Professional Documents
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RE N E W S INVESTMENT
NEWSLETTER OF MID-AMERICA ASSOCIATION
OF REAL ESTATE INVESTORS
CONTRACT
Strategies. find out how to put them together.
A CHECK LIST
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MAREI.ORG/CALENDAR
THE CALENDAR
Many Thanks
AUGUST MTG COMMON CLOSING ISSUES
MAREI would like to thank We are all out there buying houses, but it's not always as simple as finding the
deal, writing the contract and then showing up a closing. When you send that
all the attendees and contract off to the title company, there are a lot of issues behind the scenes that
sponsors at MAREI's 3rd get resolved. At the August MAREI meeting we will be taking a look at common
Annual All Star Networking issues that come up at closing that if you know about in advance can make your
closings go smoothly. (New to closings, see our webinar at MAREI.org/Closings)
Event.. Because of your
generosity and suppor we Join us as we welcome Mary Kellogg from Alpha Title and Christine Ellis from
were able to provide a little Accurate Title for this interview style presentation. Meeting is Tuesday August 8th.
Networking and Vendor Hall is from 6 to 7:00 and presenation is at 7pm.
over 8,000 meals to
Harvesters and with the Monthly meetings are held at the Holiday Inn at 8787 Reeder Road, Overland
corporate match we Park, KS. MAREI Members & First TimeGuests who Pre-Register at MAREI.org
attend free - all others py $25 at the door or $15 online.
recieved, that brought us to
just over 16,000 meals. WORKSHOP
REAL WORLD TRANSACTIONS
MAREI Founder & 17 Year Veteran Real Estate Investor Kim Tucker is spending
the day and opening up her transaction book to share the top items she has
learned with it comes to buying houses from motivated sellers, from banks
and from deceased people. Come find out how the deas were put together
and the tools you need in your tool box to invest in real estateSee full day
in Kansas City
now. workshop
page 5
Mailing Address: Experts joining Kim include Mary Kellog from Alpha Title and Attorney Julie
6709 W 119th #332 Anderson to touch on Legal Issues.Lunch is included & seating limited to 60
Overland Park, KS 66209 people. Super Early pricing $39 for MAREI Members till the 8th, then price
goes to $59 till the 16th. Regular Price if space is left is $79. At Johnson County
Phone: 913-815-0111
Community College
Web: MAREI.org
SHARK TANK
Web: MAREIMember.com
SEPTEMBER MTG
Email: Kim@MAREI.org
Views and advertising expressed in the MAREI has quite the line up of sharks who have either the know how to put
RE Investment News are not necessarily together your deal or the funding or both. We are inviting in several of our sharks to
endorsed by Mid-America Association of sit in our tank to evaluate your deals. If you have a real estate investment deal or
Real Estate Investors. The information business that you need help to put together, please call 913-815-0111 or email
contained within should not be
Kim@MAREI.org to get your deal approved to be presented on Tuesday
construed as a recommendation for any
September 12th at the MAREI Meeting.
course of action regarding financial,
legal, or accounting maters by Mid-
America Association of REal Estate FROM OTHER GROUPS>
Investors.
You will find a list of other groups complete with links to details that
Email to inquire about advertising meet through out the Kansas City Metro area listed at
oportunties or membership. MAREI.org/Calendar/Other-Groups
RE INVESTMENT NEWS 03
real
estate
news
RE INVESTMENT NEWS 05
As a real estate investor buyer or
seller there are some extra things you
may or may not think about. Let's
take a look at some of the issues that
have came up in my own transactions
over the past 17 years or so.
Entity Documents
AlphaTitleInc.com
(913) 498-8999
06
08 RE INVESTMENT NEWS WWW.MAREI.ORG
Next check with your lender or end If you are wholesaling, you want to sure all parties have signed, all loans
buyer and make sure they are ready double check your end buyer is ready are funded and the closing is
to close, if not, go back and negotiate to close and fund. recorded. We have heard stories of
extensions. buyers who went to closing and got
If you are buying yourself you need to keys, went to the house and started
If everyone is ready to proceed, make makes sure you are schedule to close. work, only to find out that the seller
sure everyone is set up to sign closing If you are paying cash, you may be never closed. So always double
documents. Sometimes that might able to the money and close via fax or check.
mean they have an appointment at email as nothing you are signing needs
the title company and other times it to be notarized as the buyer. And if And if you are wholesaling, you would
mightmean that the title company is you are paying cash or have a down then go pick up your profit from the
going tosend them documents and payment to send in, schedule your assignment or resale or you might
they need to go sign where ever they wire a couple of days in advance so have it mailed or wired.
live in front of a local notary. In at you have time to get all the double
least three transactions, our title checks against fraud completed. Problems do come up at closing
company had to email documents to through out the entire process. We
the seller, who had to get them Closing are going to be talking about the most
printed and take them to a US common problems that come up at
consulate to be signed an notarized Ask for a copy of the Settlement closing at the August 8th MAREI
as they were not in the continental Statement the day before closing and Meeting. We have invited in the
US. review. Errors can be fixed at closing, teams from Accurate and Alpha Titles
but catching them a day or two in to share what they are seeing in real
You want to make sure your lender advance makes things much easier. estate investor transactions.
has all their documentation set up
and has their money ready to go and At closing, you may get keys if you are I am also teaching a workshop on real
knows how to wire it to the title buying it. Before you go take wordl transactions on August 19th to
company. Not a hard proposition if possession of the home and BEORE walk you through some common
you are using a traditional lender. YOU DO ANY WORK ON IT, double transaction scenarios.
But if you are working with a private check with the titlecompany to make
individual, you may need assist them
06
10 RE INVESTMENT NEWS WWW.MAREI.ORG
Maximum Allowable Offer for Full Rehab This is the same problem we are facing at the KCInvest
office, offers are not getting accepted. Yet I get email
MAO = (ARV x 70%) Repairs after email from wholesalers with deals what gives?
MAO = ($155,000 x 70%) $30,000
MAO = $108,500 $30,000 Not Many Deals To Begin With
MAO = $78,500
The number one reason why OUR offers in my office are
And if you are wholesaling it, the MAO would then say not getting accepted, is that we are dealing in nicer
you need to buy it for about $73,000 areas. Take a look at the average house the area
wholesalers are shipping out and they are mainly in the
Maximum Allowable offer for Average Resale under $50,000 range, in my office we are looking for
$80,000 and up.The Wholesalers can get the deals
Next look at the repairs needed. Is the house really nasty because there are more low end houses for sale and less
and does it really need all those repairs? Or is it totally retail buyers in those markets. The average home buyer
livable as it sits, just needs cleaned. Maybe you could under $50,000 is going to be a real estate investor and
replace the roof, paint the outside and call it good for an not an owner occupant buyer. Plus there is less
average resale. competition to buy the lower end houses, more
motivated sellers, more deals. But less profit.
If its livable, with a good cleaning, a new roof and
exteior paint, then you need to go back to comps and Owner Occupant Buyers
see that the average house is selling for $140,000. Run
your repairs again taking into account only the roof, the The next reason our offers are not getting accepted is
exterior paint, and cleaning and the fact that that would that we are competing with owner occupant buyers who
take you 2 weeks to make repairs instead of 6. That are going to pay more than an investor. Wwe are looking
gives us new numbers for the really bad house in a really nice neighborhood or
a seller who has a really HUGE motivating factor to sell
After Repair Value: $140,000 their home. The really bad house needs more repair that
Repair Costs: $12,000 the average owner occupant buyer can do. Or they
have some huge problem that the owner occupant can't
MAO = ($140,000 x 70%) $12,000 solve.
MAO = $86,000
Newbies Offering Too Much
Subtract wholesale profit if $5,000, and offer $80,000.
The third reason why our offers are not getting accepted
What a Realtor would list it for: is that there are a lot of new investors who are willing to
put the property under contract for too much money
Speaking as a Realtor, If it was livable and just needing and then try to wholesale it. The seller gets excited and
a roof and a exterior paint job, I would suggest to then gets mad when the wholesaler who cant sell it
the home owners clean it from top to bottom and then does not buy. This makes the investor look bad to those
list it for about $95,000. Then market the heck out of it, sellers and they will not look at another investor offer
sell it for about $92,000. I would split about a 6 percent and end up listing it with a Realtor who is going to net a
real estate commission with the buyers agent of $5,700 higher sale price for their seller, usually.
and if I had an extensive real estate investor buyers list,
maybe sell it to one of my landlord buyers pocket the If you are new, PLEASE learn your numbers and dont
whole $5,700. offer too much just to get it under contract only to back
out. Doing so t makes the rest of us look bad. If the
If you talk to a lot of investor across the metro, you will numbers dont work, let the seller marinate a bit, their
find that many have pused the MAO up to between 75% price will eventually come down and it will come down
and 80 % of Maximum Allowable offer. I dont suggest way faster if we all are offering about the same amount.
that as you could end up with no profit. If you go in and offer 20% more and cant close the deal,
you just wasted 2 to 3 months of your sellers time and
Why are none of my offers getting accepted? you give investors a bad connotation.
Anderson &
Associates
Landlord Services Foreclosure
Collections Bankruptcy
Julie Anderson
Owner and Managing Partner
web: MOKSLaw.com
06
12 RE INVESTMENT NEWS WWW.MAREI.ORG
MARKET UPDTATE June 2017
New & Existing Combined
average: $241,567
49 7,446
median: $210,00
Data from
There has been a general slowdown in sales across the country, and this cannot be blamed
98.3
on negative economic news. Unemployment remains low and wage growth, though nothing
to overly celebrate, has held steady or increased for several years in a row. There is strong
demand for home buying, emphasized by higher prices and multiple offers on homes for sale
in many submarkets. As has been the case for month after month and now year after
year low inventory is the primary culprit for any sales malaise rather than lack of offers.
With job creation increasing and mortgage rates remaining low, the pull toward
% of asking price homeownership is expected to continue. Yet housing starts have been drifting lower, and
some are beginning to worry that a more serious housing shortage could be in the cards if
0.6% Increase over 2016 new construction and building permit applications continue to come in lower in year-over-year
comparisons while demand remains high. Homebuilder confidence suggests otherwise, so
predictions of a gloomy future should be curbed for the time being.
BYCHAD CARSON
A fiancial independencenumber tells you whenyoure free Whatever your personal ideals are, I bet theyre bigger
from the need to work. Its basically a math equation, as than money. But as I realized soon aftr I graduated from
youll see later in this article. But discovering your college, simply trading my time for dollars wouldnt lead to
personal fiancial independence number is about much my ideals.
more than money or math. Its about your life and what
matters to you. And its about whether money supports Its not that working a job or running a business were bad
your ideal life or simply suppresses your potential. things. Serving others with your time, energy, and skills can
be incredibly fulfiling. But even a great job can become a
While I dont believe money is the most important thing in drag when you know you must do it to earn money.
life, I do agree with Zig Ziglar that money is reasonably
close to oxygen on the gotta have it scale in todays Instead of happiness and growth, a less than ideal job
economic-centered world. A fiancial independence situation traps you like a rat running on a wheel. While most
number is useful because it tells you exactly how much people call it making a living, youre really on a long path
money you really need. called making a dying.
In the rest of this article, Ill show you how to calculate your Luckily, there is a diffrent fiancial path you can take.
fiancial independence number. Plus, Ill also even share my Instead of trapping you, this path creates more freedom and
own number. independence. Which brings us back to the fiancial
independence number.
Money and the Ideal Life
You certainly need money to survive. But you also need The Financial Independence Number Defied Written as a
money for opportunities to live a life that is more fulfiling, formula, your fiancial independence number looks like this:
flxible, and fun. Money buys you food to nourish your
body, but it also buys you the time and flexibility to feed Investment Income > Personal Money Needs
your soul and to share your best self with the world.
Investment income is the money you receive from investment
Becoming your best self. Sharing your gifts with the world assets like real estate, stocks, and bonds. When your
investment income exceeds your personal money needs, you
Thse are the loft ideals that I aspire to. Perhaps you have no longer need to trade hours for dollars in order to survive
your own lofty ideals. fiancially.
RE INVESTMENT NEWS 15
Build Your Team VISIT
MAREI.org
With MAREI Business Members CLICK ON
Save time and money by starting with service providers who already
know your business. Who can solve problems as they arise to help you business
get the deal completed on time and for maximum profit. associates
ACCURATE AUCTION.COM
TITLE
Forclosure Auction Properties
A Full Service Title Company
Rachel Bailey
David Green
Auction.com
www.AccurateTitleCo.com
Rbailey.pta@auction.com
913-338-0100
816-797-6875
ALPHA BRIDGE
TITLE MANAGEMENT
Full Service Title Company A Turn Key Real Estate Experience
Patsy Archer Nathan Brooks
www.AlphaTitleLLC.net www.BridgeTurnkey.com
913-498-8999 913-695-8213
HEARTH JAMIESON
MASTERS HOME TEAM
Chimney & Fireplace Restoration Realtor & Property Management
Mage & Gene Padgitt Kevin Jamieson
www.ChimKC.com www.KevinJamieson.YourKWAgent.com
816-461-3665 913-384-8331
RE INVESTMENT NEWS 17
KC CABINET
COLLECTION
Cabinet Source
Mark Yanda
www.MarkYanda.Houzz.com
913-980-4260
KC GROUT MERCHANTS
WORKS MORTGAGE
DJ Hoffman Real Estate Finance Company
www.KCGroutWorks.com Susan Aubin
816-448-5579 www.MerchantsMtg.com
720-554-9480
KC NATIONAL
INVEST REIA U
Online Training
Investment Property Seller
Professional Housing Provider
Kim Tucker
Credits
www.KCInvest.com
www.NationalREIAU.com
913-735-0018
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www.MAREI.org/Realeflow
RE INVESTMENT NEWS 19
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