Newsletter - June 2009
Content
Investment News
Newsletter of Mid-America Association of Real Estate Investors
JUNE 2009
Tax Credits for FHA Buyers
Home prices are low and houses are extremely affordable. There are 100’s of houses for sale just waiting for a buyer to come along. But along with a lot of cheap houses there comes the major obstacle for first time home buyers wanting to buy: the down payments needed for those loans. While our parents and grandparents scrimped and saved to put down 20%, we can often times get by with putting down only 3.5% using an FHA loan, and then another 3 % or so for closing costs. As part of the stimulus package, Congress created a tax credit of up to $8000 for first time home buyers in an effort of getting people to move from the “just thinking about it stage” to the “just do it stage”. But buyer’s could not receive the $8,000 credit until they get their taxes back, not at closing time when they needed it for down payments and closing costs. The U.S. Department of Housing and Urban Development (HUD) has been working on plan with the Federal Housing Authority (FHA) to provide the buyers with tax credit cash up front to use for down payment and closing costs. The plan was to be modeled after programs in a few states including Missouri. In Missouri, starting January 1, home buyers who qualified could get their first mortgage to buy the home, plus obtain a second mortgage issued by the state. The second note is good for up to 6% of the price of the home— up to $6,750 with a $350 set up fee. As long as the 2nd mortgage is paid by June 2010 there will be no interest paid. If they do not pay off the note, it will then become a 10 year fixed rate mortgage with an interest rate of one half percentage point above that of the first mortgage. So if the first mortgage is at 6% the 2nd would be at 6.5%. On May 28th, HUD announced it’s new policy that FHA lenders are authorized to develop their own bridge loan products that would enable home buyers to access the $8,000 tax credit at closing. These loans, like the ones from the state of Missouri can be used to pay closing costs, buy down the interest rate or cover any downpayment that exceeds 3.5%. Home buyers will still be required to come up with at least 3.5% of their own down payment money as a minimum on FHA loans.
able homebuyers to access the $8,000 first-time homebuyers’ tax credit at the closing table, no FHA-approved lenders in Kansas currently offer these loans. In order to encourage FHA-approved lenders in Kansas to develop and offer these bridge loan products, Kansas REALTORS® and Investors are encouraged to contact the FHA-approved lenders in their area about this new program. This program is not mandatory and homebuyers will only be able to access these new bridge loan products if FHA-approved lenders choose to participate.
Ask Your Lenders To Make Bridge Loans Available Even though HUD has authorized FHA-approved lenders to develop bridge loan products that en-
MAREI
Mid-America Association Of Real Estate Investors
Mid-America Association of Real Estate Investors (MAREI) is one of the largest real estate investor associations in the mid-west. MAREI members consist of full and part-time investors, beginning investors, real estate brokers and agents, attorneys, contractors, accountants, property managers, renovation specialists, appraisers, bankers - people who want to enjoy the many benefits of real estate investing. MAREI was established in 2003 and promotes networking and educational opportunities to its membership. MAREI services members in Kansas, Missouri and Nebraska.
Investment News
INVESTMENT NEWS © 2009 by Mid-America Association of Real Estate Investors (MAREI), a Real Estate Trade Association. Published monthly by MAREI and included as benefit for our members. Quotations and reprints are permitted with full credit given to author, plus “The Investment News: Newsletter of Mid-America Association of Real Estate Investors.” Subscriptions are $59 per year or are included with membership. MEMBERSHIP Twelve month individual membership is $99, 2 Person Membership is $149. Guest Fee is $25. Articles must be received by the 1st of the month two months prior to issue date to be considered for publication. To be considered for a specific issue, it is recommended you contact the Editor at least three months prior to issue date. All submissions are at the discretion of the editor and are subject to editing. Advertising space deadline is the 1st of the month one month prior to publication. All camera-ready artwork and materials for non-camera ready ads are due by that date. Please see www.MAREInet.com for more information.
CODE OF ETHICS MAREI members are expected to be civic minded and willing to operate with high standards of honesty and integrity. It is our duty to conduct ourselves with the highest principles of the free enterprise system. We strive for MAREI to be synonymous with competence and fairness. As MAREI members, we hereby bind ourselves to this code of ethics: 1. 2. 3. 4. 5. We shall not discriminate against any person with regard to race, color, religion, age, national origin, sex, handicap or familial status as defined by current Kansas, Missouri, or Nebraska law. We shall recognize that real estate is a service related industry. We shall refrain from engaging in any illegal practices, or defrauding any member, customer, or association, with the aim of always conducting business in a professional manner. We shall endeavor to stay informed and updated on matters affecting housing in our communities, and adhere to local, state and federal laws. We are individually responsible for our own due diligence and continuing education. Members are expected to verify any and all assumptions regarding business decisions to prevent falling victim to fraud, misrepresentations and illegal practices.
MISSION STATEMENT
To provide education, discussion and networking opportunities to help real estate entrepreneurs & investors reach their financial goals using sound, honest business practices.
BADGE POLICY
All members of Mid-America Association of Real Estate Investors and guests must wear a name badge to all General Meetings. There will be no exceptions.
Further, if any allegations of conduct considered detrimental to the purposes and interest of MAREI are received in written and signed communication to the management, we will consider the matter. Should a decision to take further action be made, a furnished copy of said allegation (s) to the accused, who shall be given adequate time to reply. Thereafter, management shall take such further action as it may deem property and in accordance to this code of ethics.
The information contained herein is believed to be accurate; however, it is not guaranteed or warranted in any manner and is subject to change without notice. Writers’ and speakers’ opinions are not necessarily those of MAREI. You are advised to seek professional advice.
Mid-America Association of Real Estate Investors PO BOX 8685 Prairie Village, KS 66208 Phone: 816-523-4400 Fax: 816-523-4448 www.MAREInet.com [email protected] Mid-America Association of Real Estate Investors is a Member of the National Real Estate Investors Association And the National Association of Responsible Homebuilders & Remodelers
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Private Lending with Don DeRosa
Don DeRosa presents Using Private Money to Buy all the Houses You Want The Ultimate System for Finding and Using Other People’s Money It’s the best market to buy houses in years! But credit is tight. So you need to know how to find and use private money. Now. Join Don DeRosa as he discusses how to get an unlimited supply of money through Private Lenders so… You don’t have to qualify for a mortgage You don’t have to pay thousands in points to hard money lenders You won’t lose a deal because you need quick cash You don’t sap your own credit line Beginning investors and old pros can find immediate success using Don’s simple system. Here are the five simple questions we’ll answer about working with Private Lenders: 1. Why do you need private lenders? 2. What makes the perfect private lender? 3. Who are these private lenders? 4. How do you find them? 5. What paperwork and disclosures are needed? Once you learn the answers to these questions, and combine them with the techniques for buying houses that Don will share, there is NO LIMIT to the number of houses you can buy every month. Think of that – your earnings potential is unlimited! And, you’ll hear exactly what Don tells potential private lenders to educate them and show what a safe investment alternative private lending is! A few of the topics we will cover: The 10 Top Reasons why you absolutely need to know how to get Private Money Evaluating properties so you make $20,000 on every deal How to know how much you’ll need to borrow from your private lender Don’s top marketing tactics for finding private lenders Building a Private Lending Credibility Kit Disclosures you need to protect yourself and your lender How to utilize 401Ks and IRAs What paperwork you’ll need What the regulations are for your state How exit strategies impact the type of lender you need Here are just some of the reasons you absolutely need to know how to use Private Money for your Real Estate Investing… 1. Some deals don’t work with traditional bank financing You must close within days to get the deal – banks don’t work that fast The bank won’t lend money without certain required repairs on a property You won’t survive the cash flow game if you use your own money Between acquisition costs, marketing, holding costs, repairs and selling expenses, you may exhaust you credit line 3. Having private lenders lined up increases your ability to make all-cash (read: lower) offers . . . Many sellers need cash now – you will have access to cash that your competitors don’t 4. Exit strategies will be quicker and more profitable 5. You can negotiate flexible terms with your lender Private lenders are more flexible with payment terms, making it a win-win for both parties 6. You do not have to share or split the profits with partners – paying 10% on borrowed funds is cheaper than splitting 50% of the back end profit 7. Banks will eventually limit the number of loans you can take out to buy investment property When that super deal comes along that will make you $100,000 next month and you can’t get the cash to buy it – you’ll wish you had access to private money! 8. You can avoid high closing costs – to banks or hard money lenders You’ll avoid paying thousands out of your profits in fees and points that banks charge to make money 9. You don’t use your credit, so no credit report is required 10. You can buy more expensive houses where the profit potential might be huge
---------------------About Don, who was featured in the NY Times best seller The Millionaire Real Estate Investor: In the course of researching The Millionaire Real Estate Investor, we interviewed more than 100 millionaire investors from across the US and Canada. They were all people with extraordinary stories and success. Don DeRosa’s story was compelling enough for us to profile him among the top 21 exemplary investors featured in our book. He clearly stands out as a knowledgeable investor who is playing the game at the highest level. We were extremely thankful for his contribution to our book… Jay Papasan, Co-author of New York Times bestseller The Millionaire Real Estate Investor Excellent “how to” tool to walk you through creating relationships with private lenders, including initiating contacts, collateral material, and documentation required for closing and working with self-directed IRA funds. Mary Ann T., Atlanta This course connects all the dots for me. I had previously taken Don’s other courses – Short Sale Profits Made Easy and Building Wealth with Real Estate. Private Lending 101 is the final piece to my real estate wealth puzzle. I look forward to making a great deal of money, thanks to Don…Barrett M., Decatur, GA
2.
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General Meeting ~ ~ 6pm Networking ~ 7:30 pm Presentation ~ Marriott, Overland Park
MAREI Presents:
Finding all the Private Money You Need
Once You Learn The Ultra-Simple, Easy-to-Implement Method Don Uses to Attract Private Money Lenders:
You'll Never Need to Get a Loan From the Bank again… You'll Never Have to Pass on a Great Deal Because 'You Don't Have the Cash!' Join Don DeRosa as he discusses exactly how to get an unlimited supply of money through Private-Money -Lenders so you can do more deals with less hassle including:
1. 10 Compelling Reasons Private Money is the Key to making more money in this business...especially now
in 2009 2. How to find, market to and attract people with private money into your life 3. How to convince people with money to give you money for deals 4. How to build a credibility kit that actually works, even if you've never done your first deal 5. And how exit strategies impact the TYPE of private money lender you need Don has secured millions in private money for his own deals, he does so with ease and regularity because he uses a simple formula and procedure anyone can duplicate. Be sure to register for this all day workshop on Saturday June 13th to learn these must have strategies!
Sponsored by Tucker One Properties
Tucker One Properties buys and sells houses and small apartments in the Kansas City Metro area. If you have properties to sell or you are looking for a particular type of property, please talk to Joe and Paul at their table in the vendor hall before the meeting and visit their web site at www.TuckerOneProperties.com. (Be sure to check out the blog on the home page of their site, it's packed with information)
Sponsored by Realty Resource
Realty Resource is a real estate brokerage for investors by investors. Please visit with our team to learn more about making offers on REO and other listed investment properties as well as marketing your turn key rentals and rehabbed owner occupant homes. Visit our team today at www.RealtyResourceKC.com.
Tuesday June 9th, 2009 6:00 pm Networking 7:30 pm Presentation Sponsor Meeting: $200 Reserve Networking Table: $35 for Member’s Page 4
Overland Park Marriott 10800 Metcalf Members Attend FREE $25 Guest fee at Door Preregister for $15 on Web Site More info www.MAREInet.com www.MAREInet.com
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FHA Quick Reference
FHA products offer unique benefits and protections for you and your customers. They provide less risk for you the lender, as well as fast closings, competitive rates and foreclosure protections for your clients. FHA mortgage programs are insured by the Federal government and are some of the safest products on the market today. Benefits and protections for lenders: and rural areas, including manufactured homes on permanent foundations.
Adaptability: lenders typically offer terms at 15 or 30
years.
Negotiability: interest rates are negotiated between the
borrower and lender. Compatible with industry requirements on:
More security: FHA insures the mortgage, lowering
your risk.
Appraisal and repair. Closing costs. Automated Underwriting Systems (AUS) using FHA's
TOTAL Scorecard.
More qualified borrowers due to:
3.5% downpayment and that money can be a gift (Lower downpayments mean higher loan amounts). interest rates because the Federal government insures the loans.
Lower downpayments: FHA-insured loans have a low Lender insurance. Lower costs: FHA-insured loans have competitive Less likely foreclosure: The FHA has been around
since 1934 and will continue to be here to protect borrowers. Should borrowers encounter hard times after buying, FHA has many options to help keep them in their homes and avoid foreclosures. Why Clients Choose FHA
Similar documentation for comparable products.
FHA's loan products meet your borrowers' needs:
Flexible buy and repair with Streamlined 203(k) mortgage.
Reverse mortgage (HECM). Manufactured homes. Construction - permanent mortgage.
Works well with state and local agency products. To learn more about FHA loans for your buyers, or using 203(b) loans to buy and rehab or FHA loans for multi family projects, please visit www.FHA.gov
Close faster and qualify easier: No minimum credit score is required. Non-traditional credit is acceptable. Low downpayment. Non-occupant co-borrower is permitted. Expanded qualifying ratios. No prepayment penalties. Fully assumable. Default assistance. Lower premiums. Non-credit qualifying streamlines refinances. Competitive interest rates and lower premiums. Additionally, you should be aware that FHA's primary mortgage insurance program, commonly known as Section 203(b), is the centerpiece of FHA's single-family mortgage insurance programs. It can cover one- to fourfamily homes. It's advantages are:
Availability: in all areas of the country, provided a market exists for the property and the home meets HUD's minimum property standards. Versatility: may be used to purchase or refinance a
new or existing one-to-four family home in both urban
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Welcome
New Members
Nathan Bowen - Kansas Ruth Cornett - California Jared Fleming - Kansas Joyce Harris - H & A Connections, LLC - Missouri Robin Krieger - Keller Williams - Kansas Christine McDonough - Mind Like Water, LLC - Kansas Pete Mendenhall - Kansas Conrad Miller - Aegis Properties, LLC - Kansas Michelle Reynolds - Mind Like Water, LLC - Kansas David Roney - Keller Williams - Kansas Glen Smithson - Midwest Home Solutions - Missouri Christina Stephan - Kansas Dennis Stephan - Kansas Allen Thompson - Kansas Derek Vaksdal - Midwest Home Solutions - Missouri Sean Wheeler - SMW LLC - Kansas Susan Wheeler - SMW LLC - Kansas Bob Winney - Aegis Properties, LLC - Kansas Mike Williams - Mind Link Water, LLC - Kansas
Short Notes
Realtor.org - for those of you who are realtors and members of KCRAR, you are also a member of NAR and should have received a membership card with a NRDS #. Using this number you can register as a member on Realtor.org and download a ton of FREE brochures to help you sell more houses. Brochures on FHA, first time home buyers, lead, mold, and more. There is also tons of information for free on just about every topic under the sun relating to real estate. As a member you can access almost everything with no other cost. If you are not a member of KCRAR or NAR there is still a lot of useful information that you can access. Check it out. FHA.gov in today’s market where our primary buyers seem to be first time home buyers, learning how FHA works is a must. Check out the FHA site and get educated.
Changes to MAREI Membership
A little short on cash right now? Rather not finance your MAREI membership on your Credit Cards? Divide your membership over 4 payments.
Returning Members
Donald Hobbs - K & C Phoenix Enterprises - MO - 2006 Norm Kinnaugh - Note Buyer - Kansas - 2006
Please be sure to watch your mail for your member packages with your welcome letter, Sherwin Williams discount card, Kinko’s discount card, and passwords. Once you receive, please test your passwords and log into the web site to make sure they work. Feel free to change them to suit your needs. Then be sure to click on “my info” and make sure your profile is turned on, the right contact info is showing up, tell us a bit about yourself, and load a photo or logo to attach to your profile. All members can log in and find you in the profile section.
Standard Membership for 1 is $99 Pay Quarterly $30 Attend General Meetings Member Discounts Reduced Price on Training Access to Member’s Only Area on Web Site Business Membership for 2 $499 Pay Quarterly $135 Attend General Meetings Member Discounts Reduced Price on Training Access to Member’s Only Area on Web Site Business Card Ad in Newsletter Listing in Vendor Directory Add on a Spouse or Partner for $50 Pay Quarterly $15 See page 10 for new member application
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Service Guide
Advertising Supplement
Tucker One Properties, Inc.
Rehab ~ Wholesale ~ Foreclosures Residential & Commercial
115 E. Gregory Kansas City, MO 64114 Phone: 816-523-4400 Fax: 816-523-4448
Accurate Title Company, LLC Ron Kraft
Title, Closing, & Escrow Services
7011 W 121st St, Ste 100, Overland Park, KS 66209 Jackie White / 913-338-0100 / Fax 913-338-0107
Joe Reece www.TuckerOneProperties.com
www.AccurateTitleCo.com
Yellowletter.com
Yellow Letter Automated Mailings Pre NOD Leads Available
John & Donna MacNeil
Phone: (904) 880-2742 Fax: (904) 880-2741 Email: [email protected]
Education & Training With over 2,400 unique ebook tiles in our directory And free pdf downloads go to www.MindLikeWater.com
ONE STOP SHOP
Full Service for Real Estate Investors
REAL ESTATE SERVICES
Full Service Real Estate Company Buy & Sell Property
REHAB LOAN COMPANY
Hard Money & Rehab Loans No Seasoning on Title Refits to Payoff Rehab Loans LLC Loans, FHA Loans, Purchase Money
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Lots of Crews, Cheap Prices Renovation, Rehab, Remodeling Services Patrick and Marta Grace
LAS CASAS MANAGEMENT
Full Service Property Management
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GRACE REAL ESTATE COMPANY LLC 207 NE 72nd St, KCMO 64118
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Page 7 Page 7
Service Guide
**THE ANSWER TO INSURING YOUR PROPERTIES** OUR PROGRAM HAS BEEN IN EXISTANCE SINCE 1999 A NATIONAL INSURANCE PROGRAM THAT PROVIDES: PROPERTY & PREMISES LIABILITY COVERAGE CURRENTLY INSURING OVER 750 BUSINESSES WE OFFER MONTHLY REPORTING & BILLING VERY COMPETITIVE INSURANCE RATES WITH CARRIERS RATED A+ SAME DAY TURN AROUND TIME FOR PROOF OF INSURANCE FOR CLOSING FLOOD AND OTHER SPECIALTY LINES OF COVERAGE AVAILABLE
I Buy Private Mortgage Notes, & Land Contracts, Lump Sum Cash Edward Griffin 913-499-6518 [email protected]
Affinity Group Management Company: 1-800-790-4872 PHONE, 913-894-6534 FAX Email [email protected] Email [email protected]
NEED TO FLIP A PROPERTY FAST?
T.O.T.L. (TOP OF THE LINE) RENOVATIONS
For Investors, By Investors
See our current inventory of REO Properties Turn Key Rentals Build your Kansas City Area Investment Portfolio with Us Visit our Web Site to See Currently Available Properties Connect with our Team of Specialists
will complete all your rehab needs quickly, at a reasonable price.
We specialize in: Make - ready Siding & Windows Carpentry & Roofing Plumbing & Electrical Painting & Flooring Drywall & Doors Fences & Decks Kitchens & Baths LICENSED AND INSURED
www.RealtyResourceKC.com 816-523-4400
Call Anthony @ 816-606-0266 or Emily @ 816-252-0095 [email protected]
www.MAREInet.com / Vendor Page
Are you looking for Discounted Printing Buy Business Cards Post Cards Letter Head Brochures Flyers You Design online Vista Print.com Visit the MAREI vendor Page under printers for Up to 75% off at Vista Print Visit our Vendor page And look under Training for Rich Dad Poor Dad Games, Books, Audio, and Forums
FREE Trial Web Site
Hundreds of easy to use templates. Get up and running in a matter of minutes. Property Marketing pages that link to other sites. Contact collection web forms. Auto Responders. Database Management. Everything you need for a fully functional Web site that you can get up and running Very quickly and that you can customize 100%, that you have complete control over. It’s free to try out! See what your site would look like! Go to Web Services On the Vendor Page at MAREInet.com And click on FREE Trial Web Site This is the provider MAREI used for 5 years before upgrading to the current service. It now has more features than it did then.
60 Day Free Trial
Send Mass Emails Load up your mailing list, today! 100’s of templates or Create your own. Easy to use. No more sending emails 100 at a time. No more accidentally sharing everyone’s emails. Set up emails in advance to send on the day and time of your choice, even if you are doing something else. MAREI used this service for about 4 years and it is one of the easiest to use. We are testing out a cheaper service, but it Is much more difficult to get an email sent out. We recommend Constant Contact Look under Web Services on the Vendor Page at MAREInet.com
INVITE A FRIEND To a MAREI MEETING
MAREI Members do you have a friend, coworker, or per. son who provides you a service that is interested in real estate investing? Our Next meeting will be an excellent opportunity for a new potential member to check us out. Please cut out or copy this page and provide it to all of your friends who want to attend and have never been to a meeting and they will be able to attend for FREE! If they have attended before, please encourage them to join, it’s only $99 a year and the get access to so much training through the web site. And if they are just not quite ready to join, and they have attended before, remind them that the guest fee at the door is $25, but if they reregister at www.MAREInet.com through the Calendar of Events, they can save ten bucks.
Membership Benefits
Free entrance to General Meetings Digital Version of this Newsletter emailed to you Discounts to Paid Events Access to Online Library Post Houses on our Classifieds Interact on Member’s Only Message Board Post your Profile & Read Profiles for Other Members E-Messaging System through Profiles Membership List in Excel (no emails) Discount Card to Sherwin Williams Discount Card to Office Max
Cost: $99 annually for one, $50 per additional To Join, fill out form below.
FREE GUEST ENTRANCE FOR FIRST TIME ATTENDEES NAME: _________________________ PHONE: ________________________ EMAIL: __________________________ ADDRESS: _______________________ CITY: ___________________________ STATE: _______ ZIP: ____________
Name #1: ______________________________________________ Email: _________________________________________________ Name #2: ______________________________________________ Email: _________________________________________________ Company: ______________________________________________ Address: _______________________________________________ _______________________________________________________ Phone: ________________________________________________ Pay in full up front
Standard Membership $99 Add on Spouse or Partner $50 Business Membership $499 Additional Employee $50
Charge Credit Card Quarterly
Standard Membership $30 Add on Spouse or Partner $15 Business Membership $135 Additional Employee $15
REFERED BY: ___________________
Free entrance is limited to the June 2009 meeting at the Overland Park Marriott from 6 pm to 9 pm for first time guests. If you have attended before, remember guest fee at the door is $25. Membership is just $99 for one and you can join right now on our web site at www.MAREInet.com! Be sure to bring your business cards and flyers for networking. Don’t forget your note pad, because you will want to take notes during the presentation and take down names and contacts while you are networking. Arrive early and have dinner at one of the fine establishments in the area!
Check Enclosed (make payable to MAREI) Credit Card: ____________________________________________ $______________________________ Total Amount ___________________ Expiration Date
_______________________________________________________ Name as it Appears on Card _______________________________________________________ Billing Address (if different from above) ______________________________________________________ Signature Date
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Don DeRosa
presents
Using Private Money to Buy all the Houses You Want
The Ultimate System for Finding and Using Other People’s Money
Learn how to get an unlimited supply of money through Private Lenders so...
You don’t have to qualify for a mortgage You don’t have to pay points to hard money lenders You won’t lose a deal because you need quick cash You don’t sap your own credit line
My technique for getting all the private money I need Building a Private Lending Credibility Kit Disclosures you need to protect yourself and your lender How to utilize 401Ks and IRAs How to prepare the paperwork as if you were an attorney How exit strategies impact the type of lender you need
A few of the topics we will cover:
Why real estate is the ideal investment to become financially independent 10 Reasons why you absolutely need to now how to get Private Money How to buy “subject to” so you don’t use your own credit Avoiding the “due on sale” clause Twenty questions to ask every seller before you go see them Evaluating properties do you make $20,000 on every deal
Beginning investors and old pros can find immediate success using my simple system. Here are the five simple questions we’ll answer about working with Private Lenders:
Why do you need private lenders? What makes the perfect private lender? Who are these private lenders? How do you find them? What paperwork is needed?
How to know how much you’ll need to borrow from your private lender Top marketing tactics for finding private lenders
Once you learn the answers to these questions, and combine them with the techniques for buying houses that I’ll share with you, there is NO LIMIT to the number of houses you can buy every month.
Registration Information for Saturday Workshop
1 Member Attendance $25 2 Member Attendance $35 1 Non-Member Attendance $35 2 Non-Member Attendance $50 June 13th 9 am to 4:30 pm Bring your own Lunch
_________________________________________________ Attendee 1 _________________________________________________ Email _________________________________________________ Address _________________________________________________ Phone _________________________________________________ Credit Card Number Check in & Registration at 8:30 am _________________________________________________ Attendee _________________________________________________ Email _________________________________________________ City, State Zip _________________________________________________ Fax _________________ Expire Date _________________________________________________ Signature
Loan Modification—
The ‘Ins and ‘Outs of Loan Modifications: Protecting Yourself and Your Real Estate By Peter L Mosca—Thu, May 28, 2009 [Note: To follow is an excerpt of an interview with Bob Diamond, a practicing real estate attorney, real estate developer, and published author of three books on foreclosure investing. To listen to the show archive or download an MP3, go to www.IncomePropertyInvestmentTalk.com/050609.] Mosca: There are about 9 million homeowners out there many of whom are under water, meaning they owe more on their homes then the property is currently worth. Most will be seeking a loan modification this year. What, if anything, is new with today's loan modification process? Diamond: It is one of the most quickly changing areas in real estate. It is a complete moving target. We estimate that a third of the people in America are upside down. Can you imagine a third of the people owe more on their mortgage then their house is worth, and those mortgages are going to have to be modified. People are not going to pay $300,000 for a mortgage when they have a house worth $100,000. It doesn't make any sense to do that, and often times it makes more sense to turn the keys over to the bank and then go get a different house. That completely helps the leverage you have with the bank because they know that is what you can do -- that you can walk away from your house or property if you have to. The other thing new, and especially appropriate to your program, is that you now can get banks to modify investment property loans, commercial property loans, multi-unit, and singlefamily. Most importantly, many banks will modify them even if you're not yet in default, which is a brand new position that a couple months ago were all but impossible. Mosca: Are banks trying to be more proactive rather than reactive? Diamond: They have to. The only reason they are doing this is they are pushed against a wall. The banks took the TARP money and put it in their accounts and left it there. Banks have something called a liquidity ratio and a capital ratio, essentially they have to have their own capital and they can then lend multiples of that. Their capital had gotten depleted, so they needed to sure up their capital, meaning put money in their accounts, that way they could lend more money. If the bank's capital drops down too low, they actually have to sell off loans to other banks to raise cash. Banks don't want to do that, so what they did with last year's TARP funds is they put it in their account. That is why they did not lend any of the money out. They could say, “Well we will just hang on to those TARP funds and hopefully things will turn around. The markets will get better.” They are sort of like some homeowners in foreclosure where they often have a mentality that somehow this awful thing won't happen. The banks are institutionally in denial. Mosca: [A caller named Michael from New Jersey] Are banks willing to reduce the principal on these properties? Diamond: That is a great question, and you are straight on. A loan modification is quite simply changing the terms of the loan. From a homeowner or property owner's perspective it makes it easier to pay. From the bank's perspective, a loan modification keeps the bank from going into default and causing an even bigger loss. Typically, banks recover about 65% of the value of the property when they foreclose. According to the studies that they have done banks lose about 35% of the value through all the costs associated to the foreclosure, everything from the trustee, to the missed payments, to the missed interest, to the charges they paid to the property management company, to the charges they paid to a realtor, loss of interest over the months they have the property. Banks want to stop a default, but the tools they can use are many. They can reduce the interest rate, which would reduce the monthly payment. They could stretch out the term of the payment; from say a 30-year mortgage to a 40-year mortgage. Mosca: What about the principal? Diamond: They could also reduce the principal. The problem from the bank's perspective of reducing the principal is that there is no hope for the future. Think about it. Let's say that the bank reduces the interest rate from 8% to 4%, which would be a typical thing we could achieve in loan modification. If you decide three years later that you're going to move and sell your house and the market has improved enough that you can actually get out from under your house, which again is fairly likely that over time housing values will come up and the bank can get repaid in full. If they've only reduced the interest rate than their loss, the money that they don't collect, is just the lower interest rate over three or four years, but if they lower the principal balance then even if you sell the property in three or four years you might make a big profit as the homeowner but the bank doesn't. Reducing the principal balance is the thing that they resist the most. Read the full article online on RealtyTimes at http://realtytimes.com/rtpages/20090528_inout.htm
Subscribe to Our FREE Weekly Newsletter Now and Receive... Free Subscription to our Monthly Newsletter via email Plus Notices of Upcoming Events and Bonus E Workshops
Sign up Now Next week on Thursday June 18th Norm Reid will interview Bob Diamond They will be furthering this discussion on Loan mods that are discussed here on this page And on the article on Realty Times. This is probably the hottest topic to hit Foreclosures and investors since We figured out short sales.
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Online Promotion: Web Sites
Web 2.0 . . .Web Page Ranking Ok, so I can’t profess to be an expert, but I do study this quite a bit and from all this studying I understand that to get your web page to come up first in a search, you can do quite a few things to make it come up higher on the search engines, like google.com. One of the first ways to improve your rankings is my having a real .com name that you own. Not http:// joesblogsite.wordpress.com but rather www.JoesBlog.com. So if you are using a free site or a template site first go out and buy a .com name for your site and then work with your service provider to and the company you purchased from to get the .com name on the web site. There are several places you can buy .com names and most are really cheap. One I like that costs a bit more, but has a lot more instruction on how things work is www.directnic.com. Another key that I have read about is to have that .com name purchased by the company it is promoting. So when we purchased www.MAREInet.com we purchased it by MAREI with the MAREI credit card rather than having web site company buy it for you. Plus if you buy it yourself, you have much more direct control. For example if you had Joe’s Web Site Services create your web site and buy your name for you and then you fired Joe, he might have ownership rights to your web site name and control of it. So buy your name yourself. The next thing you want to do is to get traffic coming to your web site. So on every marketing piece you send out be sure to include your web site name and if possible give them a very good reason to go to your web site. Maybe you could offer a free report of some sort that your clients would have a high chance of going to get. So you might have on the back of your business cards, “Please visit www.MyWebSite.com to get a free 10 page report on How to buy a house Lease to Own”, just be sure you have a free report on the web site and then create a way that they need to give you a name and an email to access the report. Then as you collect those names and emails, find a reason to send out an email to everyone monthly with updates about your industry, interesting news articles, etc. You might post part of the newsletter articles in your email and have them click a link in the email to go back to your web site to read the entire article. I have seen the same thing done with blog sites, although some sites don’t like you using your blog to increase your linked visits to your web site. I solved that by making my blog site one of my main sites and linking back to my blog. People read the articles on my blog and click the link to go back and read related articles. You might also want to create a link exchange with your business partners. So if you are an investor and work with a title company, a realtor or two, a mortgage lender, a moving company, a contractor, etc, you could ask them each to put you on their web site and at the same time you would add them to yours. If they don’t have a web site, you might offer to create a simple one page site for them somewhere free that links back to your site. I have not yet tried this, but everything I am reading tells me that if you put video on your web page that you will raise your rankings. So get out the old digital camera or use the feature on your lap top if you have one and record a short 2 minute welcome message to post on your site. And while you are writing the articles for you newsletter or blog above, you might also take a few minutes to record a short 3 minute video about the article and post it both on YouTube.com and on your web site. The last thing that I would recommend is probably going to be the most time consuming: submitting your site to all the search engines and phone book type pages. Sites like:
Google Local Yahoo Local Info Space Info USA Acxiom http://corporate.yellowbook.com/products/internet-freelisting/ Windows Live http://www.truelocal.com/ http://advertising.superpages.com/spportal/freelisting2.do http://www.insiderpages.com/session/new?dest=http%3A% 2F%2Fwww.insiderpages.com%2Fmy_profile%2Fmailbox LocalEz Live Deal
And I would not recommend payment to be placed on any one site. You are posting on these sites to get more links back to yours and while coming up high in the rankings on these sites would be great, who actually uses these sites to look for something. Most people are going to go to Google or Yahoo. But what if someone googled your company name an it’s on all of these sites, plus your own and they all come up in one search on 5 different web sites. Trade association sites. The last place you want to make sure you are posted are on all the trade association sites. So for example MAREI, we took the time to contact all the web sites we could find that list real estate investor associations and asked them to include MAREI. If you are a realtor, there are realtor sites that list area realtors and every other profession probably has a local association that has a web site and lists their members. I hope if have given you some more ideas to get your web site to come up higher in the rankings. As a last resort go to google or yahoo and see what comes up when you search for web site optimization and you might find some more ideas.
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Visit the MAREI Calendar for More Information and Registration
Be sure to visit the Calendar of Events on MAREInet.com to get more information all of these and other upcoming events. Times, locations, fees, and registration online. June 8th, 9th, & 11th: Trump University’s FREE Workshop: Fast Track to Foreclosure Investing in the Kansas City Metro Area. June 10th: Trump University’s FREE Workshop: Fast Track to Foreclosure Investing in the Topeka KS Area. June 10th to 12th: Ultimate Mobile Home Bootcamp in San Angelo TX. Everything you need to know about investing in Mobile Homes. Limited to 30 people. June 9th: MAREI General Meeting: Don DeRosa, Find out how to get more money to do more deals in today’s market of no bank loans with Private Lenders. Networking 6 pm to 7:30, presentation 7:30 to 9:00 pm Reserve Vendor Table June 13th: MAREI’s Private Lending Workshop with national trainer Don DeRosa: How to find people with money to lend, How to build credibility with them, so they will lend you the funds you need to do your deals. 9 am to 4:30 pm at Johnson County Community College. Check in and Registration at 8:30. June 17th: Kansas City Metro Investor Happy Hour Networking from 4 pm to 6 pm at Lew’s at 75th & Wornall in Waldo. June 24th to 28th: National REIA Mid Year Leadership Conference for REIA Group Leaders in San Antonio, TX. Still booking space for Sponsors and Attendees. July 14th: MAREI General Meeting: Introduction to Commercial Investing with Walt Clements, Director of Lewis White Real Estate Center, UMKC. Networking 6 pm to 7:30, presentation 7:30 to 9:00 pm. July 16th to 18th: Self Storage Bootcamp in Macon Georgia. Everything you need to know about Self Storage Investing. Limited to 25 people. July 22nd: Kansas City Metro Investor Happy Hour Networking from 4 pm to 6 pm at Lew’s at 75th & Wornall in Waldo. August 11th: MAREI General Meeting: Tax Lien and Deed Investing with Michael Williams. Networking 6 pm to 7:30, presentation at 7:30. August 21 - 24th, Show Me the Wealth Conference with the Rogue Investor, right here in Kansas City. Including going to the Clay County Tax Sale on the 24th. To be put on the calendar of events shortly. September 8th: MAREI General Meeting: William Tingle: Everything you ever wanted and needed to know about Investing Subject To the Existing Financing and then selling Lease to own or Owner Finance. Networking 6 pm to 7:30, presentation 7:30 to 9:00 pm September 12th: MAREI”s Subject Too or Sub2 Investing Workshop with Mr. Sub 2 himself, William Tingle. Join us to learn one of the top ways to buy and sell in this era of tight money from banks. 9 am to 4:30 pm at Johnson County Community College. Check in and Registration at 8:30.
Advertise Your Real Estate Event To our Targeted Group of Web Viewers, Meeting Attendees, And Email Database. Post your Event on our Calendar Host 1/2 a Vendor Table at the Meeting Place 1/2 Page Ad in the Newsletter Blast the Announcement out to the Membership Total Cost $100 Please call Kim at 816-523-4400 Or email [email protected] Then link the calendar ad to Facebook, LinkedIn, Twitter, and other Online Social Networking Sites.
Newsletter of Mid-America Association of Real Estate Investors
JUNE 2009
Tax Credits for FHA Buyers
Home prices are low and houses are extremely affordable. There are 100’s of houses for sale just waiting for a buyer to come along. But along with a lot of cheap houses there comes the major obstacle for first time home buyers wanting to buy: the down payments needed for those loans. While our parents and grandparents scrimped and saved to put down 20%, we can often times get by with putting down only 3.5% using an FHA loan, and then another 3 % or so for closing costs. As part of the stimulus package, Congress created a tax credit of up to $8000 for first time home buyers in an effort of getting people to move from the “just thinking about it stage” to the “just do it stage”. But buyer’s could not receive the $8,000 credit until they get their taxes back, not at closing time when they needed it for down payments and closing costs. The U.S. Department of Housing and Urban Development (HUD) has been working on plan with the Federal Housing Authority (FHA) to provide the buyers with tax credit cash up front to use for down payment and closing costs. The plan was to be modeled after programs in a few states including Missouri. In Missouri, starting January 1, home buyers who qualified could get their first mortgage to buy the home, plus obtain a second mortgage issued by the state. The second note is good for up to 6% of the price of the home— up to $6,750 with a $350 set up fee. As long as the 2nd mortgage is paid by June 2010 there will be no interest paid. If they do not pay off the note, it will then become a 10 year fixed rate mortgage with an interest rate of one half percentage point above that of the first mortgage. So if the first mortgage is at 6% the 2nd would be at 6.5%. On May 28th, HUD announced it’s new policy that FHA lenders are authorized to develop their own bridge loan products that would enable home buyers to access the $8,000 tax credit at closing. These loans, like the ones from the state of Missouri can be used to pay closing costs, buy down the interest rate or cover any downpayment that exceeds 3.5%. Home buyers will still be required to come up with at least 3.5% of their own down payment money as a minimum on FHA loans.
able homebuyers to access the $8,000 first-time homebuyers’ tax credit at the closing table, no FHA-approved lenders in Kansas currently offer these loans. In order to encourage FHA-approved lenders in Kansas to develop and offer these bridge loan products, Kansas REALTORS® and Investors are encouraged to contact the FHA-approved lenders in their area about this new program. This program is not mandatory and homebuyers will only be able to access these new bridge loan products if FHA-approved lenders choose to participate.
Ask Your Lenders To Make Bridge Loans Available Even though HUD has authorized FHA-approved lenders to develop bridge loan products that en-
MAREI
Mid-America Association Of Real Estate Investors
Mid-America Association of Real Estate Investors (MAREI) is one of the largest real estate investor associations in the mid-west. MAREI members consist of full and part-time investors, beginning investors, real estate brokers and agents, attorneys, contractors, accountants, property managers, renovation specialists, appraisers, bankers - people who want to enjoy the many benefits of real estate investing. MAREI was established in 2003 and promotes networking and educational opportunities to its membership. MAREI services members in Kansas, Missouri and Nebraska.
Investment News
INVESTMENT NEWS © 2009 by Mid-America Association of Real Estate Investors (MAREI), a Real Estate Trade Association. Published monthly by MAREI and included as benefit for our members. Quotations and reprints are permitted with full credit given to author, plus “The Investment News: Newsletter of Mid-America Association of Real Estate Investors.” Subscriptions are $59 per year or are included with membership. MEMBERSHIP Twelve month individual membership is $99, 2 Person Membership is $149. Guest Fee is $25. Articles must be received by the 1st of the month two months prior to issue date to be considered for publication. To be considered for a specific issue, it is recommended you contact the Editor at least three months prior to issue date. All submissions are at the discretion of the editor and are subject to editing. Advertising space deadline is the 1st of the month one month prior to publication. All camera-ready artwork and materials for non-camera ready ads are due by that date. Please see www.MAREInet.com for more information.
CODE OF ETHICS MAREI members are expected to be civic minded and willing to operate with high standards of honesty and integrity. It is our duty to conduct ourselves with the highest principles of the free enterprise system. We strive for MAREI to be synonymous with competence and fairness. As MAREI members, we hereby bind ourselves to this code of ethics: 1. 2. 3. 4. 5. We shall not discriminate against any person with regard to race, color, religion, age, national origin, sex, handicap or familial status as defined by current Kansas, Missouri, or Nebraska law. We shall recognize that real estate is a service related industry. We shall refrain from engaging in any illegal practices, or defrauding any member, customer, or association, with the aim of always conducting business in a professional manner. We shall endeavor to stay informed and updated on matters affecting housing in our communities, and adhere to local, state and federal laws. We are individually responsible for our own due diligence and continuing education. Members are expected to verify any and all assumptions regarding business decisions to prevent falling victim to fraud, misrepresentations and illegal practices.
MISSION STATEMENT
To provide education, discussion and networking opportunities to help real estate entrepreneurs & investors reach their financial goals using sound, honest business practices.
BADGE POLICY
All members of Mid-America Association of Real Estate Investors and guests must wear a name badge to all General Meetings. There will be no exceptions.
Further, if any allegations of conduct considered detrimental to the purposes and interest of MAREI are received in written and signed communication to the management, we will consider the matter. Should a decision to take further action be made, a furnished copy of said allegation (s) to the accused, who shall be given adequate time to reply. Thereafter, management shall take such further action as it may deem property and in accordance to this code of ethics.
The information contained herein is believed to be accurate; however, it is not guaranteed or warranted in any manner and is subject to change without notice. Writers’ and speakers’ opinions are not necessarily those of MAREI. You are advised to seek professional advice.
Mid-America Association of Real Estate Investors PO BOX 8685 Prairie Village, KS 66208 Phone: 816-523-4400 Fax: 816-523-4448 www.MAREInet.com [email protected] Mid-America Association of Real Estate Investors is a Member of the National Real Estate Investors Association And the National Association of Responsible Homebuilders & Remodelers
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Private Lending with Don DeRosa
Don DeRosa presents Using Private Money to Buy all the Houses You Want The Ultimate System for Finding and Using Other People’s Money It’s the best market to buy houses in years! But credit is tight. So you need to know how to find and use private money. Now. Join Don DeRosa as he discusses how to get an unlimited supply of money through Private Lenders so… You don’t have to qualify for a mortgage You don’t have to pay thousands in points to hard money lenders You won’t lose a deal because you need quick cash You don’t sap your own credit line Beginning investors and old pros can find immediate success using Don’s simple system. Here are the five simple questions we’ll answer about working with Private Lenders: 1. Why do you need private lenders? 2. What makes the perfect private lender? 3. Who are these private lenders? 4. How do you find them? 5. What paperwork and disclosures are needed? Once you learn the answers to these questions, and combine them with the techniques for buying houses that Don will share, there is NO LIMIT to the number of houses you can buy every month. Think of that – your earnings potential is unlimited! And, you’ll hear exactly what Don tells potential private lenders to educate them and show what a safe investment alternative private lending is! A few of the topics we will cover: The 10 Top Reasons why you absolutely need to know how to get Private Money Evaluating properties so you make $20,000 on every deal How to know how much you’ll need to borrow from your private lender Don’s top marketing tactics for finding private lenders Building a Private Lending Credibility Kit Disclosures you need to protect yourself and your lender How to utilize 401Ks and IRAs What paperwork you’ll need What the regulations are for your state How exit strategies impact the type of lender you need Here are just some of the reasons you absolutely need to know how to use Private Money for your Real Estate Investing… 1. Some deals don’t work with traditional bank financing You must close within days to get the deal – banks don’t work that fast The bank won’t lend money without certain required repairs on a property You won’t survive the cash flow game if you use your own money Between acquisition costs, marketing, holding costs, repairs and selling expenses, you may exhaust you credit line 3. Having private lenders lined up increases your ability to make all-cash (read: lower) offers . . . Many sellers need cash now – you will have access to cash that your competitors don’t 4. Exit strategies will be quicker and more profitable 5. You can negotiate flexible terms with your lender Private lenders are more flexible with payment terms, making it a win-win for both parties 6. You do not have to share or split the profits with partners – paying 10% on borrowed funds is cheaper than splitting 50% of the back end profit 7. Banks will eventually limit the number of loans you can take out to buy investment property When that super deal comes along that will make you $100,000 next month and you can’t get the cash to buy it – you’ll wish you had access to private money! 8. You can avoid high closing costs – to banks or hard money lenders You’ll avoid paying thousands out of your profits in fees and points that banks charge to make money 9. You don’t use your credit, so no credit report is required 10. You can buy more expensive houses where the profit potential might be huge
---------------------About Don, who was featured in the NY Times best seller The Millionaire Real Estate Investor: In the course of researching The Millionaire Real Estate Investor, we interviewed more than 100 millionaire investors from across the US and Canada. They were all people with extraordinary stories and success. Don DeRosa’s story was compelling enough for us to profile him among the top 21 exemplary investors featured in our book. He clearly stands out as a knowledgeable investor who is playing the game at the highest level. We were extremely thankful for his contribution to our book… Jay Papasan, Co-author of New York Times bestseller The Millionaire Real Estate Investor Excellent “how to” tool to walk you through creating relationships with private lenders, including initiating contacts, collateral material, and documentation required for closing and working with self-directed IRA funds. Mary Ann T., Atlanta This course connects all the dots for me. I had previously taken Don’s other courses – Short Sale Profits Made Easy and Building Wealth with Real Estate. Private Lending 101 is the final piece to my real estate wealth puzzle. I look forward to making a great deal of money, thanks to Don…Barrett M., Decatur, GA
2.
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General Meeting ~ ~ 6pm Networking ~ 7:30 pm Presentation ~ Marriott, Overland Park
MAREI Presents:
Finding all the Private Money You Need
Once You Learn The Ultra-Simple, Easy-to-Implement Method Don Uses to Attract Private Money Lenders:
You'll Never Need to Get a Loan From the Bank again… You'll Never Have to Pass on a Great Deal Because 'You Don't Have the Cash!' Join Don DeRosa as he discusses exactly how to get an unlimited supply of money through Private-Money -Lenders so you can do more deals with less hassle including:
1. 10 Compelling Reasons Private Money is the Key to making more money in this business...especially now
in 2009 2. How to find, market to and attract people with private money into your life 3. How to convince people with money to give you money for deals 4. How to build a credibility kit that actually works, even if you've never done your first deal 5. And how exit strategies impact the TYPE of private money lender you need Don has secured millions in private money for his own deals, he does so with ease and regularity because he uses a simple formula and procedure anyone can duplicate. Be sure to register for this all day workshop on Saturday June 13th to learn these must have strategies!
Sponsored by Tucker One Properties
Tucker One Properties buys and sells houses and small apartments in the Kansas City Metro area. If you have properties to sell or you are looking for a particular type of property, please talk to Joe and Paul at their table in the vendor hall before the meeting and visit their web site at www.TuckerOneProperties.com. (Be sure to check out the blog on the home page of their site, it's packed with information)
Sponsored by Realty Resource
Realty Resource is a real estate brokerage for investors by investors. Please visit with our team to learn more about making offers on REO and other listed investment properties as well as marketing your turn key rentals and rehabbed owner occupant homes. Visit our team today at www.RealtyResourceKC.com.
Tuesday June 9th, 2009 6:00 pm Networking 7:30 pm Presentation Sponsor Meeting: $200 Reserve Networking Table: $35 for Member’s Page 4
Overland Park Marriott 10800 Metcalf Members Attend FREE $25 Guest fee at Door Preregister for $15 on Web Site More info www.MAREInet.com www.MAREInet.com
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FHA Quick Reference
FHA products offer unique benefits and protections for you and your customers. They provide less risk for you the lender, as well as fast closings, competitive rates and foreclosure protections for your clients. FHA mortgage programs are insured by the Federal government and are some of the safest products on the market today. Benefits and protections for lenders: and rural areas, including manufactured homes on permanent foundations.
Adaptability: lenders typically offer terms at 15 or 30
years.
Negotiability: interest rates are negotiated between the
borrower and lender. Compatible with industry requirements on:
More security: FHA insures the mortgage, lowering
your risk.
Appraisal and repair. Closing costs. Automated Underwriting Systems (AUS) using FHA's
TOTAL Scorecard.
More qualified borrowers due to:
3.5% downpayment and that money can be a gift (Lower downpayments mean higher loan amounts). interest rates because the Federal government insures the loans.
Lower downpayments: FHA-insured loans have a low Lender insurance. Lower costs: FHA-insured loans have competitive Less likely foreclosure: The FHA has been around
since 1934 and will continue to be here to protect borrowers. Should borrowers encounter hard times after buying, FHA has many options to help keep them in their homes and avoid foreclosures. Why Clients Choose FHA
Similar documentation for comparable products.
FHA's loan products meet your borrowers' needs:
Flexible buy and repair with Streamlined 203(k) mortgage.
Reverse mortgage (HECM). Manufactured homes. Construction - permanent mortgage.
Works well with state and local agency products. To learn more about FHA loans for your buyers, or using 203(b) loans to buy and rehab or FHA loans for multi family projects, please visit www.FHA.gov
Close faster and qualify easier: No minimum credit score is required. Non-traditional credit is acceptable. Low downpayment. Non-occupant co-borrower is permitted. Expanded qualifying ratios. No prepayment penalties. Fully assumable. Default assistance. Lower premiums. Non-credit qualifying streamlines refinances. Competitive interest rates and lower premiums. Additionally, you should be aware that FHA's primary mortgage insurance program, commonly known as Section 203(b), is the centerpiece of FHA's single-family mortgage insurance programs. It can cover one- to fourfamily homes. It's advantages are:
Availability: in all areas of the country, provided a market exists for the property and the home meets HUD's minimum property standards. Versatility: may be used to purchase or refinance a
new or existing one-to-four family home in both urban
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Welcome
New Members
Nathan Bowen - Kansas Ruth Cornett - California Jared Fleming - Kansas Joyce Harris - H & A Connections, LLC - Missouri Robin Krieger - Keller Williams - Kansas Christine McDonough - Mind Like Water, LLC - Kansas Pete Mendenhall - Kansas Conrad Miller - Aegis Properties, LLC - Kansas Michelle Reynolds - Mind Like Water, LLC - Kansas David Roney - Keller Williams - Kansas Glen Smithson - Midwest Home Solutions - Missouri Christina Stephan - Kansas Dennis Stephan - Kansas Allen Thompson - Kansas Derek Vaksdal - Midwest Home Solutions - Missouri Sean Wheeler - SMW LLC - Kansas Susan Wheeler - SMW LLC - Kansas Bob Winney - Aegis Properties, LLC - Kansas Mike Williams - Mind Link Water, LLC - Kansas
Short Notes
Realtor.org - for those of you who are realtors and members of KCRAR, you are also a member of NAR and should have received a membership card with a NRDS #. Using this number you can register as a member on Realtor.org and download a ton of FREE brochures to help you sell more houses. Brochures on FHA, first time home buyers, lead, mold, and more. There is also tons of information for free on just about every topic under the sun relating to real estate. As a member you can access almost everything with no other cost. If you are not a member of KCRAR or NAR there is still a lot of useful information that you can access. Check it out. FHA.gov in today’s market where our primary buyers seem to be first time home buyers, learning how FHA works is a must. Check out the FHA site and get educated.
Changes to MAREI Membership
A little short on cash right now? Rather not finance your MAREI membership on your Credit Cards? Divide your membership over 4 payments.
Returning Members
Donald Hobbs - K & C Phoenix Enterprises - MO - 2006 Norm Kinnaugh - Note Buyer - Kansas - 2006
Please be sure to watch your mail for your member packages with your welcome letter, Sherwin Williams discount card, Kinko’s discount card, and passwords. Once you receive, please test your passwords and log into the web site to make sure they work. Feel free to change them to suit your needs. Then be sure to click on “my info” and make sure your profile is turned on, the right contact info is showing up, tell us a bit about yourself, and load a photo or logo to attach to your profile. All members can log in and find you in the profile section.
Standard Membership for 1 is $99 Pay Quarterly $30 Attend General Meetings Member Discounts Reduced Price on Training Access to Member’s Only Area on Web Site Business Membership for 2 $499 Pay Quarterly $135 Attend General Meetings Member Discounts Reduced Price on Training Access to Member’s Only Area on Web Site Business Card Ad in Newsletter Listing in Vendor Directory Add on a Spouse or Partner for $50 Pay Quarterly $15 See page 10 for new member application
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Service Guide
Advertising Supplement
Tucker One Properties, Inc.
Rehab ~ Wholesale ~ Foreclosures Residential & Commercial
115 E. Gregory Kansas City, MO 64114 Phone: 816-523-4400 Fax: 816-523-4448
Accurate Title Company, LLC Ron Kraft
Title, Closing, & Escrow Services
7011 W 121st St, Ste 100, Overland Park, KS 66209 Jackie White / 913-338-0100 / Fax 913-338-0107
Joe Reece www.TuckerOneProperties.com
www.AccurateTitleCo.com
Yellowletter.com
Yellow Letter Automated Mailings Pre NOD Leads Available
John & Donna MacNeil
Phone: (904) 880-2742 Fax: (904) 880-2741 Email: [email protected]
Education & Training With over 2,400 unique ebook tiles in our directory And free pdf downloads go to www.MindLikeWater.com
ONE STOP SHOP
Full Service for Real Estate Investors
REAL ESTATE SERVICES
Full Service Real Estate Company Buy & Sell Property
REHAB LOAN COMPANY
Hard Money & Rehab Loans No Seasoning on Title Refits to Payoff Rehab Loans LLC Loans, FHA Loans, Purchase Money
KC REHAB CONSTRUCTION
Lots of Crews, Cheap Prices Renovation, Rehab, Remodeling Services Patrick and Marta Grace
LAS CASAS MANAGEMENT
Full Service Property Management
www.MAREInet.com www.MAREInet.com
GRACE REAL ESTATE COMPANY LLC 207 NE 72nd St, KCMO 64118
———— Investment News ————— 816-453-5532 or 816-456-1843 [email protected] ———— Investment News —————
Page 7 Page 7
Service Guide
**THE ANSWER TO INSURING YOUR PROPERTIES** OUR PROGRAM HAS BEEN IN EXISTANCE SINCE 1999 A NATIONAL INSURANCE PROGRAM THAT PROVIDES: PROPERTY & PREMISES LIABILITY COVERAGE CURRENTLY INSURING OVER 750 BUSINESSES WE OFFER MONTHLY REPORTING & BILLING VERY COMPETITIVE INSURANCE RATES WITH CARRIERS RATED A+ SAME DAY TURN AROUND TIME FOR PROOF OF INSURANCE FOR CLOSING FLOOD AND OTHER SPECIALTY LINES OF COVERAGE AVAILABLE
I Buy Private Mortgage Notes, & Land Contracts, Lump Sum Cash Edward Griffin 913-499-6518 [email protected]
Affinity Group Management Company: 1-800-790-4872 PHONE, 913-894-6534 FAX Email [email protected] Email [email protected]
NEED TO FLIP A PROPERTY FAST?
T.O.T.L. (TOP OF THE LINE) RENOVATIONS
For Investors, By Investors
See our current inventory of REO Properties Turn Key Rentals Build your Kansas City Area Investment Portfolio with Us Visit our Web Site to See Currently Available Properties Connect with our Team of Specialists
will complete all your rehab needs quickly, at a reasonable price.
We specialize in: Make - ready Siding & Windows Carpentry & Roofing Plumbing & Electrical Painting & Flooring Drywall & Doors Fences & Decks Kitchens & Baths LICENSED AND INSURED
www.RealtyResourceKC.com 816-523-4400
Call Anthony @ 816-606-0266 or Emily @ 816-252-0095 [email protected]
www.MAREInet.com / Vendor Page
Are you looking for Discounted Printing Buy Business Cards Post Cards Letter Head Brochures Flyers You Design online Vista Print.com Visit the MAREI vendor Page under printers for Up to 75% off at Vista Print Visit our Vendor page And look under Training for Rich Dad Poor Dad Games, Books, Audio, and Forums
FREE Trial Web Site
Hundreds of easy to use templates. Get up and running in a matter of minutes. Property Marketing pages that link to other sites. Contact collection web forms. Auto Responders. Database Management. Everything you need for a fully functional Web site that you can get up and running Very quickly and that you can customize 100%, that you have complete control over. It’s free to try out! See what your site would look like! Go to Web Services On the Vendor Page at MAREInet.com And click on FREE Trial Web Site This is the provider MAREI used for 5 years before upgrading to the current service. It now has more features than it did then.
60 Day Free Trial
Send Mass Emails Load up your mailing list, today! 100’s of templates or Create your own. Easy to use. No more sending emails 100 at a time. No more accidentally sharing everyone’s emails. Set up emails in advance to send on the day and time of your choice, even if you are doing something else. MAREI used this service for about 4 years and it is one of the easiest to use. We are testing out a cheaper service, but it Is much more difficult to get an email sent out. We recommend Constant Contact Look under Web Services on the Vendor Page at MAREInet.com
INVITE A FRIEND To a MAREI MEETING
MAREI Members do you have a friend, coworker, or per. son who provides you a service that is interested in real estate investing? Our Next meeting will be an excellent opportunity for a new potential member to check us out. Please cut out or copy this page and provide it to all of your friends who want to attend and have never been to a meeting and they will be able to attend for FREE! If they have attended before, please encourage them to join, it’s only $99 a year and the get access to so much training through the web site. And if they are just not quite ready to join, and they have attended before, remind them that the guest fee at the door is $25, but if they reregister at www.MAREInet.com through the Calendar of Events, they can save ten bucks.
Membership Benefits
Free entrance to General Meetings Digital Version of this Newsletter emailed to you Discounts to Paid Events Access to Online Library Post Houses on our Classifieds Interact on Member’s Only Message Board Post your Profile & Read Profiles for Other Members E-Messaging System through Profiles Membership List in Excel (no emails) Discount Card to Sherwin Williams Discount Card to Office Max
Cost: $99 annually for one, $50 per additional To Join, fill out form below.
FREE GUEST ENTRANCE FOR FIRST TIME ATTENDEES NAME: _________________________ PHONE: ________________________ EMAIL: __________________________ ADDRESS: _______________________ CITY: ___________________________ STATE: _______ ZIP: ____________
Name #1: ______________________________________________ Email: _________________________________________________ Name #2: ______________________________________________ Email: _________________________________________________ Company: ______________________________________________ Address: _______________________________________________ _______________________________________________________ Phone: ________________________________________________ Pay in full up front
Standard Membership $99 Add on Spouse or Partner $50 Business Membership $499 Additional Employee $50
Charge Credit Card Quarterly
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Free entrance is limited to the June 2009 meeting at the Overland Park Marriott from 6 pm to 9 pm for first time guests. If you have attended before, remember guest fee at the door is $25. Membership is just $99 for one and you can join right now on our web site at www.MAREInet.com! Be sure to bring your business cards and flyers for networking. Don’t forget your note pad, because you will want to take notes during the presentation and take down names and contacts while you are networking. Arrive early and have dinner at one of the fine establishments in the area!
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www.MAREInet.com
Don DeRosa
presents
Using Private Money to Buy all the Houses You Want
The Ultimate System for Finding and Using Other People’s Money
Learn how to get an unlimited supply of money through Private Lenders so...
You don’t have to qualify for a mortgage You don’t have to pay points to hard money lenders You won’t lose a deal because you need quick cash You don’t sap your own credit line
My technique for getting all the private money I need Building a Private Lending Credibility Kit Disclosures you need to protect yourself and your lender How to utilize 401Ks and IRAs How to prepare the paperwork as if you were an attorney How exit strategies impact the type of lender you need
A few of the topics we will cover:
Why real estate is the ideal investment to become financially independent 10 Reasons why you absolutely need to now how to get Private Money How to buy “subject to” so you don’t use your own credit Avoiding the “due on sale” clause Twenty questions to ask every seller before you go see them Evaluating properties do you make $20,000 on every deal
Beginning investors and old pros can find immediate success using my simple system. Here are the five simple questions we’ll answer about working with Private Lenders:
Why do you need private lenders? What makes the perfect private lender? Who are these private lenders? How do you find them? What paperwork is needed?
How to know how much you’ll need to borrow from your private lender Top marketing tactics for finding private lenders
Once you learn the answers to these questions, and combine them with the techniques for buying houses that I’ll share with you, there is NO LIMIT to the number of houses you can buy every month.
Registration Information for Saturday Workshop
1 Member Attendance $25 2 Member Attendance $35 1 Non-Member Attendance $35 2 Non-Member Attendance $50 June 13th 9 am to 4:30 pm Bring your own Lunch
_________________________________________________ Attendee 1 _________________________________________________ Email _________________________________________________ Address _________________________________________________ Phone _________________________________________________ Credit Card Number Check in & Registration at 8:30 am _________________________________________________ Attendee _________________________________________________ Email _________________________________________________ City, State Zip _________________________________________________ Fax _________________ Expire Date _________________________________________________ Signature
Loan Modification—
The ‘Ins and ‘Outs of Loan Modifications: Protecting Yourself and Your Real Estate By Peter L Mosca—Thu, May 28, 2009 [Note: To follow is an excerpt of an interview with Bob Diamond, a practicing real estate attorney, real estate developer, and published author of three books on foreclosure investing. To listen to the show archive or download an MP3, go to www.IncomePropertyInvestmentTalk.com/050609.] Mosca: There are about 9 million homeowners out there many of whom are under water, meaning they owe more on their homes then the property is currently worth. Most will be seeking a loan modification this year. What, if anything, is new with today's loan modification process? Diamond: It is one of the most quickly changing areas in real estate. It is a complete moving target. We estimate that a third of the people in America are upside down. Can you imagine a third of the people owe more on their mortgage then their house is worth, and those mortgages are going to have to be modified. People are not going to pay $300,000 for a mortgage when they have a house worth $100,000. It doesn't make any sense to do that, and often times it makes more sense to turn the keys over to the bank and then go get a different house. That completely helps the leverage you have with the bank because they know that is what you can do -- that you can walk away from your house or property if you have to. The other thing new, and especially appropriate to your program, is that you now can get banks to modify investment property loans, commercial property loans, multi-unit, and singlefamily. Most importantly, many banks will modify them even if you're not yet in default, which is a brand new position that a couple months ago were all but impossible. Mosca: Are banks trying to be more proactive rather than reactive? Diamond: They have to. The only reason they are doing this is they are pushed against a wall. The banks took the TARP money and put it in their accounts and left it there. Banks have something called a liquidity ratio and a capital ratio, essentially they have to have their own capital and they can then lend multiples of that. Their capital had gotten depleted, so they needed to sure up their capital, meaning put money in their accounts, that way they could lend more money. If the bank's capital drops down too low, they actually have to sell off loans to other banks to raise cash. Banks don't want to do that, so what they did with last year's TARP funds is they put it in their account. That is why they did not lend any of the money out. They could say, “Well we will just hang on to those TARP funds and hopefully things will turn around. The markets will get better.” They are sort of like some homeowners in foreclosure where they often have a mentality that somehow this awful thing won't happen. The banks are institutionally in denial. Mosca: [A caller named Michael from New Jersey] Are banks willing to reduce the principal on these properties? Diamond: That is a great question, and you are straight on. A loan modification is quite simply changing the terms of the loan. From a homeowner or property owner's perspective it makes it easier to pay. From the bank's perspective, a loan modification keeps the bank from going into default and causing an even bigger loss. Typically, banks recover about 65% of the value of the property when they foreclose. According to the studies that they have done banks lose about 35% of the value through all the costs associated to the foreclosure, everything from the trustee, to the missed payments, to the missed interest, to the charges they paid to the property management company, to the charges they paid to a realtor, loss of interest over the months they have the property. Banks want to stop a default, but the tools they can use are many. They can reduce the interest rate, which would reduce the monthly payment. They could stretch out the term of the payment; from say a 30-year mortgage to a 40-year mortgage. Mosca: What about the principal? Diamond: They could also reduce the principal. The problem from the bank's perspective of reducing the principal is that there is no hope for the future. Think about it. Let's say that the bank reduces the interest rate from 8% to 4%, which would be a typical thing we could achieve in loan modification. If you decide three years later that you're going to move and sell your house and the market has improved enough that you can actually get out from under your house, which again is fairly likely that over time housing values will come up and the bank can get repaid in full. If they've only reduced the interest rate than their loss, the money that they don't collect, is just the lower interest rate over three or four years, but if they lower the principal balance then even if you sell the property in three or four years you might make a big profit as the homeowner but the bank doesn't. Reducing the principal balance is the thing that they resist the most. Read the full article online on RealtyTimes at http://realtytimes.com/rtpages/20090528_inout.htm
Subscribe to Our FREE Weekly Newsletter Now and Receive... Free Subscription to our Monthly Newsletter via email Plus Notices of Upcoming Events and Bonus E Workshops
Sign up Now Next week on Thursday June 18th Norm Reid will interview Bob Diamond They will be furthering this discussion on Loan mods that are discussed here on this page And on the article on Realty Times. This is probably the hottest topic to hit Foreclosures and investors since We figured out short sales.
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www.MAREInet.com
Online Promotion: Web Sites
Web 2.0 . . .Web Page Ranking Ok, so I can’t profess to be an expert, but I do study this quite a bit and from all this studying I understand that to get your web page to come up first in a search, you can do quite a few things to make it come up higher on the search engines, like google.com. One of the first ways to improve your rankings is my having a real .com name that you own. Not http:// joesblogsite.wordpress.com but rather www.JoesBlog.com. So if you are using a free site or a template site first go out and buy a .com name for your site and then work with your service provider to and the company you purchased from to get the .com name on the web site. There are several places you can buy .com names and most are really cheap. One I like that costs a bit more, but has a lot more instruction on how things work is www.directnic.com. Another key that I have read about is to have that .com name purchased by the company it is promoting. So when we purchased www.MAREInet.com we purchased it by MAREI with the MAREI credit card rather than having web site company buy it for you. Plus if you buy it yourself, you have much more direct control. For example if you had Joe’s Web Site Services create your web site and buy your name for you and then you fired Joe, he might have ownership rights to your web site name and control of it. So buy your name yourself. The next thing you want to do is to get traffic coming to your web site. So on every marketing piece you send out be sure to include your web site name and if possible give them a very good reason to go to your web site. Maybe you could offer a free report of some sort that your clients would have a high chance of going to get. So you might have on the back of your business cards, “Please visit www.MyWebSite.com to get a free 10 page report on How to buy a house Lease to Own”, just be sure you have a free report on the web site and then create a way that they need to give you a name and an email to access the report. Then as you collect those names and emails, find a reason to send out an email to everyone monthly with updates about your industry, interesting news articles, etc. You might post part of the newsletter articles in your email and have them click a link in the email to go back to your web site to read the entire article. I have seen the same thing done with blog sites, although some sites don’t like you using your blog to increase your linked visits to your web site. I solved that by making my blog site one of my main sites and linking back to my blog. People read the articles on my blog and click the link to go back and read related articles. You might also want to create a link exchange with your business partners. So if you are an investor and work with a title company, a realtor or two, a mortgage lender, a moving company, a contractor, etc, you could ask them each to put you on their web site and at the same time you would add them to yours. If they don’t have a web site, you might offer to create a simple one page site for them somewhere free that links back to your site. I have not yet tried this, but everything I am reading tells me that if you put video on your web page that you will raise your rankings. So get out the old digital camera or use the feature on your lap top if you have one and record a short 2 minute welcome message to post on your site. And while you are writing the articles for you newsletter or blog above, you might also take a few minutes to record a short 3 minute video about the article and post it both on YouTube.com and on your web site. The last thing that I would recommend is probably going to be the most time consuming: submitting your site to all the search engines and phone book type pages. Sites like:
Google Local Yahoo Local Info Space Info USA Acxiom http://corporate.yellowbook.com/products/internet-freelisting/ Windows Live http://www.truelocal.com/ http://advertising.superpages.com/spportal/freelisting2.do http://www.insiderpages.com/session/new?dest=http%3A% 2F%2Fwww.insiderpages.com%2Fmy_profile%2Fmailbox LocalEz Live Deal
And I would not recommend payment to be placed on any one site. You are posting on these sites to get more links back to yours and while coming up high in the rankings on these sites would be great, who actually uses these sites to look for something. Most people are going to go to Google or Yahoo. But what if someone googled your company name an it’s on all of these sites, plus your own and they all come up in one search on 5 different web sites. Trade association sites. The last place you want to make sure you are posted are on all the trade association sites. So for example MAREI, we took the time to contact all the web sites we could find that list real estate investor associations and asked them to include MAREI. If you are a realtor, there are realtor sites that list area realtors and every other profession probably has a local association that has a web site and lists their members. I hope if have given you some more ideas to get your web site to come up higher in the rankings. As a last resort go to google or yahoo and see what comes up when you search for web site optimization and you might find some more ideas.
www.MAREInet.com
———— Investment News —————
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Visit the MAREI Calendar for More Information and Registration
Be sure to visit the Calendar of Events on MAREInet.com to get more information all of these and other upcoming events. Times, locations, fees, and registration online. June 8th, 9th, & 11th: Trump University’s FREE Workshop: Fast Track to Foreclosure Investing in the Kansas City Metro Area. June 10th: Trump University’s FREE Workshop: Fast Track to Foreclosure Investing in the Topeka KS Area. June 10th to 12th: Ultimate Mobile Home Bootcamp in San Angelo TX. Everything you need to know about investing in Mobile Homes. Limited to 30 people. June 9th: MAREI General Meeting: Don DeRosa, Find out how to get more money to do more deals in today’s market of no bank loans with Private Lenders. Networking 6 pm to 7:30, presentation 7:30 to 9:00 pm Reserve Vendor Table June 13th: MAREI’s Private Lending Workshop with national trainer Don DeRosa: How to find people with money to lend, How to build credibility with them, so they will lend you the funds you need to do your deals. 9 am to 4:30 pm at Johnson County Community College. Check in and Registration at 8:30. June 17th: Kansas City Metro Investor Happy Hour Networking from 4 pm to 6 pm at Lew’s at 75th & Wornall in Waldo. June 24th to 28th: National REIA Mid Year Leadership Conference for REIA Group Leaders in San Antonio, TX. Still booking space for Sponsors and Attendees. July 14th: MAREI General Meeting: Introduction to Commercial Investing with Walt Clements, Director of Lewis White Real Estate Center, UMKC. Networking 6 pm to 7:30, presentation 7:30 to 9:00 pm. July 16th to 18th: Self Storage Bootcamp in Macon Georgia. Everything you need to know about Self Storage Investing. Limited to 25 people. July 22nd: Kansas City Metro Investor Happy Hour Networking from 4 pm to 6 pm at Lew’s at 75th & Wornall in Waldo. August 11th: MAREI General Meeting: Tax Lien and Deed Investing with Michael Williams. Networking 6 pm to 7:30, presentation at 7:30. August 21 - 24th, Show Me the Wealth Conference with the Rogue Investor, right here in Kansas City. Including going to the Clay County Tax Sale on the 24th. To be put on the calendar of events shortly. September 8th: MAREI General Meeting: William Tingle: Everything you ever wanted and needed to know about Investing Subject To the Existing Financing and then selling Lease to own or Owner Finance. Networking 6 pm to 7:30, presentation 7:30 to 9:00 pm September 12th: MAREI”s Subject Too or Sub2 Investing Workshop with Mr. Sub 2 himself, William Tingle. Join us to learn one of the top ways to buy and sell in this era of tight money from banks. 9 am to 4:30 pm at Johnson County Community College. Check in and Registration at 8:30.
Advertise Your Real Estate Event To our Targeted Group of Web Viewers, Meeting Attendees, And Email Database. Post your Event on our Calendar Host 1/2 a Vendor Table at the Meeting Place 1/2 Page Ad in the Newsletter Blast the Announcement out to the Membership Total Cost $100 Please call Kim at 816-523-4400 Or email [email protected] Then link the calendar ad to Facebook, LinkedIn, Twitter, and other Online Social Networking Sites.
