RE N E W S

INVESTMENT

NEWSLETTER FOR
MID-AMERICA ASSOCIATION OF
REAL ESTATE INVESTORS

February 2016

WEALTH BUILDING
MYTHS DISPELLED
from MPacktWealth

CHANGE is Easy
After You Change the Way You See the World

PLUS

Wealthy Code

What Every
Private Lender
should Know
about Goals!

2 Day Investor Workshop in Kansas City

SUCCESS

CHANGE IS EASY AFTER

YOU CHANGE THE WAY
YOU SEE THE WORLD
by Chuck Bauman
Photos from Canva.com

How many of us have tried to make a

significant change in our life and failed?
Why is it that New Years resolutions
fail so often that even the mention of
them now carries the connotation of
failure? Yet, sometimes people do make
the change and it seems like it happens
immediately and effortlessly.what is
the difference and how can we use that
to get more of what we want?
Science tells us that we develop
pathways in our brain when we
constantly reinforce a certain pattern
of thinking. The neural connections in
the brain grow and literally make more
connections along certain pathways to
make the speed of that patterned way

MAREI.ORG

of thinking more efficient. I simply call it

walking a path. When you walk a certain
path in the woods long enough it gets worn
down and it just becomes the easiest way to
get through the woodsanywhere else you
walk requires walking through underbrush
and breaking through low hanging limbs
whereas staying on the path is easy and
comfortable. The brain works very much the
same.

Any real change implies

the breakup of the
world as one has always
known it, the loss of all
that gave one an
identity, the end of
safety.

Most of us have a very simple model of how

behavioral change works in our head as well. It
is a very simple model.

What this means is that we carry a view of the

world in our head that we are comfortable
with and any thoughts outside that view
require some work as we are now off the
beaten path of our normal way of thinking.

We see the world a certain way, out of that

view flows what we DO, our of what we DO
flows the results we GET, and out of the results
we GET flows our view of the world. When we
want to GET different results than what we
currently getting we work backward on the
model and try to DO something different and
therein lies our problem. It is impossible to
fundamentally change what we are doing
without changing the way we SEE the
world first. I will use a simple example to
illustrate my point.

Any real change implies the breakup of the

world as one has always known it, the loss of
all that gave one an identity, the end of
safety. James Baldwin

Most people know they need to eat less salt in

their diet, they may have been told by their
doctor to eat less salt and they may have even
committed to eat less salt in their diet, they may

SUCCESS

have been told by their doctor to eat less

salt and they may have even committed to
eat less salt a number of times and failed or
made little progress in the past. One day
they have a stroke or a heart attack and the
next day eliminating salt from
their diet becomes easy and immediate. I am
sure you can think of a bunch of examples as
well.
When an event changes your whole world
you begin to see things differently.for a
lot of us that takes a life altering event for
us to question our underlying views. What if
there was a way to take control of the way
you see the world and alter it when you
wanted and harness the power of
fundamental change to get more of what
you want routinely? Well, there is!
Most of us limit our ability to change the
way we see the world with what is referred
to as negative self talk. Listen to the
conversations around you sometime and
you will quickly hear someone walking the
path that prevents there real
growth.oh, you dont want me to be in
charge of that, follow through is one of my
weakness.I wish I could get organized, I
just cant get organized no matter how hard
I tryeveryone in my family has a
problem with anger issues, its
just something in the way we are made.
They go on and on and if you listen carefully
you will hear them everywhere you go, the
most difficult place to learn to hear them
is..when you say them to yourself.
We say them so often and so effortlessly
that we dont even hear ourselves say them.
The path is so worn and comfortable that
we dont have to think about it, we just get
on the path and walk and no concentration
is needed, we know the path well. The
neural path just gets more and more
efficient at producing the same thought, and
then we wonder why it is hard to change
something that we really know we want to
change but
seem incapable of making any real progress.
Now that you understand that fundamental
change that comes quickly and easily starts
by changing the way you see the
worldwalking a different paththen we
can take control of that process and begin
to

FEBRUARY 2016

structure our lives the way we want them

to look. I refer to this process as Visioning
and it is a process that involves defining
what you want your life to look like and
then writing some affirmations that make
it sound like you have that life today and
then indoctrinating yourself in them until
they become the comfortable thought
path in your brain. The process is quite
detailed and structured and not a simple
undertaking but it is certainly worth every
minute it takes to achieve it.
The other thing that is a key to making the
change is to become hyper-aware of your
own negative self talk and learn to replace
it with affirmations of your choosing. I
have them taped to my computer screen,
printed and laminated and carry them in
my brief case and recorded in my own
voice on a CD so I can listen to them when
I am driving.whatever it takes to
integrate them into my neural pathways
until they become the easy path for my
thoughts instead of the trash I have had
programmed in my head by society and
others for all those years.
So if you are ready to learn how to
have the life you want by learning to walk
the path you want to walk there are three
things that I believe are absolutely critical
to making that work.
HAVE A WRITTEN VISION. I am not
talking about an idea in your head about
how you want your life to look or what you
want to own in five years. I am talking
about a thought out considered plan
(Think written business plan suitable to
submit to the bank for funding) with as
much detail as possible. It must be written
as if it has already happened (present
tense) and in all positive terms (think
affirmations).

know how to play golf, it was because he

needed an objective opinion to give him
immediate feedback on the things he was
doing wrong that he was unaware of. Not
all coaches are paid, you may be able to
find a mentor who will help you out of the
kindness of their heartif not, pay
someone.
GET IN A MASTERMIND OR
ACCOUNTABILITY GROUP. The other
thing that helps me is that I participate in a
number of mastermind and accountability
groups. There is something that happens
when you surround yourself with good
people who have read your written vision
and understand what you are trying to
accomplish and are willing to hold you
accountable to what you said you wanted.
I didnt say change was easy, I said it was
easy after you change the way you see the
world. Sit down today and decide what you
want your life to look like and then take
charge of changing your view to align with
what you want. If you dont plan your life it
will just get planned by those around you
and sadly most of us take more time
planning a wedding or a birthday party
than we do planning our lives. Do yourself
a favor, invest a few hours in planning your
life and you may just reap a fulfilling life
that is more joyous and peaceful than you
could ever I imagine. I know I have.
Chuck Bauman has extensive experience
as an executive coach helping to develop
leaders and a documented background
with helping to develop profitable small
and medium sized businesses. His
certifications include SPHR, CPIM, SSMBB
and CQM just to name a few. His insights
are profound and often shock those
unfamiliar with his skill with their accuracy
and wisdom.

FIND A COACH. I have three different

people that coach me on a full time regular
basis (two of which I pay) because I know
that I simply cant be objective enough to
see all my blind spots. There is a reason
why people are willing to pay for someone
to coach thembecause its worth it if you
are serious about having a great life. Tiger MAREI.org/Life
Woods at the height of his career had a
golf coach, it wasnt because he didnt

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3 Wealth Building
Myths be Dispelled
From the MPactWealth.com Blog

No matter your goals for creating

passive income, one thing all
investors have in common is the
need for smart strategy.
Unfortunately, it's all too easy for
individuals to follow popular opinion
or outdated advice when trying to
reach their wealth-building
objectives.
Contrary to what financial pundits
and so-called experts may say, there
are some wealth-building myths that
need to be dispelled.
Myth 1: Saving is the best way to
build wealth There's no doubt that
employing smart saving strategies
can be beneficial to your finances.
However, while saving will help you
accumulate money, it won't put it to
work for you.
Take high-interest savings accounts,
for example. These vehicles can help
you build up your savings for a rainy
day, but they are highly unlikely to
provide you with the funds you need
to secure a comfortable retirement,
pay for your child's tuition, start your
own business or simply pay for the
costs of everyday life.

Photograph by GrapicStock.com

We all want a good life to be

happy but our beliefs about what
it takes to make us happy are for
the most part just plain wrong.
Economist have been obsessed
with this for a long time and there
is plenty of research around the
relationship between money and
well-being. All of it says that the
relationship we all believe is
either nonexistent or at best
6

MAREI.ORG

terribly weak.
Economist have been obsessed
with this for a long time and
there is plenty of research
around the relationship
between money and well-being.
All of it says that the
relationship we all believe is
either nonexistent or at best
terribly weak.

And the wealth-building capabilities

of standards savings accounts are
even worse. The U.S. Federal Reserve
reduced the federal funds interest
rate through 2015 to between 0.00
and 0.25 percent. Since most
financial institutions follow this
benchmark, it means your ability to
save in an average account has likely
been directly impacted.
Your goal should be to incorporate
intelligent saving habits into your
overall investment strategy. After all,
the more money you make through
investment, the more you'll be able
to save. More importantly, instead of
just watching your money slowly
build in a bank account, an

investment allows you to take the

money you have and use it to
create more money quickly.
Myth 2: More risk means more
reward
Many investors mistakenly
believe that taking on greater risk
is worth it because it can result in
higher returns. However, the
figures simply don't support this
view.
According to a report published
by USA Today, the riskiest
investment over the past 50 year
has not been the most
profitable.
Meanwhile, an investment
strategy like private lending
allows you to minimize risk by
putting you in control of where
your money goes and how. You
can determine who to lend to and
structure the deal to reduce

risk factors.
And the payoff? Investment
News reported that private
lending can offer investors
double-digit returns, easily
eclipsing the returns offered by
many other investment
vehicles.
In short, with the right
investment strategy, you can
ensure high returns while also
minimizing your financial
exposure.
Myth 3: Personal knowledge
isn't as important as a
professional
Many investors simply put their
money in the hands of financial
planners and hope for the best.
They believe that their own
research and education isn't as
important as working with a
professional in the investment .

industry. This is an ill-advised

strategy for numerous reasons
First, you'll often be putting your
trust in someone you don't know.
Many "financial planners" are
nothing more than salespeople who
make a commission off of you.
Finding a professional who has your
best interests at heart can be far
easier said than done.
Secondly, relying solely on a financial
planner means giving up control.
Your money could be put into
accounts and products you don't
understand, and if your broker is
wrong or the market suddenly takes
a dip, your money can disappear in
the blink of an eye.
If you truly want to reach your
passive income goals, it's up to you
to educate yourself and obtain the
proper training. This is the only way
to fully understand how creating
passive income works and to put
your own plans into action. In the
end, you are your greatest asset, so
take the time to learn about your
various options instead of relying on
a stranger.

MPactWealth is the experiential

learning company for peer-to-peer
investment strategies, bouyed by the
nation's largest network of private
lenders. They will be teaching at
MAREI in February.

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MAREI.ORG/CALENDAR

THE C A LEND A R
FROM OTHER GROUPS>

MARCH

LIFEONAIRE 3 DAY
GET A LIFE RETREAT

WINVESTORS
Wednesday Mornings at 9
Lucky Brewgrill
5401 Johnson Drive, Mission
Hosted by Brian & Michelle
Winberry,

The City of Overland Park is drafting new rules

on Rental Property Inspection and
Registration. Next meeting January 6th at
7pm. City Council Chamber - 8500 Santa Fe,
Overland Park, Kansas.

1ST
SATURDAYS
Networking Coffee 1st Saturdays
February 6th
10 am to 12 pm
Panera Bread
7070 Martway, Mission
Hosted by Jim & Beth Kasper

1ST TUESDAYS
Whiteboard Discussion with
JD Asbell
March 1st - 9 am
Crossroads Investment Lending
7759 Shawnee Mission Pkwy
Overland Park, KS
Hosted by JD Asbell

WIRE
Women in Real Estate.
Networking & Support
Join us at: February 23rd, 7pm
Panera Bread
10606 Shawnee Mission Pkwy
Shawnee Mission, KS
Hosted by Polly Jones

MEETING >

PAUL ROSSANO: WEALTHY CODE

Most investors know how to find
the deals, and many even know
how to find the funds to close the
deal, however, the majority of
investors do not structure their
deals properly and they leave
themselves vulnerable down the
road. You definitely dont want to
be that investor. So dont miss
this very important meeting.

Tuesday February 9th

6 pm to 9 pm
Holiday Inn - Top Floor
8787 Reeder Road, Overland Park
Pre-Register at www.MAREI.org
Follow up workshop Feb 20th &
21st.

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Maybe so

WORKSHOP

Wealthy
Code

Learn how to structure deals for Passive Income

like the Top 1% of Investors - the Bankers

But the fans love to watch the

Globetrotters great basketball skills.
The producers of the event make
money off of them. And the players
enjoy prestige, fame and really fat
paychecks every single day.
Doubt the quality of the Globetrotters
wins all you want. But there is a legit
team, with an equally impressive
winning percentage, in the financial
world. You can join it too! But first
youve got to know what teams you
want no part of.
The Financial League Lineup
There are three teams in the financial
league lineup. We all have the
opportunity to choose the team we are
on.
Team 1: Consumers. This team is the
one that buys products and services.
The cars, the houses, the latest
gadgets, the iPhone 86.2++ (blackboard
size), etc. Theyre the ones spending
the money.

LEARN
MORE
MAREI.org/
Wealth

Team 2: Producers. This team is the

one that makes the items that the
consumers buy. They are likewise the
ones that create jobs and hire
consumers to work for them.

AreyouontheWrongFinancialTeam
fromMPactWealth
PhtosfromGraphicStock.com

Imagine being on a pro sports

team that wins every game.
This is kind of like being on the
Harlem Globetrotters. Of their
22,000 games theyve only lost 345
times to the Washington Generals.
Thats a 98.5% win percentage.
Of course! You scoff. The
generals are supposed to lose.

10

MAREI.ORG

Maybe so
But the fans love to watch the
Globetrotters great basketball
skills. The producers of the event
make money off of them. And the
players enjoy prestige, fame and
really fat paychecks every single
day.
Doubt the quality of the

Team 3: Bankers. This is the team that

keeps the entire league going. They
finance the consumers, enabling them
to purchase their goods and services.
They finance the producers, enabling
them to produce those goods and
services.
The Banking Globetrotters
The banking team is the Harlem
Globetrotters of this league. They are
clearly the team with the greatest
chance of winning.
The consumers desperately need their
help to keep playing. Mortgage the

mansion? Finance the Ferrari?

Same with the producers. They
desperately need the bankers
help. Make the machines? Finance
the factories? Sell the stuff?
Give them credit the bankers are
the home team.
And whats more, the Banktrotters
are terrific passers. They use
borrowed money to lend to the
other teams, tie up the other guys
collateral, and shift the risk to the
borrowers. When the others cant
pay back, they get the collateral.
When the other teams pay back,
with interest, they get even more
money. And they use that money
to spin into even more profits.
But dont the Globetrotters lose
sometimes, too?
Sure. It happens as often as the
Washington Generals pick up a win.
Rarely, very rarely, those on the
banking side, come up on the
wrong end of a contest. Bankers
coming out on the losing end is so
rare, its barely considerable.
Yes, there is an occasional
foreclosure that doesnt resell, or a
bankruptcy where collateral cant
be fully recouped. But that sort of
thing is so rare as to be negligible.
Even the mortgage meltdown a
few years back wasnt enough to
dethrone 95% of the banks
involved.
As long as consumers need money
and producers need money, the
games go on and the Banktrotters
keep on winning. And that streak
will go on and on.
Lets go courtside
Just watch this action: Well see
you at the event.
The producers decide to make a

product that they believe the

consumers will love. They take a
loan of $100K with 10% interest
from the bankers to finance it.
The consumers love the product,
and buy it like crazy with their
credit cardsat a 13% credit card
interest rate.
The producers get their profits
from the consumer, and pay back
their 100K loan with 10% interest
to the bankers. The consumers
get their desired product, pay the
prices markup to the producers
and the interest for the credit to
the bankers.

35%

The banker takes that money

from both teams and lends again
to more producers and
consumers. This means more
money for the bankers.

off

Cant you just hear them whistling

Sweet Georgia Brown?
Theres always room for one
more on the winning team
Most people assume that you
need to be a Warren Buffet to join
the Banktrotters team. Or started
studying balance sheets from
your crib. Not so. You dont have
to be born into wealth or have a
lifetime of hedge fund managing
experience.
As a private lender, you can be on
the banking team. You dont have
to have a ton of money to get
money to work for you. You need
the will and the smarts to spot
your dollar bills, always sprinting,
and always earning more
slamdunks for you.
As long as consumers need the
bankers to finance their wants,
and the producers need the
bankers to finance their
production, the bankers always
win. And so will you.

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11

GOAL SETTING

Setting Goals
What every private lender ought to know about
setting income boosting goals.

Imagine strolling down the cobbled streets of Paris, a caf au lait in one
hand, a fresh chocolate croissant in the other. After losing yourself for
hours in the Monet exhibit at the Louvre, youre looking forward to
tonights performance of The Barber of Seville, followed by a decadent
five-star dinner then hopping a train to Madrid in the morning.
But wait, youre not actually in Paris
Youre sitting at your desk and giving the stink-eye to your friends
vacation pictures on Facebook, for not planning your own elaborate
getaway this year.
Theres a big difference between dreaming about the Great European
Vacation and actually preparing to take the Great European Vacation.
Theres research to do, plane tickets to buy, hotels to book. And you cant
go anywhere without a passport.
So how do you make it all happen? Goals.
Earning the passive, private lending income of your dreams isnt any
different than your magnificent trip. If you never set concrete goals for

12

MAREI.ORG

yourself youll be forever sitting on

the sidelines with nothing but a
pretty box of notions.
Whats the big difference between
a notion and a goal?
A notion is something you would love
to doit sounds good in theory, kind
of like starting a private lending
venture or learning to speak another
language. The benefits are all there.
But what happens when you have to
put some elbow grease into turning
that notion into cold hard cash.
In contrast, a powerful goal is the fire
in your belly that drives you to make
one more phone call, even when
your days been littered with not
interested. You want it so badly, you
can taste it. You can picture yourself
succeeding so clearly even a stroll
through fire wouldnt distract you.
You set a course and without any
excuses put your rear in gear. And
failure? The doors to all possible exits
on your path have been barred shut.
Goalsas opposed to notionsare
what separate those in love with the
idea of private lending, versus those
hustling to create a passive income.
So what do successful private lender
goals look like?
If youve never been to Paris, you
wouldnt just hop on a plane and go,
would you? Of course not. Youd talk
to friends and relatives whove been
there. Youd pour through
guidebooks and scour travel blogs to
scope out all the hidden gems of the
Western European countryside. Youd
also make darn sure you knew which
Parisian neighborhoods to steer clear
of.
Why wouldnt you want to do the
same thing when it comes to goal
planning for your private lending
business? Dont be afraid to ask for
help. Find a mentor. Join one of our

online communities. Theres an

avalanche of resources to help you
set, and crush, your passive
income goals.
Be realistic too.
A goal to backpack through Europe
for less than $50 in 24 hours isnt
an attainable goal. In the same
vein, you should avoid private
lending goals that are too vague:
Get more OPM or Find more
borrowers.
Thats why you want to get
S.M.A.R.T. about your goals
Being S.M.A.R.T means establishing
specific, measurable, achievable,
realistic, and time sensitive goals.
What kinds of tasks will help you
get more OPM? How many
borrowers can you realistically
hope to secure in your first year of
private lending? Studies have
shown that specific and ambitious
goals lead to a higher level of
professional performance.
You want a healthy mix of
marathon and sprint length goals.

A brain surgeon did not become

an expert on neurology overnight.
Little victories provide
encouragement and motivation
to press onward. Building your
private lending portfolio will
require energy and focus. Your
list of goals will help you
tenaciously keep on track.
But tenacity isnt one of my
strong suits
One of the things we teach at
Mpact Wealth, is that you dont
have to be a super salesman to
be successful. But you do have to
know why you want a passive
income badly enough to slog
through the muck of your fears
and doubts to get it.
Accountability does wonders for
making sure you build a future
you actually want to live in. Even if
tenacity isnt an issue for you,
finding a mentor or community of
other private lenders is highly
recommended. Together you can
applaud each others successes
and encourage one another when
thinking of tossing in the towel.

Learn to love setting and hitting

your goals, and success will show
up in spades
Unless you are content to spend life
in the passengers seat, watching all
the other private lending rock stars
whiz by in their new, snazzy
European sportscars, youve got to
stop dreaming and start planning.
And then you have to roll up your
sleeves and get to work. No ifs,
ands, or buts about it.
Simply making a list doesnt cut it
you have to put in the time and
energy to see these goals realized.
Dont be afraid to look to others in
your peer network for support and
encouragement, and always give
yourself grace when you fall. If your
goals are meaningful enough, you
wont stay down for long.
Article is from MPact Wealth, the
people who bring you the Wealthy
Code Workshop February 20th &
21st.
Photo is from GraphicStock.com

RE INVESTMENT NEWS

13

DIRECTORY

BOULEVARD CONSULTING

BUSINESS
ASSOCIATES
Find out more about each of these associates by visiting
their website.
Or go to MAREI.org and click on Business Directory.

A Turn Key Real Estate Experience

Nathan Brooks
www.BridgeEquity.com
913-695-8213

CONTINENTAL TITLE

A Full Service Title Company

David Green
www.AccurateTitleCo.com
913-338-0100

A Full Service TitleCompany

Sharon Bower
www.CTitle.com
913-338-3232

ALPHA TITLE

CROSSROADS INVESTMENT LENDING

Full Service Title Company

Patsy Archer
www.AlphaTitleLLC.net
913-498-8999

Investor Lending
Britton Asbell and BarakTschirhart
www.KCLend.com
913-766-2900

APIA

DISCOVER HVAC

Asset Protection Insurance Agency

Lindsay Griffin
www.APIAProtects.com
877-752-2742

Heating & Airconditioning

Complete System for $2785
www.DiscoverHVAC.net
816-500-2900

Luxury Waterfront Property Investment

Brad Reddick
www.AzureWaterfront.com
800-240-3606

BRIDGE MANAGEMENT

ACCURATE TITLE

AZURE WATERFRONT

14

A Foreclosure Solutions Group

Danny Hammond
www.Fighting-Foreclosure.com
816-985-4950

MAREI.ORG

DISCOVER HVAC
Heating & Airconditioning
Complete System for $2785
www.DiscoverHVAC.net
816-500-2900

DIRECTORY

HOME RENTAL SERVICES

MERCHANTS MORTGAGE

Kansas City Property Management

Sandy Fisher or Paul Branton
www.Home4Rent.com
913-469-6633

Real Estate Finance Company

Susan Aubin
www.MerchantsMtg.com
720-554-9480

INVESTORS CHOICE FUNDING

PRIDE PROPERTIES

The Flexible Funding Solution

L. Scott Ficinus
www.InvestorsChoiceFunding.com
816-668-7223

Real Estate Professionals

Marcus and Matt Bray
www.PrideProperties.com
913-213-5370

JAMIESON HOME TEAM

REAL E FLOW

Realtor & Property Management

Kevin Jamieson
www.KevinJamieson.ReeceNichols.com
913-384-8331

Contact Management, Investor

Websites, Deal Flow, Marketing, Leads
FREE Trial & Discounted Fees
www.MAREI.org/RealeFlow

KC INVEST

REAL PROTECT

Investment Property Seller

Kim Tucker
www.KCInvest.com
913-735-0018

Insurance for Investors

Brought to you by National REIA
www.RealProtect.com
1-800-579-0652

KCMO HOME BUYER

REALTY RESOURCE

Property Buyer
Don Tucker
www.kcmoHomeBuyer.com
816-200-2198

Real Estate Brokerage

Scott Tucker
www.RealtyResourceKC.com
816-406-0701

LONGHORN III INVESTMENTS

Private Lending Partner
Lawrence Hopkins
www.LonghornInvestments.com
214-420-7329

RE INVESTMENT NEWS

15

SpecialAnnouncement:
KansasCityMetroOnly
MAREIMember20%Discount
onPainthasbeen
discontinued.
Howeverthereisaupto5%
CashBackQuarterlycoming
thatisontopofthe2%MAREI
memberswhoareregistered
alreadyreceive.
DetailsatMAREI.org/HD5%