U

MEMBER DISCOUNTS

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u

EFFECTIVE PITCH

PAGE .......... 8

u MONTHLY MEETING

NOVEMBER 9

PAGE ............. 2 Investment news NEWSLETTER OF

MID-AMERICA ASSOCIAT ION OF

REAL ESTATE INVESTORS

For Real Estate Investors & Property Owners

PRESCREENING CONTRACTORS

Many real estate investors shy away from the ugly house business because they fear hiring contractors. We have all heard the horror stories of rehabbers who loose their shirt because a contractor took them to the cleaners.

With our article on Page 10 from the Queen of Rehab, Robyn Thompson we find out 8 simple things we need to keep in mind when we are out hiring a con-tractor.

Member Tool Box You paid your dues, but are you getting all you can out of your membership with MAREI. Check out just a few of our member discounts available to all members on pages 14 and 15. Save money on insurance, buy leads, stay up to date on real estate investing, market your rentals, collect checks electronically, screen your tenants, collect on bad checks, send a few emails, save on ship-ping, save on office supplies, and save on your building supplies. And that’s just a small portion of member benefits.

Then watch the Tool Box Page on the web site for many new tools and discounts.

November 2010

Page 2 MAREInet.com

SPEED NETWORKING - Nov. 9th

Preparation:

Have 50-60 Business Cards

Prepare 30 Second Pitch

Practice Your Pitch

Optional: Bring Flyers

Mechanics:

Room will be set up with 2 rows

of chairs facing each other.

We will pair off in the chairs and

exchange pitches, cards, flyers.

Time keeper will start us, we

change speakers after first 50

seconds, we will change part-

ners after 2nd 50 seconds.

Then we repeat over and over

again through out rest of meet-

ing.

Interested in learning

more about creative fi-

nancing? Be sure to at-

tend the 2 day Bootcamp

with Don DeRosa & Pete

Youngs, they will talk

about creative financing!

And be sure to watch for

upcoming meetings of

MAREI’s new subgroup.

Come prepared . . .

This is a Working Meeting!

November Meeting

Speed Networking

Back by Popular Demand

Agenda:

5:30 Member‟s Only: Water Dept

6:00 Registration & Expo

6:00 Informal Networking

7:00 Announcements

7:15 Speed Networking

Location:

Sylvester Powell Jr Community

Center at 6200 Martway in Mis-

sion KS, park on North Side,

2nd lot from the building.

Cost:

Free for Members

$25 at door

Holiday Networking Party

for December

Location to be Determined

Investment News Page 3

Advertiser’s Directory

Features ׀ November 2010

T.O.T.L. Renovations 11 kcmoHomeBuyer.com 21

Accurate Title 13 Realty Resource 25

MAREI Vendors 14 Home Depot 25

MAREI Vendors 15 MAREI Memberships 26

FreeTrialWebsite.info 17 CybrCollect 28

Rockstar Investor 17

26

Do you need

to boost your

business in

2011? Check

out Vendor

and Business

Associate Op-

portunities

18

Where should

you invest in

2011. Review

current market

data and

trends and

start planning

for the future

In This Issue

November Meeting 2

Contents 3

MAREI Staff 5

In the News This Month 6

Member Pics 7

4 Simple Steps to an Effective Pitch 8

How to Prescreen Contractors 10

Is it Safe to Buy Foreclosure 12

Title Policy “Indemnification” 13

Membership Has it’s Privileges 14

8 Measures of Success for website 16

Market Update 18

A Home Rehab: Live in Prairie Village 20

Calendar 22

Investment Opportunities 24

Contents MAREI News

Visit Our Web Site

www.MAREInet.com

Blog

Properties

Message Board

Business Associates

Vendors

Page 4 MAREInet.com

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 render 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

estate investors monthly!

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 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.

Investment News Page 5

Kim Tucker 816-523-4400

Director

Kim@MAREInet.com

Don Tucker 816-523-4400

President

Don@MAREInet.com

Steve Burns

Audio Visual

cashflowtreasures@gmail.com

Robin Sage

Meeting Ambassador

RobinSage38@yahoo.com

John Welchert

Meeting Ambassador

816-268-3849

Larry Prato

Commercial Subgroup

913-227-4693

Dan Goodwin 913-642-5218

Meeting Ambassador

DanGoodwin@kw.com

Shelda Goodwin

Meeting Ambassador

SheldaGoodwin@kw.com

Frank Janssen

Creative Financing Subgroup

816-865-6514

MAREI Staff

Page 6 MAREInet.com

Director Notes

Kansas City’s quarter-cent public safety tax

passed. So sales tax will not be going down

anytime soon.

———————————

We also have some pending legislation that

you need to pay close attention.

H.R. 6133 the “Prompt Decision for Quali-

fication of Short Sale Act of 2010” if en-

acted would require lenders and mortgage

servicers to respond to short sale offers within

forty-five days of receipt of the offer. If the

Lender or mortgage servicer failed to respond

to the short sale offer with in the time limit,

the offer would be consider to have been ap-

proved by the lender or mortgage servicer.

———————————

As Real Estate Investors we are currently suf-

fering from legislation without representation

here in Kansas and Missouri. We do not cur-

rently have a lobbyist or entity truly watching

out for our interest at the state and local level.

MAREI and our volunteers are working hard to

fill that void, but we need your help.

Your membership and involvement and mem-

bership dollars help support our growth. With

the growth of MAREI, local and state leaders

take notice as we represent 100’s of people,

1000’s of rental units, and $1000s in tax dol-

lars. But joining MAREI, keeping your dues

current, and getting involved, your voice will

be heard. We are adding in 2011 an optional,

extra fee on our membership forms to help

support legislative action.

Here in the Midwest on election day, we had

some issues on the ballot that could have

some affect on real estate business in the fu-

ture.

Missouri Amendment 1: Passed

This will change the Missouri Constitution to

require counties to elect their county asses-

sors, Jackson County currently appoints. Pro-

ponents say that electing assessors would

make them more accountable to make fairer

assessments of property values. May make

Jackson County property tax assessments

more in line with values.

Missouri Amendment 2: Passed

Will exempt former prisoners of war from pay-

ing property taxes on the property where they

live.

Missouri Amendment 3: Passed

This amendment prohibits the legislature from

enacting a transfer tax on the sale or transfer

of properties.

Missouri Proposition A: Passed

This amendment will require that Kansas City

and St Louis hold a vote in 2011 and every

five years after that to determine if the city

earnings taxes will continue. If the taxes were

rejected, they would be phased out at one-

tenth of a percent per year. Will also require

a vote in any other Missouri City that proposed

an earnings tax in that city. Could have an

affect in 2011 if voters determine it should be

repealed, phase out would start and new taxes

elsewhere could result.

In the News This Month

Investment News Page 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,

Contact Kim Tucker, Director,

At info@MAREInet.com or call 816-523-4400 x 222

October Meeting Pics

Please help, we need an official

photographer or videographer for

the meetings! And Better Pics!

Page 8 MAREInet.com

Jason Wheeler

It is not a “sales pitch." on your product or service. A great formula that I have found effective that can work for just about any business can be found in these simple steps.

What an "Elevator Pitch" Is

To me it is a quick way of finding out if you can strike curiosity into the person you are talking to in order to created a referral, con-nection or an appointment.

1. Identify who you can help by starting with… I show people who (need to save money, want to buy real estate, want to own their home, can‟t get a mortgage,)

2. Identify what you can help them with…. how they can (increase their reve-nue, income, own a home, pay less on their mortgage)

3. Identify why they can benefit... so they can (have more time freedom, enjoy home ownership, reap tax benefits, spend more time with family)

4. Ask if they know anyone like that… end with a question or ask for a refer-ral.

Here is a finished example of an effective

elevator speech:

I use this all the time in the current real es-tate market. Let‟s say I‟m having a casual glass of wine and unwinding at the local res-taurant and I strike up a conversation. Very often the conversation leads to the age old

(Continued on page 9)

4 Simple Steps to an Effective Business Ele-vator Pitch or Personal Brand

When you are an entrepreneur or a Real Es-tate Investor it can be very difficult to ask that age old question "What do you do?" One of my favorite blogs and a good mentor to anyone that builds their business by refer-ral has some pretty good advice on how to address this simple but not always easy question.

Networking Now Says

When someone asks you what you do, what are the first words out of your mouth? If the words aren’t ready to roll off your tongue, then read on . . .

When someone asks you what you do, make sure you’re ready with a response that is succinct but memorable. The attention span of the average adult is only 20 sec-onds; a long, drawn-out answer to the ques-tion isn’t’t going to work.

Focus on creating a unique selling proposition (USP)–a mini commercial that you can readily use while network-ing. I think of this as a personal answer to the age-old “Whattaya do?” question, which we’ve all been asked about a million and a half times.

Many in business call this the Personal Info-mercial or Elevator Pitch. (You should get your point across in the time you take an elevator with someone)

What an “Elevator Pitch” is not:

4 Simple Steps To an Effective Pitch . . .

Investment News Page 9

Your Pitch

1. Identify who you can help by starting with . . .

I show people who (want to buy real estate, need to sell their home, want hands

off real estate investing options.)

2. Identify what you can help them with . . .

How they can (increase their revenue, income, sell fast, earn 10% interest on

real estate)

3. Identify why they can benefit . . .

(have more time, freedom, enjoy home ownership, reap tax benefits, spend more

time with family)

4. Ask if they know anyone that . . .

End with a question or ask for a referral. Start a conversation in regular net-

working. Exchange business card when speed networking.

question "What do you do?"

I could say… "I show eve-ryday people how they can buy real estate without the hassle of a bank, so they can enjoy home ownership and all of it’s benefits. Do you know anyone that is having trouble with their real estate right now?"

You would be surprised on this one liner will open a conversa-tion, create a referral or maybe the person you are talking to would love to learn more. The point is it is not hard selling and it opens a door for somebody to

(Continued from page 8)

Article Contributed by Jason Wheeler from www.jasonwheeler.biz. Con-nect with Jason on Facebook & Twitter or give him a call at 925

learn more about you. I promise if you use this formula in your business you will have more success. Try it out for a while and let me know what you think.

If you find this informa-tion helpful please share it with you social networks, tweet it and feel free to ask me questions or add your own Ele-vator speech style in the com-ments section below!

Page 10 MAREInet.com

Rehab

owner and should have been completed in a timely manner.

If any of the references don‟t checkout, do not hire this contractor. If they gave you false in-formation upfront, you know they can not be trusted. Move on to the NEXT quote.

3. Ask for a copy of the contractor‟s license (if re-quired in your state) and for a copy of their work-man‟s comp insurance. Once you receive a copy of their license, make sure to check that they are not suspended. Also check to see if any complaints have been filed against the contractor with the Bet-ter Business Bureau.

It is absolutely mandatory that a contractor prove that he or she has workman‟s comp for all the employees that will be working on the job site, before they start renovations. Why is this so important? Well, if one of the workers has an accident, you do not want to be sued as a potential employer.

4. Make the contractor pull all necessary permits re-quired by your local building department. The homeowner should NEVER pull the permits. The contractor should also be responsible to pass all necessary inspections required throughout the con-struction process so a certificate of occupancy (CO) can be obtained when construction is com-plete.

(Continued on page 11)

How to Prescreen Contractors to Build a Dream

Team to Get the Job Done!

By Robyn Thompson

Many real estate investors shy away from the ugly house business because they fear hiring contractors. We have all heard the horror stories of rehabbers who loose their shirt because a contractor took them to the cleaners.

I am here to tell you that contractors can be your worst enemy or your best friend, depending if you hire a good one or a bad one. So how can the beginning novice real estate investor make the correct choice- the hard working team player that gets the job done on time, on budget and at a high standard of quality? The answer is by following all eight of the critical pre-screening steps below.

1. Ask the contractor you are interviewing, how long they have been in the business? I prefer at least five years of experience in the trades. I want a contractor who has seen and repaired every strange, odd, and crazy thing that could be wrong with a house. Experienced contractors know how to estimate all tough projects and experienced professionals can give an accurate price to fix any problem.

Inexperienced contractors, on the other hand, under estimate repairs to get the business, and then they try to push their mistake on the home owner by upping the price half way through construction. The investor needs to say NO. NO is the most powerful word in the dictionary, and a rehabber needs to use this tool. If they did not have the knowledge to make a good estimate, it is there problem not yours.

2. Ask for three references from the last three major projects that the contractor has recently com-pleted. Once you receive the reference letters, make sure you call to verify the references and the quality of the workmanship performed. The quality of work should be satisfactory to the home-

Contractors How to Prescreen

Investment News Page 11

5. The real estate investor should make it mandatory for all contrac-tors to buy all necessary materials to do the renovations. The inves-tor should never waste their valu-able time buying materials. If the investor buys the materials, the workers could be viewed as the home owner‟s employees per the IRS guidelines. You do not want this.

6. The real estate investor should always demand a six month to one year warranty of all parts, la-bor, workmanship, and materials provided by the contractor. This warranty should be in writing. WARNING: If a contractor will not provide a warranty and stand be-hind the quality of his or her work-manship- DO NOT hire them!

7. Real estate investors should never agree to pay any contractor by the hour. You pay a fixed price for the complete job. Never pay the final payment in your inde-pendent contractor agreement until the project is 100% complete.

8. Ask for financial references (ex: where the contractor purchases materials). I will contact the supply houses to make sure the contrac-tor is not behind on paying for ma-terials because I do not want to give the contractor a check to payoff an old bill and they have no money for the materials they need to buy for my job.

The last words of advice that I can give to anyone beginning a renovation project is to make sure every agree-ment with a contractor is detailed in writing with an independent contractor agreement. A detailed list of materials required should be listed in compre-hensive scope of work. The docu-ments should have work completion time frames, penalty clauses for finish-ing late, require all permits be pulled and inspections completed before fi-nal payments are released.

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Totlrenovations@comcast.net

Page 12 MAREInet.com

a three way negotiation between the

buyer, the seller and the lender, it

should be safe. The seller, the person

who may potentially may be in foreclo-

sure, is agreeing to the sale and sign-

ing off on the sale, so you should be

safe in buying in this situation.

When looking at bank owned or real

estate owned (REO), he assures us

that we again should be comfortable in

the purchase. The bank owner is not

going to put the home on the market

until they have all their paperwork in

order and will be providing you with a

clear and marketable title. Be sure

that you do have YOUR title com-

pany review and make sure you

have the proper coverage.

He did urge caution in buying

homes at the typical courthouse

foreclosure auction. The risk being

that you are paying all cash, right

now, and there is no recourse. If

you buy a deal and cannot easily

get clear and marketable title, your

cash is tied up until it can be

cleared.

In light of the recent questions sur-

rounding the processing of foreclo-

sures, Rick Sharga from Realty Trac

commented on whether it’s still safe to

buy properties in various stages of

foreclosure — from pre-foreclosure

(short sale) to courthouse auction to

bank-owned REO.

He took a look at buying 3 different

types of foreclosures including short

sales, bank owned properties and then

homes at the sheriff’s sale or court-

house sale.

Starting with short sales, because it is

Is it Safe to buy foreclosures

Investment News Page 13

Old Republic International, First

American Financial, and Stew-

art Information Services – the

three major title insurance com-

panies said in conference calls

with Wall Street on Thursday

that they will not demand writ-

ten indemnifications from lend-

ers reselling foreclosed homes.

They had drafted such indemni-

fications earlier this month as a

way to keep the foreclosed

home marketed working despite

the uncertainty of legal title.

Indemnifications are offered as

a way to cover the title insurer‟s

legal fees and other expenses

should a court overturn the

foreclosed due to mishandled

paperwork or other legalities.

Some of the banks and other

lenders were resisting taking on

this additional liability and

threatened to take their busi-

ness to a different title company

rather than offer indemnifica-

tion.

For now the title insurers are

going to take each home sale

on a case by case basis. Ex-

amine everything before writing

a title insurance policy for the

lender or the owner.

Note that while lenders will

most likely have to compensate

both the title company and the

new owner if a court were to

Title Policy “Indemnification”

overturn a foreclosure, the in-

demnification would have also

covered the title company‟s le-

gal fees. So expect longer than

usual time frames for obtaining

a title policy in the case of a

bank foreclosure.

Accurate Title Company

“When You Need Timely, Top-Quality Service . . . “

Owners and Loan Policies

Endorsements

Ownership & Encumbrance Reports

Foreclosure Reports

Ownership Information

Tax Information

Buyer‟s Closing Services

Seller‟s Closing Services

Lender‟s Closing Services

Recording Services

Funds Disbursement Services

1031 Exchange Services

Special Requests

www.AccurateTitleCo.com 913-338-0100 phone

913-338-0107 fax

Page 14 MAREInet.com

Benefits

Insurance Provider Benefits

National Real Estate Insurance Group was built specifically to address the unique needs of the real estate investor. They provide a wide array of exclusive programs and policies, including coverage for properties in the process of being rehabbed, vacant and multi-family dwellings, hotels and retail or office spaces. Literally, all insurance for the real estate investor to help you fund the best insur-

ance solution for all of your real estate needs! MAREI members get FREE QUOTES and access to the EXCLU-SIVE program, developed by NREIG with American Modern Insurance Group.

As active members of MAREI since 2004, Accurate Title Com-pany has provided smooth real estate transactions. From Title Searches, Policies, Foreclosure Reports, Closing Services to Funds Disbursement and 1031 Exchange, Accurate Title Customers have access to the services they need. Util-ize their 24/7 Paperless Closer System to order title, access your documents and get an updated status on your transaction. Find out more about Accurate Title and their services online at www.AccurateTitleCo.com or call 913-338-0100. Investor Resources

EZData Group is a provider of current foreclosure and short sale leads. Offer-ing data in Jackson County Missouri and St Louis, they provide foreclosure notice data in an online database. In other ar-

eas consider their other services for lists of probate leads, Pre-Notice of default, Free and Clear and other owner-ship data. Please visit our web site at www.MAREIandEZdata.info. Personal Real Estate Investor Magazine is America's leading real estate investment magazine available at newsstands everywhere. Personal Real Estate Investor Magazine is dedicated to helping individuals find, make, and save money on their real estate investments. Discount available in MAREI member area. Landlord Resources

Receive 20% off standard listings at Rentals.com - an online busi-ness tool designed to rent your property faster and maximize your investment. List easily, edit anytime, reach millions of qualified rent-ers and save yourself from future hassles with archive capabilities - when your property is rented, your property details and photos are

archived so you can reactivate it anytime. Discount Code in the MAREI member library

Membership Has Privileges!

Investment News Page 15

Accept check payments easily, electronically and on a recurring basis with Solveras Payment Solutions! Take advantage of their ACH/eCheck processing, simple web payment tools, remote check deposit and credit card processing. Take Control of your customer payments instead of waiting to collect. Let Solveras' check payment services liberate your front office.

Preferred access to First Advantage SafeRent's Residential Property Professional (RPP) SM. RRP is a comprehensive suite of resident screening services designed to fit the unique needs of the real estate investor and rental property owners who are infrequent users of these specific services. Na-tional REIA members can choose from three powerful, user selectable packages that provide land-lords with a comprehensive picture of their prospective residents and indicates their likelihood of ful-filling their lease obligation.

Electronic Collection of Bounced Rent Checks! CybrCollect offers this service free to landlords and believes that your times is too important to spend trying to collect bad rent checks. BY using a special endorsement to deposit checks, bounced checks are no longer returned to your bank where you would be charged a bank bounce fee (typically $30 to

$30). Instead bounced checks are routed from the Federal Reserve directly to CybrCollect for a $2 capped fee, where checks under $2,500 are converted to an electronic transaction. Everyday CybrCollect contacts every bank for every check. When funds are available your check is electronically collected and deposited in your bank account the same day - AT NO CHARGE TO YOU! Business Resources

Constant Contact and MAREI have teamed up to give you some of the biggest discounts on Con-stant Contact's Email Marketing to help you stay in touch with your customers. Get 15% off for six months when you pre-pay. Get 20% off for a year when you pre-pay. More info at www.MAREIandCC.info, including a free 60 day trial

The National REIA Discount Shipping Program! Through our agreement with PartnerShip, which developed and manages the program, enrolled local and national members receive significant inbound and outbound discounts on small package shipments through FedEx, as well as copying and printing services through FedEx Office. Discounts of up to 22%. More info in MAREI member area.

Office Max has created a National Total Solution Purchasing Program for you. OfficeMax is the National REIA preferred vendor for office supplies, furniture, tech-nology, paper and print services. Their mission is to meet your supply needs for the long term while offering savings up to 65%. Find our special web site and in store discount card in the MAREI member area. Property Resources

Home Depot has teamed up with National REIA for an exclusive benefit to our members. Register to receive a 2% bi-annual rebate on all purchases made at Home Depot. Plus visit save even more with their volume pricing discounts through the prodesk. Rebate registration instructions are in the MAREI member area. One of our most popular and frequently used benefits, Sherwin-Williams offers unbeatable pricing to National REIA members. Enjoy deep discounts on paint, applicators, floor covering,

paint sundries, wall covering, spray equipment, and even window treatments! Your discount card will be mailed to you in your membership package Plus other discounts: Free Bandit Signs, 75% off on printing at Vista Print, travel discounts, rental car dis-counts, and more. Log into the MAREI member area and click on Member Discounts.

Page 16 MAREInet.com

Marketing

niche that they can request. Write though provok-

ing articles that will solicit a comment.

5. Navigation: How hard is it to use your site. Is it

easy to find out who you are, what you offer, how to

contact you, as well as access all your resources.

As your site grows, you need to go back and review

the navigation to make sure it still makes sense.

6. Privacy: Visitors don‟t want to reveal who they are

just to navigate around your site. Yes you would

really like their info, but make it optional, most will

still give you some. Be sure to reassure them that

any information the do share is for you alone, it is

not sold or distributed to marketers.

7. Promotion: Keep in mind that some of your custom-

ers may never find you through search engines, so

all the optimization in the world may not help you

reach these people. Think about ways you can pro-

mote your site, so your target market can find you.

What can you personally do to lure clients to your

site, rather than hoping that a search engine will

help them “accidentally” land on your page.

8. Tracking: As with any and all marketing, be sure to

track your results. Many sites offer tracking of how

many clicks on what page per day and you can also

use outside sources like Google Analytics. So if

you send out a marketing to drive traffic to your site,

check your traffic for that day, week, or month to

see how the marketing is working.

Now take these 8 things and go take a look at your web

site. Is it doing what you think it should or do you need

to make some changes. Before you go off half cocked

and start making your own changes or paying a web

designer to get busy, spend some time planning.

Your plan needs to take all of these 8 items into consid-

eration, be written out, and include your vision of who

(Continued on page 17)

As a Real Estate Professional you are very busy run-

ning your day to day business be it finding more moti-

vated sellers, getting homes rented up, marketing prop-

erties, writing loans, or performing appraisals. But to

grow your business, you need to be on the web and

your web site needs to be doing it‟s job: attracting traf-

fic, engaging your visitors, and converting visitors into

customers.

There are many reasons why many of our web sites are

not reaching their full potential . . . They may not be of-

fering the right content or have a confusing design.

Here are a few tips to drive traffic, engage your visitors,

and convert them into clients.

1. Branding and Targeting: Many web sites try to be

all things for all people, so they talk in broad gener-

alities. Your site needs to differentiate itself and

show your specific target market. As we talk about

our 30 second pitch this month, keep this in mind

when targeting your web site.

2. Design: Just because it looks pretty, does not

mean it actually works. Your design needs to keep

your target market in mind, be consistent in it‟s

branding and be functional. You know where every-

thing is but can your customers find it quickly, re-

member their average attention span is about 20

seconds, so if they can‟t find it they will go to the

next site.

3. Content: Remember the primary purpose of your

content should be to catch their interest and answer

their question “What‟s in it for me?”. You need to

provide articles and resources that will interest your

client and have eye catching headlines so they will

click to read more.

4. Interactivity: You want your visitors to interact, to

raise their hand so to speak and let you know they

were there. Offer a unique report that targets your

8 Measures of Success for website . .

Investment News Page 17

your niche market is, what it should look

like, your branding, and how you can

engage your visitors. As Michael

Russer,

Mr. Internet from Realtor.org writes, a

good web site is “90 percent planning

and 10 percent building and execution.”

He also provides several sample web sites that do well in all of the 8 points we have discussed here today. They are Realtor centered, but can give you an idea of things to do in your own field:

DowntownLivingMiami.com

ChevyChaseLiving.com

FortStill.GoArmyHomes.com

IntownLivingAtlanta.com

SellingCantonHomes.com

MilitaryMove.ca

GotDreamNeedHome.com

So start analyzing your web site and

making plans and in a few months, you

can start making changes. If you don‟t

yet have a web site, get busy and start

researching and assembling your re-

sources you want to offer your clients.

You might start with frequent questions

your clients have for you and provide

resources to answer those questions.

For more resources from Mr. Internet,

go to http://www.realtor.org/

rmotechnology/askmrinternet/

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Page 18 MAREInet.com

Trends

housing boom in 2005.” “In addition, home prices are running about 22 percent less than five years ago when they were bid up by the biggest housing rush on record,” she added.

She illustrated the huge jump in housing affordability by pointing out that the median monthly mortgage payment for a recently financed property is several hundred dollars lower than it was five years ago and in many cases it is less than what people are paying for rent.

But while lending is strong for the first time home buyer, move up buyers are being very cautions and often refinancing the homes they have rather than moving up. And lending for investors is still hard to find. But for investors who can tap into conventional financing, use other assets as collateral, or find pri-vate lenders, you can tap into these current low prices to offset losses from past years.

Total housing inventory at the end of September fell 1.9 percent to 4.04 million existing homes available for sale, which represents a 10.7-month supply at the current sales pace, down from a 12-month supply in August. Raw unsold inventory is 11.7 percent below the record of 4.58 million in July 2008.

We still have vacant homes, Bank Owned Homes, and Short Sales on the market that we need to work through as quickly as possible with new home own-ers. Yun said “Inventory remains elevated and con-tinues to favor buyers over sellers. A normal sea-sonal decline in inventory is expected through the upcoming months.”

If you are buying to rehab and sell, take note that parallel NAR practitioner survey shows first-time buy-ers purchased 32 percent of homes in September, almost unchanged from 31 percent in August. So focus your effort on first time buyer homes. Investors were at an 18 percent market share in September, down from 21 percent in August; the balance of pur-chases were by repeat buyers. All-cash sales were at 29 percent in September compared with 28 per-cent in August, so if you are wholesaling distressed

National Review

The National Association of Realtors report that exist-ing-home sales rose again in September, thus affirm-ing that a sales recovery has begun across the coun-try.

Existing home sales which is made up single family, townhomes, condos and co-ops rose 10 percent to a seasonally adjusted annual rate of 4.53 million in September from a downwardly revised 4.12 million in August, but remain 19.1 percent below the 5.60 mil-lion-unit pace in September 2009 when first-time buy-ers were ramping up in advance of the initial deadline for the tax credit last November.

To see their data go to:

http://www.realtor.org/research/research/ehsdata

NAR‟s chief economist, Lawrence Yun tells us that the housing market is still in the early stages of re-covering, but it will be “choppy at times depending on the duration and impact of a foreclosure moratorium.” But he predicts that we should see a gradual rising trend in home sales with buyers using the historically low interest rates and very favorable pricing.

Those historic lows according to Freddie Mac for a 30 year, conventional fixed rate mortgage fell to a record low of 4.35 percent in September, down from 4.43 in August of this year and a 5.06 rate in Septem-ber of 2009.

With distressed homes accounting for 35 percent of all sales in September up from 34 percent in August of this year and 29% in September of last year, we saw the national median price for existing-homes at a 2.4percent lower price than 2009. Currently at $171,700.

We need to keep in mind as Home Buyers and as Real Estate investors that current mortgage rates are almost more than 1/2 of what we had a decade ago. NAR President Vicki Cox Golder pointed out this fact in addition we have interest rates at “about one-and-a-half percentage points lower than the peak of the

Market Update

Investment News Page 18

properties, you will still be selling houses.

Single-family home sales increased 10 percent to a seasonally adjusted annual rate of 3.97 million in Septem-ber from a pace of 3.61 million in Au-gust, but are 19.5 percent below the 4.93 million level in September 2009. The median existing single-family home price was $172,600 in Septem-ber, down 1.9 percent from a year ago.

Existing condominium and co-op sales rose 9.8 percent to a seasonally adjusted annual rate of 560,000 in September from 510,000 in August, but are 16.2 percent lower than the 668,000-unit level one year ago. The median existing condo price was $165,400 in September, down 6.2 percent from September 2009.

Existing-home sales by region:

Northeast – increased 10.1 percent to

an annual pace of 760,000 in Septem-ber but are 20.8 percent below Septem-ber 2009. The median price in the Northeast was $239,200, which is 1.4 percent below a year ago.

Midwest – jumped 14.5 percent in September to a level of 950,000 but are 26.4 percent below a year ago. The median price in the Midwest was $139,700, down 5.2 percent from September 2009.

South – sales rose 10.6 percent to an

annual pace of 1.77 million in Septem-ber but are 14.9 percent lower than Sep-tember 2009. The median price in the South was $149,500, down 2.6 percent from a year ago.

West – increased 5.0 percent to an

annual level of 1.05 million in Septem-ber but are 16.7 percent below a year ago. The median price in the West was $213,600, which is 4.9 percent lower than September 2009.

Source: NAR

(Continued from page 18)

Market Experts Wanted

Are you an expert on the market in your area or

field of expertise? We are looking for experts on

Residential, Apartments, and Commercial to

contribute to the newsletter, the blog, and the

meeting. Be seen an expert in your Niche.

Contact info@MAREInet.com

Locally home prices are up slightly over last month. Home sales are down slightly. New Home Inventory is down. Existing Home Inventory is down from last month, but still up over last year. And over all we still have about an 8.7 Month Supply of homes on the market, keeping us in a buyer‟s market.

We have seen home traffic slow down across the metro since after the end of the tax credit in April with a sever drop in May and a very slow rise across the summer in sales numbers. And we are heading into the tradition-ally slow market time in Kansas City of November and December when home buyers and sellers are busy with Holi-days.

As you plan your real estate investing in 2011, be sure to look at trends. The successful real estate investor changes and adapts as the market changes. This last housing downturn saw a huge number of investors leav-ing the business because of their in-ability to adapt.

Market Stats Resources

RealTrends.com

MAREI members have ac-

cess to the current Real

Trends Newsletter in the

Member Library

KCRAR Data

http://www.kcrar.com/

market-statistics

National Association of

Realtors

http://www.realtor.org/

research/research/ehspage

Page 20 MAREInet.com

because the BPO value was much higher, but be-

cause the Banker friend came to the house and got

to see, feel and taste, she was much more inclined to

consider our low offer.

Don‟s wife Kim, a Realtor with extensive experience

in BPO‟s offered up a BPO to the banker friend along

with photos and a repair list. Kim‟s assessment was

that it would probably sell for about $115,000 with all

the trash removed, all the carpet and pad removed,

and the door needed to be secured.

So what was Don‟s offer on the home?

$80,000, closing in a week, no further inspections.

Remember the Realtor‟s BPO said $125,000, Kim‟s

BPO said $115,000. If you factor in about $1,000 for

trash out and clean up, $6,900 in Realtor fees, hold-

ing costs for a minimum of another 2 months, and the

what ifs that could come up in inspection, the bank

countered Don at $82,000. Not bad.

So what was the rough estimate of rehab needed on

this home?

Between $80,000 and $90,000 including:

Reinstallation of Foundation repairs

Grading and Drainage around outside of home

Removal of a lot of Trees

Replacement of the Roof and Gutters

Replacement of all Windows

Replacement of all Heating & Air

Replacement and Upgrade of Kitchen

Replacement and Upgrade of both Baths

All new Exterior Doors & Garage Door

New Exterior Siding

Rebuilding of One Exterior Wall

New Subfloors

Replacement of Plumbing Lines with Pex

MAREI member Don Tucker is renovating a home in

Prairie Village. He and his team will be blogging the

rehab that officially started this week with the trash

out of the home and the cutting down of trees.

Visit http://www.REIKC.wordpress.com to watch the

progress.

Before and after photos and video

Analysis of why repairs are made

Analysis of fixtures and finishes

So a little back story on this home. One of Don‟s

good friends works at a local bank and her job is to

foreclose and sell homes. She had a home she had

been working over 5 years on keeping current, and

finally foreclosed on it at the beginning of 2010 and

took almost the entire year to get the former owners

evicted. She had planned on having the home

spruced up and listed by a local Realtor. But as the

home came up often in conversation, Don convinced

her to let him give her a bid on the house if it turned

out it needed more than a little polishing.

The eviction became final and the day came that the

former owners moved out and Don‟s friend took pos-

session. The potential Realtor took possession and

was to give Don a call to let him know he could get in

to look at it, but the Realtor failed to do that, big mis-

take on his part.

The Realtor provided a BPO price „as is” of $120,000

to $125,000 and an as repaired price of around

$229,000, but he was not real comfortable with the

value as the home needed extensive rehab, he

wanted to get a 2nd opinion.

In the mean time, Don‟s banker friend met Don at

the house to let him in. She got to see and SMELL

the house first hand. Had the Realtor showed Don

the property, his low offer may have been tossed out

Renovations

A Home Rehab Live:Prairie Village

Investment News Page 21

Removal of Wallpaper & SMELL (did we mention it stinks)

New Tile in Kitchen & Bath

New Carpet in Family Room & 2nd Floor

The list goes on and on The time frame for this home renovation should be about 5 to 6 weeks with good weather, although the schedule will be impacted by two National Holidays with Thanks-giving and Christmas.

By the numbers

So are you ready to come along for the ride?

Here‟s what you need to do

Go to www.reiKC.wordpress.com

Look for the email subscription box

Enter the email where you want posts sent

Rehab information should start posting this week end on November 6th, please watch for it.

After Repair Value $129,000 (+/- $10,000)

Repairs $ 90,000

Taxes $ 1,000

4 Months Insurance $ 400

4 Months Utilities $ 800

Marketing Fees $ 500

Real Estate Commission $ 7,740

Seller Concessions $ 3,500

Potential Profit $ 25,000

Wholesalers, submit your properties at:

kcmoHomeBuyer.com

Page 22 MAREInet.com

Calendar

Upcoming Events

Nov

9

Monthly

Meeting

MAREI Monthly Meeting MAREI meets for networking &

education on the 2nd Tuesday of the month from 6pm to 9

pm. At the Sylvester Powell Jr Community Center. No

Charge for Members, Guests $25 at the door, $15 if pre-

registered.

Nov

9

Vendor Tables

Must have your Vendor Table Reserved by Noon. Re-

serve a table at tonight‟s meeting to connect and network

with a targeted market of Real Estate Professionals. See

calendar on at MAREInet.com to reserve.

Nov

13

Lee’s Summit Investor Breakfast Lee‟s Summit Investors

Networking Group meets the 2nd Saturday of the month for

coffee, breakfast, and conversation at the Panera Bread on

Chipman in Lee‟s Summit. Open to MAREI Members &

Guests.

Nov

17

Sub Group: MAREI‟s Commercial Investors meet every

other week. This month on October 6th & 20th. This group

is for MAREI members and their guest. See online calen-

dar of events for more information.

Dec

14

Holiday

Networking

Party

December Monthly Meeting - is replaced with an informal

networking holiday party. Location to be determined

Children & College Students

Is your child interested in real

estate? Is ready to learn?

Add your child aged 12 to 18

to your membership.

College Students with student

ID, we have internships

available. Work in the

MAREI office for $10 in MAREI bucks to use for

Membership & Workshops

Contact

MAREI Office for more info. info@MAREInet.com

Investment News Page 23

Monthly Meeting

Sylvester Powell Jr

Community Center

6200 Martway, Mission KS

913-722-8200

Tuesday, Nov 9 Doors open at 5:30

Members: FREE

Guest Fees: $25 at door . .

Pre-register online for $15

If guests join with in two days of

the meeting, their guest fee will be

applied to the membership fee with

proof of payment.

Please call 816-523-4400 x 222.

5:30 Member‟s Only -

let‟s talk KCMO Water

5:45 Set Up / Registration

6:00 Industry Partner Expo

6:00 Member Networking

7:00 Haves & Wants (Bring

your Deals)

7:30 Round Table -

How I Did the Deal

9:00 New Member

Registration

Invite your friends

colleagues to visit the

Monthly Meeting for

with a Guest Pass

(available online at

www.MAREInet.com).

For each new member you

refer, earn MAREI Bucks

which can be used towards

seminars, advertising,

or membership fees.

Location

6200 Martway

Mission, KS 66210

North of Shawnee Mission Pkwy

South of Johnson Dr

East of Lamar

Park in North Lot

2nd from the Building

Less Kids & Door Dings

Page 24 MAREInet.com

Properties

Investment Opportunity

Address City Offered as Price Info Contact Phone

1030 Park Kansas City, Mo Renovated $69,900 Bank Owned JJ Pawlowski 816-916-4593

4311 Flora Kansas City, MO Renovated $7,000 Bank Owned JJ Pawlowski 816-916-4593

7208 E 100th Tr Kansas City, MO Renovated/ Rented $108,900 Bank Owned JJ Pawlowski 816-916-4593

13415 Spring St Grandview, MO Bank Owned $89,900 100% Financing JJ Pawlowski 816-916-4593

1301 E 59th St Kansas City, MO Updated $95,000 Bank Owned JJ Pawlowski 816-916-4593

3933 Wyandotte Kansas City, Mo Updated / Rented $142,000 100% Financing JJ Pawlowski 816-916-4593

5044 Walrond Kansas City, Mo Rehab / Rental $14,500 $5k Repairs Christoph Becker 816-419-1165

6101 Agnes Kansas City, MO Rehab / Rental $23,500 $5k Repairs Christoph Becker 816-419-1165

5712 Wabash Kansas City, MO Rehab / Rental $14,500 $5k Repairs Christoph Becker 816-419-1165

Duplexes Gardner, KS Rented $100k Each $600 rent / unit Jon Bichelmeyer 913-579-3354

Duplex Merriam, KS Rented/ Vacant No priced listed $850-$900 Eric Deeter w/ Realty

Resource of KC

913-579-3354

2005 E 58th Kansas City, MO Rental $17,500 Needs Minor

Repair

Christoph Becker 816-419-1165

125 N Chelsea Ave Kansas City, MO Rental $25,000 Repairs $3-5k Christoph Becker 816-419-1165

5617 Lydia Kansas City, MO Rental $20,000 ARV: $45,000 Christoph Becker 816-419-1165

5919 N Howard Gladstone MO Rehab $50,000 obo Needs updates JD Asbell 913-980-1866

Highland Crest Kansas City, KS Rehab $28,000 obo Needs updated JD Asbell 913-980-1866

5416 E 25th ST Kansas City, MO Rehab / Rental No Price Needs updates Stephen Summers 816-250-7200

21813 Lombardo LN Peculiar, MO Fixer Upper $134,900 4 bed, 1 bat Donna Wilson 816-213-8151

55th & Swope Pkwy Kansas City, Mo Rehab $7,000 3/1 Al Fraser 913-735-5549

Investment News Page 25

Looking for Investment Properties

There are 100‟s of great deals right now.

Let me help you through the process.

Real Estate Investor / Agent with experience in Bank Owned, Short Sale, and Rental Properties

Eric Deeter

Realty Resource of KC

www.EricDeeter.com Call (913) 579-3354

Home Depot

2 % Bi-Annual Rebate for MAREI members Volume Discount Pricing

Call me to find out how you can save

on your next home renovation!

Roger Holyfield

(816) 510-9199

Roger_L_Holyfield@HomeDepot.com

Investment Opportunity

There are over 32 properties

listed for sale today on the

MAREI web site.

All MAREI members may log

in and list their property for

sale, include details, photos,

simple html, and contact info.

Must be your property or list-

ing, no fishing for buyers

with out proper contracts.

All new listings emailed out

on Fridays in our E-Updates

go to

MAREInet.com

Click no Tool Box

Click on Property for Sale

Page 26 MAREInet.com

Membership

Business Associate Vendor Member

Business Associates and Vendors have access to our fast growing membership of individuals focused on investing in real estate. This is a built-in audience of people that have a need of your services. Be-sides the obvious benefit of reducing your cost to reach this pre-qualified group, you may participate in defined marketing and networking opportunities.

In addition, with Kansas City being a very popular place for out of state investors to spend their money on rentals, flips, and other investing, MAREI‟s web site provides a great first access to local area service providers to these out of state investors. Being listed as a Business Associate or Vendor will get you in front of many of these out of state investors as well as local investors browsing our site for “FREE” infor-mation. Our Vendor list is always public information.

MAREI Business Membership is offered in two categories:

· Business Associate: An MAREI Business Associate is committed to a high level of support for the association and agrees to help MAREI reach its vision and deliver on its mission. While not required, it is expected that MAREIA Business Associates will participate in MAREI sponsored events, community programs and, where practical, support our lobbying efforts. Educational, speaking, marketing and other opportunities are available to Business Associates. The number of Business Associates is limited in each category. In addition to our normal qualification requirements a Business Associate will usually need to be referred to us by a MAREI member & invited to join. Completion of our Business Associate contract is required.

· Vendor: An MAREI Vendor is an organization that offers services or products to the real estate investor, but doesn‟t have the time or desire to actively participate in the association or meetings. Ven-dors want to be part of MAREI to support our mission and offer their services or products to members without active participation in the association. Vendor membership is by invitation after completion of our qualification process. Completion of our Vendor contract is required. Vendors are given priority to be-come Business Associates should an opening become available in the category.

Business Associate Vendor

Category For One Person For One Person

Lenders, Title Companies, 1031 Exchange, Realty Ser-vices, and other Professional

Services

$499 $399

Trade Suppliers $399 $299

Handyman & Contractors $299 $199

Additional Person Additional $50 No 2nd Person

NO Meeting Attendance

Investment News Page 27

BENEFITS OF MEMBERSHIP

Business Associate Vendor

Special Logo Recognizing Business Associate Status NA

Ability to have a Table at the Monthly MAREI Meeting. Atten-dance at our Monthly Meetings Averages 80+ per Month. Dedi-cated Time is Reserved for Networking. Extra Fee for table.

Ability to have a Table at the Monthly MAREI Meet-ing. Attendance at our Monthly Meetings Averages 80+ per Month. Dedicated Time is Reserved for Net-working. Extra Fee for table plus extra fee to attend meeting.

Priority Listing on MAREI Business Member‟s Section Online that includes a customized detail section as well as contact info and link to your web site.

Listing on MAREI Business Member‟s Section Online that includes a customized detail section as well as contact info and link to your web site.

Priority Listing in Member Information & Benefits Guide (Provided to new members as they join.)

Listing in Member Information & Benefits Guide (Provided to new members as they join.)

Business Card ad in the MAREI Investment News and dis-counted pricing for other advertising.. The Newsletter is EMailed to Approximately 5000 Addresses, Including Members and Non-Members and promoted on all our social networks

Discounted Priority Advertising in the MAREI Invest-ment News. The Newsletter is EMailed to Approxi-mately 5000 Addresses, Including Members and Non-Members and promoted on all our social net-works

Approved marketing material on Community Table None

Priority Advertising in Member Information & Benefits Guide * Advertise in Member Information & Benefits Guide *

Expert Article in the MAREI Investment News * NA

Expert Article in the MAREI Blog* NA

Priority in Sponsorship of large full day and week end events, and our Vendor Nights. *

Priority (after Business Associates) in Sponsorship of large full day and week end events, and our Ven-dor Nights. *

Priority Opportunity to Conduct an Educational Workshops at Monthly Meeting (as available and requested)

Opportunity to Conduct an Educational Workshop at Monthly Meeting (as available and requested)

Priority Opportunity to Conduct Workshop at Special Events (as available and requested)

Opportunity to Conduct Workshop at Special Events (as available and requested)

For more information or to request an application, please email

info@MAREInet.com or call 913-208-3544.

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