4. 4
The Promises of Real Estate Investing
• Real estate compliments other investments and offers other attributes for investors to take
advantage of in order to realize their long-term investment goals
• The real estate state market has been a prominent participant in all of the market advances
and retreats over the past several decades, staying in lockstep with other investment
products like stocks and bonds
• Real estate’s strength and variability has made it a desirable haven for investors not only
seeking attractive returns but also security in an asset class that has enduring potential
Real estate has shown a timeless dependability as a destination for investors with disposable
income seeking an above-average yield. General returns in real-estate offer a viable alternative
to other short and long-term investment vehicles:
Diverse
Investment
Profile
REAL ESTATE
BONDS
STOCKS
OTHER INVESTMENTS
5. 5
This Cycle’s Housing Recovery in Focus
“Foreclosure filings in January
plunged to their lowest level
since April 2007”
"We're now well past the peak of the
foreclosure crisis,"
– Daren Blomquist, RealtyTrac
“The Housing recovery gains
strength”
“Barclays is forecasting a 6% to 7%
price gain [in 2013], and 5% to 6% in
2014.”
6. 6
Recent Real Estate Trends
Real estate has experienced a market a sector
rebound nationwide with some of the once-racked
markets enjoying a revival in sales, home values
and overall investment sentiment.
Local Market Highlights
Rate of Housing Sales
AUG 2012 vs. AUG 2013
Includes sales of new and existing homes
Northeast 16.7%
South 15.4%
Midwest 17.7%
West 5.5%
NATIONAL
13.5%
*Source: RealTrends.com
Kansas City - MO
• Median listing prices up 5.19% vs. AUG 2012
• Total listings down 5.46% vs. AUG 2012
• Median listing price: $142,000
Kansas City - KS
• Median listing prices up 2.19% vs. AUG 2012
• Total listings down 10.75% vs. AUG 2012
• Median listing price: $189,000
KCK
2.19% 5.19%
KCMO
*Source: Realtor.com
7. 7
Advantages of Property Investments
The striking track record of consistent annualized returns over time tells the story of real
estate. For property owners, those benefits are further buttressed by the advantages that
property investments bring:
• Rental Income – Investment properties offer a steady drip of
passive cash flow from rental income
• Rising Investment Values Over Time – The U.S. market’s nascent
real estate recovery presents an ideal opportunity to invest in
property that has headwind and room to grow
• Property Duality – Your investment property gives you the option
of continuing to collect monthly income. You can use the increased
equity to make additions to the property or invest in others, or to
improve the property in order to realize its full value at a sale
• Inflation-Accommodating – The rise in prices is a natural function
of the economy. This however plays well for investment property
owners, as higher construction costs and housing demands result in
greater need for rent
• Leverage – The use of a mortgage allows investors to multiply their
purchasing power and amplify returns on cash
• Tax Deductions – Property investments qualify for a hoard of tax
deductions related to the financing and maintenance of the property
over the time of ownership
8. 8
Why 2014 is Ideal for Investors
Text
Nationwide supply of homes in
February of this year was down 22%
from the supply in February 2012
Home prices’ rise has come on the back
of the economy’s continued recovery,
which has lead to increases in hiring and
household income
Rising monthly rents have made renters
consider home ownership again
Rebounding prices have encouraged
sellers to withdraw their properties from
the market rather than to sell at a loss
Growing demand is emboldening
property owners, frequently placing
prospective buyers in bidding wars
Mortgage rates have climbed from near
historic lows to 4.5%, coinciding with a
rising economy
With segments of the American economy showing new verve, 2014 presents an attractive set of
circumstances for potential property investors to take advantage of this window:
‘The housing recovery is behaving as it should. With interest rates at historic lows, rates will
continue to move up in slight increases but it is not going to stop the progress forward of
the housing recovery.’ – Lennar CEO Stuart Miller
9. 9
Pathway to Property Investing
Licensed partners and affiliates of
Integrity Capital Management, LLC
(ICM) bring years of experience to
the real-estate buyers and can assess
the goals of each potential client in
order to ensure that the best and
most desirable property investments
are made
Real estate agents and consultants
stand ready to share specialized
property investment knowledge with
potential clients eager to learn the
virtues of purchasing promising
properties and unlocking investment
values towards passive and reliable
income stream
11. 11
Ownership: A Part-time Occupation
Real estate has long been an ideal destination for investors to realize a stable stream of passive
income. Such investments however require regular checkup to ensure that the property’s value
is preserved during the long-term.
Property owners are often required to balance multiple obligations unrelated to the
supervision of their investments. That in turn may afford them limited time for the nuances
needed to ensure that their properties continue to generate reliable returns over time.
Advertising
Rental
Property
Vetting
Potential
Tenants
Collecting
Rent
Payments
Preparing
Taxes
Conducting
Regular
Inspections
Maintaining
Property
Upkeep
Stable Investment Returns
12. 12
The Solution: ICM Property Management
Integrity Capital Management, LLC (ICM) alleviates the burden of property ownership on
residential and commercial investors by acting as both scout and sentry to the owner’s
interest throughout the engagement period.
ICM recognizes investors’ desire to excel at finding promising opportunities in the
marketplace, which makes their time extremely valuable. The more effort investors are able
to devote to furthering their investment pursuits the better their time and returns will be.
As the owner’s property manager and investment advocate, Integrity Capital Management
works to ensure that concerns over owners’ property’s wellbeing remain as passive to that
property’s owner as his or her investment income
• Lives far away from investment property
• Is unable or unavailable to make frequent visits to the property
• Owns multiple rental units and properties
• Has limited experience with routine property maintenance and repairs
• Is unable to quickly rent out a unit or property in event of any vacancy
• Is unavailable to be on call 24/7/365 to tend to tenant needs
• Is unfamiliar with current local and state laws governing landlords
• Prefers to devote time and resources to other affairs
VALUE
ICM’s value is fully realized for the property owner with these circumstances:
13. 13
ICM Core Principles
Integrity Capital Management’s objective is to guarantee the preservation of the owner’s
property over time and secure its continuous cash flow. ICM’s operations are rooted in four core
principles:
Use of quality leads to
minimize vacancy cycle
Recommend ideal rent
rate to assure high
attraction and quicker
rental agreement
Ensure tight rent
collection process
Advise on capital
improvement needs
Maximizing Owner
Cash Flow &
Investment
Building Positive
Tenant Relations
Triaging Maintenance
& Upkeep Needs
Minimizing Liability
& Risk
Build goodwill with
tenant to:
Verify on-time monthly
rental payments
Minimize property
wear, tear, and repairs
Secure longer leases,
fewer turnovers, and
better tenant retention
Address property
repairs and upkeep
needs in a timely
manner
Engage maintenance
staff or proven licensed
contractors when
needed
Secure project
discounts and
economies of scale
Conduct full tenant
background and credit
histories
Perform routine
inspections to
guarantee property’s
safety and wellbeing to
reduce risks
Recommend liability
insurance
Advise on latest tax
benefits and deduction
qualifications
1 2 3 4
14. 14
Value Proposition
Integrity Capital is committed to being the consummate partner in the guardianship of
owners’ properties. The firm therefore offers an expanded set of solutions to give owners
greater familiarity and transparency into their properties’ operations:
Traditional Property
Management Functions
Initial Property Assessment
Capital Improvement Project Management
Regimented
Semi-annual report on property
maintenance and conditions
Exit-Report with a summary of engagement
and service evaluations
Integrity Capital’s Value
15. 15
Trilateral Relationship
OWNER
(You)
TENANT(S)
AGENT
(Integrity)
• Owner (You)
o Have clearly defined goals and expectations
for your investment property and it’s
dwellers
o Understand stated terms, agreements, and
laws in the state’s property
o Offer preferences or courses of actions for
advisement on property maintenance
• Tenant(s)
o Understand and honor all rental terms and
agreements
o Ensure the property’s general upkeep
o Timely submit monthly payments
o Timely report maintenance requests
• Agent (Integrity)
o Advise owner on property-related matters
o Conduct property marketing and
prospective tenant screening
o Timely provide owner and tenant with
invoices and statements
o Timely serve owner and tenant relevant
notices
17. 17
Residential Engagement Lifecycle
Partnership
Readiness
Ongoing Activities
Partnership
Establishment
Property Turnover &
Evaluation
• Meet with client owner and
understand needs and goals
• Sign Management Agreement
• Onboard owner
• Conduct Property Assessment
and follow-up on Capital
Improvement needs
• Advertise the property
• Present tenant findings to
owner for final selection
• Collect deposits from tenants
• Update owner on all relevant
move-in activities
o Tenant deposits
o Move-in kits
o Property cleaning, home
fixture, and other amenities
• Establish electronic or manual
payment system
• Provide Summary Profile of
each property dweller
• Provide monthly statements
and rental payments
• Report maintenance and
tenant requests as they arise
and submit detailed
Maintenance Record
• Provide semi-annual property
updates
• Provide notable updates
regarding property upkeep and
tenant updates
• Confirm tenant’s decision to
vacate property at end of lease
• Conduct walkthrough of
property for defects and report
findings
• Discuss alternative paths
forward such as property sale
• Conduct Property Assessment
and ensure readiness for next
tenant
• Deliver Exit Report
• Advertise the property
• Collect leads and build tenant
registry (place on Tenant Map)
• Screen prospective tenants
• Perform walkthrough and
document results
• Administer background checks
on prospective tenants
• Perform final walkthrough and
review maintenance plan
• Sign lease agreement
• Request renter’s insurance
policy
• Establish electronic or manual
payment system
• Sign key agreement and deliver
property keys
• Deliver monthly rent invoices
• Fulfill necessary property
repairs as they arise and alert
tenants in the event
subcontractors are engaged
• Document occurrences and
incidents
• Maintain open and consistent
communication with tenant
• Perform final walkthrough
with property owner
• Close all accounts
o Settle financial accounts
o Collect keys
o Return eligible deposits
• Perform property inspection in
preparation for next tenant
Owner-RelatedActivitiesTenant–RelatedActivities
Before Month 1 Month 1 Month 2 – 11 Month 12 and Beyond
18. 18
Quarterly Regimen
Party Month 1 Month 2 Month 3
PROPERTY
OWNER
PROPERTY
TENANT
INTEGRITY
CAPITAL
MGMT
The value that Integrity Capital brings in partnership with property owners and tenants is
rooted on a regimented schedule of events designed to engage all parties during the regular
and crucial intervals of the relationship
Make monthly rent payment
Upkeep property to agreed-upon standard and report any deficiencies
Make monthly rent payment
Conduct Property
Inspection
Address property maintenance or safety requests as needed
Receive monthly rent
payment
Receive monthly rent
payment
Receive quarterly maintenance,
tenant, and property report
Send monthly rent statement to tenant Send monthly rent statement to tenant
Receive monthly rent
payment
Receive monthly rent
payment
Send quarterly maintenance,
tenant, and property report
Begin quarterly maintenance,
tenant, and property report
19. 19
Integrity Tenant Map
One of the tools that Integrity Capital employs to keep a pulse in the rental market while reducing
vacancy cycles for property owners is with the Integrity Tenant Map. This matrix is part of a larger
tenant screening process and offers a quick glance at the prospect of a tenant so that they can be
quickly matched to prospective properties based on their fit and means.
Each tenant lead appears on the Integrity Tenant Map for quick reference so that they can be later matched to
vacant properties in Integrity Capital’s registry of properties
“Maturity Scale”
“IncomeScale”
DependentIndependent
Student Professional Senior
2
Student or minor with
self-sustaining income
1
Student or minor dependent
on parent or guardian for
steady income
4
Professional or adult with
self-sustaining income
3
Professional or adult
dependent on another
party for steady income
6
Senior earning
self-sustaining income
5
Senior dependent on
another party for steady
income
21. 21
5 Step Plan
Engage ICM
and Begin
Management
Relationship
Find and
Close on
Investment
Property
Arrange
Consultation
With a
Representative
From
White &
Associates
Establish a
Budget and
Engage Bank or
Financial
Institution
Meet with Client
and Identify
Investment Needs
and Goals
1
2
3
4
5
23. 23
Partnership Pledge & Owner Resources
As partners in your property investment pursuits ,our trademark is to act not only as your
property’s manager but also as your trusted advisors. Our goal is to make a habit of exceeding
our clients’ expectations. We look forward to working with throughout the duration of our
partnership, forging a partnership that will be rewarding and fulfilling for all parties involved
Please use all resources available to contact us regarding any matter:
Business CardWebsite Direct
Integrity Capital
Management
816.759.0355
705 Suite B SE Melody Lane, #340
Lees Summit, MO 64063
www.theintegrityexperience.com
