Issuu

Vol 01-17 January 2017

Monthly Newsletter for KREIA Members

To All Fellow KREIA Members: President’s Letter Page 1 MAIN MEETING: Wholesaling and Marketing for Fast Cash Page 3 Upcoming KREIA Events Page 4 Ed Melton Award Recipient Named Page 4 Welcome, New Members! Page 4 Member Spotlight Page 6

Government Affairs Update Page 10 KREIA Photos Page 10 In-Depth Look at Last LOTS House Page 11 2017 Mentor Workshops: Wholesaling and Marketing Page 15

Wasn’t our holiday party great? Did you enjoy the open bar and the show with Reza? Last year was a good time to be a KREIA member, and this year will be great. We have got so many exciting speakers Frank Miller lined up to teach you what they know about this business. Residential and commercial real estate are still booming here in Louisville, so if you ever thought about being in the business, now is the time to take the leap. Start the new year off right by coming to KREIA on January 26. The topic is marketing and wholesaling. Do you like money? There’s a lot of money in wholesaling, and we’re going to show you how to do wholesaling right. This will be one of the most powerful speaking engagements you’ll hear all year. You won’t want to miss it! Noted wholesaler and marketing expert Sharon Vornholt is going to join Eric George and me to show you the steps of the wholesaling process. Among the three of us it’s safe to say we’ve done hundreds of deals! We’ll show you how to find great deals that you can sell to other investors for $5,000 or more! And to follow up we’ve got a Saturday workshop planned on January 28. The workshop we did last year on wholesaling was our most popular, and we’ve beefed it up even more this year. If you come you are going to learn so much! So we look forward to seeing everyone join us! If there are any concerns or suggestions with KREIA in general, please do not hesitate to contact me at News@kreia.com. Sincerely, Your President, Frank Miller

Copyright MMXVII 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 Dave Coffey

Treasurer Treasurer Elect Mike Grinnan CPA Wally Kallbreir

Board of Directors

George Foree

McFarland

Rue

Erik Hitzelberger

Fred Butler

Tamara West

Marcus Anderson

Jeani Bryant

John Jones

Lauren Willoughby

Darin O’Neil

Dan Jones

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!”

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Reach out and tell them they are doing a great job! (It makes them do more for KREIA!) Copyright MMXVII 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.

Wholesaling & Marketing for Fast Cash Local wholesalers get you up to speed on lucrative real estate niche You make your money when you buy, they say, not when you sell. A good deal starts with exactly that: a good deal. A property with meat on the bone. Built-in equity. Profit potential. Lots of upside. If you’re good at finding properties like that, you can make bank as a landlord or rehabber. You can also make good money feeding those kinds of deals to other landlords and rehabbers, who may be too busy landlording and flipping to spend time finding the best deals themselves. Wholesaling is the niche in real estate concerned with finding and locking up the contract on a good deal, then flipping that contract to another investor. A wholesaler can make $5,000 or $10,000 or more on one deal. Not a bad payday — and no tenants, no toilets, and no construction crews to manage! If learning how to wholesale properties for big profits in Louisville sounds good to you, be sure to show up for the next KREIA meeting — Thursday, January 26 by 7 p.m. Three amazing wholesalers will offer tips and walk you through the process. They’ll get you pointed in the right direction to find good deals. KREIA President Frank Miller makes no secret of the fact that he finds lots of his deals attendSharon Vornholt, power auctions advertised in wholesaler & marketer the Sunday newspaper. In fact, if The Courier-Journal saw an uptick in Sunday circulation recently, its reps should probably send Frank a fruit basket in thanks for his recommendation to all of us to pick up the Sunday paper. But that’s just one of his deal sources.

Sharon Vornholt, a wholesaler who has her own podcast and hosts a popular website (Google “Louisville Gals Real Estate Blog”), often says that her favorite strategy for finding leads is direct mail. If you browse her site, you’ll learn a lot about how to market to sellers. Frank Miller, KREIA In a workshop last year, president & active investor KREIA Vice President Eric George demonstrated another path to deals you might not have thought of: lis pendens notices posted online. When it comes to finding good deals, Frank, Sharon and Eric have lots of experience, and they’re going to share it with you. They’ll talk about not only how they find motivated Eric George, KREIA vice sellers, but how to negotipresident & active investor ate with them, and how to get a good deal locked up and under contract. They’ll address do’s and don’ts to stay legal. They’ll even show you how to reap wholesaling profits tax-free!

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If Thursday’s meeting leaves you wanting more, be sure to attend Saturday’s workshop for 6 hours of master class wholesale training — where there will be Q&A with the experts! See Page 15 for more info.

5:30 p.m. Early Meeting: Mike Fallot talks private money Take on larger projects when you have access to more capital. Mortgage Man Mike Fallot explains how private lending works and how to get approved.

Dennis Erhard Named Featured Events 2016 Ed Melton Award Recipient By Henry Schildknecht Congratulations to Dennis Erhard, the 2016 recipient of the Ed Melton Award, the recognition given annually at our holiday meeting to a club member who has contributed to the growth and success of the Kentuckiana Real Estate Investors Association. Dennis was the 19th person to have received this prestigious honor, which was established in 1998. Every year the prior recipients gather for their annual dinner meeting. This year we met on October 20, and 14 prior honorees were in attendance for our reunion. At that time we discussed those members of KREIA who have given their time and effort to our organization, and selected this year’s recipient. Dennis Erhard was found to be very deserving of the Award for many reasons. He is a long-standing Dennis Erhard is KREIA’s member of KREIA and has immediate past president. (Continued on Page 14)

5:30 p.m. Early Meeting: Mike Fallot of Mortgage Man on getting private loans.

Upcoming Events  February 8 —11:45 a.m.-1:30 p.m. KREIA Indiana Sub-Group 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.  February 23, 2017 – Main Meeting: Tax Updates for Real Estate Investors. Get all the updates and info you need to know before filing your taxes this year. CPA Mike Grinnan will be our featured presenter.  March 23, 2017 – Main Meeting: R.E.I. Fundamentals for Success. Hit the ground running in 2017 with the fundamentals you need to know to be successful investing in real estate.

Welcome, New KREIA Members! Andre Autrey Kendra Bodi Marcus Bodi Fritz Chatelier Jinny Cornett Connie Farris

Stephanie Jacobi Angelina Liner Ken & Tilisha Lockley Charlie Logsdon Michael Martin

Brad Noe Nicole Rouse Jonathan Sisco Charlie Stanley Chenee Trammell

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Email: scurlockfinancial@yahoo.com Cell Phone: (502) 694-2378 Your Company Name: Best KY Rentals LLC, 502-694-BEST City You Grew Up In: Louisville College: Transylvania Current or Previous Occupation(s): Currently an active investor who buys, wholesales, and rehabs properties. Previously a certified financial planner (TM) & accountant. Hobbies, Passions, and Fun: Soccer, fantasy football, spending time with family. I also get great joy in finding deals on houses and helping sellers out of difficult situations. KREIA Member since: 2015 Referred By: Mike Butler Why Did You Join KREIA? Decided to retire and get more serious about real estate investing. I was looking for other successful real estate investors to network and learn from their experience. Also, I find too many deals to buy/keep them all and need other KREIA members with which to share them. Why Are You a KREIA Member? I wanted to join an organization dedicated to active real estate investors. As a member, I’m part of a respected group that can from learn from each other. Year You Began Investing: 1997 No. of Properties/Units You Own: Several, but not enough. Your Real Estate Investing Preferences: My real estate investing preferences are wholesaling properties, buying fixer uppers, and some rentals added to the portfolio. What Lessons Have You Learned in Your Real Estate Business? You need to learn to be a problem solver as a landlord/property manager/investor. Share with others and learn from each other. There are plenty of deals to go around. If you put a property under contract, be prepared to close on it or have an investor like me that will. Your TOP 3 TIPS for Investors: 1. Use tax favored accounts like IRA’s, 401k, HSA, and Education Savings Accounts to invest in real estate. The tax savings can be huge year after year. 2. Learn from others experience/s (and their mistakes, it’s cheaper that way). 3. Know your numbers (check your numbers & double check your numbers). Realistic numbers are important. Visit KREIA.com to view More Member Spotlights

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thelogsdongroup.com • (502) 657-9534 Do You Want Your Business Card to Appear Here? Join as a Business Card Member for only $199/year, and see your ad in a year’s worth of KREIA newsletter issues! Copyright MMXVII 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 January 9, 2017

KREIA

Photos

Louisville Metro Government 1. Louisville Metro Councilman Bill Hollander introduced a tree canopy ordinance on December 5th. The focus of the ordinance is on public property and public right of way trees. The ordinance sets the requirements for the trimming and taking down of these trees. Also, the ordinance does affect private property in two ways. First, the ordinance allows a private property owner to place a conservation easement on a particular tree on one’s property if that tree is of significance. Determination of what is a significant tree will be determined by a Tree Advisory Commission. Also, the ordinance will require a private property owner that is adjacent to a public right of way to not only care for and maintain the public right of way tree, which is the current law, but to also replace that tree if it were to die. In December, GLAR representatives met with the sponsor of the ordinance and went through several issues and concerns. It looks like Councilman Hollander is willing to make some changes to make the ordinance better. 2. As many of you know, the Louisville Metro Council passed an ordinance that requires long term rental property owners to register online important information such as contact info. Long-term rental property owners have to register only one time. The date by which owners have to register is March 1st. Currently, the online portal is now open to register at the link below:

Reza the Illusionist brought magic to our holiday party — and called several KREIA members to the stage for a bit of audience participation.

https://louisvilleky.gov/government/codesregulations/rental-registry (Continued on Page 15)

Reza performed a simple illusion using a “prop” that everyone has at home — remember the trick? 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

Hikes Point LOTS Home: A Closer Look Erik Hitzelberger flips house acquired at commissioner’s sale Erik Hitzelberger found the house at 2411 Vinedale Ave. coming up for bid at the commissioner’s sale. He likes 3-bedroom brick ranches, he said, and this one was located in a neighborhood in 40220 where he likes to flip, so he ran the numbers. Unable to get into the house to check out the interior, Erik had to settle for looking in the window. He stuck to his predetermined bid price at the auction and won the house. If he had been able to check inside, he said he would have lowered his bid from $100,000 to $90,000 based on problems he discovered later. Substantial termite damage helped jack up his estimated repair Erik Hitzelberger renovated this 3-bedroom, 2-bath brick ranch at 2411 Vinedale Ave. in Hikes budget, cutting into his profits. His Point, not far from where I-64 crosses the Watterson. estimated “worst-case scenario” had been around $40,000 in rehab (“I was hoping for laundry room was created from garage space. “I think we did $35,000”), and the rehab ended up around $44,000. just about everything.” Besides calling in the termite treatment, his crew had to While Erik expects the deal to deliver a profit of around go through the floor in several rooms, replacing floor joists. $13,000, that’s less than he’d been anticipating. “But any The roof also required more repair than anticipated. His time you make money, it’s a good day,” he said. “$12,000 or team gutted the kitchen and also updated both bathrooms. $13,000 on a side project … I don’t have much of my New floors and lighting were installed. personal time in this.” (Erik is known as a teams and systems “There’s a new furnace, air conditioner and water heater, guy. Check out how he flips houses as hands-off as possible and the electric panel is going to be replaced,” Erik said. A at part-timerei.com.) And because he stuck to his number, not getting caught up in auction fever, that helped assure he finishes on the profit side. The house turned out beautifully – check out the interior photos on Zillow to admire the dark hardwood floors, gray walls with white trim, the stainless steel appliances in the kitchen and the tile in the bath. THE NUMBERS Total acquisition cost: $102,600 Total rehab cost: $44,300 Carrying costs: 8,000 Commission and fees: $6,250 Projected sale price: $175,000 Projected profit: $13,850 KREIA members enjoyed slices of pizza while Erik, at right, described repairs made to the house.

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Call 888-445-FLIP or visit us online at www.surepointequity.com Copyright MMXVII 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.

(Continued from Page 4: Dennis Erhard wins award) served on the Board of Directors for many years. He has served as Treasurer, Vice-President, and as President for two terms. He currently serves on the board as immediate past president. Dennis’s contributions are many and too numerous to list. However, examples of his accomplishments include: He got our treasury back on track after KREIA retired our management company. A firm believer in membership education, he recruited a super list of speakers, both for our pre-meetings and for our main programs while servDennis Erhard accepts the Ed Melton Award as past recipients look on. ing as Vice-President. He helped create our first interactive website to help new investors to get involved in KREIA and investing. KREIA communicate better with its members. His selection represented all of the attributes of a recipient He continues to recruit paid advertisers to ensure that this of the Ed Melton Award: a long-standing KREIA member, an newsletter is self-sustaining and pays for itself. active real estate investor, an advocate of fellowship among He jumped through all the hoops to ensure that KREIA was our members and an educator to our membership. certified as a Chapter of National REIA, allowing our members So we all give a great deal of gratitude to Dennis Erhard for and our club itself to benefit from rebate programs. his years of service to KREIA and congratulate him for As President, he hosted a lunch and learn, encouraging receiving the 2016 Ed Melton Award.

2017 KREIA Mentor Workshops Experienced local investors show you how it’s done Wholesaling and Marketing Thursday’s main meeting will be packed to the brim with actionable information on getting started in wholesaling, but if you want to dive deeper, make plans to attend KREIA’s Saturday workshop, held on January 28. It will be 6 hours of everything you need to know. Frank Miller and Eric George will show you how you can make $5,000 or $10,000 or more wholesaling good deals to other investors. Sharon Vornholt will describe how her focus on direct mail and online marketing has brought her great success — and she’ll show you how it can work for you too. Last year’s wholesaling workshop, led by Frank Miller, drew a packed house. Frank Jay Long will be there to tell you how he delivered a ton of good information. This year he’s teaming up with other experts. got started in real estate by wholesaling. He was in his 20s making thousands of dollars a month! Who At the Saturday workshop we’ll cover: wouldn’t want to learn from this guy!  Steps to the wholesaling process, and different ways to do it We’ve reached out to other local wholesaling pros too,  Understanding the rehabbing-wholesaling connection and they may turn up as surprise guests.  Marketing cost-effectively to find great deals “offline” There will be time for Q&A! Ask these experts any  Do’s and Don’ts to stay on the right track (legal issues) question you need answered in order to get started today.  How to do wholesaling “tax-free” Saturday, January 28, 2017, 9 a.m. to 3 p.m. Home of the Innocents 1100 East Market Street, Louisville, KY 40206 Members: $99 Non-Members: $199 (Continued from Page 10 — Government Affairs Update) Kentucky General Assembly The Kentucky General Assembly convened on January 3rd and did not waste any time in getting bills passed. Several pieces of legislation were passed in the first five days, including right to work, prevailing wage, informed consent, and U of L Board reorganization. GLAR will be in the thick of it all session and will be giving updates on bills of interest. Below is the list of some of the bills of interest so far introduced: HB1: RIGHT TO WORK (HOOVER, J) AN ACT relating to right to work provisions involving a condition of employment or continuation of employment and declaring an emergency. Amend KRS 336.130 to indicate that public employees may not strike; prohibit mandatory membership in or financial support of a labor organization as a condition of employment; define “employee”; require the Labor Cabinet to investigate complaints and prosecute those who violate Section 1 of the Act; amend KRS 336.180 to conform and define “employer” and “public employee.”

There will be a working lunch. The event is limited to the first 50 people, so go online at kreia.com and register now! HB66: KENTUCKY BOARD OF HOME INSPECTORS (MARZIAN, M) AN ACT relating to the Kentucky Board of Home Inspectors. Amend KRS 198B.706 to remove the standards of practice of the National Association of Home Inspectors from the list of standards of practice approved by the Kentucky Board of Home Inspectors; add the standards of practice of the International Association of Certified Home Inspectors to the board’s list. HB97: HOME INSPECTIONS (NELSON, R) AN ACT relating to home inspections. Create a new section of KRS Chapter 367 to require home inspections before purchasing. HB151: SCHOOL ATTENDANCE (BRATCHER, K) AN ACT relating to school attendance. Amend KRS 159.070 to permit students to enroll in the school nearest to their home, except in cases in which there are academic or skill prerequisites for attendance in the school.

PO Box 91225 Louisville, KY 40291 Return Service Requested

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KREIAâ€™s Monthly Meeting! Thursday, January 26, 2016 5:30 p.m. Early Meeting: Mike Fallot of Mortgage Man on getting funding for your deals

7 p.m. Main Meeting: Wholesaling and Marketing Local wholesaling pros show you how to make thousands selling deals to other investors

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