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THE CALENDAR March Events BRRRR: Buy-Rehab-Rent-Refi & Repeat Your Way to Wealth As investors, you may have heard about using the BRRRR method for building your passive income portfolio of properties. If you have not heard of it, this stands for Buy-Rehab-Rent-Refinance-and-Repeat properties. Quite a few local real estate investors utilize this method and in March we are very lucky that local real estate investors Andrew Syrios and his brother Phillip Syrios with Stewardship Properties who have been BRRRRing right here in KC for many years are going to open up their playbooks and share how they do it. Joining us at the MAREI meeting Tuesday March 12th, Andrew will be explaining the finer points of BRRRR so you learn the over all concept. Spending time on the Buying, the Renovating, the Refinancing and the Repeating. Monthly Meetings held at the Holiday Inn at 8787 Reeder Road in Overland Park, KS. MAREI Members & First Time Guests who pre-register attend for free. Non-Members and Internet Members pay $25 at the door or pre-register for $15 online. Networking 6 to 7. Presentation 7 to 9. Meeting After the Meeting 9 to 11. Mailing Address: 6709 W 119th #332 Overland Park, KS 66209 Phone: 913-815-0111 Web: MAREI.org Web: MAREIMember.com Email: Kim@MAREI.org Views and advertising expressed in the RE Investment News are not necessarily endorsed by MidAmerica Association of Real Estate Investors. The information contained within should not be construed as a recommendation for any course of action regarding financial, legal, or accounting matters by MidAmerica Association of Real Estate Investors. Email to inquire about advertising opportunities or membership.
While Andrew will touch on the Renting part on Tuesday, it deserves a much more in depth look. So Andrew will be joined by his brother Phillip on Saturday March 16th so they can spend the time that the Renting Component deserves. This Morning workshop will help you understand How to Property Manage your BRRRR. This will cover finding the best tenants and managing those tenants and the property and keeping the cash flow rolling in. Details and registration are posted on the MAREI calendar of events.
April Meeting Tenants, Evictions, & the Law with Attorney Julie Anderson April is Fair Housing month and the month we turn to keeping everyone profitable and compliant. Local Attorney Julie Anderson will be joining us to bring us up to date with current rules and regulations as it pertains to our tenants in our rental property. She will also be updating us on current and potential changes coming to our area and best practices that you need to have in place, NOW. April Meeting is Tuesday the 9th. SEE THESE & OTHER EVENTS AT MAREI.org/CALENDAR
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HOME FLIPPING STATS In their most recent U.S. Home Flipping Report, ATTOM Data Solutions reported in their most recent US Home Flipping Report, that the number of single-family homes and condos flipped in the third quarter of 2018 was down 12% from one year ago. This is at its lowest level since Q1 2015. There were 45,901 homes flipped in Q3 2018 representing 5% of all singlefamily home & condo sales during the quarter. In addition, they report that the share of flipped homes sold to FHA Buyers was at its lowest level in over 10 years.
rally Monday March 4th with about 75 people out in the cold. Chanting “Fight, Fight, Fight . . . Hey Hey, Ho Ho, Slumlords have got to go,” they marched in front of Kansas City Missouri City Hall to release it’s housing policy platform. Items on they are demanding includes: •
A policy that would bar landlords from asking prospective tenants about criminal history.
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A way to have evictions removed from a record.
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A tenant bill of rights that gives tenants the right to decent housing, a tenant organization, relocation assistance for forced moves, right to council in landlord-tenant court, protection from retaliation and more.
The sweet spot in pricing is between $100,000 and $200,000. The median age of homes flipped was homes build in 1978 with an average square footage of 1,408 and the average time to complete the flips was 179 days.
We have posted the People’s Housing Platform in our KCREI Facebook Group.
TENANTS ARE ORGANIZING
RENT CONTROL
There is a new organization in town organizing to fight slumlords in the metro area. Holding a
Signed into law, the first state wide rent control measure was enacted in February in Oregon.
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Go to www.MAREI.org/Facebook and look in files.
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This legislation would limit rent increases to 7% plus the change in inflation, and excludes new construction for 15 years and landlords can raise rents when ever they want if the tenant leaves voluntarily. California and Illinois property owners are fighting similar legislation and tenant advocacy groups across the country and in Kansas City would like to see similar legislation. Currently Missouri and Kansas have regulations prohibiting rent control The National Multifamily Housing Council has a lot of resources on rent control on their website. Go to https://www.nmhc.org/advocacy/ advocacy-topics/ and look for Rent Control.
SELLER FINANCE The Seller Finance Coalition continued to make significant progress towards regulatory relief for our industry in 2018. The Seller Finance Enhancement Act (HR 1360) was introduced in the Financial Services Committee by Congressman Roger Williams and 23 bipartisan cosponsors. Unfortunately the clock ran out on us before the bill went to mark-up in the committee but we are pleased with the input and direction we received from all our cosponsors. 2019 is shaping up to be a very interesting year to say the least especially from a legislative perspective and your continued support is going to be key to helping push our efforts. We have a two-pronged approach heading into this new session of Congress.
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First, we are looking to reintroduce The Seller Finance Enhancement Act in the House Financial Services Committee with a Democratic lead sponsor to join our Republican lead sponsor Roger Williams. Secondly, we are working to introduce a companion bill on the Senate side through the Banking Committee. We are working for bipartisan lead sponsors for that bill as well.
These two efforts will take all of us working together on a grassroots level both at home and in D.C. We will be hosting our Annual National Flyin on April 30th and May 1st to hear from various legislators and hit the Hill telling our stories. I
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encourage all of our members and others you can invite to join us in D.C. SellerFinanceCoalition.org
HUD REDUCING TIME OF NOTICE FOR INSPECTIONS IN APARTMENTS The U.S. Department of Housing and Urban Development (HUD) recently announced it was dramatically reducing the advance notice it provides to public housing authorities (PHAs) and private owners of HUD-subsidized apartment developments before their housing is inspected to ensure it is decent, safe and healthy. HUD’s new standard provides PHAs and private owners of HUD-assisted housing 14 calendar days’ notice before an inspection, a dramatic reduction from the current notice which can frequently extend up to four months. The notice was part of a wholesale reexamination of REAC’s inspection process that Secretary Carson launched shortly after taking office. HUD will be consulting with PHAs and property owners over the next several months to discuss other improvements to REAC’s process. RealEstateInvestingToday.com
KCRAR MARKET UPDATE JANUARY 2019 Despite a strong U.S. economy, historically low unemployment and steady wage growth, home sales began to slow across the nation late last year. Blame was given to a combination of high prices and a steady stream of interest rate hikes by the Federal Reserve. This month, the Fed responded to the growing affordability conundrum. In a move described as a patient approach to further rate changes, the Fed did not increase rates during January 2019. While the home affordability topic will continue to set the tone for the 2019 housing market, early signs point to an improving inventory situation, including in several markets that are beginning to show regular year-over-year percentage increases. As motivated sellers attempt to get a jump on annual goals, many new listings enter the market immediately after the turn of a calendar year. If home price appreciation falls more in line with wage growth, and rates can hold firm, consumer confidence and affordability are likely to improve. http://kcrar.com/statistics
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MAREI Asks you to support Stacey Johnson– Cosby For City Council
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Training Events Member Benefit One of the reasons that new real estate investors find their way to MAREI is to get educated. Here they can utilize the online library, the knowledge of others at meetings or online, and from speakers at meetings and events.
actually invest in real estate and do what they teach. They typically are only teaching on very specific niche of real estate investing. And when they sell you a training package for $1000 or $2000, it is on that very specific niche.
Training events at MAREI effective and affordable.
We often see these traveling shows that come to town once or twice a year with the $20k plus packages sell you a package of everything you could ever want to know about real estate investing on a wide range of topics. Quite often created by ghost writers and marketing companies.
We often see gurus come to town and set up shop at a local hotel where they hold several free informational events to get you in the room. There the sales pitch person gets you excited and entices you to buy a small training package. And from there they quickly upsell you into all encompassing packages that are $20,000 . . . $30,000 or more. At MAREI you will find that we often have guest trainers that are local who give of their own time to teach the competition as a way of giving back. Other times we invite in national trainers who also have a training course and could possibly have a mentoring package in the $1000s. So what’s the difference? The trainers who come to MAREI MAREI.org
Here’s how it works at MAREI. We tell you that we have a trainer on a specific subject who will be teaching. For example this month we have local investors Andrew & Phillip Syrios teaching BRRRR or in May we have National Trainer Gene Guarino who will be teaching Residential Assisted Living. This is to give you a chance to do some research on the topic being presented as well as the trainer. Then we have them speak at the monthly meeting. No extra charge if you are a member. Then if you de-
cide this is a subject you want to learn more about, you are invited to join us for a Saturday workshop for a small fee under $100. At both the meeting and the workshop you will be able to learn, take notes and gain actionable items to take back to your own business. You also have the option to purchase further training should you choose. We invite you to do your homework in advance, so you know if you want to learn the subject from our presented trainer. Should you decide to purchase further training, MAREI has your back. With trainers at MAREI, while we have rarely had any issues, we have had a few, and we are able to work with our member and the speaker to get the problems resolved. You have the benefit of not only MAREI’s power and might, but also of National REIA and all the other member groups. Buy from a traveling speaker who is not a speaking at a local group and should you have a problem with their training or customer service practices, it’s all up to you.
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B u y : R e h a b : Re n t : R e f i : R e p e a t From Andrew Syrios Investing in real estate, particularly holding real estate, is the best method available for a person of modest means to become wealthy in my opinion. That doesn’t make it easy to do, however. Buying and holding real estate requires a lot of very different tasks be done right in order for it to be successful. When put simply, there are five major components: 1. Acquisition 2. Financing 3. Rehab 4. Property Management 5. Maintenance
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The BRRRR method stands for Buy, Rehab, Rent, Refinance, Repeat. However, there are two financing stages; up front when you purchase (using either cash, a private loan, bank loan or hard money loan) and then on the back end. The idea behind the strategy is to “flip” the property to yourself. Basically, you buy the property with at least 25 percent equity, so when you refinance, you can refinance at appraised value and pull out all of the money you put into the property up front (or payoff the loan). When done right, you effectively get a property for free. But let’s return to the five key aspects of buy and hold and go over each briefly:
1. Acquisition In real estate, you make your money when you buy. Unfortunately, there’s a tendency for buy and hold investors to get lazy. Flipping creates discipline by quickly showing whether a deal was good or bad based on how much money you made or lost on the sale. This doesn’t happen with buy and hold. While there is an appraisal, it’s very tempting to write it off as a “bad appraisal” if it doesn’t come in where you think it should. Thus, it can be easier to justify lower quality deals. Don’t fall for this trap. Bad deals on the acquisition side will hurt buy and hold investors
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just as bad as flippers in the long run. More money will be tossed away, cash flow will be lower, and refinances won’t pull all the money you put into the property out.
tors and get referrals from other investors. Finally, never pay for an entire job up front! And don’t pay out the final bill until the job is completely done.
2. Financing
4. Property Management
Financing is often the most difficult part for buy and hold investing. There is, fortunately, an assortment of different ways to finance properties to hold. The first is to save money from a job and use that money to buy real estate. FHA loans are also great as you can buy any property up to a fourplex, live in one unit and rent out the others.
The first question you’ll have to answer is whether to hire a property management company or manage yourself. The advantage to hiring a management company is that it frees up your time to look for other properties (or just have a life). The drawback is that management companies obviously charge a fee and some aren’t exactly good at what they do. Furthermore, no one will ever care as much about your properties as you do.
It should also be emphasized that you can hold and flip at the same time. For example, you could flip one property to provide money to live off, flip the next to provide a down payment for the third which you hold. Or you could use creative financing to buy a property for no or little money down. This includes things like “subject to” and seller financing. And of course, there’s the BRRR method. We use this method with private lenders on the front end (usually we pay 8 to 9 percent interest only) and then refinance out with a bank once the property is rehabbed and rented. Rehab If there were ever a thing that Murphy’s Law applied to, it would be rehab. It always costs more and takes longer than you think. Contractors and employees are notorious for overcharging, taking too long or doing poor quality work. And underbudgeting is all but par for the course for investors. Therefore, it’s critical to add a contingency to your rehab budget (10 to 20 percent) for unforeseen expenses. And make sure to do your due diligence with contractors. Ask for referrals from people you trust whenever you can. Local groups such as MAREI provide a great venue to meet potential contrac-
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If you do hire a management company, just as with contractors, vet them thoroughly. You should ask them for referrals from people they manage for. And if you do hire one, don’t be afraid to fire them as well. A management company can make or break your investments and bad ones will break yours quicker than you could imagine. If you decide to manage your properties on your own, you must make it a priority. No property, no matter how good a deal you got on it, can work without quality management. Make sure to learn the law and consult an attorney to make sure you’re in compliance. You will also need to learn to take a few bruises to your ego. Some tenants will push you very hard, but you need to stick firmly to your rules and policies (and yes, make sure to create rules and policies as well). 5. Maintenance Unless you are very handy, if you decide to manage yourself, you should make sure to find a roving handyman you can call for maintenance issues. When you have enough properties, you can hire someone full time. But even with just one property, you need someone to do the work there. You will
also need to find a plumber, HVAC technician and electrician for such issues when they arise. If you use a property management company, it’s critical to keep a close eye on the maintenance and turnover expenses. If you’re going to be overcharged, it will probably be there. If maintenance expenses are too high, demand an explanation. If the explanation doesn’t make sense or the situation doesn’t improve, change companies. You should also watch for prolonged vacancies and treat those the same way. Of course, this is just scratching the surface of what is needed for buy and hold real estate investment. But these are the key aspects of a buy and hold business you will need to master in order to become a successful real estate investor. —————————Andrew Syrios is a Kansas City area real estate investor, who with is brother Phillip own and manage Stewardship Properties. Andrew will be sharing how their family business has been building wealth with buy and hold properties through the BRRRR method at the March 12th MAREI Meeting. On Saturday, March 16th, Andrew and Phillip will be digging into the Property Management piece as that is the key to doing this over and over again so you build wealth. Learn more about both events online at www.MAREI.org Find out more about the Syrios Brothers and their business on their 3 web sites:
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www.StewardshipProperties.com
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www.333Rent.com
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www.AndrewSyrios.com
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EVICTIONS Frequently Asked Questions These are frequently asked Eviction questions that are similar in both Kansas and Missouri obtained from www.MOKSLaw.com For more in-depth state specific questions, please visit the www.MOKSLAW.com/forms Q. What is an eviction? An “eviction” is the removal of tenant(s) from a rental property by a landlord through a court action (lawsuit). Called a Forcible Detainer in Kansas and a Rent and Possession Action in Missouri. Q. What information do you need before you will help evict a tenant? Please complete the Landlord Information Form attached. If you do not know the name of the people living in your property, please list them as John Doe or Jane Doe.
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Q. Who is John Doe and Jane Doe? The names “John Doe” refers to men and “Jane Doe” to women; they are used as placeholder names for a party to a lawsuit whose true identity is unknown. Q. Why do I need a lawyer to file an eviction suit? If your rental property is owned in the name of a business entity, you are required by law to be represented by a lawyer. If you own your rental property in your individual name, you may be able to file a lawsuit without a lawyer. In Missouri, an eviction lawsuit takes much less time than a regular civil case. But in exchange for expedited treatment, landlords must follow highly detailed rules. In addition, because a person’s home is at stake, many Judges will set the bar
very high when it comes to ruling in the landlord’s favor. Landlords are fundamentally no different than any other type of business owner - they aim to make their businesses profitable while avoiding liability. Hiring and attorny to help you achieve these goals is a smart business move. Q. Can I change the locks or turn off the utilities when the tenant stops paying? No. Kansas and Missouri law forbids “self-help” evictions and imposes penalties for landlords who break the law. Landlords may be prosecuted criminally and/or sued in civil court for the tenant’s damages (such as costs of temporary housing, the value of food that spoiled when the refrigerator stopped running, or an electric heater when the gas was shut off)
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in addition to hefty penalties. The fact that the tenant(s) did not pay rent, left the property a mess, verbally abused you or your staff, or otherwise acted outrageously will not be a valid defense if you do not follow the law.
If the tenant(s) appears in Court and consents to the allegations in your petition, the Judge will enter a consent judgment. A consent judgment becomes final after fourteen (14) days unless the parties agree to a sooner date.
Q. What is an unlawful eviction?
If the tenant(s) appears in Court and disputes the allegations in your petition, the Judge will set the case for trial seven (7) to fourteen (14) days later.
An “unlawful eviction” is any attempt by a landlord to evict a tenant(s) without a court judgment. Only a Judge can order a tenant(s) to move. “Self-help” evictions include changing a tenant’s locks, threatening or engaging in physical violence to strong-arm a tenant(s) into vacating, turning off utilities, or removing a tenant’s personal property from the rental unit. Q. Can I turn off the utilities if the tenant refuses to place them in her name? It is illegal to call the electric, water, gas or oil companies and cancel service to the property regardless of what your lease provides. Even if the utilities are in your name, it is still illegal to shut off “essential” utility service to the property while a tenant(s) is living there. The bottom line is that if you force your tenant(s) to vacate without due process (a lawsuit), you can be fined more than it would have cost you to go through the proper process. The landlord never wins! Q. How long does the eviction process take? KANSAS: A court date will be scheduled approximately three (3) weeks after the lawsuit is filed. A Deputy Sheriff will give a copy of your petition and the court summons to the tenant(s) at least three (3) days before the court date. If the tenant(s) does not appear in Court, the Judge will enter a default judgment. A default judgment becomes final after fourteen (14) days.
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After a judgment becomes final, the sheriff has up to thirty (30) days to physically remove your tenant(s). YOU SHOULD BE AWARE THAT YOUR TENANT(S) MAY BE ON THE PROPERTY UP TO SIXTY (60) DAYS AFTER A CASE IS REFERRED TO OUR LAW OFFICE. MISSOURI: A court date will be scheduled approximately four (4) weeks after the lawsuit is filed. Our private process server will give a copy of your petition and the court summons to the tenant(s) at least ten (10) days before the court date. Regardless of the type of lawsuit, if the tenant(s) appears in Court and disputes the allegations in your petition, the Judge will set the case for trial seven (7) to fourteen (14) days later. If the tenant(s) does not appear in Court, the Judge will enter a default judgment. A judgment for “Rent and Possession” becomes final after ten (10) days. A judgment for “Unlawful Detainer” becomes final after thirty (30) days. A judgment for “Immediate Eviction” becomes final after twentyfour (24) hours. After a judgment becomes final, the writ of restitution can be issued to the Deputy Sheriff. The Deputy Sheriff has up to fifteen (15) days in Jackson County, Missouri, and thirty (30) days in Platte County, Clay County and Cass County to physically remove
your tenant(s). YOU SHOULD BE AWARETHAT YOUR TENANT(S) MAY BE ON THE PROPERTY UP TO NINETY (90) DAYS AFTER A CASE IS REFERRED TO OUR LAW OFFICE. Q. What is a petition for eviction? A “petition” is a formal certified document filed with the Court requesting an order requiring your tenant(s) pay rent and late fees and move out of your property. Q. What is a summons? A “summons” is the paperwork that tells your tenant(s) that they are being sued and asserts the power of the Court to hear and determine the case. It will also command the tenant(s) to appear before the Court on a specific day and to answer the petition. Q. Where will you file my eviction suit? The eviction must be filed in the county where the property is located. Q. What notice is required prior to filing my eviction suit? Both Kansas & Missouri require notice be given the tenant prior to filing your case. This varies by state, please see State Specific information at www.MOKSLaw.com/ Forms Q. What notice is required to terminate a month-to-month tenancy? If you do not have an executed lease agreement and your tenant has been paying you periodic rent, you have a month-to-month tenant. A month-to-month tenancy renews every 30 days. This means that if you do not do anything, your tenant(s) can theoretically stay forever. To terminate a month -to-month tenancy, you must provide the tenant(s) with one month’s notice, calculated from a rent paying date. For example, if
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rent is due on the 1st day of each month, the Landlord must give notice on July 1st to terminate on July 31st. The Attorney will file your eviction on August 1st. If the Landlord gives notice on July 5th, he cannot terminate until August 31st. Q. What is the process for an eviction? 1st Step - The Attorney will send a written demand letter to your tenant(s) requiring her to pay past due rent and fees or vacate the property. The letter will also prompt the tenant(s) to contact you if they want to resolve the lawsuit amicably. 2nd Step - The Attorney Associates will file a forcible detainer in KS or an eviction petition at the courthouse on your behalf. 3rd Step - The court clerk will schedule the case for a hearing and issue a summons requiring the tenant(s) to appear in Court. 4th Step – In KS a Deputy Sheriff will serve a copy of the petition and summons on the tenant(s). In MO a private process server will serve a copy of the petition and summons on the tenant(s). 5th Step - The Attorney will appear in Court on your behalf and obtain a judgment. 6th Step - The Attorney will contact you with the Court’s results and ask you if you want to schedule the Deputy Sheriff to perform a lockout procedure. 7th Step - Upon request, Most Attorneys will file a Writ of Restitution with the Court and request a Deputy Sheriff schedule the lockout. 8th Step - Upon request, Many Attorneys will set up a payment plan with your former tenant(s) to pay the past due rental balance or issue a garnishment to collect the funds due to you.
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Q. After you file the eviction lawsuit, I was told you have to serve the other party. What does that mean? The Attorney must notify the tenant(s) that they are being evicted by providing them with a copy of the petition and summons. There are two options for service: (1) personal service or (2) service by posting and mail. In Kansas there is also , (3) service upon a member of the tenant’s family, or (4) service by posting and mail. Q. Why can’t I serve the paperwork on the tenant? A party to a lawsuit cannot serve papers in their own case. Most Courts require a registered private process server or a Deputy Sheriff to serve papers. Q. Do I need to appear at the court date? You do not need to appear at the first court date. An attorney at The Law Offices of Anderson & Associates will appear on your behalf and request the Judge enter a judgment in your favor. Q. What is a judgment? A “judgment” is a written decision by a Judge regarding the rights and liabilities of the parties in a lawsuit. A judgment also generally provides the Court’s explanation of why it has chosen to make a particular decision. Q. What is a default judgment? A “default judgment” is a binding judgment, issued by a Judge, based on your tenant(s)’ failure to appear in Court on the date listed on the summons after they have been served. Q. What is a consent judgment? A “consent judgment” is a binding judgment, issued by a judge, based on an agreement between you and your tenant(s) which settles the case.
Q. What is a stay of execution? A “stay of execution” is a court order to temporarily suspend the eviction date. A stay can be granted in two ways (1) automatically by the operation of law or (2) conventionally, when you and your tenant(s) agree to a repayment plan or to conduct the eviction on a certain date or time. Q. What happens if the tenant appears in Court and disputes the petition? If your tenant(s) appears at the first court date and disputes the claims made in the petition, the Judge will schedule the case for a trial. Q. What do you need from me if my case is scheduled for a trial? After the first court date, the attorney’s office will inform you of the trial date and location. She will also request you provide her with the following information at least two (2) days prior to the trial date: The name and phone number of the witness who will appear on the landlord’s behalf; A copy of the Lease or a statement that one does not exist; An updated payment ledger that matches the amounts you are requesting; A copy of your welcome letter (only applicable if you recently purchased the property); The tenant(s) rental file. Plus a few other documents in Kansas. * You MUST provide copies of these documents to an attorney at the Attorney no later than two (2) days prior to your trial. It is very important that we are prepared for the trial.
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Q. Do I have to appear at the trial?
Q. What is a Writ of Restitution?
Q. How do I collect on my judgment?
You or someone appointed by your business on your behalf will need to appear at the trial.
A “writ of restitution” is a court order issued by a Judge requiring a Deputy Sheriff to physically remove the tenant(s) from the rental property.
If The Attorney has obtained a money judgment on your behalf, the it is up to you to collect, many attorneys, like the Law Offices of Anderson & Associates have a collection department to help you collect that money.
Q. What happens in a trial? In an eviction trial, a Judge will examine the evidence to decide whether it is more likely than not that the allegations in the petition are true and the tenant(s) should be evicted. An attorney will have the opportunity to argue your case first. Then the tenant(s) will be able to ask you questions, refute your evidence, and offer their own evidence. Q. The tenant was ordered to leave by the Judge, but they are still there. What can I do? If the tenant(s) do not leave after a judgment is entered against them, The Attorney will file a writ of restitution with the Court on your behalf.
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Q. Do I need to be present at the eviction? Yes. On the day of the eviction, you must be available to “greet” the Deputy Sheriff. The Deputy will usually pull up to the location of the eviction in a marked patrol car. Typically, the Deputy will not leave the car. It is up to you to go to the car and identify yourself as the landlord or landlord’s representative. You will then need to identify the entry door to the rental property and will sign a document authorizing the Deputy to use force to enter if necessary. Generally, you either need to have a key to the rental property so that the Deputy can enter or have a locksmith available to provide access.
These FAQ’s into evictions were obtained from www.MOKSLAW.com/forms the website of Julie Anderson and Anderson Law. To learn more about the management of your tenants and their evictions please visit the website and join us at the April 9th MAREI meeting where Julie is donating a couple of hours of her time to update us on current and pending law as it pertains to our rental properties, our tenants, their support animals and getting all of them out when they don’t pay or violate the lease.
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D o n ’ t Tr u s t Yo u r P r o p e r t y t o M e m o r y It’s a scenario we are all familiar with, the rental car inspection process prior to receiving the keys. Think back to the last time you were asked to walk around the vehicle with your half sheet of paper with the car diagram on it, looking for any existing problems. To avoid getting charged for damages that aren’t your fault, you dutifully circle the car, notating every scratch and ding. Why does the rental agency require this? To protect their investment. Period. When it comes to your investment property, do you take similar steps to ensure that your property is delivered back to
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you in the same condition as when you rented it? The average car rental is 3 days and it is sometimes hard to remember what was there at the time of possession. Imagine how much more difficult it is to remember the condition of your much larger asset after a 3-year lease. Will you accurately remember every room, wall, faucet, light fixture, appliance, flooring and everything else? Pictures and forms are great, but where do I store them so I can easily access them when my tenants decide to move out? Truthfully, the whole process is a pain and most landlords drop the ball in
their move in, move out inspections, ultimately costing them money at the end of each lease. No one gets into business to lose money (and least not anyone that expects to last long as an investor). It’s not a question of should we do move in, move out inspections, but rather how we should do them. As a landlord, for years I paid for damages created by tenants because it was easier to pay the bill than it was to fight over who was at fault. I realized that I had no leg to stand on because I had no real evidence. When something causes me pain, I look for a way to get rid of the pain. I became laser
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focused on creating a solution that would be both easy and effective. The result… Introducing MI-MO, Rent Perfect’s Move-In, Move-Out process, found inside your Rent Perfect Portal next to our other innovative products like tenant invites, online lease creation and more. Here’s how it works: MI-MO starts with the new tenant receiving an invite through Rent Perfect to inspect the property. They inspect each room and accept everything that is in good working order. If something needs to be repaired, they take a picture of it with their phone and document the needed repair. They repeat the process throughout the home and after completion, you receive a notification to login to your Rent Perfect Portal and review their inspection. You have the option to either note the damage or fix the problem. Rent Perfect stores the inspection notes and accompanying pictures
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for the duration of your rental contract, no matter how long your tenant lives there. During your inspection of the property at move out you have photographic evidence of the condition of the property at time of occupancy. Find something wrong? Take a picture and it will automatically upload into the Rent Perfect system. You can easily compare the property condition and adjust the refunding of the security deposit based entirely on the difference in the property at move-in and move-out. The whole goal is to prevent a situation where it is your word against the tenant. MI-MO will allow you to be transparent and your tenants will love that. Rent Perfect just took one more unnecessary fight away from the rental relationship game. I guess we can thank the rental car industry for doing something right.
About the Author David Pickron has been a licensed private investigator for over 20 years, specializing in tenant screening for real estate investment owners and property management companies. His company, Rent Perfect, an Investigative Screening Company, helps clients onboard tenants from the initial background check to leasing and payment collection. You can learn more by visiting www.rentperfect.com or calling 1877-922-2547. Other Resources: For a discount on Rent Perfect’s sign up fee and an informative webinar David did with MAREI on best screening tips at www.MAREI.org/RP
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With MAREI Business Members Save time and money by starting with service providers who already know your business. Who can solve problems as they arise to help you get the deal completed on time and for maximum profit. Accountant Beebe & Associates, LLC Brian Beebe www.MyCPAkc.com 816-388-9222 Coleman Accounting Service Bob Coleman www.ColemanAcctg.com 913-787-0308 Mid America Tax Planners Ahmad Malik www.Accounting-USA.com 913-210-4765
Appraisal Ladys Appraisal Service Kathy Allen-Grey www.LadysAppraisal.com 816-678-2794
Attorney Anderson & Associates Evictions / Collections Julie Anderson www.MOKSLaw.com 816-931-2207
Rick Davis Legal Real Estate Law Rick Davis www.RickDavisLegal.com 913-283-8300
Auction Company Auction.com Rachel Bailey www.Auction.com 816-797-6875 Monthly Auction 101 Workshop
Building Supplier Coronet Window Company Brent Huckabey www.CornonetWindow.com 816-472-1788 DeMayo Enterprises Wholesale Cabinets Mark Yanda www.DeMayoEnterprises.net 913-980-4260 Earthwise of KC James White www.EarthwiseKC.com 816-231-7011
Joe’s Carpet / Weber Flooring Joe Weber www.WeberFlooring.com 913-469-5430 The Home Depot George Neal 816-461-9583 2% Rebate / 20% Off Paint Details in Member Benefits Rugs, Rolls and Remnants Jerry Ratway www.RugsRollsRemants.com 913-593-0568
Contractor Above & Beyond Building Services James Carollo www.AandBKC.com 816-674-6132 Hearth Masters Fireplace / Masonry Gene Padgitt www.ChimKC.com 816-461-3665
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Genesis Home Restorations Mold Remediation Terry Amerine GenesisHomeRestorations.com 913-270-0812 HCS Restoration KC, LLC Mike Peace HCSRestorationLLCKansas.com 913-731-6537 NuLook Custom Finishes Cabinet Refinishing Carol Baldwin www.NuLookFinishes.net 913-385-2574 Under Pressure Property Services Rehab, Maintenance, & Staging Dallas Kidd www.MyUnderPressure.com 913-274-9555
Financial Planning HighPointe Financial Edward Ethington HighPointeFinancialGroup.com 913-234-034 TR Bass Financial Terry Bass 816-251-4524 Home Warranty Choice Home Warranty Jayme Dickey 816-550-5144 Insurance Agema Insurance Fred Dickinson www.AgemaIns.com 913-543-8116 Arcana Insurance Insurance for Investors NREIA.ArcanaInsurance HUB.com 877.744.3660 Brian Rauber Insurance Agency Farmers Insurance LoveIsOurPolicy.com
(816) 436-1016
Self Directed IRA
Marketing
Equity Trust Company TrustETC.com/NationalREIA FREE Training 844-732-9404
A3 Marketing Hand Addressed Mail www.A3MarketingLetters.com Discount Code KTUCKER18
Lending
Constant Contact Email & Social Media Marketing FREE Trial MAREI.org/ConstantContact
Crossroads Investment Lending Hard Money Britton Asbell / Doug Harris www.KCLend.com 913-800-8226 House Traders Monthly Meeting Flat Branch Home Loans Morgtgage Banker Beth Langston FlatBranchHomeLoans.com 816-479-5841 x 1148 Investors Choice Funding Hard Money Dave Williams InvestorsChoiceFunding.com Longhorn Investments Hard Money Jon Shipley www.LongHornInvestments.com 877-420-7346 Merchants Mortgage Mushy Money Susan Aubin www.MerchantsMtg.com 303-514-0815 North Oak Investments Hard Money Tommy Nigro www.NorthOakInvestment.com 816-249-1001 REI Investor Funding Charlie Fitzgerald www.REIInvestorFunds.com 913-843-8650 Revolver Finance Hard Money Jeremy Hanna www.RevolverFinance.com 316-880-1611 Worcester Financial Hard Money Taryn Kendrick www.WorcesterFinancial.com 816-291-4146
Investor Carrot Investor Websites Free Training & Discounts www.MAREI.org/IC Pat Live Answering Service Discounts www.MAREI.org/PatLive REIPro Investor Marketing Platform www.MyREIPro.com/NREIA Discount Code 66209PRO Zoom Video Conferencing www.MAREI.org/Zoom Wesley J Harrison Digital Innovation & Marketing www.WesleyHarrison.com 816-482-3755 Office Supply Office Depot / Office Max www.OfficeDepot.com Discount Link & Card in Member Benefits Package Pest Control BedBugTraps.com Stop Bed Bugs Discounts for Members Properties KCInvest Investment Properties Scott & Kim & Don Tucker www.KCInvest 913-735-0018
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Grow Your Business
Pride Properties Wholesale Marcus Bray & Matt Bray www.PridePropertiesHomes.com 913-213-5370 Deal Makers Monthly Meeting
Get Connected: www.MAREI.org
Visit our website for events, recent newsletters, member properties and our business directory.
Property Manager
www.MAREIMember.com
Home Rental Services Paul Branton www.Home4Rent.com 913-627-9543
Visit our Member’s Only site to join, register for events, access benefits and discounts and to post properties. www.Facebook.com/groups/KCREI
M & M Property Pros Michael & Michele Bellman www.MMPropertyPros.com 816-490-6745 MRE Property Management Turn Key & Management Nick McKinnis www.MAREKC.com 816-388-9588 Realtor Crown Realty Rich Melton RichMelton.CrownRealty.com 913-215-9004 Realty Resource Scott Tucker www.RealtyResourceKC.com 816-284-7844 Show-Me Real Estate Dan Hartman www.Show-MeRealEstate.com 816-532-6101
Join the online discussion. Post a property, ask a question, share knowledge and expertise. Servicing Escrow Services Inc. Loan Servicing Nationwide www.EscrowServ.com
Junk Luggers Eco Friendly Junk Removal Olivia Jones www.JunkLuggers.com 816-905-2204
Title Company
Get Listed
Accurate Title Company Dave Green www.AccurateTitleCo.com 913-338-0100
For as little as $135 a Quarter or $499 annually, join MAREI as a business member.
Trash Out
Details at MAREI.org.
1-800-Got- Junk Trash Pick Up www.1800GotJunk.com Discounts in Member Benefits
Rent Collection National Credit Systems Specializing in Collections www.NationalCreditSystems.com Screening Rent Perfect Tenant Screening Plus Heather Johnson www.RentPerfect.com 877-922-2547 Discounts www.MAREI.org/RP
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