APRIL2018
RE N E W S
INVESTMENT
NEWSLETTER OF MID-AMERICA ASSOCIATION OF REAL ESTATE INVESTORS
THIS ISSUE MAREI Member Benefit: Training Events The Never Ending Rehab Chase Away the Elephant Towing Abandon Cars Business Directory
REAL ESTATE NEWS New Advertising Options Win For Landlords in Seattle Interior Inspections in Missouri HUD Lead Law Update Seller Finance Call to Action Housing Reform Rent Control Evictions Name Dropping Local Housing Stats from KCRAR
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INVESTMENT PROPERTY INSURANCE TENANT DISCRIMINATION PROGRAM LANDLORD SUPPLEMENTAL PROTECTION TENANT RENTERS PROGRAM VACANT PROPERTIES
TEL: (877) 744-3660 WWW.NREIA.ARCANAINSURANCEHUB.COM
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THE CALENDAR APRIL MEETING ONLINE RESOURCE FOR RESEARCH & DUE DILIGENCE MAREI Co-Founder & Investor Kim Tucker will be joining us to dig into online resource that Kansas City Metro real estate professionals can use to use for research in building marketing lists and for due diligence. Come find out what resources local investors use. Meeting is Tuesday April 10th. Monthly meetings held at the Holiday Inn at 8787 Reeder Road, Overland Park, KS. MAREI Members & First Time Guests who Pre-Register at MAREI.org attend free all others pay $25 at the door or $15 online. As always there will be the Business Hall, the Deal Table, and Networking from 6 to 7 pm. Presentation starts at 7pm.
MAY MEETING
BLOW AWAY THE COMPETITION WITH NOTES See full day
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 Mid-America 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 maters by MidAmerica Association of REal Estate Investors. Email to inquire about advertising oportunties or membership.
When you learn how to buy, sell, and create notes, you can create really cool deals workshop that your competitors can’t. By adding note investing to your tool boxpage you can 5 increase profits by getting better deals, squeezing more profits out of the deals you have and well a lot of other things that the average investor just does not know how to do. Our guest speaker in May is Joe Varnadore from NoteSchool on why you need to learn notes. Tuesday May 8th.
MAY WORKSHOP
NOTE INVESTING 101 WITH JOE VARNADORE Note Investing is one of the hottest strategies of the decade—and for good reason. Performing notes are one of the best ways to get, passive, consistent “mailbox money” with double-digit returns. Defaulted notes are a great “back door” to buy properties other investors don’t have any idea how to find. Combine several note strategies and get rid of the tenants and toilets for even better returns. Join Joe Varnadore for a 1 day deep dive into how Note Investing Works and mark your calendar for the 3 day follow up BootCamp an Notes June 1, 2 & 3rd. Register at www.MAREI.org.
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real estate news NEW ADVERTISING OPTIONS Do you have a product or service to get in front of Kansas City metro real estate professionals. MAREI offers a Business Membership that comes with listings on the MAREI websites and in the MAREI Newsletters. In April, MAREI has added a few other options including hosting vendor tables or expert tables at the monthly meeting, writing an article for the blog and possibly the newsletter, as well as placing ads in this publication. Get the details at MAREI.org/marketing
WIN FOR LANDLORDS At the end of March Washington State's King County Superior Court Judge Suzanne Parisien reversed the City of Seattle's effort to mandate that landlords rent to the first person that shows up for a vacant apartment. In August of 2016 the Seattle City Council passed what it called the First In Time (FIT) rule in efforts to
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prevent discrimination. It was intended to stop landlords from favoring better qualified tenants over lesser qualfied tenants and required the landlord to accept the first qualified tenant that applied, even if a better qualified tenant applied 2 minutes later.
INTERIOR INSPECTIONS IN MO MO HB 1510 is moving very slowly and as we get closer to the end of the session it is important that all Missouri Investors, Property Managers and Tenants take action to ask their own Missouri Rep to please support HB 1510. HB 1510 if passed would allow tenants to utilize their 4th Amendment rights and decline an interior inspection by a city inspector or an inspector required by the city. Currently cities like Independence and Columbia require tenants to submit to an interior inspection and pass as a requirement for their landlord to get a rental property license. Currently they have no choice but to submit to the inspection, although some landlords are educating their tenants on the
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4th Amendment and giving them the option to decline the inspection in writing and turing in this form instead of an inspection. It is unclear what the response to this will be, the cities may accept the form and allow the landlord to obtain the rental license and they may revoke the license. Learn more at MAREI.org/NO
HUD LEAD LAW UPDATE On August 10th, 2017 HUD issues a notice updating it's Lead Safe Housign Rule. This rule impacts all Public Houing Authorities, Project Based Properties, AND Housing Choice Vouchers, i.e. Section 8 vouchers. The rule increases the responsibilities of property owners who accept vouchers. Be sure to reach out to the Housing Authority to make sure that if you accept a voucher holder, you are working under the most up to date rules for notification and maintenance.
SELLER FINANCE The Seller Finance Coalition has moved it's focus to the US Senant with an advocacy campaign
requesting Senators to incorporate HR 1360 language into S 2155. Please be sure to send your email advoacy through National REIA's Action Center (at www.NatioanalREIA.org under the legislative tab). There is a pre-drafted letter there for your convenience.
HOUSING REFORM The next wave of welfare reform is percolating in Washington DC and the focus is on limits to generational housing and unlimited hosuing for the able-bodied. With the economy moving and jobsaplenty, the Republicans in Congress are ready for another bit at the apple of reform. As yet, only a few key principles such as 5-year limits to subsidied housing have been leaked out. There will be a lot more on this issue once the budget is actually passed and IF the GOP believes it will help them in the mid-term elections.
RENT CONTROL California may be facing a rent control-style program to its ballot process by a group evolved from ACORN. Several cities are considering implementing similar plans. Ironically, even Bloomberg News is reporting on the ineffectiveness
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of Rent Control! Locally, tenant advocates are lamenting the affordability or rental housing and the quality of rental housing. They are working toward a ballot initiative in August that would put interior inspections on every rental unit in Kansas City. At the same time, they too would like to see rent control in Kansas City, however Missouri state law may prohibit.
EVICTIONS Evictions are the hottest issue to "address" by municipalities. The book "Eviction," has set the stage for an argument for making it more difficult to evict a resident. yes, even if they have wasted their income, or spent their money on drugs - as repeatedly documented in the book, and lied to tehir landlord, repeatedly . . . somehow the accountability aspect of paying a bill, i.e. rent, should now be more difficult to enforce. READ THE BOOK! BE AWARE. Be ready because cities across the Kansas City metro are informed. One agrument to make is to ask that rental contracts be handled similarly to other installment payment agreements, like auto and home loans. If those are worthy of being broken, then the rent payment can as well. For more information, please visit NationalREIA.org and click on the legislative tab.
NAME DROPPING Have you had a service provider say, use my service and then name drop someone else using their service. Of maybe do a deal with me because so and so does. We have heard that people are name dropping at MAREI and we urge everyone to contact so and so and find out their experience. You may find that they never did any business or had a bad experience.
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LOCAL HOUSING STATS The three most prominent national market trends for residential real estate are the ongoing lack of abundant inventory, the steadily upward movement of home prices and year-over-year declines in home sales. Sales declines are a natural result of there being fewer homes for sale, but higher prices often indicate higher demand leading to competitive bidding. Markets are poised for increased supply, so there is hope that more sellers will take advantage of what appears to be a ready and willing buyer base. Closed Sales increased 4.2 percent for existing homes and 18.1 percent for new homes. Pending Sales decreased 3.9 percent for existing homes but increased 5.9 percent for new homes. Inventory decreased 29.2 percent for existing homes but increased 4.2 percent for new homes. The Median Sales Price was up 6.1 percent to $173,000 for existing homes but decreased 1.2 percent to $325,500 for new homes. Days on Market decreased 15.6 percent for existing homes but increased 4.2 percent for new homes. Supply decreased 30.0 percent for existing homes and 3.6 percent for new homes. In February, prevailing mortgage rates continued to rise. This has a notable impact on housing affordability and can leave consumers choosing between higher payments or lower-priced homes. According to the Mortgage Bankers Association, the average rate for 30-year fixed-rate mortgages with a 20 percent down payment that qualify for backing by Fannie Mae and Freddie Mac rose to its highest level since January 2014. A 4.5 or 4.6 percent rate might not seem high to those with extensive real estate experience, but it is newly high for many potential first-time home buyers. Upward rate pressure is likely to continue as long as the economy fares well. From Kansas City Regional Association of Realtors. Get the full report at kcrar.com/Statistics
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TRAINING EVENTS MEMBER BENEFIT
One of the reasons that new investors find their way to MAREI is so they can learn. At MAREI members can utilize the online library, the knowledge of others at meetings and social media and from the speakers at the monthly meetings. They can also tap into some of the most effective and affordable training available in the metro. This was extremely evident at the training event with Vena Jones-Cox in March. At this event, the MAREI event was on the top floor and another real estate training group were on the main floor. A few students in the MAREI event said they had attended the downstairs group last time they were in town and their mentoring was between $35,000 and $40,000 to start, no home study course or bootcamp. And the flashy sales guys in expensive suits asking about avaialbe cash & credit was scary. 08
Contract that to students at the MAREI event with Vena left with notebooks full of actionable notes. Few even purchased further training. The maximum spent by any student for training for two was a cost outlay $3,500 including sales tax.
Those promotnig themselves, may have invested in real estate once upon a time, but more often than not paid a ghost writer to create their training and a marketing company to create the flashy presentation.
Yes, the gurus who come to MAREI have a similar sales pitch program to the reality TV stars: come to the free monthly meeting to get introduced to an inviesting niche, then if you like that niche pay a small fee to attend the Saturday workshop to get more in depth training and if you really want to get a step by step plan, buy a course or attend a bootcamp. Gurus at MAREI even have mentoring.
The other major difference we see is that MAREI's and National REIA has got your back. When you dig into training through MAREI you can know that the speaker has been researched both online and through feedback from other groups that have hosted the speaker. We get feedback on what they teach, how they teach and feedback from people who have purchased courses or bootcamps.
There is difference between the trainers at MAREI and the TV Star Gurus or those ladies teaching in March opposite the MAEI event. The gurus at MAREI actually invest in real estate and have a track record of providing quality real estate training at an affordable price. Even if you buy nothing you still learn.
Those guys and gals who come to town, and mail you free tickets, robo call you, or stalk you with ads on Facebook . . . well your on your own, do your own research and if you get bad customer service, we can't help you. RE INVESTMENT NEWS • PAGE
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Email marketing returns $40 for every $1 spent. Do the math.
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THE NEVER ENDING REHAB DUE DILIGENCE WHEN HIRING
A GENERAL CONTRACTOR
From Kim Tucker Many new real estate investors buy their first property and jump into renovations with a contractor who had the best price and could start tomorrow. And that’s where the problems start. The contractor who is cheap and can start tomorrow is probably not the contractor to hire. If he is so cheap, why doesn't he have a job or two to complete before he gets to yours. We see new investors hire the cheap contractor and pay him too much before anything gets done. Then the contractor starts forgetting to show up to the job site, makes poor repairs and often runs out of money. Now the contractor wants more money to finish the job and the investor does not know what to do or what went wrong. In this scenario, the investor should chalk the money already spent up to a learning experience. They should fire the first contractor and start over, a 08
little wiser and not make the following mistakes the next time around. Mistake #1: Being a Pain in the Butt When you meet a contractor for the first time at a house to get a bid from them, remember, not only is the contractor sizing up the house to write a bid, he is also sizing up the investor to see if he wants to work with the investor. If he decides you will be a pain, he figures he will be miserable and maybe lose money, so he just does not give you a bid. If you never got a bid from a contractor, it may just be that the contractor didn’t want to work for you, so they never sent the bid. Sadly I know several really nice investors who ask me for contractor referrals all the time, but every contractor who I referred, never, ever sent a bid. What are some key things that are going to turn the contractor off? - No idea what you want to be done,
- In decisive & wishy washy. - Wanting a champagne renovation on a water budget. A good practice would be to take the time to get the home inspected by a licensed inspector, so you know what must be fixed. Then write out a list of what you want to be done in each room. Having a written list of repairs and updates you want to be done helps the contractor and allows every contractor that is bidding the job to all be bidding the same repairs. This way you are comparing apples to apples. Have a list of what must be done and maybe a few things that might be options depending on price. Without this list Contractor A might be way cheaper than Contractor B and C, but he also might be leaving out key items you wanted to be done that Contractor B & C included in their bid. Mistake #2: Not knowing where to find your contractors RE INVESTMENT NEWS • PAGE
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Here in our office a few of the contractors we worked with for a very long time were found out driving around and stopping in at an active job site. We were able to meet the contractor where he worked to see what kind of work he did, see what his job site looked like and see what kind of crew came with him. Other contractors came from asking for referrals from other investors and other contractors. Just keep in mind that some investors will not share their best contractors and just because a contractor worked well for one investor, they might not be a good fit for you, you still need to screen them.
They can’t pull any required permits from the city without being properly licensed. And any work that is completed without a permit or city inspection when required may eventually have to be ripped out and redone by a licensed contractor. Ask for a copy of their Workman’s Comp Insurance. Then check with the insurance company to make sure it has not lapsed. Ask for financial references. You will want to contact supply houses to make sure they are not behind on their bills or they may not be able to acquire the necessary supplies for your project.
Some other places to find contractors might be referral websites, just keep in mind those rating systems might not be all that accurate. A better online source would be to find a social media message board frequented by investors in your area to ask for referrals and references.
Make sure they have the ability to purchase all supplies. Yes, you will be paying them in draws as they complete work, but they should be able to buy their own supplies for the project.
Mistake #3: Not Interviewing Contractors
One of the best tools at the investor's disposal is the internet. Get online and search for the contractor or any other service provider for that matter on Google and on Facebook.
In an article in the January Newsletter we had a detailed list of items that the investor should use when interviewing contractors. To summarize this article; Ask them How Long They Have Been in Business. You don’t want a new one, but rather one that has been in business for at least 3 years if not longer. Ask for three references from recent projects completed. Then follow up to make sure the references were satisfied. Ask about the type of project, the time to complete, the cleanliness of the job site, would you hire again and can I see their work? Ask for a copy of their license. Then check with the issuing authority to make sure it has not been revoked. 10
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Mistake #4: Not completing your due diligence.
On Facebook, you might find they have a Facebook page with reviews or comments and posts from past customers. You will want to private message those past customers to get feedback on the contractor's work. You also want to find a group where local investors interact and post a question about the contractor to see if anyone has worked with them and has feedback. On Google you want to search for the contractor by personal name and by company name and add on words to each search like the city or “scam” or “rip off” or “sue” just to see if there are any posts about the contractor in the context of those words.
Do keep in mind however that not all complaints about a contractor are valid. Sometimes the problem was the person hiring them, see mistake #1 above, who had a bad experience. Mistake #5: Not having a written contract with the contractor. For it to be a contract in needs to be in writing and signed by all parties. It should include : - a detailed list of what is to be done and materials to be used - start and finish dates along with built-in extensions for weather that the contractor will pull and pay for all permits and obtain all supplies and tools needed a schedule of draws that outline when periodic payments to the contractor should be made along with worth that must be completed before that payment will be made a penalty clause for late work as well as what actions would cause you to fire them, like no one showing up at the job site for so many days. Mistake #6: Not managing the contractor. The investor should have a written contract so the contractor knows expectations. And the investor should be on the job site every few days to make sure work is progressing as planned as well as to answer any questions. Things do come up as you tear up a house to renovate it and the contractor will have questions. Being on site makes you available to make necessary decisions and to catch mistakes before they are too far along that they can’t be fixed. For example, would you rather learn you hate a paint color after they have painted one wall or the entire house? Of if they are to build or move a wall, wouldn't it be WWW.MAREI.ORG
nice to make sure they are putting it exactly where you want it rather than slightly out of position? Stick to the draw schedule and work milestones. If in the first week they were to have replaced the roof and the furnace before the draw for that week is paid and neither were completed, don’t pay them. So many investors pay for work before it gets completed and . it never gets done. Then the contractor runs out of money with a ½ done project and can’t complete the project.
Mistake #7: Not Firing the Contractor Soon Enough Go with your gut, if things don’t seem right, ask questions and get answers. If things are not happening according to the contract, pay the contractor for work that has been completed, have them sign lien waivers and get them off your jobs site. Too many times the new investor thinks something is not right, but don’t ask questions. They keep paying the contractor even though work agreed
upon has not been completed. They keep hoping things will improve and get done. A hoping and a wishing will not get you anywhere. Sadly, there is no magic pill make you good at managing contractors. Just like riding a bike, it takes practice. You can lessen the learning curve with online research on contractor selection and developing your plan and agreements. Being prepared in advance and taking your time selecting your contractor will save you countless time and money on your next project.
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CHASE AWAY THE ELEPHANT With Creative Finance
Reprinted from The Buyline, NoteSchools Newsletter http://noteschool.com/the-buyline-april-2018/
by Eddie Speed with NoteShcool Today’s real estate investors have a big, fat elephant plopped down right in the middle of the room, and this elephant laughs at traditional methods that worked in previous years to get him out the door. Here’s a quick rundown of the tight market conditions that make up the jumbo-sized challenges for today’s investor: -- To sell a property you first have to buy it, and finding a seller willing to accept a discounted price is rare as hen’s teeth. -- Investors make an average of 20 offers for every one property they buy. That’s a 5% success rate.
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-- Investors used to be able pay 65¢ on the dollar for a property which left room for profit at the end. Investors arenow darn lucky to buy a property at 75¢ on the dollar which means they’re right against the ceiling on what they can pay and still make a profit. -- It’s more expensive to locate and connect with sellers. Lots of established investors with sophisticated marketing spend up to 50K every month on direct mail to find sellers. So if you’re just getting started that’s what you have to compete against. I was at a recent mastermind of top-level real estate investors. Every single person there was a true rock star at what they did; a
real “Who’s Who” in the real estate world. They took turns speaking, and they were all moaning about these problems, and how they’re pulling their hair out to buy a property below the asking price. I was the only true note guy in the room, and my turn to talk was coming up. As I listened to all these stories, I had an “aha moment’ and couldn’t wait to share it. When my turn to talk came, I floated my big idea: “If your offers keep getting turned down, why not offer 100% of the asking price?” That got their attention (probably because they thought I was crazy). Then I went on to say, “Let the seller set the price, but you set the terms.”
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That bought me a little more time before they called the guys in the white coats to haul me off to the looney bin. I suggested seller financing was the answer to removing the elephant. I explained that most investors – even the bigshots like themselves – have a limited understanding of the scope and potential of seller financing. They think it’s something you only do when you’re the seller, but I’ve opened the eyes of countless investors to see the value of seller financing when you’re the buyer. THERE’S A LOT MORE TO NEGOTIATE THAN JUST THE PRICE Investors need to think beyond the selling price as the only thing on the table that’s being negotiated. Sure, the price has to be something the buyer and the seller both agree on, but when you as the buyer can get your seller to consider financing the sale of their property, you’re not just making a purchase, you’re architecting a deal that will be in your favor. When a seller gets 20 offers on a property, in most cases he’ll pick the one that meets the asking price. That means he’ll pick you. When the terms of the deal are structured in your favor, it opens up a whole new world of profit potential. Again, let the seller set the price but you sent the terms. By the terms I mean all those things both parties agree to regarding how the loan will be structured and paid back; things like the down payment, interest rate, length of loan, first and second liens, balloons, partials, and so on.
(These are the things we teach in NoteSchool.) There are a hundred creative things you can do to set favorable seller financing terms even when you’re the buyer. Whether you’re buying a house, apartments, raw land, or commercial property, creative seller financing can make the difference between a deal or a dud. I’ve learned to never underestimate the potential of creative solutions, but it’s easier to be creative if you already have experience. I went on to explain things further to the group: “There are basically two types of problems every seller has. They either have a real estate problem or a money problem.” A person with a real estate problem has a property they don’t want to own. They either inherited the property, or it’s run down, or the owners are divorcing and can’t saw the house in two, or they have to move to a new city, etc. A person with a money problem is desperately holding out for every penny on the highest possible selling price because they need money to retire, or buy a bigger house, or pay for college, or all those other things money comes in handy for. You have to determine if your seller has a real estate problem or a money problem. Trying to solve a real estate problem with a money answer is like asking a girl to a baseball game when she really wants to go to the symphony. Before the smart investor floats an offer, they have to understand the type of seller they’re dealing with and what their pain is. When your
offer includes a seller financing plan that is custom tailored to solve your buyer’s specific problem, you’ll have an edge over the other offers so you’re a lot more likely to ink the deal. As I spoke to the real estate experts and explained more about how seller financed notes can solve their problems, I saw smiles spreading all around the room. Lightbulbs were going off in people’s heads as they were each having their own “aha moment.” Instead of thinking I was crazy, they were thinking how crazy it would be not to add seller financing to their business plan. YOU’D BE AMAZED WHAT TERMS PEOPLE WILL AGREE TO Here at Colonial Funding Group, we have a Pricing Desk where we review every deal people bring to us, and I’m talking thousands of deals every week. We look at deals from all sources – banks, mortgage companies, broker networks, portfolio owners, and individuals. This gives us a very close look at what exactly is going on in the marketplace day in and day out. We’re seeing the general terms that the population have agreed to, and from our vantage point we see everybody’s cards in the game. We’ve been doing it close to 40 years, with over $3.5 billion worth of notes. I doubt anybody has a better finger on the pulse of what is going on in the world of seller financed notes. That’s why when we give an opinion, it’s based on experience, not theories. We see deals all the time where we ask: “Why would anybody RE INVESTMENT NEWS • PAGE
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agree to this?” Here’s a shocking example of what I mean: 19% of seller financed notes were carried at 0% interest! Plus, 43% of notes were carried at 5% interest or less. It shows that sellers can be amazingly receptive to the terms you offer as long as you give them what they want the most – their selling price. When you know how to structure notes, it gives you a knowledge advantage. But I say this with utmost conviction: I’m not teaching people to buy notes they don’t intend to pay back. We must be ethical.
AYOUR PLAN B MAY SOON BECOME YOUR PLAN A I’ve seen real estate investors reluctantly dip their toe into the world of seller financing because they see it as a Plan B. But this Plan B can easily double your profit without increasing your marketing costs. Once investors see how profitable seller financing can be, and how it can revolutionize their business, and how dad-gum fun it is, it often becomes their Plan A on all their deals moving forward. About Eddie Speed: Since 1980, W. Eddie Speed has dedicated his professional life to the seller financing and non-performing note industry.
Over the years, he has introduced innovative ideas and strategies that have positively impacted the way the industry operates today. He is the owner and president of Colonial Funding Group LLC, which acquires and brokers discounted real estate secured notes. In addition, he is also a principal in a family of Private Equity funds that acquires bulk portfolios of notes. He has been a leader and innovator in the Note Business for over 30 years. Eddie founded NoteSchool, which is a highly recognized training company, specialized in the teaching of buying both performing and nonperforming discounted mortgage notes. Joe Varnadore from NoteSchool will be at MAREI in May.
NOTE INVESTING 101 One of the best ways to get, passive, consistent “mailbox money” with double-digit returns. Defaulted notes are a great “back door” to buy properties other investors don’t have any idea how to find. Combine several note strategies and get rid of the tenants and toilets for even better returns Join MAREI as we host Joe Varnadore from NoteSchoolon Saturday, May 12th in Overland Park. How to create multiple streams of passive cash flow that fuel your lifestyle all through retirement (I’m not talking about being a landlord…this true ‘set it and forget it’ income). Why great REO deals are getting harder and harder to find (making it tougher and tougher to find good investments in your area). Why Wall Street has muscled in on your action (and how even the little guy can work with them to land incredible property deals). A simple investing twist that takes you out of the ‘tenants and toilets’ game for good (and no, I’m not talking about hiring property managers). Why right now is the absolute best time to get involved with real estate-backed notes (position yourself in front of this profit tsunami & ride this wave for years to come). Start and grow an empire using just $100 out of your self-directed IRA (and grow that empire completely tax-free). A completely innovative way to sell a home so that you enjoy cash flow payments for years – even though you actually got paid to buy the home (no – I’m not talking about lease-options or any other strategy you’ve likely heard of). Lunch is included for FREE when you register by May 8th $99 for Members & $129 for Non-Members Early Bird Pricing Through May 8th $59 for Members & $89 for Non-Members Special Pricing to add a family member or business partner.
Register at www.MAREI.org 14 RE INVESTMENT NEWS
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MEMBER BENEFIT Save 15% on Exclusive Hampton Bay Cabinets Thanks to an exclusive arrangement with The Home Depot and National REIA, MAREI members can now save 15% on in-store purchases of in-stock & special-order Hampton Bay cabinets with a coupon. Members can get the link to request a coupon in the Member Benefit's Guide or by emailing kim@MAREI.org. Combine with volume discount pricing & our 2% Rebate for more savings.
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TOWING THE ABANDON CAR from Capt. Todd Marckx North Patrol Division, Watch II ADC In January 2018, the Kansas City, Missouri Police Department received 374 reports of vehicles towed from private property. There are undoubtedly occasions when cars are legitimately towed, but there are many occasions when cars were towed under the premise of being improperly parked or abandoned when the vehicle was not. Just last week, a vehicle was towed from a business on Southwest Boulevard while the driver was inside the store making purchases. Towing someone’s vehicle without their consent is known as a nonconsensual tow, and if completed improperly, could result in significant liability. I have worked for the Kansas City, Missouri Police Department for 25 years and have personally handled complaints from people who were upset about their cars being towed. 16
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Some of the complaints were unsubstantiated and the person needed to pay for their tow, however, some of the complaints were justified. I’d like to clarify what I believe is some misinformation and misunderstanding about what is required by Missouri State Statutes (RsMO) and Kansas City, Missouri City Ordinances (KCMO Ord.). RsMO Chapter 304.157 and KCMO Ord. 76-422 require the owner of the property, lessee, or an employee be present with the tow operator at the time of the tow. That person also must give a tow operator written authorization at the time of the tow. The state statute is more specific than the city ordinance and further limits employees to only a full-time property or security manager. At the time of the tow, state statute requires the completion of Department of Revenue (DOR) Form 4669 (http://dor.mo.gov/forms/4669.pdf) by anyone who is authorized. The form must be delivered to the local police department for entry as a towed
vehicle. Falsification of any portion of the form is subject to criminal penalties. Further, if a property owner fails to comply with the aforementioned laws when having a vehicle towed, KCMO Ord. 76-435 states that the property owner is liable to the owner of the towed vehicle for double the storage or towing charges, and the tow operator is liable for four times the amount. There are certainly occasions when vehicles need to be removed from private property, but real property owners or lessees may incur significant liability for allowing improper nonconsensual towing. This is an attempt to clarify what I believe to be a common misunderstanding about nonconsensual tow practices. If you have any comments or concerns and would like to discuss them, I can be reached at (816) 437-6218 or you can e-mail me at todd.marckx@kcpd.org.
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VISIT
Build Your Team 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.
MAREI.org click on Business Associates
Attorney Anderson & Associates Evictions / Collections Julie Anderson www.MOKSLaw.com 816-931-2207 Auction Company Auction.com Rachel Bailey www.Auction.com 816-797-6875 Building Supplier KC Cabinet Collection Mark Yanda 913-980-4260 The Home Depot George Neal 816-461-9583 2% Rebate / 20% Off Paint Other Discounts Details in Member Benefits
Joe’s Carpet / Weber Flooring Jerry Ratway www.WeberFlooring.com 913-236-3680 Contractor
Serve Pro East Independence/ Blue Springs Crytsall Gregg www.ServeProEastIndependence BlueSprings.com 816-224-5300
Hearth Masters Fireplace / Masonry Gene Padgitt www.ChimKC.com 816-461-3665
Under Pressure Property Services Rehab, Maintenance, & Staging Dallas Kidd www.MyUnderPressure.com 913-274-9555
Genesis Home Restorations Mold Remediation Terry Amerine GenesisHomeRestorations.com 913-270-0812
Insurance
NuLook Custom Finishes Cabinet Refinishing Carol Baldwin www.NuLookFinishes.net 913-385-2574
Arcana Insurance Rental, Vacant, Landlord & More NREIA.ArcanaInsurance HUB.com 877.744.3660 Self Directed IRA Equity Trust Company TrustETC.com/NationalREIA FREE Training 844-732-9404 RE INVESTMENT NEWS • PAGE
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Lending Flat Branch Home Loans Morgtgage Banker Beth Langston FlatBranchHomeLoans.com 816-479-5841 x 1148 Crossroads Investment Lending Hard Money Britton Asbell / Doug Harris www.KCLend.com 913-800-8226 House Traders Monthly Meeting
Investor Carrot Investor Websites Free Training & Discounts www.MAREI.org/IC Pat Live Answering Service Discounts www.MAREI.org/PatLive Zoom Video Conferencing www.MAREI.org/Zoom Office Supply
Investors Choice Funding Hard Money Scott Ficinus InvestorsChoiceFunding.com 816-668-7223
Office Depot / Office Max www.OfficeDepot.com Discount Link & Card in Member Benefits Package
Merchants Mortgage Mushy Money Susan Aubin www.MerchantsMtg.com 303-514-0815
Pest Control
REI Investor Funds Hard Money Charlie Fitzgerald www.REIInvestorFunds.com 913-904-8090
Properties
Revolver Finance Hard Money Jeremy Hanna www.RevolverFinance.com 316-880-1611 Marketing Constant Contact Email & Social Media Marketing FREE Trial MAREI.org/ConstantContact
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RE INVESTMENT NEWS
BedBugTraps.com Stop BedBugs Discounts for Members
Bridge Turn Key Investments Turn Key Provider Nathan Brooks www.BridgeTurnkey.com 913-276-4114 McKinnis Real Estate Turn Key Provider Nick McKinnis McKinnisRealEstateInvestments.com 816-914-2614
Pride Properties Wholesale Marcus Bray & Matt Bray www.PridePropertiesHomes.com 913-213-5370 Deal Makers Monthly Meeting Property Manager Home Rental Services Paul Branton www.Home4Rent.com 913-627-9543 Lotus Key Homes Loni Louis Bernard www.LotusKeyHomes.com 816-838-7368 MÂ & M Property Pros Michael & Michele Bellman www.MMPropertyPros.com 816-490-6745 Realtor Realty Resource Scott Tucker www.RealtyResourceKC.com 816-284-7844 Show-Me Real Estate Dan Hartman www.Show-MeRealEstate.com 816-532-6101 Rent Collection National Credit Systems Specializing in Collections www.NationalCreditSystems.com
KCInvest Investment Properties Scott Tucker & Kim & Don Tucker www.KCInvest 913-735-0018
WWW.MAREI.ORG
Screening Rent Perfect Tenant Screening Plus Heather Johnson www.RentPerfect.com 877-922-2547 Discounts at www.MAREI.org/RP Servicing Escrow Services Inc. Loan Servicing Nationwide www.EscrowServ.com Title Company Accurate Title Company Dave Green www.AccurateTitleCo.com 913-338-0100 Alpha Title Mary Kellogg www.AlphaTitleInc.com 913-498-8999 Trash Out 1-800-Got- Junk Trash Pick Up www.1800GotJunk.com Discounts in Member Benefits 1-800-JunkPro Trash Pick Up & Dumpsters Clint Pringle www.Junk.pro 816-935-7078 JunkLuggers Eco Friendly Junk Removal Olivia Jones www.JunkLuggers.com 816-905-2204 Want to be listed in our directory, join MAREI as a business member. Details at MAREI.org.
MEMBER SPOTLIGHT DAVE GREEN ACCURATE TITLE Dave Green is the owner and operator at Accurate Title Company, a full-service title company in Overland Park Kansas. serving clients on both sides of the state line. Joining MAREI shortly after it was established, Accurate Title has been helping MAREI Members complete real estate transactions since 2004, and have the distinction of being the very first business member. Dave prides himself on helping the real estate investor understand getting a good deal with clear and marketable title. And he his team at Accurate Title can not only provide title and help you get the deal closed. But also solve problems and answer questions. Reach out to Dave at 913-338-0100 or visit the website at
AccurateTitleCo.com. RE INVESTMENT NEWS • PAGE
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