MAREI Newsletter July 2013

2013 RE investment News
RE
investmentinvestmentinvestment
NEWSNEWSNEWSJuly / August 2013 Volume 1July / August 2013 Volume 1July / August 2013 Volume 1
Magic WordsMagic WordsMagic Words
T h a t M a k eT h a t M a k eT h a t M a k e
M i l l i o n sM i l l i o n sM i l l i o n s
Hard MoneyHard MoneyHard Money
M a d e E a s yM a d e E a s yM a d e E a s y

2 RE investment News 2013
MAREI Members Enroll to receive a
2% semi-annual rebate on all qualifying
pre-tax purchases. See your Member
Benefits Section of the Member Library
for Detailed Instructions.
We introduced our nationwide on site floor plan services
At the National REIA Meeting in June
Order Online at http://www.homedepotmeasures.com/realestate.html
Enhance your real estate marketing with custom floor plans from The Home Depot. Our floor plans can
be used in website advertising, feature sheets, virtual tours and more!
Schedule your personal measure visit online at www.homedepotmeasures.com/realestate.
Create your account, enter the property information and choose a date. Our technicians come to your
site and use handheld tablet computers to create your floor plan which is then emailed to you the fol-
lowing business day. No sign up, monthly or membership fees. NREIA associates also save $10 on every
floor plan ordered by entering Promo Code NREIA14.

cover story
28
MAGIC
WORDS
That Make Millions
Investor Scripts to Put the Deals Together.
10
Show It, Don’t Tell It
How to use video to engage with your customers,
members and prospects
22
Hard Money
Made Easy
CONTENTS

CONTENTS
6
5 Real Estate
Recovery Myths
8
Home Depot Rebate
Changes in Progress
7
KCMO Water Department
& Landlords: an Update
14
Vacancy Break-Ins
Ways to Deter Them
16
Pre-Screen Contractors
Get the Job Done
20
MAREI Wins Awards
For Third Year in a Row
34
Wholesale Real Estate
Getting Started Investing
Regular Features
6
March Market Report
18
Member Benefits at a Glance
36
Invest in the KC Metro
38
Monthly Meetings & Dates
July August 2013
PUBLISHER
Kim Tucker
ADVERTISING INFORMATION
913-815-0111
info@MAREInet.com
RE INVESTMENT NEWS IS PUBLISHED
IN ASSOCIATION WITH
MID-AMERICA ASSOCIATION
OF REAL ESTATE INVESTORS
P.O. Box 8685
Prairie Village, KS 66208
www.MAREInet.com
913-815-0111
DISCLAIMER
Mid-America Association of
Real Estate of Investors and
the RE Investment News does
not exist to render and does
not give legal, tax, economic
or investment advice and dis-
claims all liability for the
action or inaction taken or
not as a result of communica-
tions from or to its members,
officers, directors, employ-
ees and contractors. Each
individual should consult
his/her own counsel, account-
ant and other advisors as to
legal, tax, economic, invest-
ment and related matters con-
cerning real estate and other
investments.
The views and opinions ex-
pressed by authors of arti-
cles contributed to this
newsletter do not necessarily
reflect those of the associa-
tion, the board of directors
or the staff.
Rehab Workshop
Follow the Money
Saturday
July 27th
Coming in
September
Ron LeGrand
&
Jay Conner
Saturday
September 28th

Welcome to
RE Investment News
CONTENTS
To be successful in any new enterprise and real es-
tate investing in particular, one needs to surround
themselves with successful experienced people so
you have the support network to help you through
your learning and doing process.
One of the many reasons to be a part of a larger
group is to have more experienced people to draw
upon when you need words of advice on where to
find a house, how to analyze a deal, who to use for a
contractor, how to sell a house and everything in-
volved in a real estate investment deal.
Members of MAREI are always willing to go the extra
mile to help their fellow investor. Just this morning an
email came into the MAREI office from one member,
thanking 4 other members for their assistance in his
very first rehab flip property.
So when you need encouragement through your first
or second transaction or maybe help on a problem
deal, be sure to reach out to your fellow member,
through the forums and social media, live, face-to-
face connections at meetings and networking events.
Do not be afraid to ask for help. There is going to be
someone within the group who has the answer or
knows where to get the answer. It may be that you
just need a word of advice and it may be that you are
seeking out a partner for some aspect of the deal.
And, when it comes time, remember to reciprocate
and pay it forward to the next generation of investor.
Shaun McCloskey and Jason Roberts teaching to a packed
house at a recent MAREI Workshop on June 22nd.

Market
1. Recovering Too Fast: Markets do
go up and down, overall not fast.
2. Investors are Driving Demand:
They are, but were only about 20% of
May Home Sales.
3. Sellers are stuck: Yes, now they
can sell, but prices are higher too.
4. Rates are Through the Roof:
They are up, but they are still low.
5. Foreclosures a Thing of the Past:
The have slowed down, but not gone.
Real Estate
Recovery Myths5
April Real Estate Market Report
Sales Prices Up, Sales Up, Pending Sales Up
Kansas City Regional Association of REALTORS® reports that inventory is
down and prices are up across the metro area.
Sale Price: All counties except Platte experienced an increase in the average
sale price of existing homes and new homes over last year. Existing Homes
were up 11 % May over May and New homes were up 12%
Home Sales: All counties experienced an increase in the total number of exist-
ing homes sold at 13 percent as well as new homes at 18 percent with an over
all increase of 14 percent this May over 2012.
Home Inventory: Existing home inventory is down by 12 percent and new
homes are down by 9 percent with an overall decrease of 12 percent from May
2012.
Pending Sales: Existing home pending contracts are up 8% over April 2012,
New Homes up 35% and Overall they are up 11% over last year.
Supply of Homes: Supply of homes is the calculated by dividing inventory
by the 12 month average number of sales. A 5 to 6 months supply is a
“balanced” market. Existing homes have a 5.6 month supply and new
homes are at a 5 month supply with an over all 5.6 supply compared
with a 7.2 supply this time last year.
Read more about market data at www.KCRAR.com
Read Full Article on Trulia: Digital Readers Click Here

Advocacy
Legislative Agendas
Get Involved
ACT: When your local, state or federal governments are considering leg-
islation that affects the real estate industry, MAREI calls on its members to
act. Simply by contacting your local legislators, state representatives, and
members of the Congress through an e-mail or a phone call. You can
ensure that your business remains strong by getting involved and taking
part. MAREI and REIA members nationwide join together and speak with
one loud, powerful voice.
VOTE: We ask that our members pay attention and educate yourself on
the issues so when it comes time to vote that you make an informed deci-
sion and make your voice heard.
INVEST: From time to time there will be issues that take more than the
grass roots involvement. Times when a lobbyist or attorney needs to be
hired to protect our interest. At those times we will ask all members to
donate funds and efforts to protect our industry.
GET INVOLVED: Ready to take part? Be sure to notify MAREI of im-
portant issues in your local city or here in our local States. We do not
have a full time lobbyist on staff so it is up to our members to notify us of
issues. At the Federal Level we monitor issues through the National As-
sociation of Realtors and National REIA to keep you informed.
“The man who gets the most satisfactory results
is not always the man with the most brilliant sin-
gle mind, but rather the man who can best coor-
dinate the brains and talents of his associates.”
- William Jones
“Avoid becoming overwhelmed into inaction.
Try to break every issue into ‘bite-size” pieces.”
- Sanjyot P. Denung
Corker-Warner
Bill Introduced
On June 25th, Senators Bob Corker (R-
TN) and Mark Warner (D-VA) introduced
legislation that, if passed, would have a
direct impact on the real estate invest-
ment world.
The bill is supposed to replace govern-
ment-sponsored enterprises Fannie Mae
and Freddie Mac with a privately capital-
ized system that preserves market liquidi-
ty and protects taxpayers from future eco-
nomic downturns according the website of
Senator Corker.
2013 President of the National Associa-
tion of Realtors states that NAR “supports
replacing Fannie Mae and Freddie Mac
with a non-shareholder owned authority or
authorities. In our vide (NAR), the new
entity should be subject to tighter regula-
tions on product, revenue generation and
usage and retained portfolio practices in a
way that ensures the mission of the GSEs
continues to meet the needs of consum-
ers while protecting taxpayers. Moreover,
it should be managed in such a way as to
encourage private capital’s participation in
the secondary mortgage market.”
We urge all in the Investor community to
be aware of potential legislative changes
in our industry.
Read More MAREInet.com/Corker-Warner

Home Depot
Rebate Program
Changes in Progress
The Home Depot is excited to announce that they
have gotten the green light to merge the Customer
Recognition Program (CPR) System that manages the
2% Rebate Program for members of National REIA
with the Home Depot Pro Rewards Program.
As Home Depot serves many segments of the real
estate industry with the CPR programs and Pro Re-
wards programs it made sense for them to consolidate
the programs to better accommodate their custom-
ers.
Integrating their systems allows them to bring more
functionality to the users and to provide higher quality
customer service.
By merging to the Pro-Rewards Programs Members
will still be able to add credit, debit and checking ac-
counts plus gift cards. When a member shops at the
Home Depot with one of their registered accounts,
they receive a 2% Rebate for all purchases. They
have also implemented a new key tag program for
members who prefer to pay cash.
Members can log into their account and review all
sales and track purchases and review transactions
made within the past 2 years and have electronic re-
ceipts emailed or stored within your account which re-
solves the problems with entering sales in your ac-
counting software from faded cash register receipts.
Records can also be accessed any time, anywhere.
The Pro Rewards Account also allows you to save
more on purchase of paints, primers and exterior
stains from top brands like Kilz, Behr and Glidden.
Spend $2,000 minimum, and save 10%, Spend $4,000
and save 15%, spend $7,500 and save 20%.
The member should keep in mind that one of the up-
grades to the system is the ability to use the new
Home Depot Estimator online tool. This new tool is
accessed from the dashboard once registration is
complete and allows the member to shop online, get
estimates, and place the order which will be pulled
from the inventory of their preferred store and will be
packaged and waiting for them when they arrive for
pickup.
With any major change, there is inevitably going to be
a few hick-ups. All Members are encouraged to ac-
cess the registration guide in the MAREI member Li-
brary listed under member resources to find how to log
in and where to call to confirm their accounts have
been moved successfully or to merge the newly creat-
ed Pro Rewards Account with any old existing ac-
counts that may have had previously.
Once the merging of the new system has been worked

Member Benefits
out, members of MAREI should expect
to see the new mobile applications
and investor ecosystems being creat-
ed around the Home Depot’s new mo-
bile application RenoWalk.
RenoWalk is an iPad based mobile
renovation task identification, materi-
als and labor specification, quotation
and ordering system. This basic en-
gine is being licensed and lent to part-
ners to embed in their investor support
programs.
Some of the features of this new tool
from the Home Depot include:
1. Allows the Investor manage Home
Depot’s benefits for National REIA
members and keep track of the
most used stores.
2. A portfolio of individual properties
can be built with property address,
location and delivery preferences.
3. Allowing the investor to build a li-
brary of frequently used products
from the Home Depot Database
and local store inventory, allowing
the investor easy access to the
items they purchase on a regular
basis.
4. Allows the investor to take exten-
sive photos to create a portfolio by
property to create an audit trail of
before and after photos, tagged by
date and to further detail where
and what is contained in the pho-
tographs.
5. Investor can use built in tools to
take room measurements and cal-
culate amounts of materials need-
ed to help in the estimation pro-
cess and property analysis.
6. Once the investor has photo-
graphed, measured and selected
all items needed a full order can
then be sent to the pro desk at the
favorite store to for a bulk pricing
quote to save the investor money.
Look for RenoWalk in to be rolled out
in 2013, to provide the member with
accelerated ordering, online inventory
(thus minimizing wasted THD store
trips), convenience, pricing benefits
and other business support services
that are made possible by applications
running on mobile devices like the
iPad.
In the mean time, be sure to log into
your Pro-Rewards account and ac-
cess the Home Depot Estimator.

10 RE investment News 201310 RE investment News 2013

Marketing
If you haven’t started experimenting with online video, now might be the time.
You don’t need a fancy production crew or a big budget, either. You just need a
good story and a smartphone or digital camera.
Show It
Don’t Tell It
How to use video to engage with your
customers, members, and prospects
Insight provided by Constant Contact KnowHow
Do you like to watch videos? Who doesn’t?! Visible Measures’ Q2 2012 Social Video Advertising Report found that almost 900
million people watched video online in the second quarter of 2012, making it the second largest quarter for online video ever.
That’s a 45% jump from Q2 2011 and a jump of nearly 75% from Q2 2010.
People aren’t just watching the latest viral videos, they’re also watching clips from their favorite businesses and organizations.
If you haven’t started experimenting with online video, now might be the time. You don’t need a fancy production crew or a big
budget, either. You just need a good story and a smartphone or digital camera.
In this guide, we’ll share with you why your business or organization should be leveraging online video in your marketing efforts,
give you a few ideas for getting started, and provide a few tips for shooting a quality video without breaking the bank
Why Use Video
Video engages people in a way that photos and text alone can’t. For small business owners and nonprofit managers, using video
in your marketing can bring faces, voices, personality, and heart to your operation, while also demonstrating your authenticity. To
top that, on sites like Facebook, video posts generate 100% more engagement than text-only posts.
If that kind of engagement isn’t enough to convince you, here are five more reasons to add video to your marketing mix.
1. Tell your story quickly.
People don’t have a lot of time, so you want to get your message across quickly. Video can communicate a lot of information in a
Get Social
MAREI South Meeting
Tuesday August 6th
6pm to 9pm
With Paige Cahill
From
ConstantContact.com
Check out our Seminars at
www.ConstantContactSeminars.com
Educate, Empower, & Engage!
Paige Cahill
Regional Development Director KS, MO, & NE
E: pcahill@constantcontact.com
Phone: 913.428.9007

short amount of time.
Inexpensive software tools such as Apple
iMovie or Windows Live Movie Maker can
be used to easily edit your video, add
titles, music, and get it ready for upload-
ing to a video hosting site.
2. Put a face to your business or organi-
zation.
A video helps bring your business or or-
ganization to life, and it makes your com-
munications more personal. Putting peo-
ple on camera makes you and your team
real to your customers and members.
3. Get your readers to remember your
message.
Let’s face it: In general, we remember
little of what we read. Our retention of a
message is much better (estimates are
three times better) when it includes pic-
tures, sound, and motion. Your readers
can only take action if they remember
what you said.
4. People enjoy video.
People like to read, but they really like
video. We watch TV, go to the movies,
stream video content to our computers
and mobile phones, and more.
5. Videos are easy and inexpensive to
create.
The great myth is that video is hard and
expensive to create. Yes, the ads you see
during the Super Bowl cost a lot, but you
don’t have to spend much to get good
video. If you already have a smartphone,
laptop, or tablet—you likely already have
a camera that can create high quality
video. If you want to take things a step
further, video cameras like the Kodak Z18
are available for around $450 and are
capable of shooting videos in HD.
Plus, it’s free to host video on sites such
as YouTube, Blip.tv, and Vimeo, making
your videos easily accessible, easily
shared through social media, and easily
embeded on web sites and in blog posts.
Not only that, videos hosted on these
sites can help your search engine optimi-
zation (SEO) efforts as they give sites like
Google and Bing yet another piece of
content associated with your brand to
crawl and serve up to the masses.
Video Ideas for One and All
As with any type of marketing content, it
may be difficult to think of video topics
that apply to your business or organiza-
tion. But there are plenty of simple ideas
out there that can help jump-start your
video efforts. Among them:
1. Thank your customers for their busi-
ness or your volunteers for their support.
Film yourself or a few of your staff mem-
bers giving their well wishes, and stitch
the clips together as fun way to say
“thanks” to all those who support your
business or organization.
2. Feature a customer raving about your
company, product, or service. Catch
people when they’re happy: getting ready
to leave your restaurant after a great
meal, just taking their first bites of that
ice cream cone, or if they stop by to ex-
press their happiness with your service.
3. Share a cool company milestone. For
example, when Constant Contact’s logo
went up on our building, we filmed it.
Any time your organization celebrates an
achievement, film the celebration and put
snippets up to share with your customers
and members.
4. Announce a fundraiser or special
event. Let people know what you’re doing
and why they would want to be involved.
NYC nonprofit, Pajama Program used
video to show people the difference their
involvement can make.
5. Ask for feedback from your subscrib-
ers. Each week, we shoot a video inter-
view where we answer questions we re-
ceive from readers on our blog or at-
tendees at our marketing webinars. We
post the “Ask an Expert” interview to our
blog and encourage viewers to share
their questions, as well.
6. Share your expertise or provide tips for
using your products.
• A mechanic could show what he looks
for when examining various parts for
wear
• Sales folks can demonstrate how their
products work together
• Any business can introduce a new
website and its features
7. Put the spotlight on your team to high-
light your weird or wacky culture.
8. Review a book that your members or
customers may enjoy.
9. Share highlights from a past year’s
event to promote an upcoming gathering.
10. Have your staff wish customers and
Marketing
Customer Spotlight: Video Works for Fourword Marketing
As an author and speaker, and the owner of Fourword Marketing in Toronto, video has become an effective way forMarc Gordon to
market himself and his company in a way that he believes cannot be accomplished with words alone.“The impact of video is far be-
yond what you can do in a written blog,” Marc explains. “You can present things on so many different levels and illustrate examples in
settings that people can visually understand, which can be challenging to do in a written blog.”
Since March 2010, Marc has produced MarcTV, a bi-weekly sixminute program that covers topics ranging from how to create a killer
press release to good business networking practices. Marc shoots the videos in his “studio” — i.e., his office when in his native Cana-
da. Once posted to his Vimeo account and embedded in a blog post, Marc promotes the videos across multiple channels, including his
Constant Contact–based email list and social media sites like Twitter and Facebook.

members a happy holidays.
Your video content doesn’t even have to
be 30 frames-per-second of moving pic-
tures.
You could also:
Use Images with voiceover. Pictures or
images are a great way to communicate.
If you like, you can easily use what is
known as voiceover on an image. This
combines a narrative that you can record
over the image. String a set of these to-
gether to tell your story.
• Your pictures: Using any camera, take
pictures of your building, product, people,
etc.
 Images: There are lots of places on
the web to get images, either for free
or for a relatively small investment. A
few examples include Google Imag-
es, iStockphoto,Flickr, and
stock.xchng.
Note: As with any media, be careful
you’re abiding by copyright law.
Create a Screencast. Capturing a demon-
stration of your product or a walkthrough
of your business or organization using
your website is another way to create
engaging video. Screencast software runs
on your computer and captures what
takes place on the screen. You can also
record your voice speaking at the same
time or add music. The combination
makes for an informative and engaging
experience.
Marketing
Marc uses a single camera and a wireless microphone for each shoot. When on location, Marc has a colleague shoot the video, but in
the office, a tripod acts as the lone cameraman. Editing is done with Apple’s iMovie software. “A lot of people put in a lot of transi-
tions and effects,” says Marc, who does all the editing himself. “You don’t need that. It’s all about simple, clean transitions that keep
the video nice and clean. Let the content be the draw.”
For Marc, the message is important, but humor is a key aspect of his video effort. For instance, in a Halloween episode, Marc went
shopping dressed as Wonder Woman. He also likes to use edgier titles on his videos to draw attention to certain clips — a tactic that
seems to be working: Views of his videos have grown steadily and his email list has grown 29% since he started MarcTV.
“My initial goal was use MarcTV as a marketing tool to promote myself as an expert and personality,” Marc says. “But the popularity
of the show has really given it a life of its own. People from all kinds of industries are now reaching out to me as a result of the vide-
os.”
There are many software tools that ena-
ble you to take an image and add a
voiceover.
Examples are Microsoft’s PowerPoint
(10.0 or greater), Apple’s Keynote,
TechSmith’s Camtasia, and iMovie.
4 Tips for Shooting Quality Video
It doesn’t take thousands of dollars in
gear to make a great video, but paying
attention
to a few details will make your final prod-
uct that much better:
1. Whenever possible, use a tripod.
Keeping the camera steady will make for
better picture quality when you upload
your video to a service like YouTube.
Plus, your viewers won’t get seasick while
watching.
2. Film in a quiet area.
This is particularly important if the only
mic you have is the one built-in to the
camera as those tend to pick up all the
ambient noise as well as the speaker. In
these cases, the less ambient noise, the
better.
3. Bright light is good.
Cameras have come a long way when it
comes to the ability to record in low light,
but the more light you can provide, the
better the video quality. When filming,
have the subject facing the main source
of light, not in front it:
4. Orientation is key.
When shooting on an iPhone, Android, or
other video-capable smartphone, make
sure to hold the device in a landscape
(horizontal) mode and not vertically.
Holding it vertically makes for a messy
editing process as you crop the video to
fit a standard size video window.

Vacancy Break-Ins
Ways to Deter Them From MR Landlord.com
Tips are shared by regular contributors to the popular MrLandlord.com Q&A forum, and by real estate authors. To
receive a free sample of Mr. Landlord newsletter, call 1-800-950-2250 or visit their informative Q&A Forum at
LandlordingAdvice.com, where you can ask landlording questions and seek the advice of other rental owners 24
hours a day.
 Install Motion lights, fake security signs, and a hun-
dred dollar camera system from Amazon.
 One of the handyman who does work for me (been
with me for 10+ years) is willing to stay in my empty
units during rehab. I just provide him with a bed, a
TV, and a few other things. Perhaps you can find a
similar person.
 Talk to several of the neighbors, adults who have
lived there awhile, know the area and have a good
idea of what's going on.
 Keep it well locked, and rotate the lighting.
 Put an (extra) car in the driveway.
 Get yourself 2 radios. Dial them into the same talk
radio channel and put one at the front door and one
at the back.
 Go to Goodwill and find 2 pairs of size 14" or bigger
work boots. Put a pair outside on each porch with a
couple of spent shotgun shells.
 We use a portable monitored alarm system from
Lasershield that uses an integrated cell phone.
They run a few hundred and $25 a month.
 One of the speakers on the CDs from the recent
MrLandlord.com Convention suggested installing an
alarm system, even if it isn't monitored, and then
pretend to adjust it and set the alarm off several
times when neighbors are around. His reasoning
was that most break-ins are perpetrated by locals
and "announcing" the presence of the alarm system
reduces the likelihood they'll target that property.
 Put curtains and blinds then install a couple of lights
on timers so the house looks as someone lives in.
Be sure all newspapers are picked up as the house
would be like someone is living there.
 I have lights on timers. A radio playing. Blinds so no
one can look in. In bad areas with vacant properties
I have a under carpet switch or on a door a motion
sensor wired to a 150 db alarm inside the house
that cause a normal person to go deaf -- they run
away and neighbors call the police and me.
 I place large dog food bowls, dog house in back,
few PBR empties for decoration, maybe a bottle for
cigarette butts at the vacant rental.
 I purchased a game cam which is a camera and
motion detector. I set it to take pictures of the AC
unit and / or driveway. So far I have not been hit
when it was installed. It lets me see the people who
have been in the yard. It moves house to house
without a monthly charge.
Mostly keep the place from looking abandoned. Cut
the grass, keep it clean and nice, porch lights on,
blinds and lights inside, etc.
For Landlords

Industry Services
Don’t Toss another Seller Lead
for Lack of Buyers!
Let Us Review Your Lead . . .
Assign to us or partner with us.
kcmoHomeBuyer.com
816-200-2198
 Rehab & Retail
 Turn Key Rental
 Fixer Uppers
 Multi Family
 Non-MLS
Call Don or Scott
816-200-2198
Houses & Notes
WANTED

How to Pre-Screen
Contractors & Get The Job Done
Robyn Thompson
Many real estate investors shy away form the ugly house business because they fear hiring contractors. We have
all heard the horror stories of rehabber who looser their shirt because a contractor took them to the cleaners.
I am here to tell you that contractors can be your worst enemy or you best friend, depending if you hire a good
one or a bad one. So how can the beginning novice real estate investor make the correct choice – the hard work-
ing team player that gets the job done on time, on budget and at a high standard of quality? The answer is by fol-
lowing all eight of the critical prescreening steps below.
1. Ask the contractor you are interviewing, how long they have been in the business. I prefer at least five years of
experience in the trade. I want a contractor who has seen and repaired every strange, odd and crazy thing that
could be wrong with a house. Experienced contractors know how to estimate all tough projects and experienced
professionals can give an accurate price to fix any problem.
Inexperienced contractors, on the other hand, underestimate repairs to get the business, and then they try to push
their mistake on the home owner by upping the price half way through construction. The investor needs to say
NO. No is the most powerful word in the dictionary, and a rehabber needs to use this tool. If they did not have the
knowledge to make a good estimate, it is their problem not yours.
2. Ask for three references from the last three major projects that the contractor has recently completed. Once you
receive the reference letters, make sure you call to certify the reference and the quality of the workmanship per-
formed. The quality of work should be satisfactory to the homeowner and should have been completed in a timely
manner.
If any of the reference don’t check out, do not hire this contractor. If they gave you false information upfront, you
know they can not be trusted. Move on to the NEXT quote.
3. Ask for a copy of the contractor’s license (if required in your state) and for a copy of their workman’s comp in-
surance. Once you receive a copy of their license, make sure to check that they are not suspended. Also check to
Contractor’s Corner

Industry Services
see if any complaints have been filed against the contractor
with the Better Business Bureau.
It is absolutely mandatory that a contractor prove that he or
she has workman’s comp for all the employees that will be
working on the job site, before they start renovations. Why
is this so important? Well, if one of the workers has an acci-
dent, you do not want to be sued as a potential employer.
4. Make the contractor pull all necessary permits required
by your local building department. The homeowner should
NEVER pull the permits. The contractor should also be re-
sponsible to pass all necessary inspections required
throughout the construction process so a certificate of occu-
pancy (CO) can be obtained when construction is complete.
5. The real estate investor should make it mandatory for all
contractors to buy all necessary materials to do all neces-
sary material to do the renovations. They investor should
never waste their valuable time buying materials. If the in-
vestor buys the materials, the workers could be viewed as
the home owner’s employees per the IRS guidelines. You
do not want this.
6. The real estate investor should always demand a six
month to one year warranty of all parts, labor, workmanship
and material provided by the contractor. This warranty
should be in writing. WARNING: If a contractor will not pro-
vide a warranty and stand behind the quality of his or her
workmanship – DO NOT hire them!
7. Real estate investors should never agree to pay any con-
tractor by the hour. You pay a fixed price for the complete
job. Never pay the final payment in your independent con-
tractor agreement until the project is 100% complete.
8. Ask for financial references (ex: where the contractor pur-
chases materials). I will contact the supply houses to make
sure the contractor is not behind on paying for materials be-
cause I do not want to give the contractor a check to payoff
an old bill and they have no money for the materials they
need to buy for my job.
The last words of advice that I can give to anyone beginning
a renovation project is to make sure everyone agreement
with a contractor is detailed in writing with an independent
contractor agreement. A detailed list of materials required
should be listed in comprehensive scope of work. The docu-
ment should have work completion time frames, penalty
clauses for finishing late, require all permits be pulled and
inspections complete before final payments are released.

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Each year members of National REIA submit their best efforts in many different categories including:
Government Affairs, Community Service, Membership Development, Print Communications, Electronic
Communications, Education, Convention and Trade Show and Finance.
In 2011 MAREI received awards in the areas of Electronic Communications and Membership Development.
In 2012 MAREI received awards in Electronic Communications, Finance, Government Affairs and Print
Communications.
This year in 2013, the awards were in the categories of
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area.
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be the best because they have the best members who give back to their fellow members and the communi-
ty. MAREI would like to thank all of their members for their continued support through out the years that has
made their continued success and the honor of these awards possible. Without our Members we would be
just another club in Kansas City.”
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REHAB FUNDING

Hard Money Made
. . . Easy
From eBook from Merrill Kaliser, Esq. & Michael Hoffman Esq.
What is a Hard Money Loan?
Okay. You have heard (or maybe not) of the terms “Hard Money Lender” or “Hard Money Loan”.
What is a Hard Money Lender? What is a Hard Money Loan? Why is it “hard”? What does all of this mean? Is
there easy money out there?
Ironically, “Hard Money” is the easiest money to find and borrow. This book will walk you through the step-by-step
analysis a Hard Money Lender uses when deciding to issue a Hard Money Loan.
First, a Hard Money Loan (“HML”) has been defined as “a specific type of asset-based loan financing through
which a borrower receives funds secured by the value of a parcel of real estate.” (Wikipedia). How is that any dif-
ferent from the financing provided to you on the house you live in, your homestead? Presumably, your home is
not in distressed condition and is not as much of a risk (if you ignore the last three years) to the banks. HMLs are
typically issued at much higher interest rates than conventional loans and are primarily based on the future value
of the house rather than the current value of the distressed house. This is asset based lending. Because the
house is distressed, the value (in the conventional lender’s mind) is more difficult to calculate and the loan is per-
ceived to be more speculative and higher risk.
A HML is generally based on the after-repair value (“ARV”) of the house in contrast to the actual value (“AV”) of
the house. A conventional loan is typically based on the AV which is quite simply defined as the value of the
house “as is” at the time the loan is made either using the contract price or an appraisal of comparable houses.
The ARV, on the other hand, is calculated based on the value of the house after the estimated repairs are made
on the property. This ARV is usually determined by an appraiser who searches for comparables of similarly dis-
tressed properties that have been rehabbed and sold in the same neighborhood within the last 3 to 6 months. We
will discuss the calculation of ARV later. As you can see in Exhibit 1 (next page), there is a huge difference in the
amount a conventional lender will loan on a house versus that of a Hard Money Lender, assuming that the con-
ventional lender would even entertain a loan on a distressed house.
REHAB FUNDING

In Exhibit 1, our buyer finds a dis-
tressed home that is listed for
$50,000 and in need of approxi-
mately $20,000 of repair work. After
the anticipated repairs are made, the
house should be worth $100,000
(ARV).
Assuming that a conventional lender
would loan on this distressed invest-
ment property, they would most like-
ly lend based on the actual purchase
price. With the typical conventional
lenders, 70% - 75% loan to value
formula, the investor would only re-
ceive financing of $35,000 (70% of
contract price) vs. $70,000 (70% of
ARV) from the typical Hard Money
Lender. Remember, to complete the
house and sell it at comparable mar-
ket value the investor needs approx-
imately $70,000 (acquisition plus
rehab). Yes, you are correct, the in-
vestor will come out-of-pocket ap-
proximately $35,000 for the deal in
order to avoid higher interest and
higher fees. We will discuss later, in
detail, what those higher interest
rates and fees are and how they af-
fect the investor’s out-of-pocket ex-
penses and profit.
Why do we have Hard Money
Lenders?
Now that we know the basic differ-
ence between a HML and a conven-
tional loan, we need to know who
the hard money lenders are. You
probably already figured out that a
conventional loan is issued by a
conventional lender, and a HML is
issued by a ….. Hard Money Lender.
What is a Hard Money Lender
A Hard Money Lender can be an
individual, a self-directed IRA, a
group of individuals, a corporation, a
limited liability company, a busi-
ness…the list goes on and on.
None of these are regulated deposi-
tory institutions, except for the self-
direct IRA which is subject to its own
set of rules and regulations. In reali-
ty, a Hard Money Lender is anyone
or any entity that is willing to loan
money based on a distressed house
having a higher ARV in 3 to 6
months.
To simplify, a Hard Money Lender is
lending on the future value of the
house. Higher risk yields higher re-
turns in the mind of a Hard Money
Lender. The novice investor may
think a Hard Money Loan has great-
er risk; however, we will dispel this
notion. This book, along with our
courses, forms and due diligence
checklist will show you how to mini-
mize risks and capture higher re-
turns.
Wow!! You should be nervous! We
are telling you that a federally in-
sured bank will lend money to a
startup company with no real proper-
ty as collateral (knowing approxi-
mately 2 in 10 startup companies fail
in their first year); however, it will not
lend on a house that has a value (or
future value) of at least 30% more
than the loan amount. Additionally,
the HML will be personally guaran-
teed by the borrower (i.e., a
“recourse” loan). That’s right, gener-
ally, conventional lenders will not
lend on distressed houses. That is
one of the most important reasons
why we have Hard Money Lenders.
Another reason Hard Money Lend-
ers exist, and in our opinion the
most important reason, is the in-
vestor/borrower.
The investor/borrower wants to pick
up that distressed property, rehab it
and either flip it or rent it. The in-
vestor/borrower has contracted to
acquire the house at a discounted
price, creating a large equity spread
between cost and ARV. This equity
spread encourages investors to
seek out Hard Money Lenders for
funding instead of tying up signifi-
cant amounts of their own money in
one property or using their own self-
directed IRA as funding. This is
called “OPM”. OPM is a very tech-
nical term for “other people’s mon-
ey.”
Many real estate investors have sig-
nificant amounts of cash and other
resources, yet they still choose to
use OPM. By using OPM, you keep
your cash for other investments,
emergencies, college education for
your children, etc., in exchange for
paying a higher interest rate and ad-
ditional fees. OPM is another way of
saying I am using someone else’s
money to finance my investment
property.
Let’s recap:
 We have told you that it is ex-
tremely difficult to find a conven-
tional lender that will loan on dis-
tressed properties
We have told you that if you actually
find a conventional lender willing to
loan, the loan will most likely be
based on the actual value.
 We also mentioned that there
are higher fees and interest
REHAB FUNDING

REHAB FUNDING
rates associated with Hard Money
Loans.
However, we haven’t discussed what
HML fees are and how they affect
your return on investment (“ROI”).
Are the interest rates really that high,
and fees really excessive? Yes. This
book is written by brutally honest
Hard Money Lenders. Facts are facts,
and we will share with you the aver-
age fees and expenses3 associated
with a HML versus a conventional
loan, and why smart investors still
choose hard money.
We will not discuss using your own
cash instead of financing because if
you were interested in that you
wouldn’t be reading this book. How-
ever, a brief point on using your own
cash – OPPORTUNITY COST/LOSS.
If you tie up $70,000 of your own
cash in a single house, you have de-
creased three fold your potential re-
turns. You could have leveraged that
$70,000 on several houses by using
OPM.
Exhibit 2 is an example of the differ-
ence between a conventional loan
and a HML on a buy, rehab and flip
investment. In this example, our in-
vestor is buying a home for $50,000
and needs to put $20,0003 into the
house to be able to sell it for $100,000.
We show the basic fees and expenses
associated with each type of loan
based on averages. For clarification
purposes, closing costs are points,
fees and other expenses. A “point” is
simply a percentage of the loan
amount (i.e., 1 point on $70,000 is
equal to $700). In our example, the
investor could qualify6 for $70,000 in
financing by using a Hard Money
Lender (70% of ARV) vs. $35,000
(70% of the acquisition price) with a
conventional lender (if they are willing
to lend on this house). One lender will
lend $70,000 and the other will lend
$35,000. Without taking into considera-
tion points, fees and interest, the in-
vestor using the conventional lender
will be out-of-pocket $35,000 in order
to rehab the house.
In this example, we assume the house
will be rehabbed and sold within six
months. Remember, the interest rates
are annual interest rates. If our inves-
tor is holding the property for six
months, the interest paid on the loan
amount is cut in half (3.25% vs. 7%). In
our example, the interest rate for the
HML is a little more than double the
conventional rate, but the amount of
the loan is twice as high. The points
and fees typically charged by Hard
Money Lenders are 4 points and
$1,000 in administration fees. There
may also be an appraisal fee, inspec-
tion fee and survey fee. We have
rounded the points and fees to 8% of
the loan amount. If you add the interest
payments, closing costs and out-of-
pocket cost for rehab, you are left with
the “Total Out-of-Pocket” cost. The
Hard Money Loan is less than one-
third of the conventional loan when
looking at total cash out-of-pocket for
the investor. The closing costs are typi-
cally 10%; 6% commission to the
agent plus seller’s concessions and
title fees and costs.
The bottom line is the return on invest-
ment. This is the investors report card.
In this example, our investor’s return
on investment is almost 2 times great-
er using a hard money loan. They ben-
efit by using 1/3 of the amount of cash
that would be needed for a convention-
al loan.
Let’s recap.
 The investor/borrower can make
twice as much profit on every dollar
she puts into the subject property
using a Hard Money Loan.
 Our Investor used about 1/3 of her
cash to buy and flip a house by
utilizing a Hard Money Lender.
 Our Investor could have purchased
three homes (assuming same
Exhibit 2

costs and expenses) and would
still use less cash than an investor
purchasing just one house with
conventional funds, with a return of
$28,500 (3 times $9,500) on ap-
proximately $31,500 in total out-of-
pocket.
That’s right, the investor can use
$6,000 less to make $10,500 more in
profit on essentially the same cash.
In the example above, we have pre-
sumed that the borrower/investor is
buying, rehabbing and flipping the
property. Below is an example of the
conventional loan versus a Hard Mon-
ey Loan in the buy, rehab and rent
scenario.
In Exhibit 3, we demonstrate the costs
and expenses associated with a con-
ventional loan on AV and a HML on
ARV. The example assumes that the
conventional loan on AV will be re-
financed in six months on ARV and (a
big “and”) the borrower receives a
“cash out” of up to 70% of the ARV
less the original loan amount (i.e.,
$35,000). Given these assumptions, at
the end of the six month period our
investor would be out-of-pocket about
$8,500 less than if they went to the
Hard Money Lender. Remember, that
is at the end of 6 months. If our in-
vestor/borrower did not have $35,000+
in cash to pay for their rehab and re-
maining acquisition costs, they would
only be able to do the HML. Another
way, from the investor/borrower’s
standpoint is to tie up $37,000 in the
property for six months with a conven-
tional loan, while our investor/borrower
who chose to go with the Hard Money
Lender only tied up $10,500. If other
great opportunities on distressed prop-
erties occurred during that time frame,
the investor/borrower that went with
the conventional lender would have
missed opportunities unless they had
an additional $35,000+ to put down on
each deal.
We cannot stress enough that the like-
lihood of finding a conventional lender
to lend on distressed houses is practi-
cally nil. Further, the likelihood of a
conventional lender allowing a re-
finance on the investment property in
six months without a pre-payment pen-
alty may be slim, as is finding another
conventional lender that will allow you
a “cash-out”. If our investor/borrower is
able to find conventional lenders that
can facilitate these transactions, they
should use them and send us their
contact information so that we can use
them as well!
Finally, while we have provided finan-
cial and leverage scenarios to demon-
strate why smart investor/borrowers
choose Hard Money Lenders over con-
ventional lenders; another reason is
time. The time it takes to get lender
approval and actually loan money to
our investors/borrowers to acquire a
home will make or break a deal. Many
times, the only leverage that an in-
vestor/borrower has when making an
offer to a seller is the promise of clos-
ing the transaction within 3-5 days af-
ter the option period (if one even ex-
ists). There are few, if any, convention-
al lenders that can do this. Not every
Hard Money Lender has the ability to
close a transaction in 3 – 5 days; how-
ever, our company can and we know a
few of our competitors can as well.
This ability gives our investor/borrower
leverage with the seller. If the seller is
aware that our investor/borrower is pre
-approved with a reputable Hard Mon-
ey Lender and can close in 3 – 5 days,
the likelihood of obtaining a lower ac-
quisition price on the subject house is
much greater. The lower the price, the
greater the potential equity for our in-
vestor/borrower and the collateral for
the Hard Money Lender.
REHAB FUNDING

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COVER
Success Strategies
I've got a collection of magic words I've accumulated
over the years. Most are designed to help me get into
or out of a real estate deal. All of them work.
MAGIC Words
T h a t M a k e M i l l i o n s
I've just finished reading (for the second time) a book called Magic Words That
Bring You Riches, authored by my good friend Ted Nicholas, a member of our
Board of Directors. Ted has sold over 200 million dollars worth of information
products worldwide by direct marketing. Over the years he put together a collec-
tion of Magic Words to get people to do things they ordinarily wouldn't do.
In Magic Words, Ted discusses how to do such things as get the best table in a
restaurant and first class seats on airplanes. He talks about how to slash the
cost of a room at first class hotels and attract all the money you need for any
business venture. Want to approach a member of the opposite sex and immedi-
ately gain interest? How about renting a Mercedes for the price of a Ford or buy-
ing jewelry at below wholesale prices?
Ted can tell you how to attract the best employees to make your business prosper, as well as how to get capable
people to work for free. He even discusses ways to gain financial interests in other people's companies without
investing one red cent. Pretty cool stuff, huh? And that's just the first few chapters. This book is also a masterful
direct marketing bible covering every aspect of the business by a consummate professional. Like I said, I read it
twice.
Then it hit me! Like Ted, I've got a collection of magic words I've accumulated over the years. Most are designed
to help me get into or out of a real estate deal. All of them work.
The words you are about to read have made me millions of dollars and, if used properly, could do the same for
you. The truth is, students have been trying to get me to do this for years, but it was Ted Nicholas book that pulled
the trigger. Incidentally, this one issue of the Mentor could easily justify your cost for the next ten years.
Okay, here goes. Here's a set of magic words you should know by now and use daily:
"If I pay you all cash and close quickly, what's the least you would accept??
and that's always followed by:
"Is that the best you can do?"

COVER STORY

If you're not using these words to get to the bottom line
quickly, you're making a mistake, not to mention wasting
valuable time. These words cut to the chase and save
you a lot of time otherwise spent beating around the
bush. Of course, if you're naming the price you'll pay be-
fore you ask what the seller wants, I'll have to take you
out behind the woodshed . . .
Ye who speak first have big mouth & will pay hand-
some price for house.
Those words aren't exactly magic, but they speak the
truth nonetheless. Never, never name the price you'll pay
or the down payment or monthly payment you'll pay or
accept when selling.
Okay, lets say you've asked 'Is that the best you can do,'
and the seller says yes. A good follow-up line that works
for me is . .
"So you're saying if I don't give you $_____, you
won't sell the house?"
Now if the answer is still yes, you won't be buying today
unless you're willing to change the focus to a terms deal
rather than a price deal.
A good icebreaker to use when you want to make it clear
that you're not happy with the number you've been quot-
ed is . . .
'What's your second choice?'
I usually chuckle or use a hint of humor when I ask this.
It's better than simply saying I won't pay the asking price.
Let's say you're trying to get a seller to name the asking
price and they won't. You know better than to pressure
them, but you just can't get them to break. Try this . . .
"How about a dollar?"
This will get through to them and probably produce an
answer. If so, you're back in the screening process and
you know where you stand. If not, you can come back
with . . .
"I simply have too many prospects to work with to
waste time on those I can't buy. If you'll tell me what
you're asking, I'll know quickly if we can do business.
Is that fair?"
By this time, they're usually in or out. You can't buy hous-
es from uncooperative sellers. By the way, did you notice
some powerful magic words hidden in there? Take note
of how I tend to answer a question with a question. 'Is that
fair?' turned my response into a question and put the re-
sponsibility to answer back on the seller. It also softened
the blow and made me seem more warm and fuzzy. 'Is
that fair?' is a powerful set of magic words that should
become a part of your everyday vocabulary with almost
everything you negotiate.
Let's say you're pre-screening a seller who has a house
with a mortgage balance. First, you want to know what's
owed on the property or you can't possibly determine
whether it's a deal or not. These aren't magic words, but
Success Strategies
Ron LeGrand shares the
Maximum Allowable For-
mula for purchasing in-
vestment properties with
students at a recent
training event.

Success Strategies
are critical ones:
"What do you owe on the house?"
What if they say it's none of your busi-
ness? You say . . .
"I buy ____ houses per year and
use many different methods. I'm
probably the most serious buyer
you've talked to yet. However, I'll
need the facts to be able to present
you with an intelligent offer. Will
this be a problem for you?"
Again, a question in an answers cloth-
ing. Did I not sock it to them on that
one?
Frankly, anyone who won't give you
the facts is not ready to sell yet. You
got your answer . . . move on. You
can't make un-motivated sellers moti-
vated.
Now you have your answer. You know
the loan balance. Now it's time to find
out where you're headed with this
deal, so ask . .
"Will you sell the house for what
you owe on it?"
Those magic words can make you
$500,000 per year if you ask them on
all your deals. With just those twelve
little words, you'll instantly know
whether you'll be getting a free house
by taking over the debt or an almost-
free house with debt plus a little cash
thrown in. Of course, you may also
learn that the seller wants full price
and is not flexible. Again, you found
out what you needed to know with
twelve words. Now you know whether
to proceed with the deal or move on.
Now let's say you can't get a deed be-
cause of the due on sale clause or the
seller won't trust you with their credit.
But you see opportunity there and a
lease /option makes sense. Here's the
opening line to present the offer . . .
"I will lease your house with the
right to buy it for the loan balance
when I purchase. I'll guarantee your
payment and maintenance until the
loan is paid off and the house is
out of your life. How does that
sound?"
Notice how all the benefits come be-
fore the question. The seller has
enough information to encourage a
positive response. Isn't that better
than will you lease/option your home
to me?? Another good question that
will ease the seller's mind and make
you seem genuine is . . .
"If it doesn't work for both of us,
then we don't want to do it, do we?"
That makes it pretty clear that you're
not desperate to make the deal. An-
other version is . . .
"If this will cause you to lose sleep
at night, I'd rather not do it. Is it go-
ing to be a problem?"
Here's a good one to break a stale-
mate and get you back in negotiation
as well as collect more facts that
might lead to different offers . . .
"If you and I can't do business to-
day, what will you do with the
house?"
This also gets the seller thinking, par-
ticularly about all the ugly answers to
that question. Their answer may be,
'I'll put it on the market or list with a
Realtor until it sells.' Your response . .
.
"And what if it doesn't sell?"
At least you'll get a feel for whether
this seller is worthy of your follow-up
list. I hope you know by now that . . .
"All seller's minds will change with
time and circumstance"
Here's one you'll love if you're a be-
ginner and worried about the seller
finding out that you don't exactly know
what you're doing. First, don't sweat it.
You don't have to appear to be an ex-
pert. You can try to fake it, but if
you're confronting an intelligent seller,
many times they'll see through you
and try to ask you embarrassing ques-
tions. So if you're asked if you've ever
done this before, use these words . . .
"Well actually, no. This is my first
deal after graduating from some
rather intense training. I was hop-
ing you'd help me do it right, OK?"
Asking for help brings you down to the
seller's skill level and you've built trust
by answering truthfully. Don't worry
about the seller expecting you to be
an expert. If you seem sincere and
excited, you'll usually get the deal. In
fact, being too smart or seeming too
confidant will often turn off more peo-
ple than if you appear to be a novice.
They'll think you're too green to cheat
them.
Now let's say you're talking to a seller
about carrying a mortgage and the
subject of interest comes up. Your
goal is zero interest, so you shouldn't
be the one to initiate conversation on
this topic. If the seller doesn't mention
interest, you shouldn't, either.
When presenting an installment offer,
the magic words are . . .
"I'll pay $____ per month until
you're paid in full."
Of course, this means you've divided
the loan amount by the monthly princi-
pal payment you want to pay, exclud-
ing interest. If the seller comes back
with ?what interest rate is that?? Your
response is . . .
"Why do you need interest?"
Then if you get more argument and it
becomes a sticking issue, you could
respond by saying . . .

"What's more important, your inter-
est or getting the house sold now?"
If that doesn't get the job done, say . .
.
"If I give you interest, how much
can we lower the price?"
Or . . ."Will you sell to me with no
down payment?"
Or . . ."Would you wait six months
(or a year) for your first payment?"
Or . . ."Would you take 25% off the
balance I owe you if I agree to pay
you off within _____ years?"
Of course, these same tactics can be
used if the seller is asking you to raise
your offer. You'll notice it all comes
down to some very powerful magic
words that can be adapted to many
uses (If I . . . , Would you . . .). How
about when you're raising private
money and approaching potential
lenders? Here's my icebreaker that
hasn't changed one whit in 16 years .
"Do you have an IRA or any other
investment capital that's not get-
ting you a 15% return safely?"
These magic words will get you all the
money you need assuming you ask at
least some people who have money
to invest.
Now let's look at the selling side and
discuss a few choice words I use to
find good buyers. When wholesaling, I
want to know my buyer will come to
closing with the money and isn't simp-
ly trying to jerk my chain. In this case,
the magic words are . . .
"When do you want to close?"
If they need more than ten days,
they're a time waster and I'm at risk. If
they say "ASAP", I know they're seri-
ous.
There are so many magic words to
use when pre-screening buyers, it's
easier to simply use the whole script
because these words are all magic. I
can't tell you how many hundreds,
maybe thousands of buyers (idiots) I
talked to before I developed the words
and the order in which I use them.
Here we go . .
"Do you want to buy or rent?"
If the answer is rent and you want to
sell, the rest is worthless conversa-
tion. But before giving up, use one
more line . . .
"If I can show you how to buy and
get you financed, would you rather
own than rent?"
If yes, continue. If no, save your
breath. Next . . .
"Have you ever tried to buy be-
fore?"
"Yes."
"What stopped you?"
This lets you know immediately what
you're dealing with.
"Is your credit good, fair or poor?"
Don't ask how's your credit.' Some
people are ashamed to tell you it's
ugly and will simply lie. Give them a
multiple-choice question so they know
you won't be shocked if they have
poor credit. If it's bad . . .
"What's on it a bank wouldn't like?"
This breaks the ice and gets the cus-
tomer to open up.
Now the big question . . .
"How much money can you raise
for a down payment?"
Whatever the answer . . .
"Can you get any more?"
"Can you borrow from relatives?"
"Do you have credit cards?"
"Do you have something you could
sell or trade to me?"
"Can you repair houses or have
other skills to earn more?"
"Are you willing to rob a bank to
raise cash?"
Oops! Got a little carried away on that
last question. It might not be appropri-
ate.
Now let's assume you see someone
you can work with and you want them
to get excited and realize that you are
their solution to home ownership.
Here are the words that will glue them
to you . . .
"If you can convince me you want
the house and make a commitment
to buy, I'll get you financed one
way or another. Even if I have to be
the bank. If I can't get you in a
home of your own, no one in this
city can."
These words have sold a lot of real
estate for me. They really make an
impact on your buyer's level of hope.
Follow them up with assurance that
you are easy to work with and very
flexible and the prospect will be putty
in your hands.
"We can do whatever you and I
agree. I own the house and I'll do
what it takes if you will. Is that
fair?"
Well that ought to be enough magic to
keep you practicing awhile. Of course,
these words aren't really magical until
you begin to actually use them and
make them work.
Success Strategies

Coming to Kansas City in September:
Ron LeGrand
Ron LeGrand is a nationally renowned real estate expert and lecturer who has taught
thousands of people how to make big incomes without using personal capital or cred-
it.
LeGrand’s philosophy is “The less I do, the more I make”. It’s not about working hard;
it’s about working smart - doing things that allow you to get wealthy quickly and not
doing the things that consume your days swapping hours for dollars.
LeGrand started out as a simple auto mechanic with a redneck background who bare-
ly got out of high school. He borrowed money 30 years ago to attend his first real es-
tate seminar. Since then he has personally bought more than 2,000 homes, and con-
tinues to do so. Today he owns or controls several hundred million dollars in real es-
tate developments and owns several businesses.
Affectionately known as the “Godfather”, he is recognized as the nation’s leading authority on buying and selling single
family homes for fast cash with no credit and little or no personal investment or risk. His unique approach has made
him an in-demand author, trainer, lecturer and consultant. More than 250,000 people have attended one of his work-
shops and he has aptly been named the “Millionaire Maker”.
Jay Connor
Jay Conner is a proven real estate investment leader. Without using his own money
or credit, Jay maximizes creative methods to buy and sell properties with profits aver-
aging over $50,000 per deal - with little to no risk. “Jay is a real estate magician” as
“He works seemingly magical deals for buyers and sellers alike.”
When Jay was introduced to the world of Private Lending he said “PRIVATE LEND-
ING ROCKED MY WORLD AND MY REAL ESTATE INVESTING CAREER!” His first
Private Lender gave him $250,000 in Private Money. Then, within less than 90 Days,
Jay raised $2,150,000.00 in Private Money.
Jay has been a full-time Real-Estate Entrepreneur for 10 years in a population of only
40,000 while producing a seven figure net income per year. He is a National Best
Selling Author with his new book: “The Masters of Real Estate: Getting Deals Done in
the New Economy.” For the past 4 years, he has been mentoring Real Estate Invest-
ing Students across the U.S. and Canada . Since he started raising Private Money, he
has developed new, easy and simple techniques for raising all the money you’ll ever
want for your real estate deals.
Jay pours his talents and energies into numerous activities. He is President of Conner Properties and EZ Mortgages,
plus former CEO of Leader Homes, and past President of Business Networking International. In 1997 Jay formed En-
core Music, a private record label, where he records original piano compositions.
When: Saturday September 28th
9:00 AM - 4:00 PM (8:30 AM Registration)
Where: To Be Determined
Cost: Members $29
Non-Members $59
Details being worked out
Please Watch MAREI Calendar
And Your Email for Details

Wholesale Real Estate
Building Your Buyer’s List
Kim Tucker
“I want to get into this real estate investing. Where should I start?”
This is a question that I often receive and while many factors should go into where you personally start like time and money, I
quite often recommend getting your start in this business by learning how to wholesale properties. It does not take a bunch of
money to wholesale a house and all the tasks needed in wholesaling should be learned in just about any other type of residen-
tial real estate investing.
In May’s Investment News we had a broad overview of
Wholesale Real Estate Investing, that is an essential compo-
nent of any type of real estate investing. If you can master
the art of finding deals, evaluating properties, solving prob-
lems for sellers, finding buyers, and selling the deal - the key
steps in Wholesaling, then you are ready to take on most real
estate transactions.
Today we are going to talk about Building Your Buyers List.
This is the second step in wholesaling real estate because
before you spend all the time, money and effort of finding
motivated sellers and properties to wholesale, you want to
make sure you are finding what the buyers want. So first,
you have to find the buyers.
There are many different ways to find buyers and how you go
about it will depend on your goals. If your goal is to have the
biggest list of buyers names then you could go out and buy a
list, give away free reports, collect business cards at REIA
events and do anything and everything you can to collect a
name and an email address. But remember, an email ad-
dress does not buy properties from you over and over again.
It may be that one person on that list might buy a bunch, but
the rest are just time spent collecting the names and working
the system.
Case in point, as an investor for the past 13 years I have col-
lected every name and email from every investor I have ever
came in contact with and faithfully put then in my database
and had a follow up system to keep in touch. I have a list of
well over 6000 names. When I have a wholesale house to
sell, invariably I sell it to one or two people on that list and
usually the same one or two people. So size of list is not my
goal, rather a quality list of people who buy houses is my
goal.
So where do I personally start in building my buyers list, with
people who I know that buy houses.
My family and I have been investing in real estate since 2000
and we have an established list here in Kansas City. But re-
cently we have expanded to non-performing notes across the
country and I have found myself with a house I need to sell in
a market where I don’t know anyone. So I have had to build
a buyers list, FAST in 3 markets in the past year.
So think about your market and who buys houses, typically all
cash and fast? Other Real Estate Investors. Who does it
over and over again . . . Landlords and Rehab Investors.
Where can you find Landlords and Rehab Investors?
Let me tell you my little secret to finding these types of peo-
ple . . . www.SocialServe.com. This is a site that covers most
markets across the nation where landlord investors can list
their homes for rent on Section 8. This site is searchable by
county and zip code. So when I go into a new area, I do a
search of all the properties for rent in the particular area
where I want a list of buyers and then screen for just houses
or privately owned properties and look at who is offering the
homes for rent. I get a name and a phone number and about
50% of the time, I get an email address as well. Personally I
just grab those folks with emails, as I have a property to blast
out.
I am probably missing out on two or three very good buyers
that don’t have email. I should take one more step and call
all the owners listed and ask if they buy houses, what they
buy and the best way to reach them and add that information
to my database.
My next place I look for buyers is Craigslist and not by post-
ing an ad, but rather by looking at all the ads on Craigslist
that appear to be a real estate investor or landlord. Again
take the time to personally call all of these people and ask
them the pertinent questions about where they buy, what they
buy and the best way to reach them and add this information
into your database.
Wholesale

The next place I look for Cash Buyers
is the local Recorder of Deeds office. I
personally subscribe to a service that
contacts my local Recorder of Deeds to
research out a list of people who have
purchased a single family property in
the past 60, 90, 180 days or what ever I
want and paid all cash. It eliminates
corporate buyers that appear to be a
banking institution and then I have an
excel spreadsheet of names and ad-
dresses to mail out a postcard. You
can get the same data for free if you
want to do a little legwork at your own
county recorders office.
Now you can do a lot with this list. Per-
sonally when I have a property for sale
is when I put together a postcard and
mail it out to the list. I tell them about
the house and direct them to my web-
site to collect photos. If you listen to
the gurus, you should have some sort
of free report on the site so you can
capture a name and email when you
give away the report. But as I am look-
ing for buyers, not a huge list of names,
I just send out the house and my catch
is that if they go to my website they will
get full interior photos of the property.
Real Buyers will go to my site and I
only have to interact with real buyers
who want to buy my houses.
You can also go to live events and net-
work which is an excellent way to build
a list. Or consider hosting a table at a
local REIA group to collect names and
email addresses and buying criteria.
Now before you get yourself all caught
up in a huge pile of contacts you can’t
possibly deal with, be sure to invest in
some sort of database management
system that will allow you to deal with
all these names, emails, phone num-
bers and buying criteria.
Here in our office we have used out-
look, Top Producer, Act and we are
currently using RealFlow. We really
like the functionality of Real Flow as it
will allow us to give away a free report
for an email if we choose. We can en-
ter contact information and buying crite-
ria. The best feature by far is the fact
that it will keep track of who buys what
type of house and where and when we
have a new property we put into the
system, it goes out and does an instant
search for us and gives us a list of only
buyers who are looking for properties
that are in the same city, size, style and
price as the property we are currently
dealing with. Then we can send that
one property out to 12 buyers and
make 12 follow up phone calls.
We really like to use this tool BEFORE
we write a contract on a property so we
have a cash buyer in place immediate-
ly. And should we find ourselves the
proud owner of a killer deal, well we
can always blast it out to all 5000 plus
names to find a cash buyer fast if the
select list of matched buyers do not
buy.
So build your list and find out what they
want, so you can go to the next step of
Implementing a Marketing Plan to find
houses that fit your buyers needs.
Get on the Short List
For Non MLS Properties
 Rehab and Retail Houses
 Turn Key Rental Properties
 Fixer Uppers & Multi Family
 Off Market
We are sourcing properties that are not on MLS and selling them fast to a Select
Group of Preferred Cash (and financed) Buyers in the KC Metro.
KCInvest.com Call and speak with Don or Scott
816-523-4400 or Submit Through Website
Cash Buyers
WANTED
Wholesale

Properties
Invest in KC Metro
MAREInet.com/ Properties
11212 E 25th Street
Independence, MO
$60,000 4 bed
2b Bath
All Brick Duplex in Inde-
pendence
Scott Tucker
Realty Resource
913-523-4400
stucker319@gmail.com
8034 Euclid Ave
Kansas City, MO 64132
$15,500 2 Bed
1 Bath
Fixer-Upper
Investment Property
Near Rent Ready
Christoph Becker
Blueprint Properties Inc
816–419–1165
info@blueprintprop.com
5252 Brookwood Ave
$19,500 3 Bed
1 Bath
Solid 3 bdrm in
Brookwood Subdivision
Christoph Becker
816–419–1165
3717 Indiana Ave
Kansas City, MO
64127
$16,500 3 Bed
1.5 Bath
Fixer Upper
Rehabber Special
Christoph Becker
816–419–1165
11215 Crystal Ave Kan-
sas City, MO 64134
$45000 4 Bed
1 Bath
This house is a home
owners Dream!
Scott Tucker
Realty Resource
913-523-4400
stucker319@gmail.com
2214 E 58th St.
Kansas City, Mo 64130
$10,000 2 Bed
1 Bath
Thishomeneedssome Love.
Cheap Fixer Upper!
Christoph Becker
816–419–1165
10106 Canbridge Ave.
$49000
3 Bed
1.5 Bath
Turn Key Money maker
in south KC!
Kim Tucker
KCInvest
816-523-4400
www.kcinvest.com
3824 Bellefontaine
$35,000 3 Bed
1 Bath
Property is currently occu-
pied and cash flowing with
a market tenant $750 a
month.
Christoph Becker
816–419–1165
3342 Bales Ave
$35,000 3 Bed
1.5 Bath
Market Renter is lined up
for this property paying
$750 a month.
Christoph Becker
Blueprint Properties, Inc
BlueprintPropertySoltions.com
(816) 419-1165

MAREIMid-America Association
of Real Estate Investors
Member Digital Library
Members can Learn about a
Wealth of Real Estate Topics
Through the MAREI website
 Forms & Documents: log in to the
member library to access all kinds of
forms, sales and rental contracts to use
in your real estate business
 Special Reports: MAREI as been col-
lecting E-Books for 10 years and adding
all of them with real educational content
to the library.
 Digital Books: We have a small but
growing archive of books that have
been converted to PDF for you to read
on your reader or print out.
 Audio & Video: Members also have ac-
cess to 100s of hours of training
through pre-recoreded webinars and
teleconferences saved in the Member
Library.
 All hosted on Google Drive.
 Benefit included in all Membership
Plans - Join Today!

Monthly
Meetings
There’s not a better investment in
yourself that you could make!
At our monthly meetings we host guest speakers, panels and
roundtable discussions with industry experts providing insightful and
current information for attendees. MAREI meetings are an essential
tool for building a comprehensive team for real estate professionals.
MAREI works to keep its members up-to-date with the latest infor-
mation on the real estate industry. MAREI has built relationships with
members and the community at large who provide our members with
information they need to be successful in today’s world.
We are the place to go for the information you need from the novice to
the experienced Real Estate Investor. Monthly meetings are the best
place to connect and build relationships with like-minded people and
learn a thing or two along the way.
MAREI MEMBERSHIP
MEETINGS HELD AT:
Northland
(1st Thursday of the Month)
North Kansas City Community Center
1999 Iron Street
North Kansas City, MO
(816) 300-0433
MAREInet.com/KCNorth
Southland
(2nd Tuesday of the Month)
Career Education Systems/ In Mall
8600 Ward Parkway, Ste 2080
Kansas City, MO
(816) 444-7277
MAREInet.com/KCSouth
Upcoming D ates
August 1st Meeting: Online Security: We maintain so much personal and financial data on our computers,
laptops, smart phones and the internet, we need to take steps to protect it, find out how . Northland
August 6th Meeting: Why Social, we all have small businesses to promote, we all need customers, find out
how to use Online Social Networking to grow your business. Southland
September 5th Meeting: Northland Meeting - Topic to be Determined
September 10th Meeting: Southland Meeting - Topic to be Determined
MAREIMid-AmericaAssociation
ofRealEstateInvestors
ARealEstateCommunity
GUEST PASS
Name: ______________________________
Date: _______________________________
Email: _______________________________
Source: ______________________________
For first time guest to visit meeting.
GuestPassisavailableforfirst
timeattendeestoMAREI.Ifyou
haveattendedbefore,explore
membershipoptionsorpay
guestfee.
Events
More Education & Networking Opportunities
MAREInet.com/Calendar

Investment News Page 5
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members the exclusive Sherwin William Discount Card that
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Members look for your discount card in your members Benefit Pack-
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Become a Part of a Local, State and National
Network that Supports YOUR Industry!
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MAREI is the local Chapter of National Real Estate Inves-
tors Association (National REIA), a federation of local asso-
ciations through out the United States representing 40,000
members across the U.S.
LEGISLATIVE MONITORING & ADVOCACY
MAREI monitors and promotes the enactment and enforce-
ment of local, state and federal laws and regulations benefi-
cial to the real estate industry. Support and create local and
national advocacy initiatives and grass roots mobilization.
EDUCATIONAL SEMINAR AND COURSES
MAREI offers all National REIA Programs locally.
 Professional Housing Provider Designation
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MAREI also offers local training events
 2 Monthly Meetings a Month
 Weekend Workshops and Full Day Seminars
 Partnering with National Education Events locally and
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MAREI maintains a website that includes our event calendar,
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MAREI holds a variety of events that enable members to
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MAREI’s calendar also includes a variety of events held by
members and outside groups that are open to the general
public.
NATIONAL REIA BENEFITS INCLUDE
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“I went to the MAREI meeting and was very im-
pressed with the quality of people I met, as well
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month’s meeting!”
Joe McDonald, Real Estate Investor
“The main reason for joining was to meet with
other Real Estate Investors in the Kansas City
area. Not only have we done that but we have
also received access to services from other MA-
REI members, among them rehab insurance
and a general contractor.”
Tami and Kerry Hardinger, RE Investors
“I can’t afford to let my membership expire! It
pays for itself. I think you have really done a
good thing creating MAREI. It is a
very important tool.”
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www.MAREInet.com www.NationalREIA.com

MAREI Newsletter July 2013

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