15 10 october kreia newsletter final by KREIA .com

Vol 10-15 October 2015

President’s Letter Page 1 7 p.m. MAIN MEETING: Show Me the Money! Ways to Fund Your Deals! with... Multiple Speaker(s)!

Page 3 L.O.T.S. Program Page 4 Online Mentor Program Page 4 Welcome, New Members! Page 4 Member Spotlight Page 6 Want to Try Blogging? Get Started With Google Page 8 Government Affairs Update Page 10 Local Investors Speak: Check out these podcasts Page 14

Monthly Newsletter for KREIA Members

To All Fellow KREIA Members: CHANGE IS COMING! KREIA is the place to be to Educate, Learn, and Network to answer all the questions that you may have about Real Estate or anything relating to that hot topic at this moment. If there are any concerns or suggestions with KREIA in general please do not hesitate to contact me at News@kreia.com

Frank Miller

What a great meeting we had last month with our out-of-town out speaker, Tony Youngs,, speaking on foreclosures and making offers no matter what circumstances! We had a great turnout for the meeting, and it seemed that everyone wanted to learn more, as we had many fellow KREIA members sign up for his bus tour, which Starts on October 31st. THERE ARE STILL SOME AVAILABE SPOTS OPEN FOR THE BUS TOUR. CONTACT US IF YOU WOULD LIKE TO RESERVE YOUR SPOT!!!!!!!!! OCTOBER 22ND meeting is the meeting that everyone has been waiting for, even I myself! The October meeting topic is named “SHOW ME THE MONEY’! This meeting will have a mixed panel of Bankers, Mortgage Brokers and Private Lenders, and they all will answer questions on how to obtain financing no matter what your circumstances are. Along with showing and telling us their hidden secrets on the proper paperwork and presentation needed to obtain quick loans in a timely fashion and guaranteed loan approvals. 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

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.

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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, account or other professional advice before making any investment. KREIA is a Member of National Real Estate Investors Association.

Show Me the Money! Main Meeting: Ways to Fund Your Deals with ... Multiple Speakers Everyone needs money to invest in real estate, but where do you get it? How do you get started if you have little of your own? October’s main meeting is all about money, and we’ve lined up three money professionals to bring you the scoop. You’ll hear from private lender Mike Fallot of Mortgage Man; Garry Settle, a mortgage broker with Century Mortgage; and John Feige, a mortgage banker with Acopia Home Loans. They will present some options to you and provide a Q&A session at the end! So, get your questions ready. But first, we hit them up with some preliminary questions.

John Feige, Mortgage banker with Acopia Home Loans How long have you been working with real-estate investors? 10 years. Can you share a quick success story describing how you’ve worked with an area investor? An individual wanted to buy a NOO home and rehab it. She had never done it before but found a home with good equity that needed a lot of work. She had about $20,000 to work with. The sales price was $45,000 and the home was going to need about $35,000. If she bought it putting 20% down ($9,000) then she was not going to have enough to rehab it. We did a Conforming Homestyle Renovation loan that allowed her to buy an investment property and only put $16,000 down. That left her enough money for closing costs and pre-paid escrows. Any advice you’d like to offer on how an investor can move forward with your funding? We have a renovation loan that allows much less out-ofpocket funds to buy and rehab homes. Do you look at an investor’s personal credit? If so, what are you looking for? Yes, this is a Fannie Mae product so we follow Conforming Fannie Mae guidelines for investment loans.

Do you lend to LLCs? No we don’t. Do you work with first-time investors? Yes. Do you make loans that include the cost of repairs? The Renovation loans works great. What is the maximum length of time for which you’ll make a loan? Standard Fannie guidelines -- up to 30 years fixed.

Garry Settle, Regional Vice President with Century Mortgage Company How long have you been working with real-estate investors? I have been working with realestate investors for 17 years. What is your opinion of the current real-estate market in Kentuckiana? Our company’s number of units closed is up approximately 20% year-over-year, and the percentage of purchases versus refinances has increased significantly, so the housing market for us is doing well. Can you share a quick success story describing how you’ve worked with an area investor? I have helped countless investors, many in KREIA. I have helped new investors get to their first ten 30-year fixed loans, then set them up with portfolio lenders to move forward past that. I have helped many investors get more buyers approved to sell their houses to their renters or to buyers in a flip situation. I have had a great time being a part of helping people be successful as a financing partner for almost two decades. Any advice you’d like to offer on how an investor can move forward with your funding? That’s a long answer. I would love to meet with any investor interested to discuss what I can and cannot do to help them personally and to help their buyers get financed. Do you look at an investor’s personal credit? If so, what are you looking for? Yes. Scores, payment history, past and current derogatory credit, and much more. Do you make non-recourse, asset-based loans? No. Continued on Page 12

Welcome, New KREIA Members! Nan Roth

Jordan Marshall

April Matney

James McCubbin

Kevin Johnson

Jim Shields

Kevin Mercer

Andrew Thomas

Lee McCorkel

Allen Cathy

Aaron Withrow

Elissa Withrow

Jessie Spaulding

Judy Brown

Tom Scott

Linda Horrant

12 sessions

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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, account 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

Julia King City You Grew Up In: Spartanburg, SC College Attended: JCTC - University of Louisville - Sullivan University Current or Previous Profession(s): Real Estate Agent 2005-2007. Credit Repair for over a decade. Student Loan Consolidation. Social Work with Ex-Offenders. Currently working on opening "BootStraps" nonprofit for 16-25 years old who are coming out of foster care. Share More About You: Then I continued to do so for my clients when I was a Realtor in South Carolina. I opened King Financial Repair in 2013 and then continued. KREIA Member since: 2015 Referred By: Referral Partners and Clients Why Did You Join KREIA? I joined as I am helping many of the members with their personal credit and it was suggested of me to attend some of the meetings. When I attended I noticed that many of the members did not have great credit and needed some improvement. I then became a business sponsor. Why Are You a KREIA Member? I joined to help the members and to continue to grow and expand my business. Hobbies, Passions, and Fun: I am a single mother with 2 beautiful boys. I have one dog, an American Staffordshire Terrier. What Do You Like About KREIA? I like that there are so many things to know before investing and everyone sticks together and keeps things ethical. I first came to grow my business and to help more people. Now I have a sparked interest in trying to get into investing myself. Based On Your Experience, What Lessons Have You Learned in Your Real Estate Business? I learned that anyone can do it, but to be successful you need a great mentor Your TOP 3 TIPS for Investors: 1. If it sounds too good to be true it may be 2. Pick someone to do your first house with as a mentor 3. Listen to those that are successful. Stick with the winners and know what your passion is before you start. Phone: (502) 689-1001 Company Name: King Financial Repair Visit KREIA.com to view More Member Spotlights 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, account 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 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, account or other professional advice before making any investment. KREIA is a Member of National Real Estate Investors Association.

Want to try blogging? Google has an app for that By Lauren Willoughby It seems everybody and his brother has a blog these days. Do you? Writing blog articles is a great way to build authority for your brand on the web, and it goes hand-in-hand with good SEO practices to help people find you online before they find your competition. If you’re looking to dip your toe into the blogging scene, try it on the cheap with Google’s Blogger. As with all of Google’s free and amazing tools, all you need is to create a Google account. And if you’ve got a Gmail address or been using Google Drive to share documents with your team, then hey! You’ve already got one. Just log into Gmail (or any of your Google apps) and then go to blogger.com That’ll park you in Blogger’s dashboard, where you can click that “New Blog” button to begin creating. It’s easy, and you don’t have to be a web designer to use it: If you can fill in a few form fields, you can blog. And you don’t have to be a graphic designer, either. Blogger offers a selection of templates that use responsive design — so your blog will be attractive and readable on whatever device your audience uses, whether smartphone, tablet or widescreen desktop monitor. You can even point a domain name toward your Blogger blog. And if you outgrow Blogger and want to head over into WordPress, where all the cool bloggers hang out? The good news is that WordPress has an import tool, which will let you keep all your content.

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

Government Affairs Update

LOTS Program, September 29th, 2015

October 2nd, 2015 Louisville Metro Government 1 Flood Mitigation Workgroup

2104 Grand Ave Host: Dennis Erhard

This past Spring, Mayor Greg Fischer and Metro Council President David Tandy appointed a work group to deal with the issue of flooding in Louisville Metro. This group has been meeting over the past few months to deal with issues including the consequences of the 10-year rolling period that is used for the calculation of “substantial damage” and the 50% limitation on rebuilding. One of the issues that has come up is the disclosure to buyers of the amount already spent on damage repair. If that damage repair over a 10-year period is above 50% of the cost of the home, the property owner has to either build up or tear down the home. Due to this issue, representatives of GLAR (Greater Louisville Association of Realtors) were asked to come speak to the task force on Monday, September 8th. GLAR’s Chris Fox, Chair of the Government Affairs Committee, discussed the disclosure issue, what agents currently do regarding flood plain info, and started the discussion on how to make sure that home buyers have the info regarding a property’s substantial damage prior to purchase. The next meeting of the work group is Monday, October 5th, at 1:30 p.m., and GLAR will be represented at the meeting. 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, account or other 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

Show Me the Money! Continued from Page 3 Do you lend to LLCs? No. Do you work with first-time investors? Yes. Do you make loans that include the cost of repairs? No. What is the maximum length of time for which you’ll make a loan? 30 years.

Mike Fallot, CEO of Mortgage Man How long have you been working with real-estate investors? 10 years. What is your opinion of the current real-estate market in Kentuckiana? Market is showing steady improvement, with some strong bursts of activity, but lack of wage growth is holding back a broad and sustained strong market. Can you share a quick success story describing how you’ve worked with an area investor? We are fortunate to have the opportunity to help many investors grow their real estate businesses. just this week we were able to provide funding to investors who were able to purchase an excellent property in a high-demand area at a great price. To win the deal the investors had to close in seven days. Our reputation and our proven ability to fund quickly helped both of us win. Any advice you’d like to offer on how an investor can move forward with your funding? Provide a realistic plan for each investment opportunity, with a well-defined rehab scope and budget, and accurate comps to support the projected sale price. Do you look at an investor’s personal credit? If so, what are you looking for? While we do look at credit, we are an asset-based lender, and are primarily interested to know that an

investor has the skill and knowledge to increase the value of a property. The most important factors we evaluate are: 1. An investor’s experience and knowledge and 2. The potential and value of the property to be purchased. Do you make non-recourse, asset-based loans? All of our loans require a first mortgage, and the personal guaranty on the investor. Do you lend to LLCs? Yes (and land trusts too). Do you work with first-time investors? We do, but we often will require participation of a mentor, and will reduce the loan to value (LTV). Do you make loans that include the cost of repairs? Yes. For experienced investor we can fund up to 70% loan to value - which is often sufficient to include the purchase price and a significant amount of the repairs. What is the maximum length of time for which you’ll make a loan? 1 year. What question did we not ask that you’d like to answer? What is the mistake that most investor’s make? Failure to maintain proper control over the rehab process, including managing contractors and subs.

Contact Information John Feige Mortgage banker with Acopia Home Loans Branch Manager http://www.acopiahomeloans.com (502) 767-7867 jfeige@acopiahomeloans.com

Garry Settle Mortgage broker with Century Mortgage Regional Vice President http://centurymortgage.com/gsettle (866) 822-3545 garry@cmcloans.com

Mike Fallot Private lender with Mortgage Man CEO http://mortgagemanfunding.com (502) 400-3011 mike@mortgagemanfunding.com

Estate Investing Tips Listen Up for Real-Estate Local landlords, wholesalers and flippers share experience via podcast But the weekly BiggerPockets episodes are only the tip Picking the brains of KREIA members is a great way of a very large iceberg. to learn about real estate investing through a local lens. There’s so much recorded content online for investors After all, when you’re chatting up a longtime landlord in that, if you started now, it’s doubtful you could listen to the buffet line, you’re finding out how things are done it all. here in Louisville, Kentucky − not how they’re done in We’re talking thousands of hours of interviews with Dallas or Chicago. house flippers, wholesalers, landlords, note buyers and Wouldn’t it be great if some of those nuggets of local tax lien investors. Blow-by-blow accounts of writing wisdom were packaged up for listening on the go? If you’ve got a smartphone, you probably already know about podcasts − those free, narrow-focused, ondemand “Internet radio shows” that are produced by everyone from Fortune 500 corporations down to hobbyists in their basement studios. And if you know about podcasts, you probably also know about the recent explosion in shows devoted to real-estate investing. The popular “BiggerPockets Podcast,” the big dog in Sharon Vornholt’s interview with Erik Hitzelberger is also on YouTube real-estate podcasting, just posted its 144th episode. 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

those yellow letters, approaching sellers for lease/option deals, negotiating with contractors, getting houses under contract − you name the topic, and someone has talked about it. But did you know some of those voices have a local accent? Three of our KREIA members − and we hope they don’t mind if we out them − have produced their own podcast shows you can download and listen to for free. Sharon Vornholt, a local wholesaler who has a national following, blogs and produces podcasts available on her website, the Louisville Gals Real Estate Blog:

Joe Fairless 35: Want a Crash Course on Probate Wholesaling? On Joe’s show, Sharon calls probate leads “low-hanging fruit” and explains why they’re among “the most motivated sellers on the planet.” http://goo.gl/rOzSr6

http://louisvillegalsrealestateblog.com/

Episode #17: Eric George D InvesEng in Student Housing Sharon Vornholt interviews Eric George (KREIA’s vice president) for tips on how to maximize your rental income by targeting students. http://goo.gl/QOFxHL

Not only does she interview other nationally known real-estate authorities in her “Let’s Talk Real Estate Investing” podcast, she also points her microphone toward investors in her own back yard. And then there’s the team of Bryan Snider and Erik Hitzelberger. These guys are local house flippers who cover how to get started rehabbing in your spare time on their blog and podcast, “Part-Time REI”:

BP Podcast 094: House Hacking, Partnerships, and Investing in Multifamilies While Working a Full Time Job with Michael Siekerka Former Louisvillian Michael Siekerka talks about moving from fixing and flipping to being a buy-and-hold guy. http://goo.gl/NuM7bF

Episode #18: Erik Hitzelberger D The Part Time Real Estate Investor Erik Hitzelberger (a KREIA board member) talks with Sharon about the importance of systems in managing your business and your life when you’re working a fullhttp://part-timerei.com/blog/category/podcasts/ time day job but are also a licensed real estate agent, a You can listen to all of these podcast episodes on your part-Ume rehabber − and a father of four young computer or tablet by visiting their respective websites, children. or you can use your favorite smartphone podcasting app http://goo.gl/tcYneG to subscribe. Both podcasts are in iTunes for iPhone users, and the feeds should be available for Android Episode #21: Mike Butler D CreaEng Systems for Your users too. REI Business Mike Butler (a KREIA board member and past president) One of the pluses of listening to podcasts featuring local hosts or guests is that you’re getting the local tells Sharon how he was able to buy a boatload of houses while still working full-time as an undercover angle − the things they’re talking about that apply to Louisville police officer, and he shares some tips on them will apply to you too in our market. creating systems. Let’s take a listen at what you can hear: http://goo.gl/vydrsJ Bigger Pockets Podcast #12: Wholesaling and Marketing with Sharon Vornholt The BiggerPockets dudes Joshua Dorkin and Brandon Turner pick Sharon’s brain about marketing, systems, negotiation strategies, double closings and, of course, wholesaling. http://goo.gl/n6Csfy

Podcast #51: Real Estate Newbie Closes 8 Deals in 8 Months with Marina Sud Sharon interviews one of her own students, Louisvillian Marina Sud, who shares her success stories and her advice for others getting started in real estate. http://goo.gl/Ag56fV

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