MAREI Newsletter November 2022

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MAREI Read newsletter online at MAREI.org/Newsletter for clickable links.

MID-AMERICA ASSOCIATION OF REAL ESTATE INVESTORS

GOOD REAL ESTATE DEALS ARE MADE NOT FOUND

MARIA GIORDANO RealEstateProfitSystem.com November 8th & 12th

NETWORKING OFFERING A WEALTH OF OPPORTUNITY TO CONNECT

EDUCATION FROM MEETINGS & WORKSHOPS TO ONLINE RESOURCES

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LEARN MORE One reason that 75% of MAREI members join is to stay informed of what is going on in the Kansas City Real Estate Market. Be sure to follow us on social media to stay up to date on the latest issues and join the conversation.

Constructive comments are always welcomed, even when we are not all on the same page.

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MAREI

CALENDAR 08 12 November Monthly Meeting November Implementor Deals are Made Not Found Workshop No Limits

As a struggling real estate investor in 2008 and 2009 Maria Giordano was working as a trauma nurse and trying to find the right formula so she could spend more time with her family. She found a creative deal making to be the answer and set systems to focus on generating motivated sellers with problems that needed to be solved.

She set up marketing to focus on the most motivated who had to sell. She learned how to listen and communicate to get to the bottom of the seller's problem. She studied up on how to get creative in buying, in funding, and in profiting for deals. She learned how to incorporate private lenders.

Shortly after she shifted from hunting for deals to making deals she was able to retire from her job and become a full time real estate Investor.

She is bringing her blueprint to the November 8th MAREI meeting and teaching a full day workshop on the 12th to help you implement her blueprint.

See you there

13 December Speed Networking A Benefit for Toys for Tots

2 Landlords of Johnson County Meets monthly on the second Tuesday 10 InvestHer Meetup Meets monthly on the second Thursday.

12 Northland Real Estate Investors Meets monthly on the second Saturday 16 Mid-America Crime Free Workshop 22 Landlords Inc Meeting monthly on the fourth Tuesday 28 Eastern Kansas Real Estate Investors Meeting monthly on the fourth Monday.

Tuesdays Home Resource Network Every Tuesday: Overland Park Wednesdays WinVestors Every Wednesday: Westport & Zoom Thursdays Cashflow Game Night Every Thursday: Prairie Village

MAREI.org/Calendar

Fridays PROP-erty Shop Every Friday: Virtual

Find all of our events on the MAREI Calendar of Events MAREI NEWSLETTER

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Guest article from Maria Giordano, Real Estate Investor and trainer and our guest speaker for the November 8th MAREI meeting and our instructor for the November 12th Implementor Workshop.

Talking With Sellers 7 SIMPLE TIPS TO MORE EFFECTIVE COMMUNICATION Most people I have met including many

years. During that time, we simply

selling it, or wholesaling the deal. You

of my students are hesitant about talking to sellers. They fear it simply

stopped negotiating for what we want.

Have you ever watched a child

must know the comps for the area. You should also know what the area

because they don’t have the experience or the confidence to do it. In

negotiate for something they really wanted? They are absolutely

demographics are, crime, schools, sex offenders, etc.

our society (The United States) we don’t haggle on a daily basis or discuss price. When we walk into a market or store the price is the price. In fact, the closest we get to haggling is when we buy a car, generally speaking. Many people simply hate to go car shopping because they may need to haggle on the price of a vehicle, and they don’t want to. As a society we believe we should be given the best price upfront and if we don’t like it go someplace else. Very rarely do we ever consider sitting down and talking about the price of an item.

persistent. I’m not telling you to go out and nag at sellers to get what you want, because that will have a complete opposite effect. However, if you follow these 7 simple tips to talking with sellers you are going to find the process way simpler, and you will be able to close even more deals and use less of your money to do it.

What we fail to realize is that as a child we learned all sorts of communication techniques, but something happened during those teens to young adult

Here Are My 7 Simple Tips To Talking With Sellers - And Winning More Deals Guaranteed this will make your talking with sellers a little bit simpler and easier.

ONE: Do your homework. Doesn’t matter if you are buying a property,

TWO: Practice knowing your numbers.

You need to get good at knowing what your potential repair costs are. No SWAG (scientific wild ass guess). Since you have your comps from step 1 you should be able to know what your realistic ARV (after repair value) for the property is. This information is valuable when it comes to effectively negotiating on price.

THREE: What are the sellers’ needs?

Why are they selling? What are their pain points? Is the seller motivated or just kicking tires? Is the seller really about the cash or is there something else that can help you later in the negotiation process? Other things that can come up may be moving costs or

closing costs. This can especially be a problem if there isn’t a lot of equity in the home. If the property is from a probate maybe, they are overwhelmed with cleaning out their parent’s belongings. There can also be another problem that you haven’t thought of yet. Therefore communication, getting to know your seller and asking open ended questions are so important.

Sometimes, when you can solve another problem for the seller, they are willing to take less money for the property.

FOUR: From what you get in Step 2 you

Talking to sellers can seem scary and even a little daunting but with a little bit of practice you will be able to negotiate killer deals like a professional. You just need to start. Deals usually won’t just find you. You need to send the letters, pick up the phone and see the property. Most of my deals were created out of nothing. By that I mean most people would have passed over the deal and not have taken the time to see what the seller needed and what the property had to offer. This is how you create the deal. Lastly, negotiating the property with the seller can take a while, so you need to follow up. I’ve

can now decide on what your desired outcome is. This is where you start to

had deals I’ve followed up on a year later and closed. I never would have

If you want to be a better negotiator

think about price vs. terms. What is more important to you on this specific

gotten those deals closed if I didn’t follow up. At the time of my first

and to do more creative deals, then come learn how to implement Maria's

property. You can also negotiate a combination of both, price, and terms.

contact, the seller just wasn’t ready.

They weren’t motivated. No doesn’t always mean no. No can mean not now.

blueprint in your business.

FIVE: Do you know what you want to do with the property or what your end

Get out there and start doing some deals.

result is. Often called the exit strategy.

Sometimes this step will play a role in negotiating on Step 4 as well.

SIX: Talking with sellers is really a give and take. There is never a need to beat up the other party involved. If their property is distressed, they know it. No need to point out every little thing that is wrong with the property. Both parties need to feel like their needs have been met. It isn’t always about the money to create a “win-win”.

SEVEN: Never replace the seller in the quicksand. Sometimes you just must walk away.

Want to learn more of my negotiation tips?

Look for the MAREI Blog Page.

Maria has been sharing some very valuable tips as guest posts.

Join us at the Meeting on the 8th She is sharing her overall blueprint for buying houses with dynamic deal structures and negotiation is a big component.

Join us at the Workshop on the 12th

CREATIVE DEAL MAKING 12 NOVEMBER 2022

ONE DAY WORKSHOP Dynamic Deal Structuring strategies to profit from any deal. Learn beginner to advanced money-making strategies.

Master the steps to understanding your seller's real estate problems.

Making Offers - The one thing that is missing from 99% of most real estate investor's offers. Why most investors are failing to get their offers accepted.

Supercharge your real estate investing with the most proven way to start making money in real estate without cash or credit.

AN MARIA GIORDANO WORKSHOP Maria Giordano is a full-time real estate investor. She initially got her start doing fix-n-flip properties, then moved to buy and hold and later to spec builds and land development. In a former life, Maria was a trauma nurse working days, nights, weekends, holidays and not seeing much of her family. She learned early on that real estate was the answer, creating wealth, cash flow, income and time with her family. She is teaching the exact blueprint she used to quit her job in less than 6 months.

Super early bird pricing $49 for MAREI members through November 8th. With pricing options for Non-Members as well.

REGISTER

AT THE MAREI MEETING

913-815-0111

www.MAREI.org/NovWS

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Meetings, Worskhops & Speaker Training at MAREI are a Good Place to Start Daniel Hart, Owner of Hart Homes and author of The Real Estate Roadmap (available on Amazon) has been investing in New Jersey and North Carolina real estate since 2004, and has purchased over 100 properties, almost all using creative financing strategies to create passive income. He is a former board member of the Metrolina REIA in Charlotte, NC.

Stop Asking for a Mentor B Y

D A N I E L

H A R T

Mentors are a critical part of any

questions (often from people who

themselves that supersedes their

business, and even throughout life in

have put little effort into educating

goodwill. The simple fact is that you

general. Other people hold

themselves), but it’s also a pursuit

do not need to pay a mentor. That’s

invaluable wisdom that helps us

that is not in the best interest of the

not to say that there aren’t good

grow, not just as a business, but as a

questioner, for a number of reasons.

educators for hire, as there certainly

human being. One of the first

are, but you certainly can find the

questions I see new real estate

For starters, when you are new to the

people you need without swiping a

investors ask, often before they’ve

business, and anonymously

credit card.

even read a single book about

messaging an experienced investor,

investing, is “Where can I find a

or posting in a public forum, most of

More importantly, truly experienced

mentor?” or “Will you be my

the responses are going to be from

investors don’t want to hand-hold

mentor?”. Mentors are a critical part

people (often less experienced than

new investors through the business,

of real estate investing, and any

you may think they are) that are

not just because they can tell the

business for that matter, but please, I

looking to take advantage of you.

individual hasn’t put in any effort on

beg you, stop asking for them.

That doesn’t mean they are running a

their part, or because they don’t want

scam, but they may intend to sell

to give back and help others, but

As an experienced investor, it’s not

you a program, take part of your

because real estate investing isn’t a

just frustrating to be asked these

deals, or find some other benefit to

business you can thrive in with your

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hand held. Similar to the way a plant

effort on your part, but if you are

valuable resource. So, respect its

thrives with less frequent watering,

putting in the effort, they will

value, and think carefully about the

by struggling for growth, and

undoubtedly come into your life.

questions you ask. If the information

becoming stronger than the daily

you seek is readily available with an

watered plant, so does a person. We

Finding that mentor, whom we can

internet search, a mentor may

must put forth effort in order to

turn to in times of confusion, for

become frustrated that you took their

grow. If we are simply fed the

direction or even specific

time, rather than your own. The time

information on how to do business,

instructions on a topic, is certainly

they spend with you may be time that

we will ultimately hit roadblocks we

important, but we should not rely on

earns them $500 an hour, so treat it

cannot pass, but if we try, struggle,

one sole mentor. In time, we should

as such. As a new investor, or even a

and fail, we grow stronger, and we

have numerous mentors, and know

seasoned investor, you should be

learn how to overcome the constant

whom to turn to in each situation.

constantly educating yourself,

barrage of roadblocks that are

Just as every person has strengths

whether it be by book, seminar, or

inevitable in business (and life).

and weaknesses, so does each

simply learning from your mistakes.

Whether or not we pick ourselves up,

mentor. Some people will be experts

You will need to become accustomed

and keep moving forward, is up to

in one area, but uneducated in

to educating yourself.

us, but if we want to find success, it

others, and they may have

is essential that we do so.

personalities (egos) that require

Don’t think of mentors as hand-

careful navigation. If we are

holders. You can’t expect mentors to

A quality mentor is willing to give

observant, we can learn their

answer every possible question you

back without expectation of gain.

positive and negative personality

have. Think of them as someone you

They can help a new investor find

traits at the same time we learn

can turn to when you don’t know

direction, both in their business, and

about the business, and we can

where to go, you’re lost, or you’ve hit

in their life. However, they typically

understand the consequences of

a roadblock. Some mentors may have

want to see that the person seeking

their behavior, both good and bad.

time to meet you for coffee, and

assistance is actually putting in

Just because someone has extensive

discuss situations in great detail, and

effort, rather than simply asking for

experience doesn’t make them an

others may only be able to give a

a free ride to investment riches. Real

expert in all areas. It’s our job to

quick response via email, so tailor

estate investors that have substantial

recognize where each person fits into

your questions appropriately. If you

experience are approached ad

our life, and to know whom to turn to

know that a particular mentor stays

nauseam with requests for

based on the type of direction we

very busy, you may need to think

mentorship or guidance, and they

need.

about your question more carefully

simply can’t help everyone,

in order to really drill down to the

especially those that aren’t yet

Some people will be experts with

helping themselves.

rental property, but may have no

root of the issue and save time.

knowledge of creative financing.

Mentors come and go in life, leaving

Those that demonstrate that they are

Others may be good at renovating

behind wisdom in business and in

reading as much real estate material

properties, but may not know how to

life. You don’t need to advertise that

as they can find, networking in REIA

market to find the deals. Perhaps

you are in need. If you’re truly

meetings and other industry

another is a great negotiator, but

putting in the effort, it will be

associations, and “hitting the streets”

cannot manage their finances.

recognized, and the mentors you

doing whatever they can to move

Almost no one is an expert in all

seek will gradually appear.

forward, are much more likely to

areas, so keep that thought in the

attract the attention of the good

back of your mind.

intentioned experienced investor.

Join us at the next MAREI meeting, ask a question, make a connection,

To find one that good intentioned

Remember that other people’s time

exchange a business card, learn,

experienced investor will take some

is valuable. It is literally their most

grow, give back.

Real Estate Investor

Speed Networking December 13th at MAREI Cost to participate a donation to Toys for Tots 90 Second or Less Pitches in the Round

Register MAREI.org/December See You There

Donate MAREI.org/Toys Save Receipt for Taxes

from the Home Resource Network Meeting November 1

Landlord Legal, Eviction & Issues an Update Julie Anderson

The Law Offices of Anderson & Associates Julie Anderson has been sharing a few updates on what landlords need to know about evictions and the legal landscape here in Kansas City. The rules are changing and what is being enforced is changing. You need to be up to date, follow the law, have good records and more. She was a recent guest at the Home Resource Network that meets every Tuesday (you can find it on the MAREI Calendars) and they shared the replay with us.

Be sure to watch the full presentation at www.MAREI.org/Eviction-Update as this article only hits some of the highlights.

See Full Replay Video

www.MAREI.org/Eviction-Update While every landlord needs to know and understand the landlord tenant law in the state where they offer rentals, they need to be very aware of several Federal Laws, that started showing up more as cases on Julie’s desk than evictions in the past few years. Cases where the she was defending the landlord.

Federal Fair Housing Law According to HUD The Fair Housing Act protects people from discrimination when they are renting or buying a home, getting a mortgage, seeking housing assistance, or engaging in other housing-related activities. Additional protections apply to federally -assisted housing. National REIA has a free class on Fair Housing and we highly recommend you take it, it’s online.

he Fair Housing Act prohibits discrimination in housing because of: Race Color National Origin Religion Sex (including gender identity and sexual orientation) Familial Status Disability Other Laws that are getting broken by Landlords Immigration Law Lead Based Paint Disclosure – use the forms and hand out the pamphlets Fair Credit Reporting Act – don’t run credit without permission Section 8 Issues New Laws, Different Enforcement & Free Attorneys for Tenants There are a lot of new local laws on the books.

Existing law is being enforced more often and now that many cities are providing taxpayer funded free attorneys to all renters in eviction, both old and new laws are being used in court and at least in Kansas City Missouri, many eviction cases end up being held over for a trial.

Julie offered up some top tips to protect yourself below. If you want to brush up on these items we highly recommend the free 8 Hour Crime Free Housing Course that is coming up on November 16th.

Use a Clearly Written Lease that Follows the Law Address Evictions at Move-In Establish Clear Policies on Evictions Follow Your Policies Know the Law Send Appropriate Notices Follow the Law Housing Providers Use Abandonment Rules Because evictions have been harder to complete and even stopped for a while, Julie has seen more housing providers using the Abandonment Laws. Housing providers are declaring that the renter just left, but she needs proof to prove things in court. Here are just a few things she needs in KCMO. Rules in your area will be very similar.

No rent for 30 days Sending and Posting Notice Document Everything and Keep copies for 5 years Take Photos of everything When in doubt the Lease Language Rules

Rules for Return of Security Deposit First, in Missouri your security deposit can’t be more than 2 months’ rent + pet deposit You should do a move-in and move-out recorded walk-through of the property with both parties present.

Must provide a detailed list of damages and amounts to be returned within 30 days.

Mail damages and refund via regular US Mail to the last known address Failure to return could be up to 2 times what was wrongfully withheld.

Tenants Rights Movement Just before COVID the Tenant’s Rights movement started growing. Here in Kansas City, the December and January prior to COVID saw us all attending a lot of city council meetings in Kansas City around a proposed Tenants Rights Bill that eventually was passed in a much water downed form. We are now seeing bills and laws proposed across the country at the city and state level and even at the federal level around many of the rights.

All of the following exist right now today in Kansas City, and if they don't exist in your area, they are probably being talked about at your local city council.

Tenant’s Right to Raise Issues of Habitability in Evictions Rental Licensing and Registrations Rental Inspections Tenant’s Right to be Represented by an Attorney Increasing Bankruptcy Filings Legislative Protections for Tenants who are Victims of Domestic or Sexual Violence The Criminal as a Protection Class Tenant’s Right to a Jury Trial Tenant’s Right to Comfort Animals This article is just the highlights of the presentation.

She went more in depth where needed, the audience ask some of the same questions you might have, and it's all recorded. You can watch the full replay and download the power point at www.MAREI.org/Eviction-Update Many thanks to Bob Coleman, Ronald Ireland and Doug Harris for hosting the Julie at the Home Resource Network and recording this for us and many thanks to Julie and her staff for the time spent in putting this information together.

You can connect with Julie and her team at www.MOKSLaw.com Follow @MAREInet on Facebook to stay up to date on laws, issues, and data you need as an investor.

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