Issuu

Vol 06-17 June 2017

President’s Letter Page 1 MAIN MEETING: Extreme Lead Generation Online With Duncan Wierman Page 3 Upcoming KREIA Events Page 4 Welcome, New Members! Page 4 Deadline Approaches to Purchase Delinquent Tax Liens Page 4 Government Affairs Update Page 10 KREIA Photos Page 10 In-Depth Look at Last Month’s L.O.T.S. House Page 11 Election Update and 2017 KREIA Ballot Page 19

Monthly Newsletter for KREIA Members

To All Fellow KREIA Members: Let me start off by saying how much I have enjoyed being your KREIA President for the past 2 years! If you did not know, KREIA has a 2-year term limit for Presidency, and starting in July my term will be up. No worries, because you will have a great guy as the upcoming President — he’s currently the Vice President — Eric George.

Frank Miller

So with that said, let me say one of my favorite lines: If you have not heard this by now, 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! You cannot miss the next KREIA meeting on June 22. The main meeting will feature outof-town speaker Duncan Wierman, who will be speaking on “Extreme Lead Generation Online.” This will be very informative for every investor as he will be focusing on real estate investing for the 21st Century! As a reminder for everyone, I, Frank Miller, will still be active on the board of KREIA as Past President, and I will be just doing more behind-the-scenes activities for the organization instead of being in front of each one of you guys every month playing the famous game show host we all love. Also with my term ending as active President, this gives me more time to mingle and get to know everyone better and allow more time to dedicate to mentoring and educating all fellow members, young and old! Also, one last reminder of the upcoming Mentoring and Training course that will take place starting in August: This will be a 6-month course for the participants who choose to take their business to the next level and find out all the secrets from local investors! I am very excited to offer this for the first time ever! In this superb real estate market right now, find out how President Frank Miller of KREIA is doing a consistent $10,000 to $20,000 a month flipping, wholesaling, and renting residential properties in your local areas! The secrets will be revealed! Once again I would like to say thank you for allowing me to be your KREIA President for the past 2 years. It has been a blast, and I know you will enjoy the next 2 years with our new President, Eric George! If there are any concerns or suggestions with KREIA in general, please do not hesitate to contact us 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 Treasurer Treasurer Elect Dave Coffey Mike Grinnan CPA Wally Kallbreier

Board of Directors

George Foree

John Jones

Rue Erik McFarland Hitzelberger

Lauren Willoughby

Darin O’Neil

Tamara West

Dan Jones

Jeani Bryant

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

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

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Event Sponsor: Meeting, LOTS, Parliamentarian Hank Schildknecht

Saturday Seminars, and more!

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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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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.

Extreme Lead Generation Online With Duncan Wierman Thursday, June 22: Learn the tools and techniques Duncan uses to create tons of leads from motivated sellers and cash buyers online! Forget investing the-old fashioned way. Let technology do the heavy lifting! Today, savvy investors are using cell phones and laptops to rake in their fortunes. You too can make huge profits in today’s real estate market by combining real estate and the power of the Internet! Duncan Wierman is The Master of Strategic Marketing using online marketing, social and mobile media for market domination! Duncan helps real estate investors grow their businesses by developing online lead generation strategies that will make massive differences in your sales revenues in your investing market niche. Now you can tap into how to use the Internet to grow your business — more quickly and profitably. Following Duncan’s strategies, you will understand: • How to have motivated sellers and buyers coming to you. • How to use the Internet to do 93% of the work for you. • How to generate massive profits on every transaction. • How to flip deals from seller to buyer in as little as 2 hours. • How to have hundreds of investor/buyers knocking on your door in as little as 2 weeks. • How to negotiate deals at home and in your spare time. • How you can flip a property anywhere, even if that property is 2,000 miles away. • How you can run your entire business from your home computer virtually! Duncan will reveal: • The 3 key factors that will skyrocket the amount of leads you get every month. • How to develop an effective client nurturing process that will build your brand credibility. • How to use social media sites such as Facebook and Twitter correctly as powerful marketing channels. • The overlooked ways to advertise your business online so that you will reach more prospects every day.

Duncan Wierman is a full-time investor in Greenville, South Carolina. His business revolves around automated systems so he can do less work and make more money. He uses Internet marketing and automated Internet systems for attracting buyers, sellers, and investors which have allowed him to do between 65 and 100 deals a year without leaving his desk! Duncan will guide you to event greater success using his vitally effective marketing approach, based solidly on: • How to buy and sell real estate using the internet! • Finding motivated sellers, hungry buyers, private money lenders! • Automating and using systems in your business! • How to use Social Media Marketing and Mobile Marketing effectively! • How to buy and sell REO’s! • And much, much more!

If all this sounds like something you’d like to learn even more about, be sure to sign up for June 24th’s Saturday Session!

5:30 p.m. Premeeting: Insurance Got rental properties? Greg Nalley of Logan Lavelle Hunt will explain what you need to know about insurance. Active Members: $20 • Guests: $30 • Former Members: $30 Receipt Auto-Emailed to You for Your Records

TAX LIEN TIME IN LOUISVILLE

Deadline Approaches to Purchase Tax Liens If you want to purchase delinquent tax bills in Louisville and earn 12% on your investment, you must register with the Jefferson County Clerk no later than July 14, which is a week in advance of the sale. When you register you’ll also need to submit a prioritized list of the bills you’d like to buy. The July 21 sale will be held in Room 106 in Metro Hall, 527 W. Jefferson Street. A lottery drawing determines the order of the sale, and you must be present by 3 p.m. to have a chance at purchasing any of the tax bills you’re interested in. For a detailed guide on the procedures and rules, along with instructions on viewing the delinquent tax bill list, go online to: jeffersoncountyclerk.org/delinquent-tax-lottery/

Featured Events Extreme Lead Generation Online With Duncan Wierman Learn the tools and techniques Duncan uses to create tons of leads from motivated sellers & cash buyers! Thursday, June 22.  Plus Saturday Session, June 24.

Building Wealth With Rental Properties The path to long-term wealth in real estate begins with owning income properties, and we’re teaching you the best practices! Thursday, July 27.  Plus Saturday Session, July 29, with longtime local landlords.

Upcoming Events  June 27 — noon-1 p.m. L.O.T.S. event. Location TBD — check your email. Lunch will be provided for KREIA members.  Louisville Lunch. There will be no lunch meeting in July, because it would fall on the holiday. Stay tuned for details on the August lunch meeting. Ed Gibson organizing.  July 12 — 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.

Rehabbing for Fat Cash! Interested in “flipping houses” for cash? This meeting is for you! Local KREIA members will show their tips and tricks for getting it done right. Thursday, August 24.  Saturday Workshop, August 26

Invest With Your Self-Directed IRA Folks from Equity Trust, one of the most trusted custodians, show how to invest tax-free. Thursday, Sept. 28.  Saturday Workshop, Sept. 30.

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Welcome, New KREIA Members! Christopher Eagan Eric Feller Sharon Hesseltine Dayrl Koppel

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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 May 30th, 2017 Louisville Metro Government

KREIA Photos

1. Louisville Metro Councilman Bill Hollander introduced a tree canopy ordinance in December. 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. Currently, the committee has tabled the ordinance and will most likely discuss again on June 13th. 2. Louisville Metro Councilman Brandon Coan has introduced an ordinance that would study the need for changes dealing with single family residentially zoned properties and permitted uses of those properties. He is also proposing a 6-month moratorium on the issuance of building permits for “private institutional facilities” that are looking to locate on single family residential properties. “Private institutional facility” is defined as an educational facility, museum, school, aquarium, historical building, etc. The goal of the ordinance is to have the Planning and Zoning staff review the permitted uses in single family residential zoned properties in the Land Development Code and to make suggestions on if some of these need to be moved from permitted use to conditional use. The ordinance is currently tabled in the Planning and Zoning Committee and will be heard again. 3. Councilman Pat Mulvihill and Councilwoman Sheri Bryant Hamilton have introduced an ordinance that would expand the definition of what would be considered a public nuisance. The expanded definition would include criminal activity including violent crimes and drug offenses. Under this ordinance, if a property has had a criminal incident more than one time in a 12-month period then it could be considered a public nuisance. If a property is cited as a public nuisance, public nuisance law takes over and the property owner would have to mitigate the public nuisance or face fines. The ordinance will be heard in the Public Safety committee at Metro Council.

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May’s premeeting featured Aaron Dawson of Gateway Mortgage and Darrell DeVore of Century Mortgage. (Photo by Bruce Hinson)

Jeani Bryant and Marina Sud networked. (Photo by Bruce Hinson)

The men of “Show Me the Money!” Left to right: Aaron Dawson, Darrell DeVore, Zac Banta and Mike Fallot. (Photo by Bruce Hinson) See more photos online — in color — in KREIA’s private Facebook group.

Valley Station L.O.T.S. Home: A Closer Look Bruce and Cathy Allen rehab stone ranch It’s always nice when couples share an interest — bowling, bridge tournaments, swing dancing, etc. Bruce and Cathy Allen have found a mutual fondness for flipping houses. It was something they discovered after installing a hardwood floor in their own home. Visitors admired the workmanship, and they’d enjoyed the work so much that they joked they should flip a house. Over a year and four houses later, they’re still enjoying it. “That’s what started it,” Cathy said. “Us doing our hardwood floor.” The house at 9611 Inca Drive, their fourth The three-bedroom Bedford stone house at 9611 Inca Drive in Valley Station has a full flip, is the second house they’ve offered up basement, a two-car garage and a spacious covered deck. (Photo by Bruce Allen) for a L.O.T.S. event. It’s also the second house When the last people to live in the house moved out, they they’ve acquired from a wholesaler — they bought it for dumped their excess stuff instead of taking it with them. $88,800 from KREIA President “What was left in the house — which was a lot — they just Frank Miller. threw into the garage with the hole in the roof,” Bruce said. “When we started this, we “Food and everything. It was really, really rank in there.” weren’t going to be able to get Cleaning it out required 2-1/2 dumpsters. the money unless we had the “We’re pretty confident with the comps at around power turned on to check some $135,000,” Bruce said. “With the finished basement we may of the major systems and see if go up a little bit.” Other houses for sale on the street lack a they worked,” Bruce said. “So before we even bought it we had basement and a large garage, so the Allens think they’re (Continued on next page) the electric turned on to see, and priced for a quick sale. it all worked out. However the air conditioner wasn’t Bruce and Cathy Allen (Photo hooked up, so we had to by Lauren Willoughby) pray on that one.” For this Valley Station house, Bruce said he and Cathy have done the majority of the work themselves, “except for the major mechanical stuff, like the plumbing and the electrical.” In the two months they’ve had the house, Bruce and Cathy tackled the drywalling and painting, though this time they did outsource some of the flooring to a contractor, someone they found through KREIA. They were planning to spend the next couple of weeks finishing the basement, carpeting the bedrooms and working on the bathroom. Kitchen countertops were on order. “We’re a little bit under budget,” Bruce said, “but we’ll probably end up a little over because I have to get a new roof on the garage. A tree poked a hole in it two Bruce Allen, center, told KREIA investors about his plans for the Valley Station house. (Photo by Bruce Hinson) or three years ago, and they never did a thing to it.” 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.

“All in all, we should make between $15,000 and $22,000 on it, depending on if we sell it or if a real estate agent sells it,” Bruce said. Bruce added that all of their flips so far have been successful — and were quickly snapped up. “I don’t think any one of them has lasted more than two weeks after we put them on the market.” Going forward, Cathy said they hope to work with wholesalers again to source rehab houses. “It’s easier because things are moving so fast, and houses are hard to find.” If you’re a wholesaler, hit them up. Cathy said they’re looking for houses outside the West End, projects where the numbers work. A house in Highview would be ideal, she added, The covered deck provided welcome shade on a warm, sunny day as investors gathered to “but you can’t be picky.” hear Bruce and Cathy Allen describe their rehab project. (Photo by Bruce Hinson) Cathy has some advice for new investors: “Just jump in and do it,” she said. “Make sure Find more photos online in KREIA’s private Facebook group. your numbers are good, and don’t be afraid to get your hands dirty.” (Continued on Page 19) Why is it called “L.O.T.S.”? Because we Learn On The Site!

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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.

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Election Update Please see below a sample ballot for the KREIA 2017 elections, which will take place at the June 22 meeting. Voting will take place between 5:30 and 7:00, close to the front registration desk. The newly elected officers will be sworn in at the July meeting. If you have any questions, please direct them to Hank Schildknecht at hankatty@gmail.com

2017 KREIA Election Ballot Officers

(write-in)

President

□ Eric George

□ _______________________

Vice President

□ Erik Hitzelberger

□ _______________________

Secretary

□ David Coffey

□ _______________________

Treasurer

□ Mike Grinnan

□ _______________________

Treasurer-Elect

□ Wally Kallbreier

□ _______________________

Board at Large 2017-2019 (Vote for up to 6) □ Cathy Allen

□ Rue McFarland

□ Alex Parker

□ Dennis Erhard

□ Nina Musgrave

□ Hampton Scurlock

□ Mike Fallot

□ Darin O’Neil

□ Clay Smith

□ Phillip Frazier

□ Jeff Obryan

□ Tamara West

□ ______________________

□ ______________________ □ ______________________

Other write-in

(L.O.T.S. House: Continued from Page 12) And she encouraged everyone to go to L.O.T.S. meetings — she’s learned so much at them, she said. When you come to L.O.T.S. events, you see firsthand how other investors are tackling renovations in the Louisville market. You can see the materials they use, get recommendations on contractors, and ask any question that occurs to you. And you get a free lunch. Are you an active rehabber? Consider hosting a L.O.T.S. event in one of your own current projects. If other KREIA investors like your work and see you walking the walk, they might be inclined to approach you with private lending offers. Cathy said she was surprised — and pleased —

Other write-in

when an investor came up to the couple at this L.O.T.S. event and said he was interested in funding one of their future flips. THE NUMBERS Total Acquisition Cost: $93,800 ($88,800 to wholesaler + interest, insurance, etc.) Total Rehab Costs (so far): $16,410 Holding Costs: $500 Estimated Commission & Closing Costs: $8,750 Estimated Sale Price: $135,000 Estimated Profit: $15,540

PO Box 91225 Louisville, KY 40291 Return Service Requested

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KREIAâ€™s Monthly Meeting! Thursday, June 22, 2017 5:30 p.m. Early Meeting: Greg Nalley of Logan Lavelle Hunt talks landlording and insurance

7 p.m. Main Meeting: Extreme Lead Generation Online Duncan Wierman shows you the tools and techniques he uses to create tons of leads from motivated sellers and cash buyers online!

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