiple offers, one all cash, one some cash now and some cash later, and no cash now and more later. Give your seller a choice and let them know you want them to accept the offer that best meets their needs.

6. Be prepared to help the seller understand your offers. You can remind them that you are running a business and that if you cannot make a profit you cannot stay n business (though that’s not their problem).

7. Let them know that you can close quickly (or on a schedule that meets their needs) and you are willing to buy their house ―as-is‖ and they won’t have to do any repairs.

8. Your lowest offer will be your all cash offer because with banks not lending, cash is ex-pensive to come by and therefore a greater discount is required.

9. Upon presenting your offer(s) sit quietly for a moment or two and allow them to process the information. If they ask questions, provide answers. If they don’t ask questions, you can ask them which offer do they find most ap-pealing? It will give you an insight into which type of offer might work.

10. Ask them what they plan to do if you don’t buy their house? If you don’t close on the spot, you can always remind them that they might want to consider you Plan B because everyone’s situation will change with time and circumstance.

Now you have bought the property, let’s Get more Cash Flow . . . .NOW!

(Continued on page 13)

The key to making money is making offers, right? While that’s certainly part of it, getting offers accepted is what causes the cash to flow! And flow it will if you follow a few simple steps.

1. Whenever possible deal directly with a property owner. Dealing with principals will make for better and more effective negotia-tions and provide a basis for creating a syn-ergistic solution. This will result in the other party having greater buy-in and increasing the probability they will see the transaction through to the end.

2. Be sure to learn their motivation…‖Why are they selling?‖ your offer(s) must solve this issue. To often investors fail to under-stand what the other party’s problem is and attempt to solve something the other party may not even consider an issue. People like to do business with someone they trust. In order to do this you need to build rapport and focus on their problem.

3. Whether you’re working with a real estate agent or direct with a home seller you need to be the one making the offer(s) and be pre-sent. This provides you an opportunity to ex-plain, clarify or modify your offer

4. Never present a single offer. If you’re a one-trick pony; you know what I mean 70% minus repairs (the MAO formula) or 65% mi-nus repairs (the wholesale MAO formula) you’ll have a tough time closing deals where the debt on the property exceeds your offer. This is not a one-size fits all business. Learn how to become a transaction engineer.

Accepted Get More Offers

Investment News Page 11

One of the greatest opportuni-ties we may ever see is staring us in the face. Mortgage rates have now been at historic lows for a while, the stock market has proven an unreliable wealth building vehicle for the average person. This has set the stage for building private lending rela-tionships that can finance your real estate deals. But wait…this is an article about cash flow.

Fortunately I don’t have to start over because many of these private lending candidates are also candidates for equity par-ticipation deals. Imagine, if you will, you find a great deal you can purchase for cash at a 50% – 60% loan to value. You give your investor/equity partner 60% of the deal in exchange for them coming up with the cash to buy the property.

They come into the deal with immediate equity and you have no debt! If there is no debt there are no mortgage payments. You simply collect rent and pay the taxes, insurance and main-tenance (unless you have your tenant take care of it). The re-maining cash flow is split be-tween you and the equity part-ner. Since you have used your skills and secured the deal you’ve already made a valuable contribution to the deal so you might also be able to get com-pensated for managing the property. You might take 8-10% off the top for management and then after paying the remaining expenses you split the remain-

ing cash with your equity part-ner based on whatever percent-ages you agreed to (in writing).

You and your equity partner will divide the benefits from the property on whatever basis you establish. 50/50, 60/40, 70/30. You’ll split the cash flow, the appreciation, the depreciation and the tax benefits. It’s all up to you and whatever you nego-tiate. If you get really good at this you can even give up your 10% management fee and out-source property management and focus your time on finding more deals and more equity partners. The beauty of this strategy is that when you have a vacancy you don’t have an outgoing mortgage payment.

This is just one of the many strategies I like to use to lower risk and increase returns. While I realize I’m giving up some of the upside, I’m trading it for a perfect risk reduction strategy. Besides, using this strategy I effectively own half a house free and clear because the eq-uity partner and I might be 50/50 in the deal. Let’s say I was a newbie

without much experience, I might be willing to give 80% of the deal the equity partner be-cause I’m trying to get started and don’t have cash of my own. Even if you give up 80% of your first five deals you’d effectively own the equivalent of one com-plete free and clear house! That’s powerful. As you develop your skills you’ll be able to com-mand higher percentages be-cause you’ll be a credible part-ner!

________________

Do you want to learn how to do a deal like this? If you’re like most investors today, you’re facing no money, no credit, and no idea where to start. That’s where the right instruction can come in. Take the time to visit the link below to join in my 7 module course from National REIA’s Online University. This course offers 3 Financing Cred-its for the Professional Housing Provider Program.

August Byllott

www.PACTProsperity.com

Auggie

Byllott, Transaction Engineer

Featured national trainer on the new

online training university from National

REIA. Visit to preview his course

Creative Financing, made up of 7

thirty minute modules. Total cost is

$39.00.

mareiU.com

I Don’t Know What to Do! This is the first excuse holding new investors back from taking action. It is a valid excuse

that is easily remedied. There is a wealth of information out there for FREE or almost free. Start with online articles and webinars then move up to REIA training. This is a great way to introduce yourself to all the ways you can participate in real estate investing. Once you find your niche, buy the course and fol-low the step by step instruc-tions.

I Need _______ (Insert Item Here) First! This one is just a way of put-

ting off taking action. New Investors spend hours, days, weeks finding a phone num-ber, designing logos, creating websites, and buying business cards. Yes, all items that you really need, but you can get everything you need for un-der $100. So what if it isn’t perfect, you can always change it next month as you refine your investing business.

I Don’t Have any Funding! Yes this is an excuse. Go out there and become involved in your local real estate investor

association or join one online if there is not one in your area. Then go call on signs, send out marketing for deals, go look at properties. When you find a deal that is truly a deal, partner with someone at the group. Honestly, the money will come when you find a true deal.

Page 14 MAREInet.com

I Can’t Find any Deals! Not sitting here wining you can’t. No matter what type of deal is your focus, you can look in

the local papers, online classifieds, for sale by owner sites. Have a particular niche? Create a list of potential motivated sellers and market to them through direct mail, online classifieds, and social media. The

more people you call or network with, the more postcards you send out, the

more deals you will have to evalu-ate. The more you evaluate, the sooner you find a deal.

I Don’t Have Time! Time is very valuable, but remember Rome

was not built in a day or by one person, and your Real Es-

tate Empire will not be either. You can choose to make time and

hire assistance or technology to take some of the time consuming tasks from your shoulders.

Sometimes we say ―I Don’t Have Time?‖ but what we really mean is ―There is too much to do and I Don’t know where to start.‖

This is where having training and support from the local REIA group can assist you. From the training you can outline all the steps and start tackling them one at a time and where ever possible put technology in place to do the task for you. You will find resources for technology and key team play-ers to help you with the tasks at the local REIA groups.

Five Excuses

Real Estate Investors Make

1

2

3

4

5

Investment News Page 13

MAREIandCC.info

2% Rebate, Get Registered.

Instructions in the member

area of MAREInet.com. Log

in, click on Member Library

and look for Home Depot in

the Benefits Section.

Be sure to use your discount

card for savings of up to 40%

off regular pricing in all stores

nationwide. This is all part of

a NATIONAL Contractor Ac-

count for awesome price sav-

ings! Card is in your mem-

bership package!

Who are “They” &

Why did they “DO IT?”

MAREI monitors Local

City & State Governments

As well as Nationally.

Be sure to register for our

newsletter for important

updates& calls to action.

FREE Gift! Get instant access to 3 great

FREE Bonuses. Valued at

$200: Must Know RE Terms

Glossary, Think & Grow Rich

Book , and Training eCourse.

FREETrialWebsite.info

Advanced Investors

Focus Group

Happy Hour in Waldo

Wednesday

March 20th

5:00 to 6:30

Topic

Monetizing Dead Leads

See housing stats online

www.KCRAR.com

Resources Tab

Heartland MLS Statistics

Page 16 MAREInet.com

Local Realtor Eric Deeter shares in his blog . . . At www.EricDeeter.com

“The Kansas City Business Journal reports that Kansas City metro real estate sales are down 13% compared to this time last year. And prices of existing homes declined an average of 5%. And there is no shortage of pundits on TV telling how we’re still going to see a mass of foreclosures.

But when you look back at last year you have to keep in mind that we had an artificial stimu-lus to the market: the “first time buyer tax credit”. This was the government’s attempt to goose the market. It worked, & most of the sales for the year happened in the first quar-ter.”

We have to keep in mind when we are looking at comparable sales for the past year that we had an artificially high volume of sales through April 30th, 2010. Sales that seem to virtually stop on April 30th, picked up slightly as we went into October and then dropped off during the cold of the holidays and winter.

Eric goes on to point out that . . .

―This year may play out to be slower than last year, but there are a lot of reasons to be opti-mistic about the future. Fortune magazine has an article this month featuring data from a com-pany named Metrostudy. They conduct real estate research in 19 states, covering about 65% of the US market. Metrostudy is forecast-ing a housing shortage looming in the near fu-ture. In a recent blog post they predict that the market is at the bottom and will begin working its way back up from here on out.”

“If you live in the Kansas City metro you still have a good opportunity to get a bargain on a good home. However, getting a home you love at a good price is not as easy as the me-dia will lead you to believe. Houses in good repair and well-staged are selling well.”

Take a look at the average suburban, owner occupied neighborhood and you will find in-vestors competing with home buyers to get a good deal on the bank owned homes, the av-erage homes that could use a bit of spruce up sitting on the market for days on end, and the all updated houses if about the same if not a bit higher than the average houses are moving in 30 to 60 days.

So if you are buying homes to resell be sure to do your homework. Know what the other houses in the area look like the ones that have been on the market for ever and the ones sell-ing in a month. Renovate accordingly. Also be sure you know the ins and outs of FHA fi-nancing and the special buyer incentive pro-grams that are currently available. Do you homework, know the numbers, and don’t get greedy and you will be on your way to Rehab Profits.

or Bust Is the Sky Falling or is

Kansas City Real Estate about to Boom?

Eric Deeter

Realtor / Investor

Realty Resource 115 E Gregory Blvd

Kansas City, MO 64114

816-523-4400 office

913-579-3354 direct

Eric@EricDeeter.com

www.EricDeeter.com

www.AccurateTitleCo.com 913-338-0100 phone

Title Services Provided for:

FSBO, Wholesale, & REO Transactions New Construction Closings Commercial Purchases and Refinance All Types of Loan Closings 1031 Exchanges FHA, VA, USDA, Conventional Loans,

and Hard Money Loan Closings Refinance & Reverse Mortgages Doc Prep, Prelim HUDS, Curing Issues Short Sale Closing & Assistance 100 Years of Combined Service!

accurate

Accurate Closings: Smooth, Timely, Professional.

Investment News Page 15

PRIVATE LENDER

Locally Owned & Operated Private Money Lender

We are a Direct Lender,

not a Broker

Rehab Loans up to 100% of Costs

Up to 65% of the ARV

Terms from 30 Days to 1 Year

Rates from 12 to 16% Interest

Points from 6 to 10

Appraisals Required

Draw Requests on Wed.

RockStarInvestor.com

Jeff Basler

913-221-9080

MAREI

Internships

Managing Websites

Booking Events

Selling Advertising

Graphic Design

Email

info@MAREInet.com

MORTGAGE MINUTE

Power Saver Program: HUD se-lects lenders to participate in new pilot program to help homeowners pay for energy improvements to their homes. FHA PowerSaver program to offer low-cost financing to credit-worthy borrowers.

Expiring Commercial Loans: The US SBA is offering their CDC/504 Program to help refi-nance Commercial Loans that need to be refinanced in the next 2 years and have been unable to find a refinancing sources.

Private Debt Market for Multi-family: Depending on how the reform of Government Sponsored Enterprise like Fannie & Freddie plays out, we could see a return to private sector loans of the past.

FHA Premiums Increasing: Mortgage insurance premiums for FHA loans have increased by 25 basis points for loans that were started or assigned on or after the 18th of April. This is the third in-crease in premiums in the last 12 months. These increases are be-ing put into place to restore the agency’s funds, which remain un-der a 2% reserve that is required.

Read more about all of these topics on the MAREI Blog for 05/03.

Page 18 MAREInet.com

Prepare your Property: There are 1000’s of

articles for tips on how to have your home all

renovated, yard all spruced up, home cleaned

professionally, and staged as your budget will al-

low. So start preparing your property now, so you

will be ready the first week end in June.

Prepare your Marketing Pieces: Review

your marketing pieces to see where you need to

order new: yard signs, directional pointers to di-

rect traffic, flyers for the flyer box, flyers for the

house, banners. It may take a few weeks for

newly ordered items to arrive, so order now.

During the weekend of June 4-5, 2011 REALTOR Association's from across the country will

be promoting a Nationwide Open House Weekend. REALTORS will be out in force holding open homes and talking about the benefits of homeownership. Here are 4 tips to make sure you open house is effective.

Prepare your Takeaway Items: Ideally, you

want to sell your property with the open house.

But it the event that this house is not the one the

viewers want, you want to have items that they

take away from the open house that teach them

about the benefits of home ownership, the home

buying process, how financing works, special

home buyer programs available in the area, and

even your special home buying programs, if for

example you offer lease to own.

Coordinate with your Neighbors: Coordi-

nate all the other homes for sale in the area so

that you are all open at the same time and you

are all coordinating the advertising. Have maps

of every open home available to direct traffic. The

more houses open, the more traffic you are going

to generate.

Get Creative: Create a theme to generate

traffic from one house to another. Example pick

up a playing card at each house for a winning

poker hand and at the end of the day, the best

hand wins a gas card.

Schedule Your Marketing: You can create a

lot of traffic with your signs and announcing the

open house, but to create the most traffic, take a

few more steps. Think about the advertising you

want to do online, in the neighborhood and on so-

cial media now so you know what steps to take

and when to take them. To this end, be sure to

check out the Open House Tool Box on the

MAREI website for more marketing ideas: http://

mareinet.com/marei-tool-box/openhouse/

Investment News Page 17

TE-TEE LIGHT

ELECTRICAL SERVICES

Keeping you ―In-Powered‖ with Superior Electrical Service!

FREE Estimates

FREE Consultations on Non-Emergency

24-hour Same Day Emergency Service

Licensed, Insured, Bonded

Serving Kansas & Missouri

George Z. Bai, Sr. - Owner

Office (816) 356-1870

Cell (816) 210-4710

TeTeeLight@gmail.com

For Investors By Investors

In this market, you want an agent on your

side that has the knowledge, the ability,

the EXPERIENCE,

and the resources to help you!

Realty Resource

115 E Gregory, KCMO

816-523-4400

www.RealtyResourceKC.com

“Flexible rehab options

and purchase financing for

qualified investors!

Ann Wilkinson Vice President

Mortgage Loan Production 12501 Antioch Rd

Overland Park, KS 66213 Ph: (913) 402-1500

Fax: (913) 402-0673 AnnW@ArgentineFed.com

www.ArgentineFed.com

kcmoHomeBuyer.com

Do you have a house you need to sell? A wholesale

or Assignment you need an end buyer for?

We are looking for homes to Rehab and Sell to First

Time Home Buyers. Please add us to your Buyer List.

Parameters:

After Repair Value $120,000 to $180,000

3-4 Bedroom, 1.5+ Bath

Basement & Garage Preferred

Like Post 1978, but will consider older

Cash Buyers, no Appraisals or Loan Qualification

Page 20 MAREInet.com

TRAINING

HUD Homes

It’s a Whole New REO World Date & Time

May 14th

9-10 pm

Location

4540 Main Kansas City, MO

PHP

0 PHP Informational Only

Cost

Members and Non-Members FREE Register Online

Crime FREE Housing

FREE Phase One 8 Hour Seminar

The Advanced Management Techniques Seminar is a FREE 8 hour seminar that is Phase One of the three phases of the Crime Free Multi Housing Program. Breakfast, lunch, and resource material are provided at no cost as well.

The seminars generally last from 8:00 AM to 5:00 PM. The agenda consists of 8 blocks of instruction.

Workshop taught by Mid-America Crime Free Housing

and affiliated Attorneys and Police Officers.

Date & Time

May 18th & 24th 1-4 pm

Location

See Calendar

2 Locations

PHP

2 Credit Landlord/Tenant 6 Management

Cost

Free—Registration details online

8 PHP

CREDITS

Make small chunks of cash by wholesaling properties!

Join us and learn:

What is a HUD Home? Where can you find out about HUD Houses? How do you get inside of HUD Home? What do all those codes on the HUD website mean? Do I need a Realtor or can I go it alone? How do I make an offer on a HUD Home? What changed in the last year?

Workshop offered by Realtor and Investor JJ Paw-

lowski with Chartwell Realty.

Screening

Leases

Evictions

Drug Identification

Meth Labs

Crime Prevention

Investment News Page 21

EVENTS

MAREI Training

Give Back

MAREI is looking to partner with local experts to create

workshops and trainings for our local members. Did

you know that one of the best ways to generate new

clients or people to bring you deals is to teach your spe-

cialty and build credibility. Your students become your

customers or the new investors who will bring you

deals.

Workshop taught by YOU from YOUR company shar-

ing your many YEARS of Experiences.

Date & Time

April 14th 1-4 pm

Location

115 E Gregory

Kansas City, MO

PHP

1 Credit Marketing 2 Credits Mgmt

Cost

Members $39 Non-Members $49 Register Online

May Webinars

Learning at Home

May 24: 6 Business Building Webinars

The Top 5 Tech Trends and Tools Reshaping the Real

Estate Industry

For Brokers, Managers & Marketing Directors, Shift: It’s

More than Just Social Media

Five Simple Steps to Time Management & Organization

How to Dominate Your Market with the Power of Video

How 7 Agents are Using the Power of Facebook

Get the Listing . . . Priced right w/ KC’s Brad Korn

Page 22 MAREInet.com

Qualified Residen-tial Mortgage

NAR has launched a website focused on the issues raised by the proposed rule defining a Qualified Residential Mortgage (QRM). The proposed rule is the first step in implementing a provision of the Dodd-Frank Act that requires lenders that securitize mortgage loans to re-tain 5% of the credit risk - unless the mortgage is a QRM or is otherwise exempt (for example, FHA mortgages are also exempt).

The proposed rule includes a very tight defini-tion of QRM: a 20% downpayment, low debt-to-income ratios, and other strict credit criteria. NAR opposes such a narrow definition due to concerns that QRM-eligible mortgages will be-come the standard and limit the ability of re-sponsible consumers who maintain good credit and seek safe loan products to qualify for affordable mortgages.

Learn more at NAR’s QRM website: http://www.realtor.org/topics/qrm

Government Affairs

Mortgage Interest Deduction

We have sent out several calls to action re-garding the possible discussion of the re-duction of the Mortgage Interest Deduction that we have all benefited from as home owners for many years. This issue has been referred to committee, and your rep-resentatives need to know your views on this when it comes time for them to voice your opinions through discussion on the issue and possible votes.

To find out more about this issue and to send a letter to your representatives, please visit www.RealtorActionCenter.com . . . You don’t have to be a Realtor to Take Action.

Water Department The Kansas City Water Department is strug-

gling to resolve issues that they are not quite sure are issues. In an effort to assist them identify problems, MAREI is collect-ing data from our members. We have a start at www.MAREInet.com/kcmo-water where we have assembled some specific issues. We need your help, you can com-ment to the post with your own issues or email them to info@MAREInet.com

Investor Issues There are many issue churning about in Gov-

ernment Halls across the country. Locally MAREI has partnered with two services to bring you the latest information about po-tential legislation:

State Net Capital Journal: Tracks Issue across the nation and is updated each week our state capitals are in session.

Powers Report: Tracks Issues in Jefferson

City alone. We update weekly as long as they are in session.

We are looking for a resource that tracks

Topeka only, if you know of one, please email us at info@MAREInet.com

To read the latest update visit www.MAREInet.com/government-affairs/legislation-tracking

Investment News Page 23

CA

LE

ND

AR

D

eta

ils, T

ime

s, L

oca

tions, C

ost &

Re

gis

tratio

n a

t ww

w.M

AR

EIn

et.c

om

May 7 Community Donation Day for Habitat for Humanities Re-

store

May 8 Holiday Mother’s Day

May 8 Networking Lee’s Summit Investor Breakfast

May 9 Deadline To Reserve Vendor Table for Tuesday’s

Meeting

May 10 Meeting

1 Credit PHP

Monthly Meeting: Top Problems of today’s

real estate investor JJ Pawlowski

May 11 Networking Commercial Investors Group

May 14 Community Donation Day for Habitat for Humanities Re-

store

May 18 Workshop

8 Credits PHP

Mid-America Crime Free, Free Housing

Phase One Seminar: 8 Hour Training

May 21 Community Donation Day for Habitat for Humanities Re-

store

May 23 Chicago FREE One Day Workshop: Larry Goins &

Alan Gowgill—Real Estate Day Trading

May 24 Workshop

8 Credits PHP

Mid-America Crime Free, Free Housing

Phase One Seminar: 8 Hour Training

May 24 Webinar Afternoon of Realtor.org Training Webinars

May 25 Community KCRAR Community Event: Shredding Party

May 25 Networking Commercial Investors Group

May 28 Community Donation Day for Habitat for Humanities Re-

store

June 4 Community Donation Day for Habitat for Humanities Re-

store

June 7 Webinar NAR: How to become a marketing expert

and have your phone ring off the hook

June 8 Networking Commercial Investors Group

June 9 Webinar Understanding & Applying the Uniform Ap-

praisal Dataset

Page 24 MAREInet.com

Market Trends

Kansas City Market Data For a good overview of market activity, every month on about the 15th market stats recapping the prior month's activity are posted on www.kcrar.com. Links to many prior months' reports are also posted for reference and comparisons. Go online for the full report, a brief summary of which (from the most-recently posted stats for March 2011) shows:

An average combined (new and existing) sales price of

$149,984, 5% lower than March 2010.

Combined home sales of 1,884, 47% higher than the previ-

ous month.

Combined home inventory of 16,808, virtually no change

from March 2010. Supply of homes on the market (calculated by dividing inventory

by the 12-month average of the number of sales) was 8.9

months for combined new and existing. This represents a mar-

ket favoring buyers since the supply exceeds 6 months.

Homeownership Affordability Trulia reveals trend towards homeownership where affordability

to buy versus rents extends to almost four in five major US cit-

ies. This is a study of the 50 largest cities to find if it is more

favorable to rent or to buy. The Rent V Buy Index last quarter

revealed that in 72% of the largest 50 cities, it was more advan-

tageous to buy that rent a two bedroom home. Because of ris-

ing rents, falling home prices and low mortgage rates, we find

that only 3 cities that renting is more favorable. Those three

cities New York, Fort Worth and Kansas City.

Some things to consider ―With home prices nearing a dou-

ble dip and more foreclosures expected to flood the hous-

ing market over the next two years, the decision between

renting and buying a home across most of the country

has clearly moved in favor of buying,‖ says Ken Shuman,

Head of Communications at Trulia. ―As we head into the

summer buying season, those looking to buy a home

should be encouraged by improvements in the market

and feel optimistic about their chances of finding an af-

fordable home, much more so than in previous years.‖

Renters Lack Affordable Options Harvard study says today’s renters lack affordable housing op-

tions. In the past, people who were struggling to pay rent and

utilities were measured by the 30 percent rule. If you spent

more than 30 percent of your income on housing costs, you

were considered to have heavy housing cost burdens. The

study shows that now 1 in 4 are spending more than 50%.

We are also seeing that apartment owners are seeing growth in

rentals around the country and we expect the strain on rentals

to grow as new renters both people growing up and moving out

as well as people being foreclosed on come into the market and

very little new supply being built. And there is further strain with

shrinking supply in housing stock. More demand, causing

higher rental prices. Read the full article on MultifamilyExecu-

tive.com

Inflation Watch Inflation is very important to the Real Estate community be-

cause it ultimately affects mortgage rates and the ability of

home buyers to purchase a home. The report from the econo-

mists at the National Association of Realtors tells us that if the

fed lowers interest rates to stimulate the economy, we could

see more buyers, but we can also see raising prices. We see

this in the media quite often of late. Only now that as we are

seeing inflation they are talking about raising interest rates to

curb the inflation. Prices are inching up in consumer prices

quite a bit in energy prices, computers, household furnishings,

and more. So economist with NAR and in the media expect the

fed to increase interest rates, reducing the number of buyers.

To read the full report, visit Realtor.org.

―Aspiring homeowners should focus their energies on locking down a low mortgage rate sooner than later. While home prices are unlikely to return to pre-crash lev-els, today’s low interest rates will likely rise thanks to in-flation and spikes in the Fed rates,‖ notes Shuman. ―As the government wind downs its role in the mortgage mar-kets higher mortgage interest rates will be inevitable.‖

Read the full report on Trulila.com

Investment News Page 25

Offered As Address City Price Bed/

Bath

Contact Phone

Turn Key 5 Single Family Kansas City, MO $250,000 Assort Kim Tucker RR 816-523-4400

Turn Key 5 Single Family Kansas City, MO $175,000 Assort Kim Tucker RR 816-523-4400

Turn Key 5 Single Family Kansas City, MO $198,500 Assort Kim Tucker RR 816-523-4400

Fixer 3914 Norton Kansas City, MO $10,000 2 / 1 Christoph Becker 816-419-1165

Fixer 2315 E 60th St Kansas City, MO $21,500 4 / 1 Christoph Becker 816-419-1165

Turn Key 5632 Highland Kansas City, MO $34,750 3/1 Anne Sieg KW 816-918-0840

Short Sale 4630 Mersington Kansas City, MO 5/1 Eric Deeter RR 913-579-3354

Short Sale 608 W 101st Tr Kansas City, MO $78,000 4/2 Eric Deeter RR 913-579-3354

Rehabbed 3305 Bellefontaine Kansas City, MO $32,000 3/2 Christoph Becker 816-419-1165

Turn Key 5 Single Family Kansas City $190,000 Assorted Kim Tucker RR 816-523-4400

Seller Fin 3 Single Family Kansas City, MO $150,000 Assorted Kim tucker RR 816-523-4400

Rental 5404 Euclid Kansas City, MO $22,500 3/1 Christoph Becker 816-419-1165

Rehab 8129 Wayne Kansas City, MO $54,500 3 / 2 Eric Deeter RR 913-579-3354

Rehab 2315 E 60th St Kansas City, MO $24,500 4 / 2 Christoph Becker 816-419-1165

Fixer 4418 Forest Kansas City, MO $19,500 4 / 2 Christoph Becker 816-419-1165

Fixer Grandview, MO $25,000 4 / 2 Frank Janssen 816-359-3337

Rental 4210 E 54th St Kansas City, MO $42,000 4 / 2 Frank Janssen 816-359-3337

Fixer 5617 Lydia Kansas City, MO $20,000 3 / 1 Christoph Becker 816-419-1165

Leased 2128 E 83rd Kansas City, MO $39,000 4 / 2 Frank Janssen 816-359-3337

RTO 1917 SE Picadilly Blue Springs, MO $118,000 3 / 2.5 Frank Janssen 816-359-3337

Fixer 2508 Chelsea Kansas City, MO $12,900 3 / 2 Eric Deeter RR 913-579-3354

Fixer 5434 E 27th Tr Kansas City, MO $10,850 2 / 1 Eric Deeter RR 913-579-3354

Turn Key 10 Single Family Kansas City $344,000 Assort Eric Deeter RR 913-579-3354

See all properties on the classified page on MAREInet.com

Page 26 MAREInet.com

Repositioning

Structural: This option is usually

more involved. When doing a struc-tural repositioning it involves some

of the following: changing mechani-cal systems, adding decks, chang-ing the layout, or constructing new

amenities such as pools or exercise rooms to capture additional reve-

nue. This is typically much more involved and can have a dramatic impact on the property, but usually

has the highest cost and is the most disruptive to your current ten-

ant base.

Operational: This option consists of changing the way the property op-

erates. Typically it can include changing management companies

or managers, removing troubling tenants, bringing in a different type

of tenant with more disposable in-come, increasing occupancy, or adding additional revenue opportu-

nities such as laundry rentals, car-

ports, etc.

Why reposition? – Highest and Best Use

Increase Income: A higher quality

property attracts a tenant with more dis-posable income who may be willing to pay

more to live there, allowing you to in-crease rents or realize additional income streams such as renting carports, or laun-

dry machines, resulting in more cash flow.

Control Expenses: By replacing old

energy inefficient HVAC systems, or add-

(Continued on page 27)

If you would like to justify and increase in rents or increase the value of your multi-family property, one of the main ways this

is done is through a process called "Repositioning." Most people are familiar

with rehabbing a property, but reposition-ings can be much more than just a physi-

cal change to your property.

Three ways you can reposition your multi-family property:

Cosmetic: Cosmetic changes consist

of changing the aspects of the property to increase its appeal such as landscaping, restriping and re-

surfacing parking lots, painting, adding signage, or changing interior

or exterior finishes. It is the easiest and least involved strategy and it can have a dramatic impact on how

your tenants feel when they arrive at your property and decide how

much they are willing to pay each

month to live there.

For BIG Profits

Member Expert: Spencer Cullor

Director of Commercial Acquisi-

tions with Cullor Properties.

913.324.5900

spencer@cullor.com

Look for Spencer on Facebook

and Twitter.

Investment News Page 27

Lead Lists

Pre-Notice of Default

Pre-Foreclosure

Affluent Consumer

Free & Clear Homeowner

Absentee Owners

Newly Listed Homes

New Business leads

Custom Consumer Leads

EZ Data Group Leads

Track Foreclosures

Complete Details

Including Addresses

Jackson, Clay, Platte

EZ Data Group Foreclosure

ing a utility bill-back program

or individual utility meters, you can decrease your ex-

penses as you pass more of them over to the tenant, in-creasing revenue and lowering

expenses.

Force Appreciation: By

increasing income and con-trolling expenses you can

force appreciation and in-crease the value of your prop-erty dramatically. Remember,

just a $10 per month increase in income or decrease in ex-

penses across 100 units can increase your income by $1000 a month and at a 10%

Capitalization Rate (CAP Rate) increase the value of your

property by over $120K.

Ease of Management: When word gets out that a property

is being improved and has great management, it attracts

more reliable tenants that will, in return, take better care of their individual apartments.

This will result in increased occupancy, increased rents,

lower turnover costs, de-creased rent delinquency, and fewer service requests. Not

only does this save you money, it also makes the

property easier to manage

and more profitable to own.

Why isn't everyone doing it?

You might ask yourself, if re-

positioning a property is so great, why isn't everyone do-

ing it? The simple answer is that not all properties will benefit equally from reposi-

tioning. You need to under-stand the market, know your

competition, do your research to figure out if a repositioning is the right strategy for you,

and have a plan.

Potential pitfalls to avoid:

Over-improving the

property: You need to have a good understanding of who

your tenant is. If you are in C-Class area with mostly service

employees and you have re-habbed your apartments to be fit for celebrity clientele, your

tenants will love you, but you won't be able to meet your

rental income goals.

Thinking you can always

change the class of a prop-erty: If you have a 1960's property in a C-Class

neighborhood, almost no amount of upgrades is going

to change it into a B-Class

property.

Making unrealistic as-

sumptions on how much you can raise rents: You

must understand what your competition is offering and have solid data backing up

your rental rates. What are similar properties renting for?

Return on investment needs

to be a major driver.

Underestimating the cost of the repositioning: Re-

positionings take time and

money. A minor repositioning can range between $1,000

and $3,000 per unit. More ex-tensive rehabs can cost up-wards of $10,000 per unit.

Make sure you have the money to finish the job prop-

erly once you get started. There is nothing worse than cutting corners because you

ran out of money halfway

through.

The recipe for repositioning success

Repositioning can be one of the fastest ways to increase

rents on your property, lower expenses, and lower the man-

agement burdens, resulting in an increased net operating in-come and less management

headaches. You can com-pletely rehab the property, or

just change some paint colors, or management. Whichever option you chose, you need to

have a well thought out plan backed by research and realis-

tic expectations. With a clear plan in place, repositionings can be the fastest way to in-

crease your cash flow and add significant value to your prop-

erty.

Besides all the awesome networking and exceptional speakers at the

monthly meetings, are you taking advantage of everything MAREI has

to offer you? As a member of MAREI you have a ton of benefits avail-

able, all as a part of your annual membership dues:

Message Board: Did you know that when you post a message on

the message board it goes out to all members who have valid

email addresses?

Classifieds: We post every property that is in our classifieds at

least once in the monthly newsletter and blast it out to the email

database at least once.

Home Depot: A biannual rebate of 2% on your net purchases at

the Home Depot and the Home Depot Tool Rental. We have seen

several $300 checks here in Kansas City and one in Florida for

$3,000 with this program for 6 months of purchases.

Sherwin-Williams: One of the most popular and easiest used.

Take your discount card for up to 40% off on paint, paint supplies,

& equipment, and where available floor coverings, and window

treatments. Card included in your membership package.

FedEx Office: Up to 22% off shipping and up to 20% off on copy-

ing and printing services at any Fed Ex Office.

Office Max: From printing & binding, to finishing & customization.

Plus all your office supply needs. Offering discounts of up to 60%.

Rentals.com: Market your rental property online, for fewer vacan-

cies on a top ranked website. Offering 20% discounts off regular

price.

AAA Screening: Get exceptional screening service for all your

tenants, contractors, and employees. Discounts on registration

and all searches.

To access discounts, obtain codes, or to register

as needed, see instructions on the Member Dis-

counts Page in the Member Area!

Squeeze Your Membership!