The RE Ivestment News is the newsletter for Mid-America Association of Real Estate Investors.

1. N E W S
F o r S e l f D i r e c t i n g
from Chris McClatchey
N E W S L E T T E R F O R
M I D - A M E R I C A A S S O C I A T I O N O F
R E A L E S T A T E I N V E S T O R S
SEPTEMBER 2016
Legislative Update
Calendar of Events
Market Update
Business Directory
from Jeff Watson
T H E L . O . A . N P R I N C I P L E
PLUS
REINVESTMENT
T O P 1 0 T H I N G S F O R

2. Investigative Screening & Consulting’s ISC
Connect is the solution rental property owners &
managers have been crying out for. They’ve
combined the hands-on human element of
investigative techniques with the speed,
convenience, and cost-cutting power of the digital
age to provide you with an all-in-one, mobile web-
enabled screening process. The ISC Connect
Online Lease Agreement allows you to send your
tenant(s) a customized lease agreement,
electronically and securely!
No more having to create or search for a lease; just
generate it, and they’ll securely hold on to it for
you! They have included all the legal greatness of a
normal lease, and made it easy to customize to
your specific property by adding terms such
as: Lease Start and End Dates, Monthly Rent,
Additional Lessees and Authorized Occupants, and
of course Security Deposits and Concessions. Your
tenant (and you) will then electronically sign the
lease, which is then conveniently stored and
available in your account, viewable at anytime!
National REIA members receive a discounted
$0.95 set up fee for this program.
In addition to their Online Lease, ISC now features
a way to make renters insurance required for your
rental property addresses. Tenants are notified via
the ISC portal and, through a partnership with
realprotect, given access to special discounts on a
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Sign up today and see why ISC Connect has
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3. basic health and safety items. If a unit fails,
the landlord will be required to resolve any
deficiencies and have the unit reinspected.
Any landlord with a unit that has already
been inspected in the past 12 months for any
reason may submit that inspection report.
The proposed program would begin in
January 2017 with 2-year initial roll out with
half the units inspected each year until all
have been inspected, then they would need
to have them reinspected to renew their
business license every 2 years.
Other metro cities are watching how this is
implementing and considering this program
for their city.
You can read the full proposed ordinace
at http://agendas.indepmo.org/AttachmentV
iewer.ashxAttachmentID=17650&ItemID=9
117
LEGISLATIVE UPDATE SEPTEMBER 2016
"Rental Ready"
Proposed for
Independence
Missouri
Currently in Independence Missouri and
many other metro cities, interior inspections
are complaint-driven. After being on the
campaign trail, council members John
Perkins and tom Van Camp heard many
citizen concerns about rental conditions.
They decided to do something about it.
The solutionis "Rental Ready." This
proposed program would require rental units
to be inspected once every two years by a
qualified inspector from organizations such
as teh American Society of Home Inspectors
or National Association of Home Inspectors
or one with similar qualifications.
The qualified inspectors would be required
to submit the approved inspection forms to
the City showing that the unit passed the
C A L L T O
A C T I O N
On Tuesday September 6th, 2016 -
Landlords from Independence along
with Phillip Thatcher and Stephen
Summers of Landlords of Eastern
Jackson County will be meeting in
the parking lot at City Hall about
5:30 to coordinate their effort
before attending the City Council
Meeting on this subject at 6:00.
Contact: Landlords-of-EJC.com
R E I N V E S T M E N T N E W S | 3

4. REAL ESTATE 101
THE L.O.A.N. PRINCIPLE
By
Chris McClatchey
One of the hardest things about
getting started in real estate is
getting started. There is so
much information to absorb. There
are so many “experts” ready to teach
you their method. There are so many
different types of deals and so many
ways to structure them. Sometimes
there is so much information, it feels
as if you are trying to take a drink of
water from a fire hose. Don’t worry.
It does get easier. It gets easier once
you understand one thing. In order to
understand what that one thing
is, ask yourself this question : “What
do you want real estate to do for
you?” Start with what you want
and that will lead you to the niche
that works for you.
4 | M A R E I . O R G
the wrong kind of leads is a
distraction. An example of this
comes from the type of investing
that I do. I am a long-term hold
investor. Meaning, I buy properties
for their cash flow. I also specialize in
creative financing and seller
financing. So the leads I want to
generate have a set of specific
criteria. In other words, I exclude
foreclosures, short sales and
REOs. Why? Because, those leads
require all cash to purchase and
therefore are outside of my portfolio
objectives. Remember, only generate
.
Once you have decided your “goal”
for real estate, then it’s time to put a
“plan” in place. That plan is what I call
the L.O.A.N. Principle. If you do these
four things, you will be successful.
Don’t get caught up in all of the
distractions. Don’t get caught up in
anything that takes your focus off of
these four things. If you do, then you
will get side tracked. If you keep your
focus and do these four things, the
sky’s the limit.
L = Leads: But not just any Leads. The
leads you generate have to be
consistent with the types of deals you
want to do. They have to be leads
that get you closer to your portfolio
objective. In other words, generating

5. and fine tune. Yes, you can read
books to learn some of these
techniques, however, I believe the best
way to learn negotiation skills is
to put them into action. The way we
learn what to say in different situations
is by making offers and communicating
with the sellers and real estate agents.
Action is by far the most effective way
to learn. Remember, sellers will tell you
what is important to them by their
counter-offers. They tell you by the
items they are changing. So use this
information to get the deal you want,
while at the same time addressing what
is importation to them.
getthemselvesintobaddeals.Thearea
wheremostinvestorsgetthemselvesinto
troubleisintheanalysisstage.Mostnew
investorsunderestimateexpensesand
overestimateincome.Don’tmakethis
mistake.Makesureyouknowhowto
analyzethedeal.Justasimportantisto
makesureyouareanalyzingitaccordingto
yourportfolioobjective.Meaning,doesthis
dealaccomplishwhatyouwantitto
accomplish?Doesthisdealgetyoucloserto
yourgoals?Ifso,dothedeal.Ifitfeelslike
youarestretchingthenumberstomakeit
work,stop.Don’tdothedeal.Remember
this,sometimesthebestdealsaretheones
wedon’tdo.
N=Negotiate:Negotiationisatechnique.
Thereisanarttoit.Don’tworry,itisn’t
somethingwearebornwith.Itisalearned
technique.Itissomethingwecandevelop
R E I N V E S T M E N T N E W S | 5
leadsthathelpyouattainyourgoals.
O=Offers:Makeoffers,makeoffers,make
offers.Thatiswhatmost“experts”willtell
you.AndwhileIagreethatyouhavetomake
offers,Iadheretotheprincipleofonlymaking
offersonpropertiesthatmeetmygoals.In
otherwords,Imakeoffersthatgetmecloser
tomyobjectives.Imakeoffersonproperties
thatIwantinmyportfolio.Theoffersyou
makecaneithergetyouclosertoyourgoals
ortheycantakeyouofftrack.Afewtimes
duringmyinvestmentcareerIattemptedto
dodealsthatwereoutsideofmyobjective.I
lostalotofmoney.Makeoffers,makeoffers,
makeoffers,butonlyondealsthatmake
senseforyou.
A=Analyze:AsaCoach,Ibelieveitismyjob
tonotonlyteachhowtododealstheright
way,itisalsomyjobtomakesuretheydon’t
T.E.R.M.S The Exclusive Real Estate
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Saturday, September 17th 8pm to 5m
Holiday Inn, Overland Park : Lunch Included
Early Registration Pricing: Member Price $49
Non-Member Price $79 - Express Success Member: FREE
With
Chris
McClatchey
GETTING STARTED

6. Hosted by Brian & Michelle Winberry
Wednesday Mornings at 9 am
Lucky Brewgrill
5401 Johnson Drive, Mission
ChisMcClatcheyhasdevelopedasystematicapproachto
investingwhichinvolveshis"PowerofZero" andhisL.OAN
Process. HeisgoingtoteachbothattheSeptember13thMAREI
Meeting. !BesuretoRSVPOnlineandjoinus attheHolidayInn
at8787ReederRoadfrom6pmto9pm. FREEforMembersand
1stTimeGuests. Allotherspay$25atthedooror$15whenthey
pre-regsiteratMAREI.org.
THEL.O.A.N.PROCESS
&THEPOWEROFZERO
MEETING
WINVESTORS
FROM OTHER GROUPS >
Therearemanydifferentopportunitiestogrow
wealthnotonlywithyourSelfDirectedIRA, but
alsowitha401k, aHealthSavingsAccountaswell
asCoverdaleEducationSavingsAccounts.
WearedevotingthemonthofOctobertolearning
moreaboutinvestmentswecanusetogrowthese
accounts.
PleasemarkyourclanedarforTuesdayOctober11th
andSaturdayOctober22nd. Wemayaddafew
morewebinarevents, sowatchthecalendarof
events.
BUILDINGWEALTHWITHYOURIRA
MAREI. ORG/ CALENDAR
THE CALENDAR
RealEstateinvestingissupposedtoleadtoextracash, provideyouwithextra
timeandcreatemassiveamountsofwealth, soyoucanbefreefromthe
financialpressuresofeverydaylife. . . .Thechallengeisyoudon’thaveany
leads…. you’renotdoinganydeals… andyou’refrustratedwithallofthe
competitionfromotherinvestors. ThereisaBetterWayandChris
McClatcheywillbeteachingitattheTERMSworkshoponSaturday
September17th. Seefulldayworkshopinfoonpage5.
TERMSWITHCHRIS
WORKSHOP
See full day
workshop
page 5
OCTOBER
Hosted by Jim & Beth Kasper
1st Saturday of the Month
Networking Coffee / Denny's
9001 Shawnee Mission Pkwy, Mission
1STSATURDAYS
Hosted by Crossroads Investment
Lending & JD Asbell
White Board Discussion
7759 Shawnee Mission Pkwy, OPKS
1STTUESDAYS
Landlord Inc of KCK
3rd Tuesday of the Month
Loan Star Steak House
1501 Village West, KCK
LANDLORDS
Jackson County REI Group
Last Wednesday of the Month
4 West Monroe Street
Buckner, Missouri
JACKSONCOREI
Regarding Home Depot Rebates: "I got mine in too. A little over a thousand on a gift card and a little over
2500 in a rebate check." Note the $1000 was from the MAREI member 2% Rebate!

7. MARKETUPDTATE june 2016
4,186homes sold
4.0% Increase over 2015
57average days on
market
16.2% Decrease from 2015
97.7% of asking price
1.7% Increase over 2015
$16k$16,822 average
sale price
increase from
same time last
year (7.9%)
3,909pending sales
9.4% Increase over 2015
8,582houses for sale
27.8% decrease
2.8 month supply
average: $228,951
median: $192,000
Sales and prices have been going up in most areas, while the number of homes for sale and
total months' supply of inventory have been going down. Meanwhile, many sellers have been
getting a higher percentage of their asking price, and supply continues to struggle to meet
demand. The message may be repetitive, but it is largely positive.
The national unemployment rate recently dropped 0.3 percent to 4.7 percent, but some states
felt more of a pinch in their own figures. Similarly, the low inventory situation is showing signs of
strain in markets where there are few homes for purchase. With an interest rate increase still in
the cards this year, combined with the American political landscape and global economic
events, a cooldown could occur by winter. Presently, however, summery growth prevails as
many locales are reaching near-record prices not seen in more than a decade.
For further detail see http://www.kcrar.com/statistics

8. Self Directed IRA
Article from Jeff Watson
& National REIA's RE Journal
Duringarecentspeakingengagementin
frontofalargeREIAinaMidwesternstate,I
askedtheaudiencehowmanyofthemhad
setupaself-directedretirementaccount.
Approximately85%oftheroomraisedtheir
hands. Afterthepresentation,Idiscussedthe
factwithafriendofminewhohasbeendoing
self-directedinvestingsincethelate1970s.
Hemadethecommentthatwhenthat
questionswasaskedjusttenyearsago,only
fivetotenhandswouldberaisedinaroomof
overahundredpeople. Clearlythe
awarenessofself-directedinvestingis
growing.
WiththatinmindIwouldliketosharewith
youoverthecourseoftwoarticleswhatI
considertobethetoptenrecommendationsfor
self-directedretirementaccountinvestors.
1.Ifyoudonotunderstandthedeal,donotdoit!
Thisisoneofthefundamentalrulesinalltypesof
investing,whetherinsideoroutsidearetirement
account. Understandingthedealmeansmore
thanjustbeingabletosayyouunderstandit. It
meansbeingabletoexplainitinawaythatmakes
thecomplexsoundsimple. Youshouldbeableto
explainthedealtoan8-year-oldchild. Whena
personisabletoexplainsomethingcomplexina
waythatevenan8-year-oldchildcan
understand,thenyouknowtheytruly
understandwhattheyaredoing. Ihaveseentoo
manyinvestorswhomadeinvestmentswitha
self-directedretirement
8 | M A R E I . O R G
account and later regretted it because the
person with whom they invested or to
whom they lent money was far more
sophisticated than they were, and they felt
like they had been taken advantage of. Ask
me how I know!
Allow me to give you an example of a simple
explanation. I am going to loan $50,000
from my retirement account to Fred. Fred
is going to use that money and other money
to buy a house, fix it up, and resell it. My loa
to Fred will be secured by a mortgage
against the house he is buying and fixing.
There, in three simple sentences you can
explain a deal that many people could take
paragraphs to cover.
INVESTING

9. DepartmentofLabor.
5. Rememberthatitisaretirementaccount,
andyouneedtotreatitassuchbydoing
longer-term,cash-flow-producingdeals.
ManytimesaninvestorgetstrappedinwhatI
call“yielddisease.” Theyarelookingforahigh
rateofreturnandarewillingtodoshort-term
deals(suchashardmoneylending)inorderto
achievethoseratesofreturn. While3points
and15%mightsoundimpressivefora6-month
periodoftime,thatdealpalesincomparisonto
aninvestmentthatmaylastforfouryears
consistentlyearninga12%rateofreturn. Since
thegoalistoamassagood-sizedretirement
account,youneedtoworktowardthatgoal.
Mysuggestionisthatyoudoitbyfocusingon
longer-termdeals. Consistencyisimportant,
becauseslowandsteadywinstherace.
Anotherbenefitofdoinglongertermdealsis
thatitismucheasiertodothenecessarydue
diligenceandunderwritingforonelonger-term
dealthatforaseriesofshorter-termdeals.
Therearefewerdemandsonyourtimeand
feweropportunitiestomakemistakes.
Theremainingfiverecommendationsforself-
directedretirementaccountholderswillbe
availableinnextmonth’spublication.
Weallthinkweunderstandtherules;but
whenweareinahurryandgetintoadeal
withalotofmovingparts,weoftendon’ttake
thetimetoanalyzethetransactioninlightof
alltheprohibitedtransactionrules,
particularlyrulesregardingnotprovidinga
servicetoyouraccount,aswellasdirectand
indirectbenefitrules. Manyretirement
accountinvestorsareunabletodistinguish
betweenwhattheybelieveisaserviceand/
ormanagingtheirinvestment,letalone
explainwhethertheyareusingtheir
retirementaccountinawaythateither
directlyorindirectlybenefitsthemnoworin
thenearfuture.
Itisprudenttoatdoatleastanannualreview
oftherulesregardingprohibitedtransactions
anddisqualifiedpersonssoyoucankeep
currentastowhatyoucandowithyourself-
directedretirementaccountinvestments.
Therearemanygoodresourcesfrom
custodians,administratorsandtrustees,
lawyers,andevensomereasonably-priced
booksontheinternet. Thesewillgiveyoua
basicunderstandingofmostoftherulesfor
prohibitedtransactionsandinvestments,and
disqualifiedpersons. Ifyouareafactjunkie
likeIam,orifyousufferfromchronic
insomnia,youmaywanttotakethetimeto
carefullyread26U.S.C.4975,aswellasthe
PlanAssetRulespromulgatedbythe
R E I N V E S T M E N T N E W S | 9
2. Alwaysfundyouraccountseveryyear.
Manyrealestateinvestorsarestrugglingwith
ongoingmonthlycash-flowneeds,andthey
forgettodisciplinethemselvestosetupan
automaticorsystematicprogramforfunding
theirretirementaccounts,whethertheyare
RothIRAs,401(k)s,HSAsorCESAs. Pickthe
twoorthreeaccountsthatreallymattertoyou
anddeterminewhatyourmonthlybudget
needstohavetobeinordertobeabletoput
approximately$6,000peryearintothose
accounts. Ataminimum,youshouldbefunding
approximately$6,000intoyourIRA<your
spouse’sIRA,andyourHAS. Ifyoudonotfund
youraccounts,youwillhaveverylittletowork
withforinvestingpurposes. Thedisciplineof
consistentlyfundingyouraccountscreatesthe
“seed”youwillplantit.
3. Knowthethingsinwhichyoucannotinvest.
Thelistofthingsinwhichyoucannotinvestwith
aself-directedretirementaccountisvery
simple: collectibles,sharesofsub-S
corporations,andlifeinsurancecontracts. Once
youunderstandwhatyoucannotinvestin,it
meanseverythingelseispossible. Thesame
theoryalsoappliestothenextrule.
4. Knowtheprohibitedtransactionrules,or
hiresomeonewhodoes.
SELF DIRECT
MAREIMembers
EarnUpto7%
2 % Rebate for Memembers
Plus up to 5% for Customers
See Details at MAREI.org

10. DIRECTORY
A C C U R A T E T I T L E
A Full Service Title Company
David Green
www.AccurateTitleCo.com
913-338-0100
A L P H A T I T L E
Full Service Title Company
Patsy Archer
www.AlphaTitleLLC.net
913-498-8999
A N D E R S O N & A S S O C I A T E S
Law Firm
Julie Anderson
www.MOKCLawcom
816-931-2207 / 913-262-2207
A Z U R E W A T E R F R O N T
Luxury Waterfront Property Investment
Brad Reddick
www.AzureWaterfront.com
800-240-3606
CROSSROADS INVESTMENT LENDING
C O N T I N E N T A L T I T L E
Investor Lending
Britton Asbell and BarakTschirhart
www.KCLend.com
913-766-2900
A Full Service TitleCompany
Sharon Bower
www.CTitle.com
913-338-3232
1 0 | M A R E I . O R G
B R I D G E M A N A G E M E N T
A Turn Key Real Estate Experience
Nathan Brooks
www.BridgeTurnkey.com
913-695-8213
Build Your Team
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.
With MAREI Business Members
MAREI.org
CLICK ON
business
associates
VISIT

11. DIRECTORY
INVESTORS CHOICE FUNDING
The Flexible Funding Solution
L. Scott Ficinus
www.InvestorsChoiceFunding.com
816-668-7223
J A M I E S O N H O M E T E A M
Realtor & Property Management
Kevin Jamieson
www.KevinJamieson.YourKWAgent.com
913-384-8331
K C I N V E S T
Investment Property Seller
Kim Tucker
www.KCInvest.com
913-735-0018
K C M O H O M E B U Y E R
Property Buyer
Don Tucker
www.kcmoHomeBuyer.com
816-200-2198
REAL PROTECT
Insurance for Investors
Brought to you by National REIA
www.RealProtect.com
1-800-579-0652
P R I D E P R O P E R T I E S
M E R C H A N T S M O R T G A G E
Real Estate Professionals
Marcus and Matt Bray
www.PrideProperties.com
913-213-5370
Real Estate Finance Company
Susan Aubin
www.MerchantsMtg.com
720-554-9480
H O M E R E N T A L S E R V I C E S
Kansas City Property Management
Sandy Fisher or Paul Branton
www.Home4Rent.com
913-469-6633
R E I N V E S T M E N T N E W S | 1 1
REALTY RESOURCE
Real Estate Brokerage
Scott Tucker
www.RealtyResourceKC.com
816-406-0701
G U A R A N T E E D R A T E
First Digital Mortgage
Beth Langston
www.GuaranteedRate/com/BethLangston
913-225-9323
K C C A B I N E T C O L L E C T I O N
Cabinet Source
Mark Yanda
Website Coming
913-980-4260
D I S C O V E R H V A C
Heating & Airconditioning
Complete System for $2785
www.DiscoverHVAC.net
816-500-2900

12. EXPAND YOUR
BUSINESSWITH MAREI
40,000professionals
National REIA 514MAREIMembers
4 member benefits
designed to promote
c o m m u n i t yN E T W O R K I N G : E D U C A T I O N
A D V O C A C Y : C H A R I T Y
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Rental : Rehab : Wholesale : Notes : Creative
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many with discounts
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People / Networking Priceless
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marei.org