Issuu

Vol 09-16 September 2016

Monthly Newsletter for KREIA Members

To All Fellow KREIA Members: President’s Letter Page 1 MAIN MEETING: Invest in Real Estate Using Your Self-Directed IRA Page 3 Upcoming KREIA Events Page 4 Summary of Sept. 13 Hearing on New City Ordinance Page 4 Welcome, New Members! Page 4 Holiday Party Is Early This Year — Save the Date! Page 8

Let me start off by saying residential and commercial real estate are booming right now, and if you have ever thought about being in the business now is the time to take the leap and at least try it out part-time, while you still have your regular income from your full-time job!

Frank Miller Last month’s main meeting “Show Me the Money!” was a hit as we had a large crowd in attendance and everybody learned how to get funding for rental property and flips from the three lenders who came to KREIA. You won’t want to miss the next KREIA meeting on September 22nd, 2016, because we will learn all about how to earn tax-free income in real estate by investing with our IRAs. Our guest speaker from Equity Trust will tell us how we can use our retirement to do flips and build a rental portfolio. If there are any concerns or suggestions with KREIA in general, please do not hesitate to contact me at News@kreia.com. So we look forward to seeing everyone join us! Sincerely,

Government Affairs Update Page 10

Your President, Frank Miller

KREIA Photos Page 10 In-Depth Look at Last Month’s LOTS House Page 11 The Complete Guide to Double Closings Page 14 KREIA Mentor Workshops Page 15 Copyright MMXVI 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.

Your KREIA Leaders

President Frank Miller

Vice President Eric George

Secretary Treasurer Treasurer Elect Dave Coffey Mike Grinnan CPA Wally Kallbreir

Board of Directors

George Foree

McFarland

Rue

Erik Hitzelberger

Fred Butler

Tamara West

Dan Jones

Stephanie Gomez

Marcus Anderson

Jeani Bryant

John Jones

Lauren Willoughby

Darin O’Neil

KREIA Newsletter is 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

Saturday Seminars, and more!

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.

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 MMXVI 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.

Invest Using Your IRA Equity Trust’s Michael Cozart shows how to grow tax-deferred and even tax-free What comes to mind when you think of investment retirement accounts? Is it a basket of stocks, bonds and mutual funds? If that’s what you’re thinking, think bigger! Think rentals, notes, tax liens, private lending and rehabs. Because your IRA can invest in real estate if you follow the rules. Michael Cozart of Equity Trust Company, featured speaker at KREIA’s September 22nd meeting, will be on hand to talk about how to play by the rules, stay legal, and grow your retirement exponentially using a vehicle you already know how to drive. Equity Trust Company is the largest and most wellknown company for offering “self-directed investment” options for using retirement accounts to invest in real estate and other assets. Equity Trust has been a custodian of alternative investments, such as real estate, since 1983. Michael Cozart is Senior Account Executive for the Westlake, Ohio-based company. Self-Directed IRA/401(k) investing, although widely misunderstood and underutilized, allows investors to design a diversification strategy with assets not often found in traditional asset allocation models. Assets including, but not limited to, real estate, mortgage notes and trust deeds, small businesses, joint ventures, private equity, and precious metals. And Equity Trust points out on its website that you don’t have to have a lot of money in your account to begin investing: “There are numerous strategies that investors use, including partnering their IRA with other accounts or participating in a percentage of a total investment. Plus, there are plenty of investments that require as little as a few hundred dollars to start, including tax liens, real estate option contracts, and promissory notes, among others.” And if you find a property you’d like to wholesale, you could use your IRA to make the earnest money deposit. When you assigned the contract to your eventual buyer, the profit would flow back into your retirement account. Imagine a $100 earnest money deposit coming from your

IRA precipitating $5,000 or more profit going back in. Imagine how quickly you could grow your IRA. Michael Cozart offers a comprehensive selfdirected IRA/401(k) educational program, providing useful tools, resources, and insight into the methods used by Equity Trust’s 130,000+ clients. Michael Cozart The strategies discussed will demonstrate methods to potentially eliminate capital gains tax and ordinary income taxes within your real estate and or alternative investment assets. Attendees have the opportunity to leave this training with the knowledge and guidance to formulate and implement alternative investing into their financial plan. We look forward to seeing you there for the 7 p.m. main meeting!

5:30 p.m. Early Meeting: Michelle Rawn talks service support animals As a landlord, what provisions do you need to make for tenants who have service animals or emotional support animals? What rights do these tenants have? Attorney Michelle Rawn will be speaking on the topic during the premeeting on September 22.

Copyright MMXVI 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.

HEADS UP! Get Ready!

Featured Events

Summary of Sept. 13 Hearing on New City Ordinance Attacking Rental Property Owners By Mike Butler First of all, thanks to everyone who attended to show support in our opposition to this new ordinance. My guesstimate is about 40 investors in attendance. I would like to name everyone, but if tried it, I know I would miss a few. This meeting was chaired by Councilwoman Hamilton with Councilman Stuart Benson sitting next to her. This ordinance was introduced by Councilwoman Marianne Butler (my sister… ugh). When this ordinance was called, Councilwoman Marianne Butler read off several “amendments” to the ordinance and emphasized the recently passed Rental Registry program for the city of New Albany. Robert Kirchdorfer, Director of Codes and Regulations, rattled off a number of his department’s frustrations in trying to contact owners. Mr. Kirchdorfer told the committee this new ordinance would make things so much easier for code enforcement because his inspectors could immediately call or email an owner on the spot when they find a violation on your property. Then “speakers” were allowed to voice comments to this committee. Unbelievably, the committee allowed only 5 minutes TOTAL for all speakers combined. One previously registered speaker decided not to share his comments. Then KREIA’s Co-Founder, Past President, and Government Affairs Chair, Mr. Rue McFarland, took the floor and began his professional, yet straightforward comments on this ordinance attacking rental property owners. Rue let them know he did not fall off the punkin’ truck last week, (Continued on Page 6)

5:30 p.m. Early Meeting: Rawn Law Firm

5:30 p.m. Early Meeting: Zac Banta of United Citizens.

Upcoming Events  September 27 – noon to 1 p.m. LOTS Meeting. Location TBD.  October 12 — 11:45 a.m.-1:30 p.m. KREIA Indiana SubGroup Luncheon Meeting. Meets the 2nd Wed. each month at Tucker’s Restaurant in New Albany on State Street and I-265. Open to all — you buy your own lunch. Brian Haeseley chairs.  November 17 – Holiday Party.

Welcome, New KREIA Members! Steve Bowles Trysh Wahlig Sean Ahmed Rosendo Romero

Louie Leger Adam Roehm Ravi Gangumolu Greg Shelburne

ISC Provides 4 simple yet powerful tools, backed by Private Investigators, to make screening and managing your ideal tenants easier than ever!

iscscreening.com

From: Gordon Brown Home of the Innocents

(502) 451-2600

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 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.

(New City Ordinance: Continued from Page 4) but he has been involved in almost every arena involving real estate for the last 40 years. Rue also pointed out, to the surprise of many, that last year our local government passed some kind of rule/law/regulation that Makes Lenders Responsible for Housing Code Violations and Fines. ATTENTION, PRIVATE LENDERS & Discount Note Buyers: DID YOU KNOW Jefferson County, Kentucky, is the ONLY COUNTY in Kentucky with this outrageous regulation? Simply put, this means if ABC Bank or any private lender loans money secured with real estate, and the

Redeveloping distressed houses has been a passion of ours for years. We’re committed to nurturing neighborhoods one house at a time.

Blue Fish Properties

We work with the best real estate agents, contractors and specialists all committed to helping to create custom real estate solutions for our buyers, sellers and investors. Whether you’re looking to sell your home, buy a home or searching for a way to get higher returns on your investments, give us a call today!

Brock Halstead 502-386-4908

brockhals@gmail.com

Brock Halstead 502.354.7414 Carrie Halstead 502.354.7444 bluefishpropertiesinc.com

property owner gets cited for code violations… when fines and fees are applied, our wonderful city officials can place a lien on the property that GOES IN FRONT OF THE LENDER and these fines accrue interest at 18% (government loan shark?) Now, back to this ordinance. It looks like this new Rental Registry Ordinance is well on its way to becoming law in Jefferson County. For the most part, the city IT department has already built this system and is ready to implement it before the end of the year. Rental Property Owners and Managers will have till the latter part of March 2017 to Register Every Rental Property detailing owners, addresses, phones, emails and more. Even if you have a property manager, you must enter all information for both. Let’s assume you choose not to register your rental properties. When your property is cited for a violation and your property is NOT registered, you will get a violation for that as well. You then have 10 days to Register Your Rental Property. If you fail to register your rental property within 10 days, the city can fine you up to $100/day per property. Do the math… this is over $36,000 per year per property. Now, combine that with what Rue McFarland shared earlier where the city has created laws allowing them to put this $36,000 fine in FRONT of the lender and the balance accrues at 18% interest! Even Councilman Stuart Benson agreed with Rue McFarland as he too has rental property. (He abstained from voting due to conflict of interest.) A few other council folks bumped their gums like politicians who are out of touch with the real world involving tax payers in our city. It’s frightening to see how they have drunk some Kool-Aid and I could see they honestly believe this will fix all of the abandoned and vacant houses in Louisville. Dan Jones then took the floor and shared his comments on how he has invested in the West End of Louisville for decades, having purchased and renovated over 290 properties. He pointed out to the Council folks that he could take them to several blocks in the West End that the entire block needs to be “bull-dozed.” Dan also shared his passion on how he helps folks who need affordable housing. After seeing Rue’s presentation was a waste of time from the body language and additional comments from this committee, I went up to Rue and asked if I could get permission to speak for 2 minutes. Rue said “Sure.” I then patiently waited for an appropriate time and while standing, I raised my hand and loudly asked “Madam Chair, May I Have 2 Minutes?” She immediately stated “Out of Order!” and that was the end of that. (I thought my sister might help… nope) (Continued on Page 13)

ATTORNEYS AT LAW Representing real estate investors, mortgage companies, banks, builders and buyers since the early 1970s with…

 Residential & Commercial Closings  Title Searches  1031 Exchanges  Business Formation  Wills & Probate

 Title Insurance  Contract Prep & Review  Powers of Attorney  Investor Guidance

Practicing in Kentucky and Indiana

920 Dupont Road, Louisville, KY 40207 bordersandborders.com • (502) 894-9200 THIS IS AN ADVERTISEMENT

Heads Up on the Holiday Party! KREIA’s holiday meeting is happening early this year, so mark your calendar for November 17, a week before Thanksgiving. It’s never too early to eat, drink and be merry!

GARRY L. SETTLE REGIONAL VICE PRESIDENT

Contact Garry for all of your home financing needs! Direct: 866-822-3545 Garry@CenturyMortgage.com Apply for Pre-Approval Online! www.CenturyMortgage.com/gsettle NMLS 13547

PRO-TECH FLOORING Floor Refinishing Specialist Hardwood Floors Installed Floor Repairs • Poly Recoating Dry Foam Carpet Cleaning Insured Member Office

Mobile

Fax

966-9300 500-8775 961-5730 David Williams, Contractor

FREE ESTIMATES

Shaun Logsdon Auctioneer/Broker/Realtor “We can help you liquidate your real estate in a fair and lucrative manner.”

thelogsdongroup.com • (502) 657-9534 Copyright MMXVI 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 Greater Louisville Association of Realtors Government Affairs Update September 9, 2016 Louisville Metro Government 1. Councilwoman Butler has drafted a rental registry ordinance. This ordinance was filed Thursday July 28th. The ordinance would require rental property owners to register their properties once online without a fee in order for Louisville Metro to have better owner information like email and phone number. The goal is to have this info so that if there are maintenance issues with the property, LM Inspections Licenses and Permits has the correct info at their fingertips. GLAR representatives have met with Councilwoman Butler several times to discuss an alternative. After discussing this alternative of using the Revenue Commission info filed annually, the County Attorney stated that utilizing Revenue Commission info is not a viable option in order to get that info. GLAR representatives and other organizations continue to discuss this ordinance with the sponsor. This ordinance will be heard in front of the Labor and Economic Development Committee on Tuesday September 13th. (Read Mike Butler’s report from the hearing on Page 4.) 2. Mayor Fischer announces Comprehensive Plan update process Mayor Greg Fischer announced plans to update Louisville’s Comprehensive Plan, including a year-long community engagement process. The Comprehensive Plan will guide the growth of the community for the next 20 years and serve as the basis for public and private investment, as well as land use and transportation policies. The update will build off the success of Cornerstone 2020, the current comprehensive plan, and will be informed by recent planning initiatives, including Vision Louisville, Move Louisville, Healthy Louisville 2020, and Sustain Louisville. “Louisville is a city with a lot of momentum, and we need to continue building upon our success,” Fischer said. “This Comprehensive Plan will provide direction to (Continued on Page 15)

KREIA

Photos

KREIA President Frank Miller was the emcee at last month’s “Show Me the Money!” meeting, featuring local money men Montrell Bross , Zac Banta and Mike Fallot, left to right.

A full house of investors attended to find out how to refinance and how to get bank loans and private loans to fund rehab deals and rentals.

Mike Fallot, of Mortgage Man, was also the speaker at the early meeting. Insurance for the Real Estate Investor realprotect.com

Do you take photos at KREIA meetings, LOTS meetups and other KREIA events? Help us out! Send your snaps to News@kreia.com

Baxter Avenue LOTS Home: A Closer Look Mike Pantoja sets the stage for staging in his latest flip Mike Pantoja of Real Property Venture LLC had flipped a handful of houses before tackling his current project in the Highlands, but this grand, two-story brick home at 1431 Baxter Ave. represented some firsts for him. It’s his first time investing with a partner. It’s his first time staging a home. And it’s his first time dealing with contractors abandoning him en masse, which has delayed completion of the project. It’s not that he’s a harsh taskmaster — “I think I’m pretty easygoing,” he said — but he’s having to deal with the heating market and the increasing amounts of money competitors are dangling to lure away his tradesmen. “I’ve had trouble with just about everybody. My carpenter quit on me yesterday, but I’ve got a new one starting tomorrow, so ... thank God.” Pantoja decided to stage the house because he’d read that rehabbers net a little more money out when they do, and he wants to test that for himself. And it doesn’t hurt that his friend and investing partner, Amy Wagner, is an interior designer and can give the house her own touch. “I figure I’m going to get some great ideas from her,” Pantoja said of teaming up with his friend.

Pantoja said he enjoys working on older homes: “I like to keep a lot of the original fixtures.” On a previous project he went to Louisville Architectural Salvage to match baseboards.

To paint or not to paint? Mike Pantoja ran a Facebook poll to see if the red bricks should be painted – and the overwhelming response was yes. So he’s undertaking that $3,500 expense.

How did he find the deal? Pantoja said he made an offer one hour after the house popped up on the MLS. Shortly after that there were multiple offers, so he went $500 above asking and scored the house for $185,500. He started the rehab in June. How much has he put into it? “After the real estate commission and holding costs and utility costs and everything, I’ll have $272,000 into the house.” What has he done to the house? Pantoja said the rehab expense will amount to over $60,000 before he’s finished. As part of the project he replaced the ancient, huge gravity furnace in the basement (“it was a monster”) with a compact, efficient HVAC unit that cleared up a lot of floor space. He turned the hall bath upstairs into a master bath. He took out a wall on the first floor and has added another full bathroom there. What is his target sales price? “Crossing my fingers, I’ll get $320,000…. The houses over here sell for way, way more. I’m hoping $320,000 will be the low end over here.” He said if he does get his ask of $320,000 that his profit will be about $47,000. Pantoja’s tech tip: If you’re looking for a way to measure a room’s dimensions and end up with a floor plan, Pantoja recommends an app called MagicPlan, which has versions for both iOS and Android. It makes use of your phone’s camera, and it’s quicker than using a measuring tape, he said.

(New City Ordinance: Continued from Page 6) What I was going to share in two minutes is how the council is probably not aware of how Code Enforcement began aggressively enforcing code violations on rentals on the Section 8 program earlier this year. Many investors who have a track record for decades of having a 90% plus pass rate are now experiencing 99.9% failure rate on initial inspections and annual renewal inspections. Now keep in mind, when your unit fails, it is treated as a “code violation.” If you are not registered, it triggers another violation. Then you have 10 days to register your rental property or face up to $100 per day per property fine. Hmmm, let’s see. If you have Section 8 rentals, and you have a 99.9% chance of getting a violation on your next inspection… why in the world would you want to participate in the Section 8 program? Please note, even Councilwoman Vicki Welch stated you don’t have to register your rental properties. But once your property has a violation, all this other stuff is triggered.

Finally, if you are responsible and maintain your rentals AND you do not participate in the Section 8 program, odds are, you could not register and have nothing to worry about until your property has a violation. This could be years and years for most of us who are responsible. Can you see how this might cause a mass exodus of rental property owners participating in the Section 8 program? That’s the short version… Add your comments, please, at our Facebook Group:

https://www.facebook.com/groups/LouisvilleLandlordsLove Section8/

Don’t Sit Back and Whine and Moan! Get Involved! Mike Butler MikeButler.com

The Complete Guide to Double Closings How to Buy Property Even When You're Broke By Sharon Vornholt Following July’s popular main meeting and Saturday workshop on wholesaling, we asked noted wholesaler and marketing expert Sharon Vornholt if we could borrow her article on double closings for the newsletter, and she agreed. We had to trim it a bit for space – if you want to read the full article and hear her podcast, go to http://bit.ly/dubclose. What Exactly Are Double Closings? Double closings, aka simultaneous closings, are when you (the buyer) actually take title to the property just before you sell it. This means that your name will go on the chain of title whether you sell the property the same day (which is typical for a double closing) or 60 days down the road. The main advantage to this type of closing is that you do not need to bring any of your own funds to the closing. It also gets rid of the question about whether or not wholesaling is legal since some states have put a red flag on contract assignments. Double closings are legal everywhere. The Two Parts of a Double Closing The first part of the transaction, typically called the A to B transaction, is between you and your seller. This is where YOU buy the property. The second transaction where YOU sell the property to your end buyer is called the B to C transaction. You are “B” in both cases. As a wholesaler, I am almost always funding the A to B transaction (my original purchase) with the funds from the B to C transaction. Simply put, my end buyer is bringing all of the money to the closing for both transactions. There are two settlement statements created for the closing: one between you and the seller and another between you and your end buyer. The difference between what you paid for the property and what you sell it for is of course your profit on the deal. How Much Are Closing Costs for Double Closings? In my area those closing costs are about $300-$400 per transaction and cover title search, document preparation, title insurance etc. The difference in the amount of costs is due primarily to whether or not I was required to purchase title insurance. In most instances since I only own the property for 10-15 minutes, I do not get it. What If I’m not Working With a Buyer Who Actually Has Cash in the Bank? I am almost always selling my properties to other

investors who are cash buyers or “cash like” buyers: a rehabber or a landlord. Some buyers will be using hard money, a HELOC (home equity line of credit), a self-directed IRA, a private lender or an investor-friendly bank. As a wholesaler, I have to close quickly with my seller. I had one buyer purchase the property through an investor-friendly bank. then refinance with a longer term traditional mortgage down the road. That strategy certainly works when someone is looking for a good deal and they want to put a little “sweat equity” into the property. How Does This All Work? The key point to remember is that you can never bring a personal check to any closing. It doesn’t matter if you are buying your personal home or an investment property. You must always bring a certified check from the bank When you are doing the B to C transaction (selling the property), as you are signing the documents there is a certainty that the first transaction (the A to B transaction) will close. Your end buyer has brought certified funds to close the deal. The money is there. As soon as the paperwork is signed for the sale to the end buyer, the A to B transaction takes place and you buy the house. (I know it sounds a little crazy.) The funds that I just “made” on sale of my property are actually used for my original purchase (the A to B transaction). I just love this process! It’s important to understand that no money changes hands until all the documents are signed. The money is always dispersed in the proper order. Is Everyone In the Same Room for Both Closings? No. These individual closings take place in two different rooms, and everyone stays there until both transactions are completed. Rarely does my seller know that I have resold the property. However, my end buyer always knows that a double closing is taking place. This is never a problem because my buyer is almost always a real estate investor. Since the B to C paperwork is completed first, my buyers know that they will be waiting a few minutes until the A to B transaction is completed. I always tell my seller upfront that I don’t know what I will ultimately be doing with the property. I make him aware that the house could be fixed up and sold or rented. I also tell him that I might even sell it directly to another rehabber. While my seller is aware of the possibilities, they do not (Continued on the next page)

need to be privy to the details of what I plan to do with the property. My seller just needs to get the money as agreed. What’s the Solution? Find and use an investor-friendly banker, title company, attorney and insurance company. Your life will be a whole lot easier. Once you’ve done a couple of double closings you’ll understand how simple they are. Can You Use A Traditional Mortgage Lender? No. There are several reasons for this. First of all, it just takes too long to get a traditional mortgage even if you could overcome the other hurdles. These lenders have no knowledge or experience when it comes to double closings. Why Not Just Assign the Contract? How you close your deals is a personal decision. I personally don’t like doing assignments unless my assignment fee is small, so I do double closings. In my opinion the probability of the deal blowing up increases when you assign the contract. Your seller and your buyer see exactly how much you are making just for being a “transaction coordinator.” And in most cases, the seller is not going to be happy. Should You Tell Sellers You Are Wholesaling the Property? (Government Affairs Update: Continued from Page 10) make our city more livable, sustainable, connected and equitable for every individual in every neighborhood. To ensure the success of this effort, we need to hear from citizens about how we should grow together as a community.” Develop Louisville will lead the process, which will be guided by an Advisory Committee that includes representatives from neighborhood and community organizations, along with development and business interests. A complete list of Advisory Committee members can be found at louisvilleky.gov. GLAR is represented on the Advisory Committee by Lamont Breland. Advisory Committee meetings are open to the public, and the first meeting was at 6 p.m. (Aug. 31), at the Edison Center, 701 W. Ormsby Ave. In a process expected to take up to a year, the Advisory Committee will solicit community input on the Comprehensive Plan through work groups open to all citizens. The work groups will be organized around topics including land use, community form, transportation, health, sustainability, equity, housing and economic development. Develop Louisville has also partnered

No! First of all, you should never use the term wholesaling when talking to sellers. Any mention of wholesaling will only raise a red flag. I do recommend you be truthful and transparent. As I said before, I always tell my seller from the very beginning that I am not sure what I will be doing with the property. I let them know that at times I pass on properties to other investors, and they are always clear on the fact that my intention is to make money from this transaction. However, knowing this “intellectually” does not really alleviate the problem when they see just how much you made right there on the documents. So What’s the Answer? I like double closings. They are cleaner and a whole lot easier in my opinion. I have only assigned the contract a few times in my real estate career. The advantages of doing simultaneous closings far outweigh the fact that I have to pay a little more in closing costs. Sharon Vornholt writes and podcasts about wholesaling and marketing at louisvillegalsrealestateblog.com. On Sept. 24 and 25, she’ll be co-hosting the REI Marketing Mastery boot camp in Nashville (reimarketingmastery.com).

with MySidewalk, an online app that empowers citizens with data analysis tools that allow them to provide input about their neighborhood. The program will also allow staff and citizens to communicate about specific topics and questions. “The future growth of our community is guided by the Comprehensive Plan. We will take a deliberate approach with this update and hear as many voices as possible,” said Develop Louisville Director Deborah Bilitski. “Develop Louisville will work diligently throughout this process to engage, to listen and to work with the public to create a plan that is equitable and represents the vision of the community as a whole.” Develop Louisville encourages all citizens, Metro Council members, suburban cities, community organizations, neighborhood associations, faith groups, business associations and other groups to engage in the process. For more information and to stay involved in the Comprehensive Plan update and to sign up for MySidewalk, please visit https://louisvilleky.gov/government/planningdesign/comprehensive-plan — Rue McFarland

KREIA Mentor Workshop 2016 Final Session: Saturday, Oct. 29 How to Buy REO Foreclosures & Auction properties Home of the Innocents, 1100 East Market St., Louisville, KY 40206. 9 a.m. - 3 p.m. COST: $99 for members; $149 with a guest. Non-members’ costs are $149.

REGISTER NOW AT KREIA.COM! Copyright MMXVI 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

KREIAâ€™s Monthly Meeting! Thursday, September 22, 2016 5:30 p.m. Early Meeting: Attorney Michelle Rawn talks policy on service support animals

7 p.m. Main Meeting: Leveraging Self-Directed IRAs Michael Cozart from Equity Trust shows how to put your retirement to work in real estate

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