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Monthly Newsletter for KREIA Members

Vol 16-05 May 2015

President’s Letter page 1 Welcome New Members! page 5 7:00pm MAIN MEETING: Develop Louisville-Jeana Dunlap Page 3 Elections Update! Page 9 L.O.T.S. Program Page 5 MEMBER SPOTLIGHT page 7 Online Mentor Program page 4 Saturday Seminar EARLY BIRD BONUSES! RON LEGRAND is coming to KREIA! page 5

President’s message: KREIA would like to welcome this month’s speaker Jeana Dunlap with Develop Louisville. She will be touching base on Vacant and Public Property around the Louisville area and how we can obtain and work with the city on purchasing these Vacant and Public Property.

Dennis Erhard

Fun Facts: Did you know that there is more than 5000 boarded up houses in the Louisville area, and did you know the city’s budget for mowing is over 1 million dollars. Jeana will teach us on how we can obtain these properties. WOW what a great turn out for last month’s meeting with Mr. Landlord Jeffrey Taylor. He always has a lot of great information to share. If you missed last month’s meeting you missed a good one. Last month’s LOTS program was a great success. 55 People turned out to the LOTS meeting. If we keep having turn outs like this we are going to start selling parking passes for everyone. Elections! Elections! Elections! KREIA wants you! It’s your last chance to nominate somebody. Nominations close at end of this month's meeting. Don't miss the deadline. Your President, Dennis Erhard Quote of Month: “The First step towards success is taken when you refused to be a captive of the environment in which you first find yourself” Mark Caine

Copyright MMXV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.com DISCLAIMER: KREIA does NOT pre-qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The Kentuckiana Real Estate Investors Association recommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIA is a Member of National Real Estate Investors Association.

KREIA Newsletter

President Dennis Erhard

Vice President Frank Miller

Secretary Treasurer Treasurer Elect Davie Coffey Mike Grinnan CPA Wally Kallbreir

Board of Directors

Mike Butler

Tamara West

George Foree

Duffy Ford

Eric George

Dan Jones

Erik Jamie Greenwell Hitzelberger

Fred Helm

Rue McFarland

Fred Butler

Demetrius Dowdle

published monthly and serves both as a newsletter and a reminder notice of your upcoming monthly meeting. KREIA is a member only association focused on education, networking, and resources for today’s investor and to educate real estate investors from the basics to the complex. We are an excellent choice for all levels of investors. Whether you are just starting out in real estate investing, or are working on your hundredth deal, KREIA can help you learn more, earn more, and have more fun doing it. To Subscribe to the KREIA Newsletter is simple and easy. Go to KREIA.com and join the Kentuckiana Real Estate Investors Association. Group Discounts are available. To Advertise in the KREIA Newsletter To Advertise on KREIA.com To Sponsor A Monthly Meeting To Sponsor A LOTS Program Please contact News@KREIA.com

KREIA Sponsorships Half Page Business Membership Ad + Table + Pre-Meeting Speaker Only $499

Business Card Membership: Ad

Only $199

Parliamentarian Hank Schildknecht

Past President Connie Horsey

Your KREIA Leaders are involved and chair several committees to make KREIA happen every month for you and your fellow KREIA Members. Get involved with KREIA. You can help with the monthly meetings, L.O.T.S. Program, this newsletter, Saturday Workshops, Government Affairs, Social, Annual Picnic, Marketing, the new KREIA website and more PLUS You Get EXTRA KREIA Points for everything you do! Get phone and emails of all KREIA members with the new KREIA Online Member Directory.

Event Sponsor: Meeting, LOTS, Saturday Seminars, and more! ----------------------------------------------------Place Your Ad Now at KREIA.com --------------------------------------------”KREIA Advertising is by far, hands down, the absolute best advertising dollar ever spent for Borders & Borders!”

Harry Borders, B&B Attorneys

Reach out and tell them they are doing a great job! (It makes them do more for KREIA!) Copyright MMXV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.com DISCLAIMER: KREIA does NOT pre-qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The Kentuckiana Real Estate Investors Association recommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIA is a Member of National Real Estate Investors Association.

Featured Speaker Jeana Dunlap – Develop LouisvilleVacant & abandoned property around Louisville and how we can help work with the City to purchase them. Develop Louisville (the city’s newly formed real estate development arm of Louisville Forward), has a new pricing policy for hundreds of properties that citizens can buy from the city. This pricing policy is meant to make purchasing a property from the city more transparent and predictable, while also encouraging redevelopment of these vacant properties.. “While the vast majority of vacant properties are in private ownership, the city does manage several hundred properties that are available for immediate sale,” said Jim Mims, Director of Develop Louisville. “These properties were often donated to the city or acquired through foreclosure action, and through our Landbank Authority we are able to clean title and ready the property for purchase.” Properties are priced according to their size and end use. Vacant lots that are purchased by the next door neighbor to be used as a side yard can be had for as little as $1 and up to $125 for properties greater than 2,500 square feet. For all other uses, vacant lots can be purchased for $250 for properties smaller than 2,500 SF; $500 for properties sized between 2,500 – 5,000 SF; or $1,000 for properties larger than 5,000 SF. The Office of Vacant and Public Property Administration also has a limited number of buildings that are available for sale. These properties can be purchased for the value of the land, as determined by the Jefferson County Property Valuation Administrator. As an added benefit, the Office of Vacant Property and Public Property Administration has partnered with the Office of Planning and Design to waive certain application fees for properties that were purchased from the VPA. This fee waiver applies to Planning and Design services such as development plan review, zoning changes, street closures, variances and waivers for up to 12 months after the property sale date. “These structures are priced to reflect the fact that they, in most instances, require significant rehabilitation to bring them up to code,” said Jeana Dunlap, Assistant Director for the Vacant and Public

Property Administration. “In addition, many of these vacant lots have been in our inventory for several years, and we are eager to see them repurposed in a way that adds value to the community.” “Our hope is that these fee waivers eliminate what could be a cost burden to families, community groups and small business owners,” said Emily Liu, Director of Planning and Design Services. The VPA staff has been working in collaboration with the Mayor’s Innovation Delivery Team to focus on the issue of blight and vacancy in the community. By streamlining the process to purchase property, the VPA was able to sell four times the number of properties in 2013 as it had in 2011. “We’d love to keep the momentum going and see the number double in the years ahead,” Dunlap said. Earlier this year, the team launched a competition to redevelop vacant properties. The competition was meant to harness the community’s energy and highlight the potential of publicly held real estate; and offered up to $15,000 in private funds to bring the most innovative ideas to fruition. The four winning projects are currently being implemented, and include a garden for dye plants that will support ecologically sound textile production, a community park for mindfulness and meditation, a new collaboration between Parkland Scholar House and Habitat for Humanity of Metro Louisville and several sites that are being used to test low-mow plantings for the city’s vacant lots. Those interested in purchasing a property are encouraged to visit the Vacant and Public Property Administration website to view a list of available properties and download the application form: http://louisvilleky.gov/government/vacant-publicproperty-administration/purchase-property-metro The Office of Vacant and Public Property Administration has worked with tech start-up Opportunity Space to create an up-to-date interactive map that makes it easy for potential purchasers to search and view the available inventory. Visit: http://www.opportunityspace.orgto see where these property assets are located.

Welcome New KREIA Members! Michael Horstman

Jay Bowman

Christopher Parks

Kim Kramer

Steven Murphy

Joseph Sims

Bryan Van Houten

12 sessions Full Access for 90 Days! Member Discount SAVE $300

MARK YOUR CALENDAR NOW! Saturday Workshop June 13th

Doors Open 8:30am - 4:30pm at WILDWOOD Country Club, 5000 Bardstown Rd. 40291

Ron Legrand is coming to KREIA! Ron is one of America’s Leading Trainers on investing in real estate. Take a look at your fellow KREIA members who have invested in Ron’s training, boot camps, and home study courses.  Mark Lechner Chris Dischinger  Jay Long Mike Butler  David Thomas Dave Coffey  Duffy Ford George Foree  Chris McCarty Dennis Erhard  Jamie Greenwell Cliff Hayden  Brian Haeseley Rod Owens… and many more! Early Bird Registration Discount expires midnight May 31st

KREIA Members

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Non-Members

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If There Are Any Seats Available After May 31st – Registration is $149 and $199

BONUS from Ron!

first 50 Early Bird Registrations will get Extra BONUS!

You Can Register Online

KREIA.com

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From: Gordon Brown Home of the Innocents To: Rue McFarland KREIA Rue, Alan Johnson’s father

Submit Yours at KREIA.com

Rachel Richards City You Grew Up In Cary, NC High School Attended North Oldham High School College Centre College Current or Previous Profession(s): Sales Rep, CUTCO Cutlery, Financial Advisor, Hilliard Lyons, Au Pair, Italy Hobbies, Passions, and Fun Skiing, skydiving, eating cheeseburgers, piano, economics, investments, stock market, Italian language, traveling, golfing (or trying to golf), volunteering at Habitat for Humanity KREIA Member since February 2015 Referred By Alex Parker Why Did You Join KREIA? Once I became a full-time real estate investor, I wanted to learn from others who were more experienced. Why Are You a KREIA Member? Being a KREIA member means I get to network and meet the top investors in Louisville, plus I get to learn tons of information at the monthly meetings. My favorite program is LOTS! Year You Began Investing 2015 # Properties/Units You Own 5 Your Real Estate Investing Preferences Rentals, wholesale, and flip (a little of everything.) Mainly single family homes, but hoping to expand my horizons soon! What Lessons Have You Learned? Don't buy a property that's really far away! Your TOP 3 TIPS for Investors 1. One word... WINTERIZE 2. Act with integrity. People can sense it and will work with you over someone else if they know you are a good person. 3. Never stop learning E-mail rachel@LSTProperties.com Cell Phone (502) 2353235 Company Name LST Properties Copyright MMXV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.com DISCLAIMER: KREIA does NOT pre-qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The Kentuckiana Real Estate Investors Association recommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIA is a Member of National Real Estate Investors Association.

Copyright MMXIV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.com DISCLAIMER: KREIA does NOT pre-qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The Kentuckiana Real Estate Investors Association recommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIA is a Member of National Real Estate Investors Association.

KREIA ELECTIONS GET INVOLVED! Your President has selected this year’s nomination and election committee, and we would like to inform you of KREIA’s election procedure, which is as follows. KREIA is run by a Board of Directors consisting of five officers, twelve at-large Board members, the immediate past president, and the parliamentarian. The five officers, President, Vice President, Secretary, Treasurer and TreasurerElect- are filled each year for one-year terms. The twelve at-large Board members are elected for two-year terms, with six new members being elected each year. There are no term limits, and all incumbents may run for re-election if they so desire. Nominations will be taken from the floor at the April and May meetings for the five officer and six at-large Board positions. As in previous years, nominations will be closed after the May meeting. The election will be held at the June regular meeting, and those elected will take office in July. If you would like to nominate someone to serve, or would like to run yourself, please contact me or be prepared to make a nomination from the floor at the April or May meeting. Only serious applicants need apply. The Board sponsors many activities on an ongoing basis, and it is the diligent effort of all the Board members that bring these programs to life. The Board runs primarily through the committee system. Most Board members serve on more than one committee, and many chair a committee. It is simply not possible for someone to serve on the Board without being an active participant. If you have any questions about the governing process of KREIA, please feel free to give me a call. Hank Schildknecht Chairman of the Election Committee (502) 893-4494 hankatty@gmail.com Copyright MMXV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.com DISCLAIMER: KREIA does NOT pre-qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The Kentuckiana Real Estate Investors Association recommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIA is a Member of National Real Estate Investors Association.

Government Affairs Update

by Rue McFarland

May 8th, 2015 1. Two Louisville Metro Councilmen will introduce an ordinance today that eliminates the 50% rule from the 2006 LM Flood Ordinance. They want to repeal a provision in the 2006 flood ordinance that forbids homeowners from fixing their waterlogged houses if improvement costs exceed half of the home's value over a rolling ten year period. The goal of repealing this provision is to allow for quicker repair of the flood damaged properties. Additionally, the Mayor and Metro Council President David Tandy have appointed a work group to deal with this issue. The first meeting of the workgroup will be today, Monday May 11th at 1:30 in the Mayor’ large conference room. GLAR will be represented at that meeting.

But relaxing the rebuilding threshold in the flood ordinance could result in negative consequences. The council passed the amendment nine years ago, fearing FEMA would require higher insurance premiums for the city. MSD officials told The Courier-Journal the rules and other flood-prevention efforts have reduced subsidized flood insurance rates by 30 percent and saved residents $1.2 million each year.

Please review the following excerpt from the Courier Journal regarding this issue: The proposal is being drafted by Councilmen Steve Magre, D10th, and James Peden, R-23rd, to provide immediate help for residents who were hit by early April storms that dumped eight inches on some parts of the city and damaged many homes in flood prone areas. "I think rescinding the part of that law which is causing frustration and finger pointing is the best course of action to get people back in their homes," Magre said in a news release Thursday. "Once we get people back in their homes, the new work group can then figure out what is the best way to resolve this situation.“ Under the provision, if the total costs of flood repairs to a home exceed 50 percent of its market value over a 10-year period, the Metropolitan Sewer District is required to deny a homeowner's reconstruction permit, unless the homeowner raises the lower level of the residence at least a foot above the flood zone. The amendment's original intent was to discourage repeated claims for federally subsidized flood insurance and the rebuilding of homes within federally approved floodplains. Council members at the time also wanted to encourage those living in flood-prone areas to relocate.

"Because of the ordinance Public Works and the folks who issue permits are not distinguishing between houses that are regularly flooding that are probably eligible for a buyout and some that just happened because we had two significant rain events in the last 18 months who aren't even in the (buyout) program," he said. "I just want to straighten those things out, so I'm hoping for some discussion from the mayor's office will get involved. Some of these folks need immediate relief so they're not sitting around on moldy furniture with moldy walls."Magre and Peden have asked the Jefferson County Attorney's Office to review and draft the ordinance, and they plan to file it by early next week.

Several homeowners complained about the lack of notifications or disclosures about the little-known provision by previous owners or the city, however. Mayor Greg Fischer moved to create a special work group this month that will address short-term goals surrounding the MSD permits and tackle long-term solutions to mitigate damage to the approximately 12,500 homes in Jefferson County located in flood zones. The task force members are: Tonya Sangester, executive administrator of the Louisville Metro Emergency Management Agency; Jim McKinney, all hazards mitigation coordinator; Jim Mims, director of Develop Louisville; Councilman Dan Johnson, D-21s District; Councilwoman Madonna Flood, D-24th District; and Councilwoman Angela Leet, R-7th District. MSD participants are board members John Phelps and Joyce Mott, and executive director Greg Heitzman and chief engineer Angela Akridge.

Peden said he is aware of the potential hike in overall insurance costs if the amendment is altered but argues residents who have awaited an MSD buyout program for years shouldn't be "the sacrificial lambs" of a mandate forbidding reconstruction.

Residents of Jefferson and nine other Kentucky counties who suffered damage from the severe storms, tornadoes, flooding, landslides and mudslides of April 2 through April 17 may be eligible for federal disaster assistance. The Federal Emergency Manage-ment Agency and Kentucky Emergency Management have announced help is available to affected individuals in Bath, Bour-bon, Carter, Elliott, Franklin, Jefferson, Lawrence, Madison, Rowan and Scott counties. Individuals and business owners who sustained losses in those designated counties need to begin applying for assistance by registering online at www.DisasterAssistance.gov or by calling 1-800-621-3362. There is also a webenabled mobile device at m.fema.gov. Assistance can include grants for temporary housing and home repairs, low-cost loans to cover uninsured property losses, and other programs to help individuals and business owners recover from the effects of the disaster. FEMA encourages applicants to collect information ahead of time to speed the process: Social Security number; telephone number; address of the damaged property; current address; brief description of disaster-related damages and losses; insurance information; and bank account information. Thanks in advance, Rue McFarland email: ruemac@bellsouth.net cell: 502-552-6672

craig@thirdgenerationcontracting.com

The Rawn Law Firm Focuses On Landlord Tenant Law And Real Estate Law, In Kentucky And Southern Indiana. The Rawn Law Firm was founded on April 1, 2011 by attorney Michelle R. Rawn, who is licensed to practice law in Kentucky, Indiana, and Ohio. Michelle has over 12 years' experience in the real estate industry representing real estate investors in both real estate matters and landlord tenant cases.

Michelle Rawn

9302 LaGrange Rd. Suites E & F, Louisville, KY 40242 502-639-9396 Michelle@RawnLawFirm.com

visit http://

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on Your Properties using this FREE Poster! By Mike Butler

scammers. Unbelievable. The scams continue.

Odds are, if you are in the residential rental property Even as a retired Louisville Police detective, I have world, you have heard or know an investor who has been been scammed on several of my rentals. Let me share scammed by one of the internet dirt-bags. with you how it works. This is nothing new. Remember the online scam where the victim is sent an email from who knows where, reporting they have won or inherited a billion dollars? But in order to claim it, the victim must pay for the processing fees and government stamps, etc.

The scammer surfs the internet for houses for rent. They find an unlimited supply of homes for rent on various websites from VistaKY.com, TenantFinderService.com, RentalHouses.com, Zillow.com and many more.

You and I both say “there’s no way anyone with any sense would fall for this.” But Guess What? It is still happening every day with normal folks. These scammers would NOT be doing this if it did not work.

They find your rental house to target. The address is 123 Main St., Louisville, Ky 40207. It’s a 3 bedroom, 2 bath home with finished basement and 2 car attached garage. The rent for this home is $1200. Here is what usually happens in this rental property scam. ----------------- continued on page 15

Here is how I know it is still happening and the scammers are still getting money from victims. My banker told me just a few weeks ago, he gets one or two customers a week who want to wire money to these

Viral Property Consultants Andee Gerton 502-277-2457 viralpropertyconsultants@gmail.com

The Property Medic LLC Jeff Colgate 502-645-4375 jc4propertymedic@gmail.com

Blue Fish Properties Brock Halstead 502-386-4908 brockhals@gmail.com

Continued from page 14 STEP 1: After finding your target property, they download your all of your photos and details about this property from the online source they viewed. Think about this for a moment. The scammer has everything you have entered on the internet for the public to view. PLUS, most of the time they can use Google Maps to drive down the street, see what is on the corner (Walgreen’s, McD’s, etc) and the scammer can describe your rental and the neighborhood in great detail.

Your simple solution is shown below. Get some bright neon yellow paper and print. Place 2 or 3 inside of the front windows of your vacant rental and I promise, this will definitely get the attention of your prospective applicants.

Get Your FREE Poster Now! http://askmikebutler.com/internetscam To Your Continued $uccess,

STEP 2: The scammer enters ALL of the information Mike Butler on your rental by “Stealing and Pasting” into a CraigsList.com Ad or any other website allowing investors to enter rental properties for free. The scammer lists the rent for your home at $899 which is a bargain for your rental home. STEP 3: The Scammer’s ad will always have some kind of B.S. story about them being an “Out of Town Owner.” Sometimes they request a deposit up front and they will give them the key to see the home after receiving their money. They also inform the interested potential tenant that they have hired a local company to help get it rented and you might see their sign in the yard. Scammer tells them he is not satisfied with their service and he just decided to rent it himself or herself. STEP 4: Unfortunately, many times the applicants actually send money to the scammers and wait for the key to the house. After receiving no response, these folks then call the number on the yard sign and complain to the real owner (YOU) they want their money back. Don’t laugh, this is true. You are totally blind-sided when you get this call. You are furious, ticked off, and want to find out exactly what is going on with your rental. Your jaw drops and you want to do something, take action now to stop it now. What Can You Really Do? Think about it. Can you call the police? OK, what will the police do after hearing your story. First of all, you are NOT the victim. Your potential applicants are the victim. Who is going to pay for this? Who will get locked up and go to jail? Good Luck! So what is a poor investor to do? Here is your Best Tool To Prevent Your Leads from Being Scammed

The Logsdon Group Shaun Logsdon 502-657-9534 shaun@thelogsdongroup.com

It is pretty simple and easy. Copyright MMXV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.com DISCLAIMER: KREIA does NOT pre-qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The Kentuckiana Real Estate Investors Association recommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIA is a Member of National Real Estate Investors Association.

PO Box 91225 Louisville, KY 40291 Return Service Requested

.com

KREIA’s Monthly Meeting! Thursday

May 28th, 2015

5:30 EARLY MEETING - "Fix Your Credit! Fix Your Life!“ with Julia King of King Financial Repair

MAIN MEETING 7:00pm MAIN MEETING:

“Develop Louisville” - Jeana Dunlap

Vacant & abandoned property around Louisville and how we can help work with the City to purchase them.

to Qualify for Big Door Prize Drawing!