15 08 august kreia newsletter by KREIA .com

Vol 08-15 August 2015

President’s Letter page 1 7 p.m. MAIN MEETING: Shark Tank for Real Estate! Bring your real-life deals to KREIA and pitch them to the local real estate "Sharks" to get valuable feedback and potentially make a sale! Page 3 L.O.T.S. Program Page 4 Online Mentor Program page 4 Welcome, New Members! page 4 Member Spotlight page 6 Up for Bid page 8 Government Affairs Update Page 10 Finding Motivated Sellers: Luck or Hard Work? Page 12

Monthly Newsletter for KREIA Members

President’s Letter To All Fellow KREIA Members: I would like to start off saying thanks for voting and allowing me to be your KREIA president! It is an honor to represent a group of this nature, and I just hope during my time in office I can follow in the great footsteps of all the past presidents Frank Miller and serve you, our fellow members of this organization If there are any concerns or suggestions with KREIA in general, please do not hesitate to contact me at: FrankMiller706@gmail.com What a great meeting we had last month with the experts panel. Eric George did a great job interviewing the panel and distributing questions among many topics, which were gathered amongst all the members that attended. This month is going to be another excellent meeting with the presentation of “Shark Tank.” This is going to get everyone going in the real estate business, young or old, beginner or seasoned, as this will unveil many deals that are out there, or even give you suggestions on how to go about finalizing your deals. Make sure you get there early for the main meeting as seats will fill fast. Also the early meeting we will have Tamara speaking about member benefits and all the new changes and discounts and perks out there for being a member of KREIA. So we look forward to seeing everyone join us, and I am really excited to be your president and to educate and teach everyone about today’s hot topics of real estate. Sincerely, Your President, Frank Miller

Free Online Classes Page 13 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, qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. perso The Kentuckiana Real Estate Investors Association recommends you perform your own due diligence & seek appropriate legal, accounting, or other professional pro advice before making any investment. KREIA is a Member of National Real Estate Investors Association.

Your KREIA Leaders

President Frank Miller

Vice President Eric George

Secretary Treasurer Treasurer Elect Davie Coffey Mike Grinnan CPA Wally Kallbreir

Board of Directors

Mike Butler

Tamara West

George Foree

Marcus Anderson

Rue

Jamie

Erik

Fred Helm

Stephanie Gomez

McFarland Greenwell Hitzelberger

Dan Jones

Fred Butler

Melvin Weathers

KREIA Newsletter published monthly and serves both as a newsletter and a reminder notice of your upcoming monthly meeting. KREIA is a members-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

Event Sponsor: Meeting, LOTS, Parliamentarian Hank Schildknecht

Past President Dennis Erhard

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.

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 509 www.KREIA.com DISCLAIMER: KREIA does NOT pre-qualify, qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. perso The Kentuckiana Real Estate Investors Association recommends you perform your own due diligence & seek appropriate legal, accounting, or other othe professional advice before making any investment. KREIA is a Member of National Real Estate Investors Association.

Come out and watch our sharks analyze real KREIA member investor deals! Submit your real-life real deals to KREIA and pitch them to the local real estate "Sharks" to get valuable feedback and potentially sell your deal to them! Meet our Sharks!!! _____________________________________________________ Frank Miller–Realtor/Investor Realtor/Investor at Real Estate 3000. Frank is KREIA’s newly elected president. Frank is very active in all forms of real estate Investing.. Very experienced with a heart of a teacher. Eric Hitzelberger– Full time engineer with G.E. and he designs refrigerators for them. He has been investing in real estate part time for almost 10 years now and manages over a dozen rental properties, in addition to buying and flipping. He is active on the Bigger Pockets network and helps mentor new investors at KREIA at beyond. Jay Bowman– Jay Bowman is an investor and real estate broker with 60 Day Realty, which is a self-service self flat-fee real estate agency based in Louisville. Jay owns several rental properties around town, flips houses for retail sales, as well as wholesales properties to other investors. Jay has been an active investor for about 10 years as well. Tamara West– KREIA board member, Realtor with Keller Williams and active real estate investor in the area with many deals under her belt. Tamara has an unquenchable dedication to learning and tireless enthusiasm. Moderated by Eric George-KREIA vice president > SUBMIT YOUR DEAL TO THE SHARKS!! SHARKS GO TO goo.gl/eQwhDt <

Welcome, New KREIA Members! Zac Banta

Alexa Beilman

Tiffany Hibbs

Sherman Biddix

Yoshie Dickerson

Nigel Irvine

Derrick Little

Michael Wimberg

Dale Kenton

Nicole Jackson

Karen Peterson

Rob Roeding

Lorana Marting

Simone Mancuso

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

LOTS Address will be emailed to Active Members AFTER Meeting

Copyright MMXV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 509 www.KREIA.com DISCLAIMER: KREIA does NOT pre-qualify, qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. perso 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.

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

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

Julie Bex City You Grew Up In Riverside Iowa High School Attended Highland High School College Attended Clarke University, Dubuque, IA Current or Previous Profession(s): Office manager for Harold Helm Share More About You I have been in the auction business for 15 years. The first 10 years I was Harold Helm's office manager and when he retired I became a Principal Auctioneer and Realtor and purchased Harold's auction company in 2011. KREIA Member since 2014 Referred By N/A Why Did You Join KREIA? Exposure to Investors and Realtors Why Are You a KREIA Member? Opportunity to create relationships within the real estate profession. Hobbies, Passions, and Fun - Sand Volleyball, Green Bay Packers, Chicago Cubs, and Auctions What Do You Like About KREIA? Meeting and education louisvilleauction@gmail.com E-mail Cell Phone (502) 802-5132 Company Name Auction Professionals of Kentucky, LLC -----------------------------------------------------------------------------------------

Visit KREIA.com to view More Member Spotlights

Michael Horstman Doug Durbin Wally Kallbreier Julie Bex Chuck Burke John Hines

Julia King Fred Helm Jethro Klampit Ellie Mae Klampit Dan Jones Dennis Erhard

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

NEXT UP ON THE AUCTION BLOCK… LOTS AND LOTS OF HOUSES (and a few lots) Need a break from scouting out motivated sellers? Try some recreational bidding. We’re not talking eBay Beanie Babies here. We’re talking doors, floors and windows … and maybe a whiff of mold. There’s real estate in them thar auction sites. And you never know – you might just end up with a new house to play with. Here’s a quick look at three auction sites where you can bid on properties, from the minorly distressed to the major fixers. HudHomestore.com – This is where FHA homes go after foreclosure. But don’t get too excited when you see the inventory: Owner-occupants, darn them, get first dibs on the fresh meat. To see what filters through to investors after the waiting period, be sure to tick “Investor” in the search box. And try not to cry when you see what your money would get you in Kansas or Michigan. You’ll need to befriend a HUDapproved real estate agent to do your actual bidding.

Auction.com – You can do your own bidding here. And you’ll probably do your own head-scratching too as you watch properties zoom up to 2 and 3 times their earlier prices in the last few minutes … only to turn up as “new listings” again a few days later. That’s truly a puzzler. Hubzu.com – Here’s another place where bank-owned properties go to tempt investors. And as with the homes on Auction.com, quite a few of the houses here come with actual people living inside. What a bonus! There are many other sites where you can indulge in auction fever, but we’ve run out of space. So if you’re on the Facebook KREIA group (and if you’re not, why aren’t you?), we invite you to chime in with sites you’ve tried. Compiled by Lauren Willoughby

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

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

Government Affairs Update Greater Louisville Association of REALTORS Government Affairs Update August 14, 2015 Louisville Metro Government As mentioned in several updates in the past, the Louisville Metro Council has continued to hold Ad Hoc Land Development Code Committee meetings on the proposed changes to the Land Development Code that GLAR was a part of over the past two years. The Ad Hoc Land Development Code Committee chaired by James Peden held its last committee on the subject on Monday July 27th at 3 PM at City Hall. The purpose of this past meeting was to discuss the Affordable Housing sections of the proposed changes. The Ad Hoc Committee on LDC will meet today and the Mixed Residential Development Incentive will be the main topic of discussion. This is the amendment recommended by the Subcommittee and Main Committee, which promotes and encourages residential developments that include a mixture of housing types (single & multi-family) and a mixture of price points. It would allow multi-family residential development to occur in certain single-family residential zoning districts without requiring a zoning change. A density bonus is also offered in exchange for a commitment to provide multifamily units and affordable units. The meeting was held at Metro Council chambers on August 10th. The committee decided to table the discussion for another two weeks. GLAR was represented at the meeting.

LOTS Program, June 2, 2015 315 “M” St 40208 Host: Eric George / Erik Hitzelberger

Host Eric George Alex Crume Keith Crume

Rue McFarland email: ruemac@bellsouth.net cell: 502-552-6672

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

Jason Hanson 502-648 648-6117 Jasonhanson1981@gmail.com

Craig Jennings Third Generation Contracting 502-822 822-6261 craig@thirdgenerationcontracting.com

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

Finding Motivated Sellers: Luck or Hard Work? by Scott Rister Did you just hear about the investor in your local RE club that closed on a deal netting them $15,000 and they didn't even have to lay a hand on the property? Or what about the person that just bought that rental house on the same block for 30-50% 50% less that what you paid for yours? Are you at the point of scratching your head and thinking they're just lucky? Or probably that's all they do and just don't have a life outside of real estate....right? Somewhere in between total luck and absolute sell-out out hours chasing deals is where you should be in finding truly motivated sellers, or rather having them finding you. It's a weird coincidence that the smarter I work, the luckier I get finding great deals. Did you catch that? It's not always about how many hours you put into real estate and how hard you work at your marketing program that produces the best results which is finding great deals that puts money in your pocket and that's what real estate investing is all about Let me share with you some simple principles in marketing for the independent real estate investor. You may already be in tune with some of these, but let's all take a pulse-check pulse here and make sure we're on the right track. 1) What Are You Hunting? I'm asking what types of properties and real estate opportunities are you seeking? The more narrow your focus and marketing efforts can become to a target group, the greater success you will experience. If you are seeking wholesale opportunities, then you will not gain very much success putting out "I Buy House/Lease Option" bandit signs next to established neighborhoods. In addition, you will not gain a favorable response direct mailing to preforeclosure prospects if the primary weapon in your arsenal is cash-only cash deals with hard money lenders that don't go above 70% LTV. The marketing medium you use and the message you accompany with it that hits the right target market turns sellers into motivated sellers. There simply is no generic marketing message and medium that is a "one-size-fits"one all" approach in real estate. 2) Just How Much Money Can You Spend? Now, we're talking about something that hits home real fast when it's about coming out of pocket with hardhard earned money in the "hope" that it will come back to you in the form of truly motivated sellers. If you're first starting out in real estate investing then it's imperative that you have a short-term short budget to work within so that you're not forgetting about paying for all the other necessities in life: food, shelter clothing! You simply DO NOT have to have a large marketing budget to be effective to grow your RE business. One §.34 postcard netted me §8,400, 8,400, so it's all about hitting your target market as explained in #1. However, be realistic about what monetary constraints you have and how to incrementally build your marketing program as you experience more and more success. 3) Track Your Results! Oh, we miss the boat on this one so much. When you are incorporating bandit signs, direct mail, flyer campaigns, etc... it can start to get confusing where and if your success rate justifies the marketing mediums you are using. Tracking your responses and closures of deals is necessary so that you can identify areas that need to be tweaked or worked on. Most importantly though when you find out that great mailing list is really working or the flyers in a particular neighborhood is getting tremendous feedback....then go in for the kill! I mean when you are measuring success and can track it effectively it allows you in full financial confidence to justify increase in marketing expenditures for areas that are producing the results desired. My hope is for you to realize that marketing to the real estate investor is the lifeblood of his/her business. Great deals rarely come knock on your door to find you. They find you when you have a marketing system implemented that is like a funnel prescreening sellers for motivation and directs them to then contact you immediately.

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

Learn online with Lynda Take classes online for free, courtesy of the library When you “take Want to bone up on Excel? Could you use a gentle a class,” you watch introduction to QuickBooks? Need some tips on social a series of short media marketing? videos in your Or maybe you wish somebody would explain how to browser window. use SEO techniques to improve your “I Buy Houses” Along with the page ranking on Google. video player you’ll If you’ve got a library card, you can take classes on all see a list of the video segments that make up the these things — online and for free — at Lynda.com. course. The list is labeled like a table of contents, which Taking classes at Lynda normally costs $25 per month makes it easy to jump back to topics you want to review. and up, but the Louisville Free Public Library has And you can take a course as many times as you like. partnered with Lynda to give you access to the full So you want to learn Excel? You’ll find introductory catalog. That’s more than 3,500 courses. classes for all the modern flavors of Microsoft’s You get step-by-step lessons on how to use just spreadsheet — and versions as old as Excel 2003. about every piece of software you’ve ever thought But Lynda.com is not just for newbies. The 99 courses about trying. Plus, you’ll find guidance on various that touch on Excel, for example, cover the gamut from business topics, along with hands-on tips for your beginner to pro. If you want to explore advanced creative pursuits — such as getting the most out of your functions, there are classes just for that. DSLR camera. Continued on page 14

By Lauren Willoughby

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

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

Continued from page 13

Lynda’s classes are taught by instructors who are noted experts in their field. Many of the Excel courses are led by Curtis Frye, the guy Microsoft Press calls on to write the books in its “Excel Step-by-Step” series. Dayna Rothman, who teaches a course on marketing via blogs, is a content strategist who also penned “Lead Generation for Dummies.” So what else does Lynda.com offer that might interest real-estate investors? Check out these courses:

• WordPress Essential Training with Morten RandHendriksen — A web designer shows how to create feature-rich blogs and websites. • SketchUp for Interior Design with Ed Cotey — An interior designer walks us through turning 2D kitchen floor plans into polished 3D models. • Email Marketing Basics with John Arnold — A marketer explains how to build a customer email list. • Revit Construction Modeling Tools with Paul F. Aubin — An architectural consultant shows contractors and designers how to tinker with Revit models. • Writing Press Releases with Lorrie Thomas Ross — A marketing adviser shows how to craft compelling copy. • Solving Common Project Problems with Chris Croft — A project management trainer offers techniques for fixing project woes.

• Architectural Photography: Interiors with Richard Klein — A photographer shows how to stage furniture and shoot photos that may help more quickly sell a home. • Facebook for Business with Brad Batesole — A consultant explains how to build a community and generate targeted ads on the popular social network. • Finance Fundamentals with Jim Stice and Kay Stice — Brigham Young University professors (and brothers) show how to read financial statements and analyze risk and return. And that’s just scratching the surface. To sample the Lynda.com offerings for yourself, head over to http://lynda.com To find out how to sign up for full access for free, visit this page at the Louisville Free Public Library’s website: http://www.lfpl.org/lynda/ And all that stuff you don’t know that you don’t know? You’re probably on the verge of knowing some of it. Copyright MMXV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 509 www.KREIA.com DISCLAIMER: KREIA does NOT pre-qualify, qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. perso The Kentuckiana Real Estate Investors Association recommends you perform your own due diligence & seek appropriate legal, accounting, or other othe 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

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KREIA’s Monthly Meeting! Thursday 5:30 EARLY MEETING –

August 27th, 2015

Member Benefits – Tamara West

MAIN MEETING 7:00pm MAIN MEETING:

Shark Tank!Tank! Bring your real-life deals to

KREIA and pitch them to the local real estate "Sharks" to get valuable feedback and potentially sell your deal to them!

PRE-Pay Now at KREIA.com to Qualify for a Big Door Prize Drawing!