MAREI January 2022 Newsletter

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2 0 2 2 J A N U A R Y

MAREI

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what's coming up 11

January 11th MAREI Meeting Evening Live & In Person in Overland Park Private Lending, How to Not Lose it all with our special Guest Panel of Local Lenders: Susan Aubin, Bruce Belanger, Rachel Bailey and Jeff Newhard

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January 13th MAREI Virtual Meeting Evening Following up to the main meeting, join Rick Davis to find out the paperwork and processes to protect your assets as a Private Lender or Borrower.

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January 19th Get Fundable Web Class MAREI Merrill Chandler shares how to get up to $1,000,000 for your deals using unsecured, stated-income, business credit lines from top tier banks in as little as 120 days.

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February 9th MAREI Meeting, Evening Live & In Person in Overland Park Turning Run Down, Unwanted Houses into Big Profits with the Queen of Rehab, Robyn Thompson.

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February 12th MAREI Virtual: Morning Follow up meeting for to fill in the gaps that you have after the Main Meeting. Robyn is joining us virtually for a recap.

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February 19th & 20th, LIVE Week-End The Queen of Rehab is back to share her wisdom on Turning Foreclosures, Estate Properties, and Unwanted Houses into Fast Cash - through Fix and Flip. Also, learn how to Cash Flow with Pretty Houses & Airbnb Rentals.

See MAREI.org/Calendar


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Newsletter

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Kim Tucker: Kim@MAREI.org - 913-815-0111 Staff: Newsletter@MAREI.org - 913-815-0111 Idea for a Partner Cast or Meeting - email Kim Julie Anderson-Clark: Julie@MOKSLaw.com Rick Davis: Rick@RickDavisLegal.com

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B A S I C

L O A N

T E R M S

GREAT RATES Generally 9.5 to 10% for New Borrowers Repeat Borrowers as Low as 8%*

ORIGINATION FEES

SUSAN AUBIN

Joining Merchants Mortgage in 2004, Susan has been lending to real estate investors in KS, MO & CO. Moving to the KC Metro in 2020, Susan and her husband Rich are investing in Kansas City Rental Property.

Generally 1.5 to 2% for New Borrowers Repeat Borrowers as low as 1.5%* All subject to $2,500 minimum LOAN TO VALUE Up to 90% of Purchase Price Plus up to 90% of Repairs Subject to the After Repair Value SIMPLE UNDERWRITING Close in 10 to 14 days (Residential)

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GREAT TERMS 6 Month Loan Interest Only Monthly Payments No PrePayment Penalty Auto Extension with an additional fee of 1/3 of a point per month

Rates & fees are subject to underwriting the borrower & the project qualifications and depend on a variety of factorsand are subject to change without notice.

R E A D Y

T O

S T A R T

EMAIL

saubin@merchantsmtg.com WEBSITE

www.MerchantsMtg.com CELL PHONE

913-522-2650


FUNDING

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LOAN CRITERIA Up to 85% of the After Repair Value

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CONTACT

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through, and often make a decision on the spot, along with a free quote.


Guest expert Jeff Newhard Newieco Private Capital

TEN SECRETS TO SUCCESSFUL PRIVATE LENDING Because you are reading this, you are either already lending money to investors for their real estate deals or are thinking about it.

real estate investing yourself and found the process to be too labor-intensive and timeconsuming to handle on your own.

You probably already know how few reliable ways there are to make a good, secured (this is important!) return on your money.

So that brings you (and I) to private lending, a process where you lend money to an individual or a company either for short-term or longterm use to buy income-producing property.

You’ve watched your savings sit idle in a money-market account, earning you a fraction of a %. Or maybe you’ve struggled with the wild and often irrational swings in the stock market, sending your 401k on a rollercoaster ride that would give even the most experienced ridejunkie motion sickness. Or maybe you’ve already tried your hand at

But, like all good things, this process has rules and there are certain things you need to make sure to look for and do in order to protect yourself and your money. So in this article, I am going to share 10 key criteria to ensure you prosper. Not this article is just a part of a much more in-depth 15-page report. If you would like a copy of this report, send me an email at jeff@NewiecoPrivateCapital.com


Pay Attention to Your Loan to Value When lending money to anyone, your level of risk should be a primary concern. The advantage of secured lending – providing a loan secured by an asset such as real estate or a car, is that you can control your level of risk (or exposure) in relation to the asset’s value. One of the ways in which you can determine and set the level of exposure is the Loan-ToValue Ratio (LTV%). If you’ve ever applied for a mortgage from a bank, then you’ve encountered LTV requirements. If you applied for a loan for a personal residence, then the lender probably offered you a 75% or 80% LTV loan, requiring you put down 20% or 25% towards the purchase. That way, if the value of the property you were purchasing would drop by 20%, the lender could still hypothetically recoup their entire loan and the only one losing would be you – your equity would be gone. With regards to private lending on properties that require work, LTV requirements usually work a bit differently. You see, “value” in this case can be looked at in 2 different ways: a. “As-Is Value” – this is the value of the property in its existing condition b. “After-Repair Value (ARV)” – this is the projected value of the property after the proposed repairs are completed The difference between the loan and the afterrepair value will be your cushion against loss. The lower the LTV%, all other things being equal, the less risk to you of losing your investment.

Get First Lien on Property for Security This goes hand in hand with our LTV% discussion. Just like you must have an LTV% limit in place to protect your investment, you also must ensure that your investment is actually secured by the property!

In order to do that, you should get the 1st lien on the property in exchange for your loan. This way you will be in the first position legally to foreclose on this property, should the borrower fail to make their payments. Often, lenders in second or third positions get completely wiped out during the foreclosure process and get nothing.

We will be discussing the paperwork with Attorney Rick Davis at the Virtual MAREI Meeting January 13 Now, this is not to say that you should never accept a second position on a loan. Usually, 2nd and 3rd mortgages carry with them a significantly higher interest rate!

Get a Promissory Note A Promissory Note is a legal, recorded contract between a borrower and a lender outlining the terms of a promise by one party (the maker) to pay back a sum of money to the other (the payee).

Be Named "Additional Insured When the investor/rehabber buys the property, he will obtain a hazard/liability insurance policy. The first thing you need to do is ensure that such a policy is indeed obtained. This can be verified at closing – before you release the funds for the loan the investor will submit proof of insurance. Make sure that the policy which the investor obtains has you named as an “additional insured”.

Lender's Title Policy Title insurance is an indemnity policy that protects the property owner against problems relating to the property's title prior to the date of the policy. A Lender's policy is title insurance policy that insures the mortgagee (being the lender in the mortgage document), against loss caused by invalidity or unenforceability of the mortgage lien, which might occur as a result of defective title, or against loss of priority of the mortgage.


Borrower's Track Record

Exit Strategy

you always want to evaluate the track record of the person you are lending money to. And when I say track record, I don’t mean somebody’s resume in their previous job, where they grew their department from 20 to 2000 people. I mean their track record in real estate investing. Furthermore, I am referring to their track record in executing precisely the type of deals that you will be lending them money on.

Does the investor have a viable exit strategy for the property?If the plan is to flip the house once it’s renovated, do the current market conditions present a strong or at least some demand for that type of property? Does the investor have the ability to drop his asking price in order to attract offers and still pay you off? If the property does not sell within a certain amount of time, does the investor have an alternative exit strategy in order to satisfy

This article is just a portion of an in-depth 15-page report. To get the full report, please email the author, Jeff Newhard at Jeff@NewiecoPrivateCapital.com Will the investor be capable of quickly rehabbing and disposing of the property once you lend them the money to close on it? Is the investor capable of marketing for great tenants, screening them, and managing the property for the next few years? Their track record will point you to the answer and help you make your decision. If they have limited experience, be sure to ask if they have a solid coach or mentor that is helping them along the way. Perhaps you may be able to negotiate for a piece of the equity in the deal for your increased risk due to the lack of experience.

his obligation to you within the time frame you agreed on?

Who Is Doing the Work This is something that not enough private lenders consider when evaluating whether to dole out the loan or not. It’s important that the investor hire qualified contractors to perform the rehab or be a qualified contractor himself. This is not only important to ensure that the property meets the standards of the prospective buyers and their lending


Jeff Newhard Real Estate Investor & Private Lender Newieco Private Capital

institutions but also in case you have to take the property back from the borrower. The last thing you want to happen is to realize after the foreclosure that the work was done poorly and the property is worth less than you anticipated.

Diversification This is one of the most common and commonsense tenets of investing, yet so many private lenders overlook or simply ignore it.Let’s say you have saved up $100k in cash or maybe in your IRA account and an investor approaches you with a project where he’ll need $90k to acquire and rehab a single-family residence in order to then flip it. The property is in a great location, the After-Repair Value seems to more than justify the loan amount and the investor offers you a very attractive rate of return. What do you do? You may be tempted to say yes. After all, you have money that is probably sitting idle and not doing very much for you. You are eager to put that money to work. The investor has a good track record and the deal seems attractive. But I would urge caution. Ninety thousand dollars committed to this deal will put 90% of your capital at risk all at once. That risk could be losing part or all of your investment in a given deal. Know the Planned Timeline You should have a general idea of how long you’d like your money to stay in the deal. A short term 3 to 12 months has the advantage of not having your money tied up for too long so you have capital coming back to deploy in to

new opportunities. But the risk is that once you get your money back, you might not have an equally desirable opportunity to invest in. A Medium to Long Term of 3 to 10 years will have your money tied up much longer.

So What's Next Now that you know the insider secrets of investing passively in real estate, you are ready to take the next step. Now is the time to collect more information on your potential real estate investors, investment opportunities available, and due diligence to make wise investment choices. The real estate investor you work with has a very unique skill set on finding cheap houses, fixing them up, and flipping or renting them. Be sure to consult with a legal expert to make sure you have the right paperwork and processes in place to protect your assets.


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JEFF NEWHARD

WITH 30 YEARS OF REAL ESTATE EXPERIENCE FROM CONSTRUCTION, FIX AND FLIP, NEW BUILD, REALTOR, PRIVATE MONEY LENDER, AND BEEN INVOLVED IN OVER 300 SINGLE FAMILY REAL ESTATE TRANSACTIONS IN SOME ASPECT.

NEWIECO.NET. 816-721-9869 • JEFF@NEWIECOPRIVATECAPITAL.COM


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TOP TEN METHODS TO FIND PRIVATE LENDERS All right, you are ready to do more deals in 2022. You get that having a private lender is one of the keys to a lot more deals. But where are you going to find all of these lenders? My name is Kim Tucker and my family and I have been investing in Kansas City Metro properties since 2000. We have not gone to a bank or a mortgage lender to buy any of the 20 or so properties we acquire for rehab each year since about 2004. Since that time we have utilized funding from private individuals to do 100% of our investments. I get asked all the time, who are the private lenders here at MAREI? Where is the "list"? First off, keep in mind that private lenders are just that - PRIVATE. They don't market, they are not on a list, they are private people that you cultivate who are willing to lend to you for your deal.

Ways to Partner on a Real Estate Transaction Before we go into cultivating private lenders part, let’s first consider the ways we might partner on a transaction. Sometimes my private lenders or borrowers want to go the flat fee route of $5,000 on the entire transaction. Not bad until you work that into an interest rate of an 87% on one of our first private lender deals where we borrowed, On one where we lent, I compared it too hard money and my borrower basically paid me 2 points and 12% Interest. Other times a private partner might want 40 to 50% of the profits, again a great deal, although in some cases the hard money lender would still have cost less.

Please before entering into a private lending transaction as a borrower or lender, consult with an attorney.


Other lenders want a straight interest rate for the time we hold their money, which has been for us anywhere from 6% to 10% depending on how much access to private funds we had access to at the time. And this would on the surface seem the best way to go. But there was the one time we had a house where the only road to and from the subdivision was promptly ripped out right after we purchased the house. It took us over 6 months to sell. The private lender made all the money, our profits were eaten up by 9 months of interest. There are as many ways for the lender to get paid as there are people. Every lender and borrower is different and your transaction will be whatever you negotiate, that’s the beauty of private money. Don’t discount your hard money lenders, they really are a great deal and a great place to start. As you build your portfolio of completed deals, you will be able to cultivate more people who are willing to partner with you or lend you money on the deal.

Let’s dig in . . . . How to Find and Cultivate Private Lenders ONE: Brag a Lot . . .

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Ok, don’t be obnoxious about it but tell people what you do. Our first private lenders were our insurance agent and family members. We were borrowing money from a local bank for our rehab loans, they made those back in the day and still do if you go to the right one. Our insurance agent noted we kept buying and selling houses and based on how often he was insuring us and then canceling insurance he decided he wanted in on the deals. We also shared every deal with a family member and one day they asked us how much we were paying the bank for money. He wondered that if he could lend to us for less than the bank, would we partner with him. All of this is because we told them what we were doing.

BRAG A LOT . . . TEACH . . . BECOME FAMOUS . . . NETWORK . . .

Now along the lines of bragging a lot, it is helpful to have something you could actually show people. We created two items we use to show people what we were doing. One is a website where we could share more information and the other was a brag book of sorts. Both had a section that explained what private lending or partnering actually is and a section explaining how we protect the private lender. Then we had page after page, or blog post after blog posts showing all of our deals – the good and the not so good. In each, we shared the story of the deal, the photos and the numbers from what we paid for it, what rehab and holding costs were, our profits AND the private partner’s profits for each particular deal. The bragging works, but it takes time. When you want to condense that time, having a marketing piece like the brag book or the website gives someone a place to go to learn more about you.

TWO: Teach . . . This is where our next private lenders came from. We attended a workshop with Alan Cowgill who talked about putting together a presentation that explained who he was, shared some example deals, provided a credibility kit (my brag book and website), and then he would have a luncheon where you invite people of high net worth. That just felt really really weird to me. So instead, I approached the local REIA group and offered to have workshops explaining how private lending works and how self-directed IRAs work. In my first class, I charged people a small fee and had about 5 people who came to 2 different 2-hour workshops. The first was how to protect yourself as a private lender. This one explained what a private lender

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was, told them how to screen and select potential borrowers and how to protect themselves with the paperwork. It ended with a couple of example deals that I had done with my first private lenders from #1. The second workshop went into Self Directed IRAs and included an informational packet on self-directed IRAs that I received from my own IRA custodian. Out of that, I found two potential private lenders and one of which had enough money to actually fund a few of our wholesale deals out of his Self Directed IRAs.

and most ways are low cost and just require you to put yourself out there a bit. Share your stories in article form, newsletter form, video, or audio. So let’s give you some examples. One person I know here in Kansas City had the backing to fund his deals, but he needed deals so he started a radio show. . . never mind he started investing in real estate a few months before, he started a real estate radio show and interviewed people. He became famous overnight.

THREE: Teach Some More . . . Take on a few newbies. As leaders at MAREI we were in front of people a lot and newbies naturally flocked to us. We really didn’t want to partner on deals that way because many of them wanted to learn how to do a deal but had no money. They didn’t bring much to the table in the way of trade – they had no knowledge and no money. But when a newbie came to us and said teach me to do what you do and by the way, I have access to cash to fund the deals . . . well, then we partnered on a few deals and taught him the ropes over about a 2-year span. We sat down and decided who was to do what and how everything was to be divided up beforehand. And along the way, we learned from him. So you are sitting there and saying no way am I going to go out and start a group, that takes a lot of time and effort. You don’t have to. In most areas, there is already a group there and if you join, take part and volunteer your time to teach, write articles, help at the check-in table, take over social media duty . . . whatever it is that you are good at, you can instantly over a few months become one of the movers and shakers. Here at MAREI, we have had several people that have built their credibility because they are willing to share. The volunteer to teach a class, they write an article, they stick around after the meeting to help clean up, they come early to help set up . . . and that’s when you start becoming the go-to person. Then the newbies who don’t want to spend 3 years learning the ropes will come to you. Some of them will have the funding to be your private lender, you just have to be willing to teach them something in exchange . . . not a bad deal, you teach, they do all the work and bring the money.

FOUR: Become Famous . . . I am serious. There are many ways to become famous

Another way is to write a book and while I have not written my book yet, it’s on my to-do list. You can selfpublish a book on Amazon.com and do a product launch on the internet and at your local REIA is talking about your book. You might even be able to give it away for free on your website in exchange for some contact information and cultivate private lenders that way. And one of the easiest right now is to become an author for BiggerPockets.com . So go to BiggerPockets, create your own account and profile and start writing a blog for them. They like longer well thought out articles like this one, not short 2 paragraphs that say nothing. After a while, they may feature some of your blog posts and possibly ask you to be a featured writer . . several of our very own members here from MAREI have done that, so look up Andrew Syrios. After you get to be a featured writer, then your articles go out on their weekly emails and get published on their social media pages. There are numerous real estate sites out there where you can contribute your knowledge . . . so pick one or two and start participating.

FIVE: Networking . . . Network local business associations. This can be at your local REIA group or other business associations, like the chamber of commerce or maybe a trade association around what you do in life outside of real estate. Now, I do this monthly at MAREI. I go every month and network before the meeting and after the meeting. You will notice if you attend that there are people who come every month and who are willing to share. These are the people with a circle of people around them. The movers and shakers of the group and people will bring them deals, ask for help, and sometimes these are people with funding.


Let’s talk a bit about networking outside of the REIA for a moment. One person I know is a dentist by trade and he has done all of the above. He sat back and thought about the dentists he knows. They make good money as a dentist and want to invest for retirement. He took the teaching thing to heart and started explaining the concept of Self Directed IRAs, Tax-Free Investing, and Real Estate Investing. Only he focused his training on his fellow dentists. People he already knew and had a rapport with as a dentist. These were busy people who were not quite as willing to take the time to learn how to invest in real estate but wanted to get the better returns, tax-free on their money. He basically went out and created his own private lenders, people who had never even thought about real estate before. SIX: Speed Networking at the REIA Just a fun time where I have come up with a few lenders every time. Basically, in speed networking, you break into pairs and each person gets a minute or two to give their elevator pitch. After each person in the pair has their turn, you trade partners. So you need to have a clear concise message or elevator pitch . . . “I buy, rehab and sell houses for a profit. We have completed 30 deals. Our average hold time is 3 months. Our average profit is $15,000 to $20,000 a deal. We utilize private partners to do those deals and they earn on average $2,000 to $4,000. Do you know anyone who might be interested in earning about the same over 3 months by lending $100,000?” Always be prepared with a flyer or a business card so you can provide them with all of your contact information and send them to the website that you created above where you can showcase your deals.

SEVEN: Self Directed IRA Events . . . These events have built-in lenders. Now when a large self-directed IRA custodian or administrator rolls into town and holds an event, you will want to attend. There will be 2 types of people at these events. The first is people like you who saw them speak at the local REIA and are coming to learn about Self Directed IRAs as a beginner or Self Directed IRA’s as an advanced user. There will also be people there who are already clients of the people putting on the event, people who already have the money saved up and growing, who

understand real estate, and would rather lend their IRA money to you, that go buy a deal in their IRA. So when you go to these events, bring your business cards and your elevator pitch. Then while you are networking during the breaks, lunches, and before and after, you have something to refer back on and are prepared. And if you happen to find a good fit at the event, follow it up with happy hour after the event . . . again the meeting after the meeting is very important.

EIGHT: Direct Mail Marketing Not my favorite, but I have seen it taught many times, so I want to share it. All of the previous methods deal with a warm market . . . either people you know or people who are a part of your a similar group. With Direct Mail Marketing you are going after a totally cold market. It has been suggested to me that you create a mastermind group of people who want to talk about some specific topic, real estate investing, self-directed IRAs, what have you. Then go out and buy a list of high-net-worth people in your area from a list broker. Then in your direct mail piece, you invite them out to your mastermind group or maybe to a workshop where you will teach a concept or maybe a private one-onone session online. This is a great way to connect with new people that you don’t know and who are not directly in your current circle of influence. Then once you meet them, you set yourself up as the expert who teaches or leads the mastermind. You share your knowledge and expertise, sharing the latest deal and how it all works. And telling them how the private lender fits into the deal and asking from time to time if they know anyone who might want to fit into that private lender deal.

NINE: Buying Creatively This means you find a way to take over payments or it might mean you get the seller to carry your note. A good friend here at MAREI buys a lot of deals where she either takes over the seller’s payments with very little money down is any then she rents them out for cash flow, because she needs very little down or for the renovation, she could cultivate private lenders from the REIA who only have $5,000 to $10,000 in their self-directed IRA to lend out. She also may find people who own the house free and clear and agree to seller finance the house to her. Let’s


say that further, she lease options the house and they eventually buy the house and pay her off and she pays the seller who financed her off. You follow so far. Original Seller financed the Investor who lease options to End Buyer. End Buyer goes to the bank, gets a loan and pays off the Investor and the underlying loan from Original Seller. Now the Original Seller didn’t need the money that bad to begin with or they would not have seller financed the property in the first place. So when the Investor calls the Original Owner to get the payoff, she can ask, “so once we pay off the loan, what are you going to do with the money? Would you be interested in keeping the same monthly payments with a new loan on a house that I am buying?”

Kim Tucker Real Estate Investor CoFounder of MAREI

I don’t do a lot of creative buying, however, my friends that do have found this to be a great way to get private lenders, cultivate your motivated sellers.

TEN: Marketing . . . Actively putting out marketing pieces asking for a private lender. I don’t directly market for private lenders because I keep hearing or seeing that you have to do this, that, and the other thing to legally market for lenders and not get crosswise with the SEC. This is an area, that if you are going to do it, you should spend some time and money learning a lot more about to find out what you can and cannot do. Our good friend Alan Cowgill did a webinar with us a while back that can help you understand a bit about why you just don’t post about needing a private lender on Facebook. There you have it folks, how our team here at KCInvest works to cultivate private lenders.

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BE SURE TO TAP INTO THE REPLAYS OF THE JANUARY MAREI EVENTS AS THE ARE DEVOTED TO LENDING & PRIVATE LENDING

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Need forms and documents, visit Ricks DIY Forms page at MAREI.org/forms


THE ART OF FINDING THE RIGHT CONTRACTOR As with every other skill in real estate investing, the right way to learn is to find out what successful people do in their business and model them. One of the most successful in rehabbing houses is Robyn Thompson who is our guest trainer in February. She will be sharing how to find, fund, fix, and flip houses. And invest the profits into high end passive income rentals. Many real estate investors shy away from houses that need rehabbed because they fear hiring contractors. We have all heard the horror stories of rehabbers who’ve lost their shirts due to crooked contractors

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

ONE: Ask the contractor you are interviewing, how long have they been in the business? I prefer at least five years of experience in the trades. I want a contractor who has seen and repaired every strange, odd, and crazy thing that could be wrong with a house. Experienced contractors know how to estimate all tough projects, and experienced professionals can give an accurate price to fix any problem. Inexperienced contractors, on the other hand, underestimate repairs to get the business, and then they try to push their mistake onto you by upping the price halfway through construction.

Mature Responsible Adult Contractors


The investor needs to say NO. NO is the most powerful word in the dictionary, and you need to use this tool. If a contractor did not have the knowledge to make a good estimate, it is their problem, not yours. They need to do the job for the price they gave you. TWO: Ask for three references from the last three major projects that the contractor has recently completed. And make sure you call to verify the references and the quality of the workmanship performed. The quality of work should be satisfactory to the homeowner and should have been completed in a timely manner. If any of the references don’t check out, do not hire this contractor. If they gave you false information upfront, you know they cannot be trusted. Move on to the NEXT quote.

"

SEVEN: Always demand a six-month to one year warranty of all parts, labor, workmanship, and materials provided by the contractor. This warranty should be in writing. WARNING: If a contractor will not provide a warranty and stand behind the quality of his or her workmanship- DO NOT hire them! EIGHT: Never agree to pay any contractor by the hour. You pay a fixed price for the complete job. Never pay the final payment in your independent contractor agreement until the project is 100% complete. NINE: Ask for financial references (ex: where the contractor purchases materials). I will contact the supply houses to make sure the contractor is not behind on paying for materials because I do not want to give the contractor a check to pay off an old bill and they have no money for the materials they need to buy for my job.

IF REFERENCE DON'T CHECK OUT, DO NOT HIRE THIS CONTRACTOR

THREE: Ask for a copy of the contractor’s license (if required in your state), and for a copy of their Worker’s Comp insurance. Once you receive a copy of their license, make sure to check that they are not suspended. Also, check to see if any complaints have been filed against the contractor with the Better Business Bureau.

FOUR: It is absolutely mandatory that a contractor prove that he, or she, has Worker’s Comp for all the employees that will be working on the job site before they start renovations. If one of the workers has an accident, you do not want to be sued as a potential employer. FIVE: 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 responsible to pass all necessary inspections required throughout the construction process. SIX: Make it mandatory for all contractors to buy all necessary materials to do the renovations. It’s a waste of your valuable time to buy materials, and it’s possible that if you do, the IRS might reclassify your contractor as an employee. If your potential contractor can’t buy materials, himself, move on.

"

The last words of advice that I can give to anyone beginning a renovation project is to make sure every agreement with a contractor is detailed in writing with an independent contractor agreement. A detailed list of materials required should be listed in the comprehensive scope of work. The documents should have work completion time frames, penalty clauses for finishing late, require all permits to be pulled, and inspections completed before final payments are released. Remember Mature, Responsible Adults! Be sure to join us at the MAREI meetings in February to learn more about finding and managing the right contractors, just a small segment of Robyn; training that you can tap into. Get all the details on the live meetings, virtual meetings, and 2-day workshop right here in the KC Metro at www.MAREI.org


MAREI Community

FEBRUARY The Queen of Rehab EVENTS

Robyn Thompson is Coming to Kansas City

Feb

08

MAREI Meeting

Feb

15

MAREI Virtual

19

Workshop Day 1

Feb

Feb

20

Come network and lean how Robyn Thompson Finds, Fund, and Fixes Up Unwanted Houses to Flip Retail 6pm to 9pm In Person

This is a more informal discussion on how Robyn Invests in her fix-n-flips, and then uses those profits to invest in high end & airbnb rentals 9 am to 10:30 Virtual If you rehab houess to flip or to keep, or plan to, then this is the workshop for you. Robyn shares her best secrets in this full day event. 9 am to 5 pm In Person Workshop Day 2

Yesterday was all about building up cash, today is how to use that cash to build wealth by buying pretty houses creatively for high end rental and airbnb. 9 am to 5:00 In Person

For more information:

913.815.0111 or www.MAREI.org


From Merrill Chandler

THE RULES HAVE CHANGED Automatic underwriting systems make it possible to get the cheapest money faster than ever before . . . Establishing your own Qualified Fundable Entity is the #1 way to get more business capital and the ONLINE Get Fundable Bootcamp gives you the confidence to walk into any lender knowing you will be approved.

Live Online Event Friday, January 28th Saturday, January 29th

FREE Online Preview Get your introduction to Get Fundable and Merrill Chandler on Wednesday January 19th See MAREI.org/Calendar

Many real estate and business entrepreneurs suffer from the idea that getting funding approvals is based solely on your credit score. NOTHING COULD BE FURTHER FROM THE TRUTH! And if you're a real estate or business entrepreneur who wants to have more money to do more deals AND keep more of the profits in your pocket... THEN THIS IS EXACTLY WHAT YOU ARE LOOKING FOR. I'd like to introduce you to my online Get Fundable! Bootcamp which helps you qualify for TROPHY Business Credit Lines! In my GET FUNDABLE! BOOTCAMP you will learn:

✓ How to get the cheapest money available to do more deals... ✓ Why 99% of real estate investors can't get cheap bank money... ✓ The number one key to saying goodbye to expensive hard and private money costs... ✓ How to get big loans by taking advantage of automatic bank underwriting systems... ✓ The top 3 essential elements you need to have a fundable business... ✓ Learn the REAL SECRET for using the “velocity of fundability” ✓ Turn decades into days by avoiding the 3 most common real estate investor mistakes that can kill your fundability.

Reserve Your Seats

Get Fundable Bootcamp $97 for Silver Event Pass $197 plus $29 a month for Gold Event Pass $497 plus $29 per month for Platinum Event Pass

Details & Registration MAREI.org/GetFundable


M A R E I

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ColemanAcctg.com

Dave Randalls

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913-787-0308

BrightHouseExteriors.com

877.744.3660

816-2980566 Attorney

Rauber Insurance Agency Hearth Masters

Farmers Insurance

Anderson & Associates

Fireplace / Masonry

LoveIsOurPolicy.com

Julie Anderson & Jamie Walker

Gene Padgitt

(816) 436-1016

MOKSLaw.com

ChimKC.com

816-931-2207

816-461-3665

IRA - Self Directed

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Luke Olson

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800-680-0340

See site for Free Forms

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FREE Training

Wholesale Cabinets

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844-732-9404

Mark Yanda

(816) 808-6345 Lending

www.DeMayoEnterprises.net 913-980-4260

Infinite Banking Crossroads Investment Lending

Earthwise of KC

Blackstone Wealth Protectors

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James White

Blackstonewealthprotectors.com

KCLend.com

EarthwiseKC.com

785-430-3717

913-295-8083

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913-777-4862 Home Depot

Short Term Funding

2% Rebate for Members

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Bruce Belanger

20% off Paint

Fred Dickinson

FinishLineFunds.com

www.HomeDeopt.com

www.AgemaIns.com

913-346-8090

913-543-8116


1 9 |

B U S I N E S S

Flat Branch Home Loans

REIBlackbook

Mortgage Banker

Investor Marketing Platform

Beth Langston

Websites, CRM, Automation

FlatBranchHomeLoans.com

FREE Trial

Crown Realty

816-479-5841 x 1148

MAREI.org/REIBBFREE

Rich Melton

D I R E C T O R Y

Realtor

RichMelton.CrownRealty.com Ground Floor USA

REIPro

Crowd Sourced Short Term Loans

Investor Marketing Platform

Todd Russell

Lists : Direct Mail : CRM

www.GroundFloor.us

www.MyREIPro.com/NREIA

Todd.Russell@GroundFloor.us

Discount Code 66209PRO

316.320.6109

913-215-9004 Screening Rent Perfect

Tenant Screening Plus Office Supply

Newieco

Heather Johnson www.RentPerfect.com

Private Money

Office Depot / Office Max

877-922-2547

Jeff Newhard

www.OfficeDepot.com

Discounts www.MAREI.org/RP

(816) 721-9869

Discount Link & Card in Member Discounts

Signs

Property Manager

Fastsigns Overland Park

Merchants Mortgage

Mushy Money Susan Aubin

Brad Miller

MerchantsMtg.com

Home Rental Services

www. FastSigns.com/

913-522-2650

Paul Branton

20-Overland-Park-KS

www.Home4Rent.com

913-649-3600

North Oak Investments

913-627-9543 Title Company

Hard Money Tommy Nigro

M & M Property Pros

NorthOakInvestment.com

Michael & Michele Belman

Accurate Title Company

816-249-1001

www.MMPropertyPros.com

Dave Green

816-490-6745

AccurateTitleCo.com

Marketing

913-338-0100 PMI Destination Properties

InvestorCarrot

Ryan Kernicky

Rick Davis Title

Websites

www.PMIDestination.com

Rick Davis

Online Marketing

913-583-1515

RickDavisTitle.com

www.MAREI.org/InvestorCarrot

(913) 374-7254 Sage Door Property Management

PropStream

Alicia Sasyk

Build Marketing Lists

www.SageDoor.com

& Research properties www.MAREI.org/PropStream

816-456-8184








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