July Newsletter for Mid-America Association of Real Estate Investors

2 0 2 0 J U L Y

MAREI MID-AMERICA ASSOCIATION OF REAL ESTATE INVESTORS

In photo Damon Remy is enjoying life at the lake while his system generates leads, follows up with leads & nurtures leads into profitable deals Learn More at the July MAREI Meeting.

NETWORKING

EDUCATION

DISCOUNTS

OFFERING A WEALTH OF OPPORTUNITY TO CONNECT

FROM MEETINGS & WORKSHOPS TO ONLINE RESOURCES

FROM LOCAL AND NATIONAL VENDORS TO SAVE YOU MONEY

what's coming up 14

July 14th, MAREI Meeting Join us for our monthly meeting on Zoom, with special guest speaker Damon Remy discussing Marketing, Lead Capture, Follow Up & Systems. Virtual.

23

July 23rd. Virtual Career Fair.

MAREI is partnering with several corporations in the Kansas City Area to host a One Day Career Fair Featuring Jobs that all Pay over $15.

Join us as an Employer or a Job Seeker. Details will be posted at www.CareerFairKC.com Virtual.

See MAREI.org/Calendar for more events across the Kansas City Metro from the local landlord groups and events hosted

by MAREI Members.

MAREI Staff Chapter

Executive Director

Kim Tucker: Kim@MAREI.org - 913-815-0111

Newsletter

Staff: Newsletter@MAREI.org - 913-815-0111

PartnerCast Legal

John Wires: JohnWires@gmail.com Julie Anderson-Clark: Julie@MOKSLaw.com Rick Davis: RDavis@LevyCraig.com

Membership in National REIA provides our members with

Mission Statement

Community Advocacy Education Discounts at the National Level

Legal Disclaimer

Mid-America Association of Real Estate Investors is a trade association dedicated to promoting ethical real estate investing and to protect and promote the best interest of our membership through educational and networking opportunities as well as community, legislative and public relations.

MAREI does not exist to renter and does not give legal, tax, economic or investment advice and disclaims all liability for the actions or inactions taken or not as a result of communications from or to its members, directors, contractors and volunteers. Each individual should consult his/her own counsel, accountant and other advisors as to legal, tax, economic, investment and related matters concerting their business.

NationalREIA.org NationalREIAU.com REI2Day.com

Award of Excellence

Content Disclaimer The views and opinions expressed by authors of articles contributed to this newsletter do not necessarily reflect those of the association, the director, or the staff.

Advertise in the Newsletter Rate Schedule This newsletter is posted on MAEI.org, shared via email to over 5,000 contacts, and shared on Social Media to over 10,000 contacts. All active in the real estate investing industry.

MAREI is the recipient of National REIA's 2017 Award of Excellence and Multiple Year Winner of Awards of Merit.

Size full page 1/2 page 1/4 page Biz Card

Non-Member $350 $285 $180 $150

Member $300 $235 $130 $ 75

Business Member $225 $175 $100 $ 55

Color ad on glossy inside cover is an $100 above posted rates. A 10% discount is given on ads pre-paid for 6-12 months. Any changes to a prepaid ad will incur a minimum charge of $50. The deadline to submit ad copy is the 1st Friday of each month for the following month's publication.

All ads must be prepaid. Contact to verify ad format can be accepted.

PDF or JPG preferred. There is an additional charge of $50 to build your ad for you. Opportunities exist for advertising on MAREI.org. Email kim@MAREI.org or call 913-815-0111

0 5

M A R E I

|

M A R K E T I N G

The Devil is in the Details & the Follow Up

At several training events, the experts shared how they got the list. How they scrubbed it and skip traced it.

How the sent direct mail. And how they uploaded the list into this fancy software that checked it against the do not call list and then using an autodialer they spent several hours a day or had their virtual assistant spend several hours a day cold calling all these random phone numbers that were found in the skip trace. They got tons of deals.

I attended another event, this guru had this amazing software that would again skip trace the list and send ringless voice mails (RVMs) to all those numbers.

There was another guy who could do text blasts.

All of last year, we received numerous texts, RVMs, and cold calls on all of the phone numbers in the house about one of our sons properties, strangely he never got any of these, just us. It just seemed like that these automated systems were very annoying, very incorrect, and things I really would not want to do to people . . .

BUT, I wanted more deals so why not.

Sure it's annoying, but if it's effective, maybe, just maybe we will give it a shot. That's why I was at the event to see how it worked.

Then we learned about REI Blackbook, a marketing and contact management system for real estate investors. It had a ton of cool features, some I would use, some I would not and it it did WAY more than the current system I had tested out in 2019 and it cost exactly the same. Ten times the features for the same low costs.

So we switched.

With that system came a TON of training on how to properly use all these automated calling tools and what the gurus were telling us was really grey or flat out illegal or soon to be illegal. A question I asked myself was did I want to revamp our marketing system on a house of cards?

The system also had some new ways to put up Google Ads and to create Facebook Ads . . and more

importantly, it had several case studies on what a follow-up system should look like and if done correctly, namely following up with a lead that had contacted me, then I could use all those automated contact systems.

We started our process by cleaning up our direct mail system. Then we were in the process of working on a very simple (read short) follow up system for old cold dead leads and COVID hit.

Lockdown started and we stopped any and all marketing. Our website was still up and running, but nothing else. We turned on the follow up system for our deal leads, and we got a deal. We sent it to more old dead leads.

We implemented their suggested lead capture process and follow up systems for new leads that our website was generating. We followed up and we got another deal. About a month into lock down we started sending a few letters and turned the Google ads back on for very limited times. We followed up, We got more deals.

Now, we are not talking 100s fo deals, just enough to tap out our Private Money Lenders and have our rehab manager pulling his hair out trying to keep up.

So this week as I am going through some of the training videos from Damon Remy, the founder of REI Blackbook and our July speaker I realized something very important. That by implementing processes that make sure no leads get lost, that they all get followed up with correctly, that we are doing more deals this year, with way less marketing that we did last year or the year before.

So before you blame your lack of deals on your bad marketing, maybe you need to revisit your system for capturing leads and your processes for following up.

Have a great July, may we see each other in person soon!

Kim Tucker Co-Founder of MAREI

IS YOUR FOLLOW UP SYSTEM DOING ITS JOB?

This past January I had a goal to totally revamp our marketing program. In 2019 we just didn't do the number of deals we wanted. And we tried a lot of new ways of marketing. This year was going to be different.

0 6

M A R E I

|

B R A N D

V S

P L A N

Marketing isn’t part of the real estate business, marketing is the the real estate business.

DO YOU HAVE A PLAN B Y

D A M O N

Reprinted from REGoddess.com

R E M Y

I have three truths to share with you.

1. You cannot compete with Big

motivated sellers, qualified

automation – unless you want to work

buyers, renters, and lenders without

more, make less, and not enjoy life.

sacrificing your time and sanity.

Brand Marketing

Which we know, you don’t.

2. You shouldn’t even try.

Before we get into the how’s, I want

3. You can do it better and see

you to understand, marketing

greater results for less effort (truly)

So, you have to market.

isn’t part of the real estate business, marketing is the the real estate

But maybe you think marketing is

business.

expensive?

first stop on the lead generation line,

The success of any business hinges

How do you compete with a $46,000 a

but, rather, what is.

on traffic and conversions. It’s true for

month marketing budget? (that’s the

every business, but it’s especially

monthly marketing budge for one of

critical in real estate.

the nations largest home buyers

Stick around, this entire article centers around why your brand is NOT the

If you follow this approach, known as lead generation marketing or direct

in the St. Louis Market alone)

response marketing, you will crush the

The only way to generate enough

big boys without a big marketing

leads so that you have more deals

How do you get your slice of the pie, so

budget and flood your business with

than you can handle is through

to speak?

D A M O N

0 7

R E M Y

|

B R A N D

V S

P L A N

The success of any business hinges on traffic and conversions.

Well you have to do it differently. The

When you know the return for every

and desired solution; your job is

approach that will work for you doesn’t

marketing dollar you invest, you’ll

to identify what they want, and give it

begin with your brand, it starts with the

feel a lot more confident investing in

to them.

specific problem your prospects

your marketing (which, like I said, you

have that you can solve.

must do).

It starts with them. Not with you, and

Marketing has to be:

not with your brand.

Some Example Target Markets Absentee Seller Bankruptcy Lease Option

Measureable

Cash Buyer

You want to be asking this question:

Trackable

Distressed Seller

How do I attract the right people who

Testable

Free And Clear Sellers·

need the solutions I offer?

Able To Be Optimized For Higher

Lease Option

Results

Renters

The big boys market with a commercial

Lead To A Clear Call To Action

fishing net, you need to market with a surgeon’s scalpel.

Once you’ve identified your target It’s that last one, lead to a clear call to

market, you’re going to drive

action that I’m going to focus on

them to get more information about the

That will make all the difference.

now. This is where it really gets good.

solution you provide. This step is where

What’s more, traditional marketing like

There are 4 Steps To Successful Lead

billboards, radio commercials, TV spots,

Generation

so many people get it wrong.

So, where do you drive your traffic?

& brand building isn’t accurately measureable. In the industry, they

Select A Target Market

Do you send them to your main

call it “fuzzy analytics”. Fuzzy analytics

Compel Them To Identify

website? Or do you send them to a

is what makes marketing feel like an

Themselves

landing page (also known as a squeeze

expense.

Educate And Motivate Them To

page)?

Meet You Let me ask you a question. Do you feel

Land The Appointment

comfortable about building your business around “fuzzy analytics”?

I didn’t think so.

In order to turn marketing into an

why: At REI BlackBook we emphasize the power of niche markets, because, if

You’ve identified this micro market, but

your market is too large, how do you

when you send them to your branded

know how to compel them to identify

website there are too many options,

themselves?

and it’s mostly about you and all the

investment and not an expense, you need to know where your time and

The answer is the latter, and here’s

things you do in your business.

You can’t.

money is being spent; then you can

If you drive somebody at this stage to

track what’s getting the greatest

There are tons of target markets out

your overall website, there’s so much

results.

there, and each has its own problem

information that it’s too overwhelming

D A M O N

0 8

R E M Y

for them to take action (except maybe

That’s why, at this stage in the game,

to click off your site and launch

your brand doesn’t matter, the

Facebook, which is obviously not the

solution does.

desired action).

Now, once you’ve captured the lead Whereas, if you send them to a landing

your job remains to educate and

page that speaks directly to their

motivate the prospect to meet you.

problem and offers a specific solution (in the form of a lead magnet)

It’s called a follow up campaign,

for which they will exchange their

usually done through a series of

email, then you’ve successfully sourced

autoresponders.

a lead.

This is where we introduce your After identifying your market, your job

brand.

is to discover what they want and offer it to them in the form of a lead magnet

At this point we are building trust,

so that it’s their choice to take action.

establishing credibility, starting a

Get inside their heads. What’s the #1

relationship, and showing your

problem that they have that they’d like

unique solutions.

solved yesterday? That’s the focus of your lead magnet.

The ideal result of this step is to have built enough of a relationship and

Lead Magnet Examples

established enough rapport to lead to landing the appointment.

Special report Educational video

This process is a typical marketing

Webinars

funnel, and it’s how the small guy

Pricing guides

wins. It’s how you will win. And it’s

E-book

the only way you’ll be to be able to track your results. Because, if you

Let me ask you another question, just

don’t track, you can’t know for sure,

to drive home the branded website vs

and you need to know.

lead page point.

Marketing this way is…

If you have a problem, do you care what brand is solving it?No! You just

Simple

want it solved.

Scalable Trainable

If you’re in the desert and you’re thirsty,

Repeatable

do you care what kind of drink is

Delegable

offered, whether it be Gatorade,

Systematized

Powerade, or a glass of tap water?

Automatable

No you don’t, you’ll take whatever’s on hand; you’re thirsty!

…And highly effective!

|

B R A N D

V S

P L A N

It’s what we at REI BlackBook specialize in so that you can be cherry picking your deals, spending time with family, and removing the shackles of your desk job.

It’s powerful, it works, and it will work for you.

To Your Success, Damon

special bonus Get your free copy of

The Real Estate Investor's Guide to Generating Motivated Seller Leads Go to www.MAREI.org/Guide

K C R A R

&

H E A R T L A N D

M L S

1 9

|

T H E

M A R K E T

Current as of July 7, 2020. Report provided by the Kansas City Regional Association of REALTORSŽ. All data from Heartland Multiple Listing Service. Report Š 2020 ShowingTime. |

June Market Update While much of the country was working on a phased reopening of the economy in June, real estate activity continued to strengthen as well.

Nationally, June showing activity as tracked by ShowingTime was up notably from the COVID-19 depressed levels in recent months but was also up from June 2019, reflecting pent-up demand by prospective home buyers.

Closed Sales decreased 5.3 percent for existing homes but increased 17.7 percent for new homes. Pending Sales increased 15.3 percent for existing

homes and 72.2 percent for new homes.

Inventory decreased 48.4 percent for existing homes and 29.9 percent for new homes.

The Median Sales Price was up 4.6 percent to $230,000 for existing homes and 6.8 percent to $389,925 for new homes. Days on Market increased 3.2 percent for existing homes but decreased 2.5 percent for new homes. Supply decreased 47.8 percent for existing homes and 32.3 percent for new homes.

While buyer activity continues to be

robust, seller activity continues to be a bit softer, with fewer homes being listed for sale than a year ago. Many housing experts believe sellers remain reluctant to list their homes due to continued concerns over COVID-19, which was beginning to see a resurgence in June. Until sellers regain confidence, housing inventory will continue to be constrained during what is expected to be an active summer selling season.

See full report at www.KCRAR.com/Statistics

R E V E I L L E

1 0

H O M E S

|

C A S E

S T U D Y

How to Turn an Abandoned House Into $50,000 in Profit through Flipping

Abandoned to $50k B Y

D A N

K R U P A

I hear from investors all over the US

Should you buy a house in this

Then move on to the next step.

and especially here in Kansas City that

condition?: A project of this scope and magnitude

Our process:

they want to flip to gain capital and experience, but they can’t find a deal or the numbers never work out. Here is how our company, Rev Homes, turned this neglected, abandoned house in Gladstone, MO into $50,000 in profit in eight weeks.

Acquisition: How can you find a great deal in a market this hot? The answer is easier than you think. Through networking, we have built our reputation, and people know we are always looking to buy distressed properties. We were called about this property through someone my wife, Michelle, had met and chatted with months ago. We tell everyone we meet that we buy properties, for cash, any condition, and close quickly. When the opportunity presented itself, we acted quickly, made a fair cash offer, and closed in under a week.

would scare most new investors. The water was not on. The sewer main couldn’t be inspected. Termites. The house was a mess. A family of raccoons had previously vacationed there. Where many investors see issues, we see opportunity. We have flipped over 60 properties, 11 BRRRs for out of state investors, six BRRRs for ourselves that our now our rentals, and 47 actual flips.

Through education, mentorship, and a ton of on-the-job training, we have learned how to address any and all issues on a rehab and acquired a large network of investor friendly contractors. A lack of know-how shouldn’t limit a new investor.

Many seasoned investors would be happy to partner on a deal of this magnitude or provide fee-based consulting services. The key in this market is to procure the property at a great price.

Safety and quality are paramount to Rev Homes, these two factors aren’t negotiable for us, and they shouldn’t be for any investor. The first step was to gut this house down to the studs and replace the entire HVAC and ductwork in the crawl space while also removing all of the excess trees over the roof and in the front yard. Next, a new roof and gutters were installed to prevent water penetration. Once the new roof was installed, we started demolition, reframed damaged wood and subfloor, and installed new windows and doors.

We wanted to maximize the amount of liveable square footage and make the house as open as possible so we removed the partition wall in the kitchen and reconfigured the bathroom, moving the water heater out of the bathroom and into the garage creating more space.

D A N

K R U P A

1 1

|

C A S E

S T U D Y

D A N

1 2

K R U P A

|

C A S E

S T U D Y

Right now everything is selling and selling fast!

Following the framing, we ran all new

right. For us that means thoroughly

About the author:

electrical and plumbing. After the

cleaning everything, great staging,

Dan Krupa and his wife, Michelle, are

rough-in was complete, we had the

ensuring every piece of trash is out of

full-time real estate investors who have

house inspected. Next, all new

the yard, and finally having amazing

renovated and sold over 60+ properties

insulation and sheetrock were added.

photographs taken. Never skimp on

in the last 36 months. They have been

photos or staging.

investing for 15 years in buy and hold

The house is starting to take shape and

properties. Dan is also the managing

transition to a cosmetic rehab. All new

Risk:

broker and owner of Krupa Realty.

interior and exterior paint, flooring, tile,

We bought this property without

Krupa Realty is a boutique investor-

electric finish, and new cabinets were

being able to inspect the sewer main.

focused brokerage that specializes in

installed. Once countertops were

Normally, we would build the cost of

helping investors purchase single and

installed, the kitchen is able to be

replacing a portion of the line

multi-family properties. Dan and

completed with tile backsplash, faucet,

because the house sat vacant for

Michelle also own and manage

and appliances. The bathroom had

years into the budget. In this case, we

Fountain City Property Solutions, a

everything replaced; tub, tiled

gave the seller the best price we

property management company “for

surround, vanity, and plumbing

could and didn’t include that cost. It

investors, run by investors.” For more

fixtures. Finally, the hardwood floors

did turn out we had two minor breaks

information contact:

were refinished. Meanwhile, the final

which will cost a few thousand

dan@kruparealtykc.com

landscaping and repouring the

dollars to repair but that was an

sidewalk was completed since no one

acceptable risk to us with the current

could be in the interior for five days

market conditions.

while the hardwoods were refinished.

This is your time to put the final

Lessons learned:

touches on the exterior.

We have historic low mortgage rates and historic low inventory in Kansas

At this point, you will have to have your

City, creating the most favorable

local municipality conduct final

sellers market we have ever seen. We

inspections and complete your final

knew that prior to purchase and we

punch list. Final punch list items

used that to our advantage. We listed

include minor touch up paint, house

at the top of the price point and we

numbers, etc. Clean, stage, photos,

knew we would not have to settle for

high five, crack a beer

anything below asking price, the house would be purchased “as is”,

Make it stand out:

and we would get a quick close.

Take a tip from full-time flippers and

Know where you are in a market

never rush to get your house on the

cycle and factor that in on either the

market. I understand every day costs

sale or procurement. Right now

you money. However, rushing a house

everything is selling and selling fast.

on the market three days early could

The market won’t stay this way

cost you thousands of dollars. Do it

forever, so make your sales count.

1 6

M A R E I

|

T E A M

Build Your Team with MAREI's Business Directory M A R E I . O R G / B U S I N E S S - D I R E C T O R Y

Accountant

Attorney Rick Davis

Building Supplier

Levy Craig Guardian Accounting Services

LevyCraig.com/Rick-Davis

DeMayo Enterprises

Stephanie Parris

816-460-1819

Wholesale Cabinets

GuardianAccountingServices.com 816-535-8250

Mark Yanda

Auction Company

www.DeMayoEnterprises.net 913-980-4260

Attorney

Auction.com

Rachel Bailey

Earthwise of KC

Anderson & Associates

www.Auction.com

Windows & Doors

Julie Anderson & Jamie Walker

816-797-6875

James White

MOKSLaw.com

EarthwiseKC.com

816-931-2207

913-777-4862

See site for Free Forms

1 7

|

B U S I N E S S

D I R E C T O R Y

Rugs, Rolls and Remnants

Arcana Insurance

Gateway Mortgage Group

Flooring

Insurance for Investors

Mike Leech

Jerry Ratway

NREIA.ArcanaInsurance

GatewayLoan.com/Mike-Leech

RugsRollsRemants.com

HUB.com

913-802-5015

913-593-0568

877.744.3660 Leader One Financial

Contractor

Rauber Insurance Agency

Traditional Mortgage Lending

Farmers Insurance

Alice Lund

Genesis Home Restorations

LoveIsOurPolicy.com

www.Your1Home.com

Mold Remediation

(816) 436-1016

913-488-1769

IRA - Self Directed

Lima One Capital

Terry Amerine GenesisHomeRestorations.com 913-270-0812

Hard Money

Equity Trust Company

Tracey Vinzant

Hearth Masters

TrustETC.com/NationalREIA

LimaOneCapital.com

Fireplace / Masonry

FREE Training

913-671-0040

Gene Padgitt

844-732-9404 Merchants Mortgage

ChimKC.com 816-461-3665

Lending

Mushy Money Susan Aubin

Olson Foundation Repair

Crossroads Investment

MerchantsMtg.com

Luke Olson & Peggy Stroud

Lending

303-514-08150

OlsonFoundationRepair.com

Hard Money

913-592-3300

Britton Asbell

North Oak Investments

KCLend.com

Hard Money

913-800-8226

Tommy Nigro

Forms

NorthOakInvestment.com EZ Landlord Forms

Flat Branch Home Loans

www.MAREI.org/Forms

Mortgage Banker

Insurance

816-249-1001

Beth Langston

REI Investor Funding

FlatBranchHomeLoans.com

Investor Lending

816-479-5841 x 1148

Charlie Fitzgerald

Agema Insurance

REIInvestorFunds.com

Fred Dickinson

913-843-8650

www.AgemaIns.com 913-543-8116

1 8

Marketing

Office Supply

|

B U S I N E S S

D I R E C T O R Y

PMI Destination Properties

Ryan Kernicky

3 Leads Per Day

Office Depot / Office Max

www.PMIDestination.com

Online Marketing Training

www.OfficeDepot.com

913-583-1515

from Investor Carrot

Discount Link & Card in

www.MAREI.org/3Leads

Member Discounts

Realtor

InvestorCarrot

Pest Control

Crown Realty

Websites

Rich Melton

Online Marketing

Aptive

RichMelton.CrownRealty.com

www.MAREI.org/InvestorCarrot

Spencer Peterson

913-215-9004

GoAptive.com/Kansas-City PatLive

913-396-8848

Screening

BedBugTraps.com

Rent Perfect

Stop Bed Bugs

Tenant Screening Plus

Discounts for Members

Heather Johnson

Get Your Phone Answered www.MAREI.org/PatLive PropStream

Build Marketing Lists & Research properties

www.RentPerfect.com

Properties

www.MAREI.org/PropStream

877-922-2547 Discounts www.MAREI.org/RP

Property Investors Inc. REIBlackbook

Todd Franzen & Chris Hellums

Investor Marketing Platform

MyPropertyInvestors.com

Websites, CRM, Automation

1-800-614-7705

Demo & Discount MAREI.org/REIBB

Software FlipperForce.com

Rehab Analysis & Management

Property Manager

David Robertson (816) 559-1782

REIPro

Home Rental Services

Investor Marketing Platform

Paul Branton

Lists : Direct Mail : CRM

www.Home4Rent.com

www.MyREIPro.com/NREIA

913-627-9543

Discount Code 66209PRO Odor Removal

www.MAREI.org/OdorXit

Accurate Title Company

Dave Green

M & M Property Pros

AccurateTitleCo.com

Michael & Michele Belman

913-338-0100

www.MMPropertyPros.com OdorXIt

Title Company

816-490-6745

EXPAND YOUR

BUSINESS WITH MAREI

5

PROFESSIONAL housing provider

Key Investing Areas

CERTIFICATION

for members to share knowledge Rental : Rehab : Wholesale : Notes : Creative

40,000 professionals

National REIA

$750 Average Member

S A V I N G S

602 MAREI Members

4 member benefits designed to promote

$500 Average Home Depot Rebate $100 Average Saving Office Depot $100 Saving on 5 Training Events $50 Savings on Other Benefits People / Networking Priceless Deal Connections Priceless

community

N E T W O R K I N G A D V O C A C Y

:

E D U C A T I O N : C H A R I T Y

69+ local and national service providers

many with discounts

JOIN TODAY membership

$99 Annually marei.org