The RE Investment News: 3rd Quarter 2014

2014 RE investment News
RE

Vendor Expo
Charity Raffle
Expert Auction
Benefit Harvesters

Perfect Storm
Uncertain Future
Apartment House
Investing
Fundamental vs
Technical

Houses to Avoid
Creative Seller
Financing
Deal Structuring
2 RE investment News 2014

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From the Publisher
I have been talking to people in the industry and
reading article after article.
First off, banks have gotten tired of dealing with
all the new rules and regulations on non-
performing loans, so rather than deal with them,
they are selling them to people outside of the
banking industry. They are selling in bulk to
hedge funds who in turn are breaking up these
loans and selling to the smaller real estate in-
vestor.
Secondly, REO property is being bought up in
bulk by these same hedge funds who are hold-
ing on to them for cash flow and waiting for the
market to increase prices. So there is a short-
age of REO property.
Out of country investors who were investing in
US stock market and their own country invest-
ments are buying up houses in areas like Kan-
sas City for rental cash flow. Or are becoming
the funding source for partners that work local
and flip houses.
So the real estate investing market that we
knew in past years has a whole new face.
Houses are going to be harder and harder to
come by and investors who want to deal with
houses are going to have to work harder to find
the motivated seller or REO property to pur-
chase. Or turn to new sources of investing to get
to the property such as tax sale investing that
Tom DiAgostino taught at MAREI last month and
defaulted notes that Note School taught last year.
With all the new rules and regulations on lending,
banks are still trying to figure out what they can
and cant do and the creative financing is going to
come back in a big way, but again with new rules
for the investor to know and understand. So
learning this niche is going to be vital, so we have
invited an expert on this topic to join us in Septem-
ber.
Here at MAREI we try to stay on top of the indus-
try and bring you the most important news and ed-
ucation to keep you on top of your business. We
are also working to bring you updates when you
need them so you can take action and contact
your government officials when needed. Now,
more than ever it is important for those of us in the
industry to work together and be informed so we
can adapt and change as needed and have a say
in shaping the new real estate investing industry
that is already upon us.
Kim A. Tucker
Publisher & Founder of MAREI
BUSINESS
directory
Service Company Contact Phone Web
Auction Company Cates Auction Ray Bucklew 816-781-1134 CatesAuction.com
Contractor Building Trades Robert Massey 816-868-1817
Contractor Discover Heating & Air Curt Whitlock 816-500-2970 Discover HVAC.net
Contractor Elite Contractors Jim Murphy 913-207-6973
Contractor Supply Choice Cabinets Karl Dunivent 816-343-8887 ChoiceCabinet.com
Contractor Supply Home Depot George Neal 816-510-9199 HomeDepot.com
Contractor Supply Odor Universe Mike Riddle 816-718-9136 OdorUniverse.com
Contractor Supply Sherwin Williams Mike Steiner 816-589-8506 SherwinWilliams.com
Environmental Titan Environmental Kyle Gunion 816-561-0959 TitanKC.com
Hard Money Great Plains Funding George Hersch 913-735-6605 GreatPlainsFunding.com
Hard Money Investor Choice Funding Dave Williams 303-500-7088 InvestorsChoiceFunding.com
Hard Money Kansas City Investor Funding JJ Pawlowski 816-916-4593 KCInvestorFunding.com
Hard Money Longhorn Investments Mike Friedl 913-634-6386 LonghornInvestments.com
Home Buyer kcmoHomeBuyer Don Tucker 816-200-2198 kcmoHomeBuyer.com
Insurance Asset Protection Insurance Lisa Goodner 877-752-2742 APIAProtects.com
Insurance Missouri Farm Bureau Stephanie Cunliff 816-781-4370 MOFBInsurance.com
Mortgage Pulaski Bank Beth Langston 816-234-8660 PulaskiBank.com
Realty Realty Resource Kim Tucker 816-523-4400 RealtyResourceKC.com
Realty & Management Arrow Realty Candace Davis 913-956-5003 ArrowRealtyKC.com
Realty & Management Jamieson Home Team Kevin Jamieson 913-384-8331 JaimesonHomeTeam.com
Staging ShowHomesKC Kent Welch 913-449-4555 ShowHomesKansasCity.com
Title & Escrow Accurate Title Jackie White 913-338-0100 AccurateTitleCo.com

Harvesters and its network of agencies provide a helping hand to tens of thousands of people in need every week.
As the communitys response to hunger, the food bank could not function without the generous support it receives
from individuals and companies across our community.
Carla, director of the Don Bosco Center, a Harvesters agency, helps individuals and families struggling to make
ends meet every day.
Donating a can of food seems like a small thing to the average person, she said. But when youre a parent look-
ing at your childrens faces and the empty cabinets, its actually a major thing.
Harvesters' mission is to feed hungry people today and work to end hunger tomorrow.
As this area's only food bank, Harvesters is a clearinghouse for the collection and distribution of food and related
household products. We've been helping people in need since 1979 by Collecting food and household products
from community and industry sources
Distributing those products and providing nutrition services through a network of nonprofit agencies
Offering leadership and education programs to increase community awareness of hunger and generate so-
lutions to alleviate hunger
Our network includes more than 620 nonprofit agencies throughout our 26-county direct service area, including
emergency food pantries, soup kitchens, homeless shelters, childrens homes, homes for the mentally disabled
and shelters for battered persons. Our network provides food assistance to as many as 66,000 different people
each week. Harvesters is a certified member of Feeding America, a nationwide network of more than 200 food
banks, serving all 50 states.
Many Ways to Donate
Harvesters can turn a $1 donation into 5 meals. How do we do it? By leveraging that dollar to acquire, transport,
sort, store and distribute enough donated food to feed five people. Where else can you get that kind of return on
your investment?
We are proud to be recognized for excellence in the use of donated resources. Harvesters currently uses less than
3 percent of these resources for administration and fundraising, with the bulk being spent in program areas directly
related to food acquisition, food distribution and nutrition education.
Below are a number of ways you can contribute financially to Harvesters and help us accomplish our mission to
end hunger in our community.
Feeding the Hungry
Harvesters Community Food Network
MAREIs Chosen Charity for 2014
If you file taxes in Missouri, you can increase the value of
your donation.
Planned giving
You can be a philanthropist even if you are not wealthy by
making a gift to Harvesters during your lifetime or at the
time of death.
Heart of America United Way
You may designate a specific agency like Harvesters as the
recipient of your contribution.
MAREI Annual Vendor Night
Buy a Raffle Ticket, Buy an Expert, Just Donate.
Go to Harvesters.org or find out more about Expo Below:
DONATE ONLINE
One-time gifts
Your gift today, whatever the amount, significantly impacts
the lives of the hungry in our community.
Monthly giving
Become a part of our monthly donor program and spread
your gift out over 12 months.
Memorials/Tributes
Give a gift to Harvesters in memory of a loved one, or to
honor a birthday, anniversary or other important occasion.
Virtual Food Drive
Donate today through our fun, interactive online "food drive,"
or sponsor your own Virtual Food Drive.
SPECIAL EVENTS
Purchase Tickets
Buy a ticket or sponsor one of Harvesters annual events.
Sponsorship Opportunities
Explore ways your company or organization can sponsor
one of Harvesters annual fundraising events.
OTHER WAYS TO DONATE
Matching gifts
Double your gift to Harvesters with your employers help.
Gifts of stock and mutual funds
Make a donation of stock or marketable securities to Har-
vesters and receive a tax benefit as well.
Missouri tax credit
#MAREIVendorEXPO
July 8th, 2014
Networking
Vendors & Raffle Tickets
Expert Auction
To Benefit Harvesters
Details at MAREI.org/EXPO

All Proceeds to go to Harvesters!
Time: 6pm to 9pm
Date: Tuesday July 8th 2014
Where: Career Education Systems
Ward Pkwy Shopping Center
8600 Ward Parkway
Kansas City, MO 64114

Mid-America Association of Real
Estate Investors Main Monthly Mtg.

OPEN TO THE PUBLIC
COST: DONATION TO HARVESTERS

Build Your Team with MAREIs
Business Associates

Buy an Expert at Auction

Win a Prize

Contact Kim@MAREInet.com or
Call 913-815-0111
Sign Up: MAREI.org/EXPO

Michelle Winberry

Due Diligence
Houses & Notes
Andrew Syrios

Buy & Hold Investing
Single & Multi Family
Paul Worcester

Apartment House
Investing
Donald Tucker

Rehab & Flip
Single Family
Brian Winberry

Real Estate Investing
Houses & Notes
Kim Tucker

Marketing
Social Media
The Perfect Storm
Three Factors Driving the Surge
in 1031 Exchange Actvity in 2014
By Scott R. Saunders
In the movie The Perfect Storm, the convergence of two large storm systems led to unu-
sual weather conditions that ultimately resulted in the demise of the ship and its crew. In
the real estate market, the convergence of much higher tax rates, a very strong commer-
cial market, and a recovering residential market has resulted in a surge in 1031 exchange
activity this year.
Although real estate investors are experiencing solid gains, they are faced with a head-
wind of high taxation which threatens to significantly reduce investment returns. Conse-
quently, investors are actively seeking out ways to reduce their tax liability. Once again,
Section 1031 of the Internal Revenue Code has emerged as a valuable tool for boosting
net investment returns by reducing tax liability, and for preserving capital for reinvestment
into better performing likekind replacement properties. This article explores each of
the three factors creating this perfect storm.
FACTOR #1: HIGHER TAX RATES
Tax rates, and their impact on an investors net investment return, can drive investment decisions. Econ-
omist Art Laffer posited that, as tax rates increase, actual tax revenues can decrease as a result of ef-
forts by investors to mitigate tax consequences. In essence, as tax rates increase, an investors motiva-
tion to defer or postpone immediate taxation also increases. This is reflected currently in an increase in
1031 exchange activity.
Many investors are surprised to find out that today they may face four different taxes and, when com-
bined together, the aggregate impact can result in a large tax bill owed to the government:
A. Depreciation Recapture: Depreciation recapture is taxed at 25% on all depreciation recapture.
In the real estate market, the convergence of much higher tax rates, a very strong
commercial market, and a recovering residential market has resulted in a surge in
1031 exchange activity this year.
CRE opportunities. The demand for quality CRE as-
sets is so strong that CRE activity is now beginning to
expand to secondary and noncore markets. All of
this CRE activity is contributing to the surge in 1031
exchange activity as CRE investors utilize 1031 to
minimize the tax impacts of their transactions.
Sales of office, retail, multifamily, hospitality and land
were approximately $370 billion last year, 18% higher
than the year before, and the strongest year since
2007 and this momentum is continuing in 2014. Va-
cancy rates have decreased and net absorption has
been strong in the office, industrial and retail market.
Last year and continuing into this year, investors con-
tinue to be very active in the hotel property sector
which was up 40%, industrial increased by 23%, of-
fice up by 18% , multifamily rose 14%, and retail rose
10%. In addition, REITs appear to be very active this
year with a projected pace of acquisition and expend-
itures running about 60% higher than the pace of dis-
positions. More evidence of the strong commercial
activity can be seen by the yeartodate rent growth
in the U.S. apartment market is the best since the
economy started to recover from the Great Recession
B. Federal Capital Gain Taxes: Federal capital gain
taxes are assessed on the remaining economic gain
depending on an investors taxable income. Investors
in the highest bracket pay at a 20% rate and a 15%
capital gain tax rate applies to other investors.
C. Net Investment Income Tax: Pursuant to IRC Sec-
tion 1411, an additional 3.8% surtax applies to
taxpayers with net investment income who exceed
certain threshold income amounts.
D. State Taxes: Investors must also pay the applicable
state tax (which can be as high as 13.3%).
FACTOR #2: ROBUST COMMERCIAL MARKETS
Currently, commercial real estate (CRE) prices nation-
wide are about 3% above the previous market peak in
2006. Domestic commercial investors, institutions, and
real estate investment trusts (REITS) continue to ex-
hibit a strong appetite for quality commercial proper-
ties. International investors see the U.S. as a safe ha-
ven, and their demand further fuels CRE activity.
Commercial investors have strong borrowing and buy-
ing capacity, allowing them to capitalize on favorable
However, since home buyers are generally more sen-
sitive to increases in the interest rate than CRE inves-
tors, rising interest rates in the future could have a
negative impact on demand for single family home
purchases.
1031 EXCHANGES
The perfect storm resulting from the convergence of
these three factors has led to an increase in 1031 ex-
change activity as investors turn to this powerful tax
strategy to preserve investment equity and improve
returns. This increase in activity has led to a signifi-
cant increase in demand for secure, knowledgeable,
and serviceoriented qualified intermediary (QI) ser-
vices. As always, investors should discuss their tax
situation with their tax advisor to assess the potential
value of using Section 1031.

according to Axiometrics Inc.
FACTOR #3: RESIDENTIAL HOME PRICE RECOV-
ERY
According to the CaseSchiller Index of 20 major cit-
ies, home prices nationwide have recovered by about
20% from the market trough. Among the nations 35
largest metro markets, all but St. Louis and Kansas
City have experienced yearoveryear home price
increases as of April, 2014. Those with the most nota-
ble annual increases include Riverside (22%), Las Ve-
gas (22%), Sacramento (16%), and Orlando (16%).
Forecasts show about onethird of the nation experi-
encing home appreciation higher than the national av-
erage over the next 12 months. Rents on single family
rentals have also increased, rising by 2.3% on a year-
over-year basis. Also, the lack of new home construc-
tion during the Great Recession has led to a shortage
of new single family homes, further pushing up home
prices.
The recovery of residential home prices is another fac-
tor causing an increase in 1031 exchange activity.

Keep Your Profits,
1031 Exchange Your Way to
Wealthy!
With Greg Schowe
Tuesday
August 12th
6:00 pm
MAREI Main Meeting

Details: MAREI.org/Exchange
No charge MAREI members
Guests $25 at Door
Join or PreRegister Online
Exchange Smart
Dont pay capital gain taxes
APIExchange.com
Uncertain Future
Legislatve proposals are afoot to signifcantly alter
or eliminate capital gains tax deferral on like-kind property.
By Scott R. Saunders
Like-kind exchanges have been a vital part of the Internal Revenue Code under Secton 1031since 1921. A 1031 exchange allows an in-
vestor to defer the recogniton of capital gains when exchanging one appreciated investment property (the relinquished property) for
another like-kind investment property (the replacement property).
Most commercial 1031 exchanges today are orchestrated transactons in which an investor uses a qualifed intermediary (QI) to facili-
tate the sale of the relinquished property to one party and the purchase of the replacement property from another party. The capital
gain inherent in the relinquished party is not taxed upon its transfer.
However, since the basis of the relinquished property becomes the basis of the replacement property, the capital gains tax is not elimi-
nated, it is merely deferred untl the property is sold, or exchanged for non-like-kind property.
Contrary to popular myth, Secton 1031 is not a loophole or a tax savings vehicle. As mentoned above, the capital gains tax is not avoid-
ed it is merely deferred. This outcome is based on sound tax policy.
The essental logic is that the investor, in exchanging one appreciated property for another like-kind property, has not realized the gain
inherent in the relinquished property. The investor has merely changed the form of his investment.
Since the basis of the relinquished property becomes the basis of the replacement property, the built-in gain is stll there; it will be taxed
later when the investor actually realizes the gain by selling the property for cash.
Secton 1031 accurately refects the economic reality of investment contnuity in which no proft is realized, thus there is no premise for
taxaton.
Over tme, 1031 exchanges have become an important fxture in the economy and the real estate industry. This is partcularly true in the
commercial market, where approximately 25 percent of all transactons involve an exchange on either the sale or purchase.
Whats more, 1031 exchanges allow investors to freely adjust their investments among like-kind propertes, allowing for a more efcient
allocaton of capital.
Exchanges allow investors and business owners to change geographic locatons, consolidate, diversify and redeploy into diferent types
of investment assets. This commercial actvity creates jobs, fnancial opportunites and provides a valuable stmulus to many economic
sectors.
Secton 1031 Under Siege
There are currently three diferent proposals that the federal government is weighing, which would signifcantly
alter Secton 1031:
Do you have concerns about Government changes or interventons that
change the real estate investng industry. Join your local REIA and help
1. Former Sen. Max Baucus (DMontana),
who became U.S. ambassador to China ear-
lier this year, released a draf proposal
when he was chairman of the Senate Fi-
nance Commitee that would potentally
eliminate 1031 exchanges. His proposal,
which is stll before the Senate Finance
Commitee for discussion, contains other
provisions unfavorable to real estate invest-
ments, including lengthening depreciaton
schedules for commercial and residental
propertes from 39 and 27.5 years, respec-
tvely, to 43 years for both and characteriz-
ing gains from real estate sales as ordinary
income, instead of capital gain.
2. U.S. Rep Dave Camp (R-Michigan), chair-
man of the House Ways and Means Com-
mitee, has released a proposed
tax bill eliminatng all Secton 1031 exchang-
es beginning Jan. 1, 2015.
3. President Obama, in his 2015 budget pro-
posal, proposes limitng the amount of capi-
tal gains deferred in a 1031 exchange to $1
million (indexed for infaton) per taxpayer
per taxable year, beginning Jan. 1, 2015.
Unintended Consequences
The motvaton behind these proposals is to
increase tax revenue. The efect is to target
the real estate industry, partcularly real
estate investors and business owners. Other
professionals involved in commercial trans-
actons would also be negatvely afected.
The above proposals appear to be based on
calculatons that do not consider that if in-
vestors are unable to defer gains by using
Secton 1031, many prospectve sellers will
simply hold on to their propertes and will
not sell at all.
Most of the projected additonal tax reve-
nue will never materialize because investors
with signifcant gains will simply hold onto
their property rather than face a sizeable
tax consequence.
The result would be a signifcant decrease in
transactonal actvity, and a signifcant re-
ducton in the inventory of available in-
vestment propertes.
Potental Ripple Efects
This would result not only in reduced com-
missions for commercial brokers, but would
also have a negatve impact on jobs across a
wide array of ancillary services that are also
involved in exchange transactons.
Banks and commercial lenders would see
reduced actvity, as would ttle companies,
escrow agents, appraisers, environmental
companies, and many other services typical-
ly involved in commercial real estate trans-
actons.
Eliminatng Secton 1031 would have a neg-
atve impact that would extend far beyond
the real estate market, into the overall na-
tonal economy. It is foreseeable that the
eliminaton of Secton 1031 would result in
a decrease in property values as investment
propertes become more illiquid.
This loss of equity in real estate would result
in less spending and investment in the econ-
omy overall, which would ultmately result
in lost jobs, increased unemployment and
billions of lost revenue each year for the
natonal economy.
This is not the frst tme the government has
tried to reduce the tax deferral benefts of
Secton 1031. In fact, there have been nu-
merous atempts to limit exchanges in the
past. One proposal was to create a much
more narrow defniton of like-kind proper-
ty. This would have had a signifcant damp-
er on real estate actvity.
The key to preserving 1031 exchange tax
deferral is to educate legislators on the eco-
nomic benefts of exchanging. Once govern-
ment representatves really understand that
exchanges actually promote transactonal
actvity, thereby creatng jobs and other
taxable income that helps small and
midsized business prosper, they realize Sec-
ton 1031 is a vital part of the U.S. econo-
mys economic engine.
Exchanges encourage property owners and
business owners to preserve and manage
cash fow, thus encouraging U.S. business to
reinvest domestcally rather than ofshoring
business actvity. Exchanges also help foster
higher property values which increases the
property tax base.
1031 Exchange Supporters
In light of these potentally dire conse-
quences resultng from the eliminaton of
Secton 1031, the Federaton of Exchange
Accommodators (FEA) contnues to educate
legislators about the essental economic
value of 1031 exchanges.
The FEA and roughly 42 industry groups
have fled comments with the Senate Fi-
nance Commitee advocatng the retenton
of 1031 exchanges, and they contnue to
work to enlighten Congress on the job-
creatng aspects of 1031 exchanges.
Scot R. Saunders is a senior vice president
of Roseville, Calif.-based Asset Preservaton
Inc., a natonal qualifed intermediary and
Stewart Title subsidiary. Questons regard-
ing 1031 exchanges can be directed to him
at scot@apiexchange.com or 888-531-
1031.
Greg Schowe of Asset Preservaton Inc will
be our guest speaker at MAREIs August
Monthly Meetng. See Page 19.
1. Targeting a Qualified Property
The first step is to locate an apartment investment with value. I look for inefficiency in the market. I want to find an apartment in-
vestment that appears to be able to be acquired at a discount to its true value. It is easiest to do this by analyzing as many prop-
erties as possible. My acquisitions team subscribes to the 100-10-3-1 rule: review 100 properties, offer on 10, negotiate 3, and
buy 1. In my experience, the more apartment investments I evaluate, the clearer the potentially great deals appear to me.
2. Communicating With the Seller/Broker
Once Ive found a deal Im interested in, I speak to the seller or broker as soon as possible. During the first conversation I real-
ly have two main goals: to communicate that Worcester Investments is a serious buyer, and to quickly determine what value I
might be able to add to the property in question. My goal is to help the seller, to make his/her life better. I try to accomplish
these goals by asking pointed questions that provide clues as to how I may solve a problem the property struggles with and
that portray that we are a serious buyer. For example, I may ask any of the following questions:
What is the situation with the seller and why is he/she selling?
What is the sellers ultimate goal?
Where do you think this will trade?
Who pays each utility: Gas? Water? Electric?
How many units are there ad what is the unit mix?
What is the average in-place rent?
Should I submit an offer now, or are you going to wait for a call for offers?
If I were to offer _______, what do you think the sellers response would be?
While I complete these initial questions, I always request access to extensive property information: a recent rent roll, a recent,
preferably trailing, operating statement (also known as a profit and loss statement), and a property package (also known as an
offering memorandum). It is necessary for me to obtain these in order to underwrite the property at the standards we have in
place, so it is best to request this information as early as I can. Next I will request to schedule a tour of the property. If I have
strong interest in the property, I will try to get this part done as soon as possible. Whether I underwrite or tour the property
next doesnt necessarily matter, as long as both are completed, ideally within a few days of each other.
3. Touring the Potential Property Investment
I try to arrive at the property at least 15-30 minutes early so I can drive the neighborhood to get a feel for the surrounding ar-
ea. I always record my drive-around, and even parts of the tour, so I can reference them later if necessary. The first thing I do
when the tour actually begins is interview the property manager and/or whoever has been working at the property the longest.
In my opinion, the interview is the most important part of the entire tour. I may ask any of the following questions:
What is the unit mix and number of bathrooms in each unit type?

Ten Steps
A p a r t me n t I n v e s t i n g
By Paul Worcester

Be sure to see the Worcesters Seminar

Multi Family Investing
A Local Perspective
Saturday August 23rd
8am to 5pm

Hosted by MAREI
Details at MAREI.org/Apt
What is the square footage of each unit type?
Does the rent roll I have portray the actual in-place rents?
How long has it been since the rents have increased?
Do you offer specials or discounts? If so, please elabo-
rate.
Who pays the gas, electric, water/sewer, and hot water?
Do you have any unusual contracts I should know about?
What other income do you collect, including RUBS
(resident utility billing system)?"
What is the delinquency?
If you have an opportunity to put money anywhere into the
property, where would you make your first improvements?
What are your reoccurring problems, things that annoy you
about the property?
How do you generate your traffic?
Once I have completed the interview, I check out a sampling of
4-8 units, recording and photographing this part of the tour as
well. I ask questions and take notes, documenting anything that
may be of interest. Before leaving, I try to speak candidly with
the broker or owner and give them my immediate thoughts and
get further feedback on the pricing and other desires of the
owner, such as why he or she is selling.
4. Underwriting the Financial Performance of the Property
Underwriting the property is perhaps the single most important
step to the entire investment, as it allows for financial analysis
and risk mitigation. Using the rent roll, profit and loss state-
ment, and offering memorandum, extensive and accurate un-
derwriting helps us determine whether or not the property is
capable of redeeming its value, and in what areas we can im-
prove the financials. The numbers we come up with in the un-
derwriting process determine what a comfortable strike price
(the price we feel comfortable paying) would be, which is why
we underwrite a property multiple times before closing.
The documents we require have very specific functions in the
underwriting process. A rent roll is a list of every unit, vacant,
occupied, down, and leased, that the property consists of. Rent
rolls typically include information such as the current rent per
unit, the length of each lease, other income the property re-
ceives from each resident, and what kind of discounts any of
the residents currently receive. An operating statement lists all
of the expenses and income of the property. These are typically
broken down into specific categories (we use eleven), which
allow us to more accurately determine where the property
spends too much or too little. The offering memorandum typi-
cally contains information like the unit mix, square footage of
each unit type, and useful statistics and pictures regarding the
property and the neighborhood. Oftentimes, the documents
required for us to underwrite a property are unavailable or out-
dated. It is important to be persistent in obtaining the most re-
cent copies of these documents, but that isnt always possible.
We try to be prudent in our estimates anyway, but we are even
more so when this is the case.
Over the past several years, our underwriting template has
evolved frequently to become what it is now. We use an Excel-
based proprietary document that lets us quickly plug in num-
bers without having to manually calculate advanced equations
for each new property. This saves us time and stress, but we
often make it a point to double check some of the key figures
manually to ensure its accuracy.
5. Negotiating the Purchase Contract
If you believe, like I do, that doing business is making
someones life better, then executing a contract should be mu-
tually beneficial. A contract is a written agreement covering
necessary terms executed by all parties, with the purpose of
providing everyone their end goal. When I am negotiating a
contract with a seller of an apartment community, the single
most important factor in determining my success is my under-
standing of what the seller needs, wants, or doesn't want. I
consider it a successful interaction when I can understand the
sellers desires and respond accordingly, while maintaining a
healthy relationship. Oftentimes I do not end up buying the
property for sale, and that is okay, as I often am not the best
buyer to meet the needs of the seller. But when I am the best
buyer to meet his or her needs, I try to structure the contract
such that it does just that.
For example, when we acquired the Northcrest Apartments for
$3M in November 2010, there was at least one offer we know
of that was higher than ours. If all I know is that the seller is
asking $3.5M for the property, then my offer may not meet all of
the sellers needs. In this case, however, I understood that the
seller of Northcrest desired to sell quickly for cash, as it was the
end of the year and the bank wanted to move the property be-
fore the new year. I believe our ability to close quickly played a
part in our offer being chosen over others, as the offer we sub-
mitted proposed a 30 day closing period with no financial con-
tingencies.
6. Conducting Thorough Due Diligence
Due diligence is typically completed after the execution of the
purchase contract. By the time we get to this point, I have typi-
cally toured the property, interviewed the owner or manager,
and scrutinized the financials. The end purpose of due dili-
gence is to verify that what I already assume to be true about
the property is, in fact, accurate, matching up with all the find-
ings of my previous financial analysis. If the property is accu-
rately represented, we can close with no re-trading. (We always
try to avoid a re-trade, which is why it is imperative to exten-
sively complete the previous steps of the process.) If there are
major items of misrepresentation, either intentionally or out of
ignorance, then I may request that the seller compensate me to
resolve the new findings.
We utilize multiple divisions of our company to conduct and
oversee the due diligence process. Weve developed a series
of checklists that help us ensure weve done everything neces-
sary to prepare for takeover. During the due diligence process,
we thoroughly inspect each building, each unit, the parking lot,
the foundations, all contracts and lease
agreements associated with the proper-
ty, all financial documents, utilities, the
laundry set-up, roofs, and many more.
Every part of the property is analyzed
inside and out by qualified experts. We
also interview the current residents and
property staff. Conducting thorough due
diligence is necessary in order to fully
prepare for the stabilization period and
all that it will require. The goal of due
diligence is to truly understand what it is
we are buying.
7. Placing the Capital that Funds the Deal
There are various ways to fund an apart-
ment investment, but our investment
funds typically come from two primary
sources: banks and equity partnerships.
My brother, Joel, manages the capital
allocation of new properties. He will typi-
cally engage a bank to fund 75%-80% of
the total investment, which includes the
purchase price, closing costs, and reha-
bilitation costs. The other 20%-25% of
the funds typically come from equity
partnerships, meaning accredited inves-
tors put forth capital into the investment
and gain an ownership percentage in
return. Sometimes we will fund the in-
vestment personally in cash. During the
capital allocation process, we create our
own property packages (also known as
offering memorandums). Our property
packages include a summary of the
property and the reasons we desire to
own the property. We always make it a
point to describe how we intend on add-
ing value to the property and our strate-
gy in bringing the property to its full po-
tential. We also include maps that out-
line nearby attractions, such as colleges,
commercial shopping centers, or large
employers, and pictures of the property
in its current state. The property packag-
es always display the current financials
of the property and the potential finan-
cials we feel we can successfully exe-
cute. This gives our investors and lend-
ers a strong sense of our intentions and
reasoning behind the purchase of the
property and how well add value to it as
a whole.
8. Closing the Investment Deal
Closing does not happen until weve met
all the criteria in order for us to comforta-
bly take over: weve underwritten and
toured the property, agreed upon a con-
tract, conducted extensive due diligence,
and allocated all the necessary funds.
We have a proven track record of clos-
ing quickly, but that cant happen until
each piece of the puzzle is in place. The
day before or of closing, we conduct a
final inspection of the property to ensure
that all things are as they should be. We
verify that all the funds are in escrow
and that all closing documents have
been effectively executed. It is important
to have these prepared well in advance
to account for unforeseen circumstanc-
es.
9. Stabilizing the Acquired Property
The stabilization period is the time frame
in which we begin all the preemptive
work required to operate the property at
its full potential, and the process begins
on day 1 of takeover. My brother, Jesse,
along with a team of over 80 employees,
executes and oversees every aspect of
this step in the process. In order to stabi-
lize a property, we must first hire and
train on-site staff, implement our policies
and procedures, collect old debts, buy
supplies for the property, shift the market
positioning if necessary, conduct com-
parative market surveys, set up various
vendor and utility accounts, create and
prioritize cap-ex rehab wish lists, and
begin capital improvement. This is a very
brief description of stabilization require-
ments, as it is a rigorous and thorough
process. Stabilizing a property requires
unified efforts amongst the operations,
capital improvement team and property
management divisions, all acting with a
long-term mindset. We maintain a very
detailed account of the progress taking
place, because the stabilization period is
all about following through on our ex-
pressed plans with the property.
10. Operating the Investment Responsi-
bly
The work doesnt end when a property is
fully stabilized. Operating a property is a
continuous effort on all parts of our compa-
ny. We have to keep in mind that each prop-
erty is an extension of our brand, staff, and,
most importantly, our investors. It is always
a priority to operate our properties responsi-
bly, as financial assets for our partners and
as a housing resource for our residents. We
always have to be prepared for anything,
which means having the knowledge, funds
and staff readily available to make real-time
decisions that may be necessary in order to
maintain performance. To do this requires
unified effort from everyone involved.
Brooke and Shelly, our regional property
managers, do a
phenomenal job of holding each of our prop-
erty managers accountable to the high
standards of excellence we
have collectively put in place. Billy, who
manages our construction team, directs all
the recommendations on
repair and maintenance items, and has culti-
vated and trained a highly skilled team of
knowledgeable and talented
individuals.
Ultimately, operating a property and
maintaining its true value comes down to
the people behind it: the owners, the
staff and the residents. We have seen
success in the operation of our proper-
ties because we have accumulated a
team of outstanding individuals, capable
of exceeding and improving upon the
high standards of Worcester Invest-
ments and Worcester Properties.
Multi Family Investing
Thinking about pulling the trigger and investing in your first or maybe your second Multi-Family property,
but unsure of where to start? Or, just getting started in real estate investing and researching to find yoru
niche? Or possibly you have several single family rentals under your belt, and want to grow your portfo-
lio?
This All Day Seminar is FOR YOU!!
Worcester Investments is a family-owned-and-operated real estate investment company located in Kan-
sas City, Missouri. Founded in 2006 by the Worcester brothers and their father, the family business be-
gan acquiring rental property almost immediately. Expanding into the Kansas City area through a real
estate connection in 2007 and focusing on multifamily real estate, they have continued to see steady
growth since their expansion in the Kansas City apartment market.
The Worcesters purchase property below its intrinsic value to create steady, passive income through re-
sponsible management of its assets. They have collaborated with 30+ partners who have invested over
$10M of private capital, and today owns $60M+ of real estate, and currently owns and operates 2,000+
apartment units in the greater Kansas City area.
The Worcesters . . . Paul, Jesse and Joel are bringing their expertise to MAREI in this one day Seminar
to help you learn the ins and outs of multi family investing, how to find the right investment, how to raise
the capital for the purchase, how to analyze the deal, how to negotiate the deal, how to get to closing
and how to add value and manage the property day to day.
Everyone who attends should walk away with at several new tool in your arsenal to help you make
sense of all your options.

A Local Perspective

PLEASE NOTE: Regular Price to attend is $99 for Members and $129 for Non-Members. To re-
ceive early bird pricing you need to register online, at the August Meeting or via phone before
August 21st at 5pm. Members who are participating in our Express Success Program can attend
this Seminar for No Charge, just call or email the office to reserve your space.

Why Invest in Kansas City Multi Family
Earned Income vs. Passive Income
Pros and Cons of Multiple Investing Vehicles
Local and National Market Trends
Kansas City Metropolitan Market

10 Steps of Apartment Investing
Finding the Right Apartment Investment Deal
Successful Underwriting & Due Diligence
Raising & Placing Investor Capital
Takeover, Stabilization & Operating the Asset

Securing & Executing a Purchase Agreement
Structuring & Submitting an LOI
Negotiating With Brokers & Private Owners
Why & When to Request a Retrade
Preparing For the Closing Process

Getting the Most Out of Your Due Diligence Period
Structuring a Due Diligence Checklist
Interior & Exterior Property Inspections
Communicating with Existing Residents
Auditing Resident Files & Financial Documents

Transition From Single Family to Multi Family
Working Your Way From Small to Large
Evaluating & Projecting Conservatively
Reading & Understanding Financial Statements
Scaling Systems With Your Growth

Hiring The Right Team Members For Your Property
How Employees Impact Your Reputation
Being Patient in the Hiring Process
Getting The Whole Truth From the Applicant
Background Checks & References

How to Fund Your Apartment Purchase
Banks, GSEs & Private Money Lenders
National Banks & Life Insurance Companies
Debt vs. Equity (Other Peoples Money)

Partnering With Investors
Investor Qualification & Accreditation
Selecting & Presenting Deals to Investors
Communication Etiquette
Building & Maintaining Investor Confidence

Marketing to Investors:
SEC Marketing Regulations
Structuring a Property Package for Investors
Creating & Maintaining Your Annual Portfolio
Disclaimers Every Marketing Piece Should Have

Building Credibility Through Digital Marketing
Using Social Media to Build Relationships
Design & Optimize an Investor-Friendly Website
Utilizing Attraction Marketing Through Email
Disclaimers, Unsubscribes & Privacy Policies

Fundamental vs Technical
What type of Real Estate Investor
Are YOU?
By Paul Worcester
When it comes to investing, there are two major schools of thought: 1.) fundamental investing (also known as value in-
vesting) and 2.) technical investing (also known as trading). A technical investor asks what the market says the invest-
ment will be worth tomorrow, deriving a conclusion from external factors. The fundamental investor asks what the invest-
ment is worth today according to its intrinsic value, which is derived from factors within the investment itself.
For example, two investors go to a shopping mall. The fundamental investor goes to each store, studies the products,
their use and cost, and then decides whether to purchase based upon the products perceived value. The technical inves-
tor sits on the mall bench and watches people go into stores. Never entering the stores, the technical investor bases his
buying decision on the patterns and activity of people going into each store, noting what was purchased.
Technical Investing
Technical investing asks the question, How quickly can I sell/flip/trade and for how great a profit? Technical investing
does not necessarily look closely at the financial state of the investment, but rather where the property value might be in
the future based upon what others will pay for it. Technical investors are primarily going to analyze price movement and
market activity as a basis for evaluating an investment opportunity. Technical investing considers many facets that may
surely affect the investment, but focus little on the investment itself. Value is derived from where the investment has been
and where it is going, but not from within its current state.
A technical investor looking at a potential apartment investment might ask the following questions pertaining to the mar-
ketplace.
What are others paying for similar apartment properties?
Are there new apartments being built in the area?
Are there new jobs being created nearby?
Will the prices in the area go up? Is transportation convenient?
Are the schools decent?
What kind of crime is around the area?
Is the apartment market healthy?
Notice how these questions concern external factors, but do not inquire about the investment itself.
Fundamental Investing
Fundamental investing is concerned with deep analysis of an investments intrinsic value. Fundamental investors are gener-
ally looking to hold their purchases longer and are more concerned with acquiring an asset based upon inefficiency in the
market valuation. Fundamental investors look at an apartment investment in its current state, the rental income, the ex-
penses, and the immediate needs of the property. A fundamental investor makes their profit by adding value to the invest-
ment to increase its worth, and so they consult the financial performance of the investments internal factors to determine
its intrinsic value.


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A fundamental investor considering an
apartment acquisition would ask ques-
tions pertaining to the investments
performance and condition.
Are the existing rents low?
Are the expenses high?
What is the story behind the apart-
ment property?
Is there a problem I can solve or
value I can add?
Are there management problems or
deferred maintenance?
What is the cap rate?
Are the utilities separated?
What is the physical condition of the
property?
What is the physical and economic
occupancy?
What is the current cash on cash
return?
All of these questions speak to the
financial and physical condition of
the investment as it is in its current
state.
We find that our investment philosophy
aligns more closely with fundamental
investing, although we maintain a
healthy pulse on technical investment
factors surrounding our investment
deals. It is important to establish an
opinion on the technical factors that
may affect our investment, and we
certainly take them into consideration.
The vast majority of our investment
decisions, however, are based solely
from within the investment itself. Our
conclusions are primarily based on a
sound review and thorough under-
standing of the financial health of the
investment and our confidence that we
can solve what is lacking, so we are
therefore seeking an intrinsic and inde-
pendent valuation. As opposed to tim-
ing the market, we choose to funda-
mentally evaluate potential invest-
ments through internal measurements
of the investment.
I want to share with you my thoughts about some types of property you may want to avoid if you plan
to maximize your profits from the deals you do. I have personally bought several of the houses I now
and recommend you think about not buying. I believe buying any of the following properties will defi-
nitely give you a financial seminar you really dont want to take for numerous reasons.
I have taken a few of those financial seminars and I can tell you that you dont want nor need to go
there and make the same mistakes I have made. For those just getting started in the business these
examples are a must for you to know so you dont buy houses that will be extremely hard to sell or
rent.
Houses in Areas with Many FOR RENT signs.
Any house located in an area with many For Rent signs leaves little hope of selling to a family who
wants to live in that area and can qualify for a loan. Too many renters in any neighborhood will many
times run out the families with small children who can qualify for a loan that want to buy.
Houses in Areas with Many FOR SALE signs.
Too many FOR SALE signs usually indicate a problem in that neighborhood. Always be sure to find
out why there are so many properties for sale before you make an offer to buy one of them. There has
to be a reason, find out what the problem is.
Houses with a Flat-Roof.
A house with a flat roof is not very attractive and will have more roof leaking problems. Few people
want houses with flat roofs for this very reason.
Houses With No Curb Appeal.

Houses to Avoid
Important Information about
Hard to Sell or Rent Houses
By Larry Harbolt

Dont Miss Larry Harbolt in September

Creative Financing
Say Good By to Banks
September 9th Intro at Meeting
September 13th Full Day Training

Hosted by MAREI
Details MAREI.org/Larry

Ugly houses when looking from the street usually will
not make buyers proud to show their extended fami-
lies and friends their home. People want to be proud
of their home and a house with no curb appeal will
always be harder to rent or sell to families who can
qualify for a loan.
Houses With Steep Driveways.
Steep driveways in different areas of the country
where heavy snow or icing is normal, many buyers
wont want a house with a steep driveway and this
type of house will be hard to sell or rent. Many of
these older houses with steep driveways only have
room for one car at the top of the driveway and most
families have two cars; their other car will need to be
parked in the street. This is not a desirable type of
house to buy or rent because of this.
Houses On or Near Swampy Ground.
Damp swampy ground has too many issues to be
very desirable. Most parents wont like their children
playing in standing water or in constant wet grass all
of the time. Wet yards attract snakes, mosquitoes,
allergies and will provide a perfect place for mold to
grow and thrive. Believe me you dont want one of
these houses because they will be impossible to sell
or rent.
Houses With VERY Small Front Yards Too Close
to the Street.
Small front yards I have found are not popular with
the majority of home buyers or long-term renters.
Most people like a front yard where they can have
some nice landscaping and get as far away as possi-
ble from the traffic noise.
Houses On Busy Streets.
Most families with children fear their children will
dash out into the street and get hit by a fast moving
car. They also dont want difficulty backing into traffic
and it will always be TOO NOISY for most buyers or
renters. These properties are harder to sell or rent.
Houses In or Near a War-Zone.
Families that can qualify for a loan usually prefer
NOT living close to areas where there is gang activi-
ty, drugs being sold on every corner, and undesira-
ble people found everywhere.
Houses Near an Industrial Area Close to Facto-
ries.
This is NOT an area where most families want to
live. Noise, Smoke and Fumes and heavy Semi-truck
traffic is common. These areas are not beautiful are-
as to live.
Houses Near an Airport or a Busy Highway
Airports and busy highways are always VERY noisy.
This is a turn off for most people who want to live in
a quiet, peaceful area.
Houses Where Someone Was Murdered or Com-
mitted Suicide.
I wont buy these houses because I fear if a new
family moved into a house where someone was mur-
dered or committed suicide without knowledge of
what happened there and the children at school were
to tell the new children now living in the house what
actually happened could cause trauma for the chil-
dren now living in the house and I dont want to be
responsible for doing that to the kids.
Houses That Are Just Plain UGLY.
Ugly will always be difficult to rent or sell and will be
far more costly to correct the problem. When you find
a house that is just plain ugly turn and walk away.
There are thousands of houses for sale, so why
would you want to waste your time trying to com-
pletely overhaul an ugly house when there are plenty
of pretty houses available across the country?
Houses with VERY Small Bedrooms and Small
Closets and Small Square Footage of Living
Space.
These houses are not usually very popular for the
average family that can qualify for a loan. These
houses eliminate over 75% of your buyers and
renters. These houses ONLY work for a single per-
son, a couple without children, a family with only one
child. If a family has two children of the same sex, if
they have a son and a daughter a
three bedroom house will be need-
ed.
Any House Where You Have to
Walk Through a Bedroom to Get
to a Bathroom
Having a functionally obsolete
screwed-up floor plan definitely will
be hard to rent or sell. You can fix
them and make them functional,
but why would you when there are
so many houses that dont need to
be fixed to overcome the undesira-
ble houses?
Houses with LOW CEILINGS in
Each Room
Low ceilings are definitely a NO
SELL and will be hard to rent and
will be Too Expensive to fix. Find-
ing a house with this problem is a
house you need to quickly walk
away from.
Houses That Need Major Struc-
tural Repairs.
Why buy a house that needs major
structural work done to it when
there are thousands of other hous-
es that you wont need to spend
that much time and money to fix?
These houses are definitely some-
thing beginning investors wont
want to tackle.
Houses That Are Over-Priced No
Matter Where They Are.
Only a fool would pay more for a
house than it is worth unless they
plan to live in the property. If you
over-pay for a house there is no
room for a profit. So why would
you buy that house in the first
place when there are so many that
are not over-priced?
Houses on Dead-End Streets in
Older Parts of Town without a
Cul-de-Sac
These houses arent particularly
popular with most home-buyers
who can qualify for a loan. These
are houses that are located where
they get less city attention for
maintenance.
Houses with Wet Basements
These houses have a largehouses
amount of wasted space that will
be conducive to constant mold
problems and will also create other
problems with the house because
of the moisture attracting termites
and salamanders. Musty houses
are always hard to rent or sell.
Houses with Very Small Back
Yards
A house with a small back yard will
always be less attractive to most
families who want a place for the
family to barbeque, eat and a place
for the children to play or a place to
put a pool. Stay away from small
back yard houses.
Houses Located On a Dirt Road
Within a City
Houses located on unpaved
streets within a city are not only far
less desirable, they will be nearly
impossible to rent or sell because
of the dirt blowing every time a car
passes. Dead end streets are al-
ways less maintained than any
through street.
Houses Located Close to a Sew-
age Disposal Plant
Needless to say the smell will be
the deterrent and will be difficult to
rent or sell.
Houses Located Near a Garbage
Dump or a Garbage Transfer
Station
Houses next to a garbage dump or
a garbage transfer station will be
extremely difficult to rent or sell be-
cause of garbage trucks coming
and going all hours of the day and
night and these places attract rats,
rodents of all kinds and the smell
will definitely not be acceptable to
any qualified buyer or renter.
I hope you now have a better idea
of some of the houses you dont
want to own that will be hard to sell
or rent and making a profit will be
far more impossible to do.
Happy investing

Spend an evening with Larry Harbolt,
the Nations Leading Creative Seller Financing Expert
Never Step Into a Bank Again &
Buy All the Houses You Will Ever Need to
Become Independently Wealthy!

SEPTEMBER 9TH, 2014 @ 6pm
Meeting Space in KC Metro
to Be Determined
Please Check Website
Real Estate Transaction.
Determining What You Need to Think About
Before You Every Make an Offer to Pur-
chase.
What Type Properties Generate the Most
Profit?
Why You Should NEVER Use Dollars Per
Square Foot as a Cost Factor to figure the
Value of Any Property.
15 Types of Properties to Avoid Like the
Plague.
The Multiple Different Types of Profit Real
Estate Can Give You.
What Are the Key Questions You MUST Ask
Every Seller?
Killer Negotiating Strategies That Rarely Fail.
How to Overcome Your Fear of Talking to
Sellers.
Larrys 8 Basic Simple Offers
8 Ways to Get Started When You have NO
MONEY and FAR LESS THAN GOOD
CREDIT.
Key Factors About the Paperwork You Use
That Is Critical to Your Deals.
Who You Need on Your Team to Build Suc-
cess the Fastest.
Larry will be back at MAREI on Saturday
September 27th for a full day training seminar,
we hope you can join us.
MAREI is excited to announce that Larry
Harbolt will be our special guest on Sep-
tember 9th at our Monthly Meeting. Larry is
the Nations Leading Expert on Creative
Seller Financing both to buy and to sell.
The Truth is many investors only know one
way to buy property with Cash. And now
that banks are not lending to just anyone,
where do investors turn? The investor today
is likely dead in the water unless they know
how to Buy with Creative Owner Financing
and learn how to Sell with Creative Owner
Financing. Larry has over 35-plus years of
experience doing just that. That is why he
has been called the Master at teaching how
to buy houses with No Money and No Cred-
it using Creative Owner Financing.
At the September MAREI meeting you will
learn:
Wholesale at Lightning Speed = Pay off
Debts & Stable Cash Flow!
Buy Properties Without Banks! = No Credit
and No Money!
Become Wealthy Owning Properties That
Are Paid Off in 8.3 Years!
Create Non Recourse Financing and Never
Gamble Again!
Sell at Lightning Speed! Dont Be a Puppet
to a Bankers Whim!
Become Wealthy and Be Done in 3-5 Years!
The Key Components of Every Successful
MAIN MONTHLY MEETING
MEETING AGENDA
6:00 Meet & Greet
Networking & Vendors
6:45 Introductions
Haves & Wants
7:00 Creative Seller Financing
With Larry Harbolt
9:00 Late Night Networking
At Nearby Establishment

Note we are currently in nego-
tiations with several Overland
Park Hotels and hope to have
a new location by this meeting.
Please check Website for ex-
act Location.
MAREI Members Can Attend
For FREE and guests for $15.00
If Pre-Registered. Door Price $25.00
MAREI.org/September

REGISTER FOR THIS EVENT AT MAREI.org/LARRY
Build your Business with the Ultimate Fast Track Success
Workshop. . . . Right now is the best time in modern histo-
ry to buy real estate. . . . If you have the knowledge on
how to make money in this or any market . . . And that is
how to buy real estate profitably with only $10 down, even
if you have bad credit or are bankrupt!
At this workshop Larry will teach you . . .
Buy real estate profitably in any market or cycle.
Learn how to buy real estate when you have No mon-
ey.
Buy real estate when you have No good credit.
Learn how to create the terms to make cash today.
Learn how to overcome seller objections like a pro.
Learn the right questions that will create Golden Deals.
How to create extra profit out of thin r
Never have to beg for or apply for a loan again.
How to buy and sell all the property you want, no
banks.
How to structure offers with no payments or interest
and get the seller to gladly accept. This will drive your cash
flow through the roof.
Why you can buy millions of dollars in real estate and
never have a debt show on your credit report or be person-
ally liable for a penny.
Build your income stream, like the banks have, acquire
free assets, without investing a dime.
How to change the terms of the loan months or years
after the closing and make the seller ecstatic to do so.
Build an empire from monthly cash flow and cure neg-
ative cash flow The secret only a handful of people know
how to do.
Big profits from the deal after the deal. All seller-
financed deals have back end profit centers if structured
properly, and will cost you a fortune not knowing them.
How a few carefully chosen words you can easily mas-
ter in minutes can potentially earn you big paydays when
youre ready to cash out your seller.
Come and join Larry on Saturday, September 13th,
2014 for The Ultimate Fast Track to Your Business
Success Workshop. Bring a new pad and a couple
sharp pencils because Larry promises you will leave with
New Methods, Processes and Systems that are Efficient,
Effective! And WHEN YOU Learn them, they can be
measured by the amount of NEW CASH in YOUR bank
account.
Larry is the real deal who uses what he teaches in his own
business. Larry will be sharing

A Full Day Deal Structuring
Seminar with Larry Harbolt
Saturday September 13th, 2014, 8:30 AM to 5:00 PM
KC Metro Area
Exact Location to be Determined
MAREI Member Pricing is just $49 and Non-Members attend for $69
Early Bird Pricing of $29 for MAREI Members and $49 for Non-Members
MAREI Members bring a spouse or business partner for just $20 (Early Bird $10)
Extra Special Pricing offered at August & September Meetings. Be sure to Attend.

MAREI MEMBERSHIP
MEETINGS HELD AT:

Main Monthly
(1st Tuesday of the Month)
Career Education Systems
Ward Parkway Shopping Center
8600 Ward Parkway
Kansas City, MO

We suggest parking on State Line Side
by Starbucks. Meeting space behind
the elevators.

Other Events
Live and Online
Full Details on Calendar at
MAREInet.com
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GUEST PASS
Name: ______________________________
Date: _______________________________
Email: _______________________________
Source: ______________________________

For first time guest to visit main meeting.
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Sherwin-Williams is a National REIA approved supplier of paint and related products. The alliance
results in quality and value with consistent pricing and substantial savings on the products that you
use the most. For maximum savings we recommend the following products:
PROMAR 200 ZERO VOC, PROMAR 400 ZERO VOC, PAINTERS EDGE, SUPERPAINT EXTERI-
OR, A-100 AND WOODSCAPES.
Since 1866, Sherwin-Williams has been at the forefront of innovative coating and color technologies, With excep-
tional products and services, Sherwin-Williams can help you get the job done fast and get the job done right.
A wide range of coatings that offer
quality and value from a brand you
know and trust.
Applicators, tools and equipment to
get the job done right.
Substantial savings and credit pro-
gram.
3,0900 stores and 2,200 represent-
atives provide fast, local service.
Products are readily available from
Sherwin-Williams stores everyday.
Phone or fax ordering and on-site
delivery available.
Expert advice for property surface
prep and selecting the correct coat-
ing systems and supplies.
Broad range of coatings to meet
the most stringent VOC regula-
tions.
Wide selection of flooring with in-
stallation available from more than
125 Sherwin-Williams Floorcover-
ing Centers.
Recommendations for local experi-
enced painters.
Color consultation and a wide
range of color tools in-store or
online for easy selection.
Online account management, in-
cluding view balances and other
history, make payments and save
favorite informationregister on
myS-W.com.
MAREI members receive substantial savings by use their MAREI member discount card
that ties their savings into our National Discount Pricing with National REIA.

MID-AMERICA ASSOCIATION
OF REAL ESTATE INVESTORS
The Mid-Wests Premier Real Estate Professional Association
COMMUNITY : NETWORKING : EDCUATION : OPPORTUNITY
MAREI is a Real Estate Community committed to providing Educational & Networking Opportunities.
We strive to introduce potential and existing real estate professionals to all areas of the real estate
investing industry through meetings, workshops, & seminars, both live and online. We keep our
members informed of legislative issues and the latest strategies and technologies.
MAREI provides a positive, no pressure environment where the individual professionals can grow,
network and expand their business. Plus we bring members together for the greater good be it
through discounts from our combined buying power or making our voices heard when there are
governmental or community issues.
JUST A FEW OF OUR INDUSTRY PARTNERS

You do such a great
job at bringing in great
ideas & speakers, we
are so very happy we
joined MAREI this
year!
I wanted to share with
you that my most recent
rebate
check was $349.94 !!
Wahoo! Its like free
money!

Save your hard earned
dollars, join MAREI for $99
yr and have more benefits
and learn from oth-
er members as you need to
do so. Develop friends and
associations that will en-
dure and enhance your real
estate investing from now
on. You will be glad you
did.
- Kara K
- Christoph B
- Don S
MAREInet.com

The RE Investment News: 3rd Quarter 2014

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