Issuu

Vol 05-17 May 2017

President’s Letter Page 1 MAIN MEETING: Show Me the Money! Page 3 Upcoming KREIA Events Page 4 Welcome, New Members! Page 4 News Byte: Louisville Home Prices Nearing Record Highs Page 4 News Byte: Churchill Downs Makes Land Grab 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 Get Involved: Run for KREIA Office Page 14

Monthly Newsletter for KREIA Members

To All Fellow KREIA Members:

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 We had a big crowd for our April meeting with Steve Cook from Lifeonaire. Steve told us about how to build your business around your life and how to have more time with your family while making money. Want to learn more about how to do that? You should come to the 3-day Lifeonaire event this month, May 18-20. Sign up now at kreia.com!

Then make sure to come to this month’s main meeting, May 25th, because it’s all about money. Who doesn’t like money? You should if you’re rehabbing or buying a rental. We’ve lined up a panel of local bankers and lenders who can help you fund your deals. For the past couple of months I’ve been hinting about a new mentor and training program here at KREIA. It’ll have webinars and ride-alongs, and I will show you how I get my deals for wholesaling and flipping. You will know everything I know, and I will give it all to you! I’ll have more information for you about that at the main meeting, so don’t miss it! 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, 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

McFarland

Rue

Erik Hitzelberger

Tamara West

John Jones

Lauren Willoughby

Darin O’Neil

Rick Littrell

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 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 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.

‘Show Me the Money!’ Local lenders answer your funding questions at May 25’s main meeting

Mike Fallot Mortgage Man Funding mortgagemanfunding.com

Everyone needs access to money to fund their deals, whether flipping a house or refinancing a rental. So we're bringing the money lenders to you! This month at KREIA, we'll have private-money lender Mike Fallot from Mortgage Man Funding, Zac Banta from United Citizens Bank, Darrell DeVore from Century Mortgage Company, and Aaron Dawson from Gateway Mortgage. These lenders will explain how their different financing programs work and how they can help you make BIG MONEY in real estate today!

Darrell DeVore Century Mortgage centurymortgage.com

Topics will include: • Types of loans you can access for real estate deals • What types of loans are best for rehabs and flips vs. rentals • How to work with multiple banks and lenders to keep the deals going • Open Q&A where you can ask whatever you like! Zac Banta United Citizens Bank unitedcitizensbank.com

Aaron Dawson

So, have your questions ready. See you at 7 p.m.!

Gateway Mortgage gatewayloan.com

5:30 p.m. Premeeting: Financing

Active Members: $20 • Guests: $30 • Former Members: $30 Receipt Auto-Emailed to You for Your Records

Century Mortgage’s Darrell DeVore is pulling double duty at this month’s KREIA meeting. He’s one of four headliners at our main event, but if you come early you can get in some questions before the buffet line opens.

NEWS BYTES

Prices Up, Inventory Down What's going on with the Louisville housing market? Reporter Tre Pryor of Insider Louisville says it's likely Derby City will see its highest home values ever — while it's experiencing record low inventory levels. Check out the chart of median home sale prices from 2006 to 2017. The median bounced around the $130,000s but has really shot up in the last two years: The April 2017 median price is $164,000. And the average sale price for homes sold last month was $199,213. But sales have declined. Get the full scoop at http://bit.ly/k1705records

Churchill Downs Goes on Buying Spree Louisville’s iconic racetrack is expanding into neighboring residential areas, reports Chris Otts of WDRB: “For 20 years now, the company has slowly bought up houses, razed them, and added another gravel or grass parking lot on the periphery of the track.” But in the last six months, Churchill Downs has “gone on an unprecedented buying spree, acquiring nearly three dozen vacant lots, houses and commercial properties.” The price tag for all that is close to $13 million. In half a year, it’s spent more than in the previous 10 years. Homeowners who live near the track have scored some lucrative payouts as Churchill has bought them out. “In March, for instance, Churchill paid $415,000 for a 744square-foot house in poor shape at 3124 Bohannon Avenue.” Otts says Churchill Downs officials have made no statement yet about how they intend to use their new purchases, but neighbors speculate. Get the full scoop at http://bit.ly/k1705churchill

Featured Events LifeBuilder Workshop (3 Days) Learn how to have more free time, make more money, find true fulfillment, and enjoy freedom like you never have before! There’s still time to sign up for the Louisville Lifeonaire event! Go to kreia.com! Thursday, May 18, 2017 - Saturday, May 20. Time: 9 a.m.

Show Me the Money! Local private money lenders, bankers and mortgage brokers show you the best ways to get funding. Early meeting: Financing options. Thursday, May 25. 5:30 – 9 p.m.

Upcoming Events  May 30 — noon-1 p.m. L.O.T.S. event. Location TBD — check your email. Lunch will be provided for KREIA members.  June 6 — 11:30-1 p.m. Louisville Lunch. Location TBD — check the private Facebook group. Ed Gibson is the organizer.  June 14 — 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.

Extreme Lead Generation Online w/Duncan Wierman. Learn the tools and techniques Duncan uses to create tons of leads from motivated sellers & cash buyers! Thursday, June 22.

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.

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

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

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Gary Armstrong Ken Blum John Blum Mike Brown Jeremy Cantwell Devon Chestnut

Margie Cox Stacey Duvall Dixon Epperson Kyle Henderman Don Hiles Bruce Hinson

Patrick Meko Roxanna Redden Cindy Reed Shephali Srivastava Ty Thomas

(502) 451-2600

QUOTABLE QUOTE “There was a time that I wanted to have hundreds and hundreds of leveraged rentals. But I'm going to tell you this: I would much rather have 10 free-and-clear rentals than 100 leveraged ones. I'll make more with the 10 free-and-clear than most people will make with their 100 leveraged ones, and I'll have a life.... Today I work 21 hours a month, not a week.” —Steve Cook, addressing KREIA

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

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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!

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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 Recent Legislation for Landlords House Bill 309 was signed into law by Governor Bevin on April 11, 2017. This bill makes changes to KRS 383 (Landlord-Tenant Act) to provide protections to a tenant who is a victim of domestic abuse.  Creates a new section of KRS Chapter 383 (LandlordTenant Act) to provide that residential tenants who hold a domestic violence order, a pretrial release no-contact order, or an interpersonal protective order may terminate a lease with at least 30 days’ notice to landlords, while the lease continues for co-tenants and prohibits the landlord from penalizing tenant’s credit report.  It establishes a civil action for a landlord’s losses due to termination against persons restrained by protective orders. The individual shall be civilly liable for all economic losses incurred by the early lease termination.  For those tenants holding protective orders, those orders cannot serve as a basis for denying a lease.  After notice given to the landlord, new locks may be installed by the tenant at tenant’s expense.  Gives the landlord civil immunity if acting in good faith under this act.  Creates a new section of KRS Chapter 383 to provide that rental agreements shall not penalize tenants for requesting assistance from emergency services. House Bill 112 was signed into law by Governor Bevin on March 20, 2017. This bill makes changes to KRS 258 that defines who is considered as an owner of a dog. This bill was enacted to clarify that the landlord of a leased property is not considered the owner of a tenant’s dog. The specific changes are as follows: “Owner,” when applied to the proprietorship of a dog, includes: a. Every person having a right of property in the dog; and b. Every person who: 1. Keeps or harbors the dog; [or] 2. Has the dog [it] in his care; [or] 3. Permits the dog [it] to remain on or about premises owned and[or] occupied by him; or 4. Permits the dog[it] to remain on or about premises owned and[or] occupied by him; or 5. Permits the dog to remain on or about premises leased and occupied by him.”

KREIA

Photos

KREIA past presidents Dennis Erhard, left, and Rue McFarland, right, talked real estate with Debra Martin. (Photo by Bruce Hinson)

The buffet line adjoins the sponsor tables, letting members network before filling up their plates. Yummy cookies! (Photo by Bruce Hinson)

April’s featured speaker, Steve Cook, lauded the benefits of building your business around your life — and not vice versa. (Photo by Bruce Hinson) Insurance for the Real Estate Investor realprotect.com

Do you take photos at KREIA events? Help us out! Send your snaps to News@kreia.com. See more photos online in our private Facebook group.

Newburg L.O.T.S. Home: A Closer Look Branch Brothers Make First Flip a Family Affair What were you doing when you were a teenager — flipping burgers? That’s cool. But check out 18-year-old Wesley Branch: he’s flipping a house alongside older brother Jacob, who’s a seasoned 21 years old. The Branch Brothers (trademark coming soon) embarked on this flip earlier this spring, but it’s not their first foray into real estate. The brothers got their feet wet a couple months earlier this year by wholesaling. They’ve wholesaled four properties so far, deals they found by driving for dollars and talking to neighbors. “The neighbors have always got something to say about a ratty house,” said Jacob. But rehabbing this house off Rangeland in Newburg has the brothers’ focus right now. They bought it from another KREIA The house at 5620 Revere Drive had been vacant for at least 5 years before the investor and got to work on a major reno. brothers bought it. Feeling a bit old and slow yet? It’s their first rehab, and they’re doing a lot of the work The Branch BrothersTM have removed a wall, opening up themselves. Work they can’t do they’re hiring out, following the kitchen for a combined dining and living area. They recommendations from their father — a plumber who’s met flipped the floorplan of the main bathroom and made more a lot of good tradespeople over the years. “We’re in charge adjustments to add a master bath off the back bedroom, of making sure that everything is moving along like it which they enlarged, turning the house from a 3/1 into a should,” said Jacob. “It’s not as easy as I thought it would 3/2. be.” They also remedied a curious floorplan feature — a shed The original rehab estimate of $15,000 has nearly that was built into the house near the kitchen, but which had doubled, but even with the extra work and expense the access only from the outside. They turned that space back brothers still hope to net around $36,000 in profit. over to the kitchen, opting to let the new homeowner put up a standalone shed in the back yard. They put down laminate floors in the living/dining area and laid new carpet in the bedrooms. They drywalled, painted, rewired the house and upgraded the panel. The project is fully a family affair. Their father took charge of all the plumbing and acts as their contractor. And to fund the rehab, their parents took out a home equity line. Wesley said this is the first of many flips, and the plan is to make them all family projects. “We’d like to make a profitable career out of it, and create jobs for other people too,” Jacob said, adding that they want to rehab a few more houses this year and make $200,000 — though they’ve been reading Grant Cardone and are working on 10x-ing their goals. Feeling old and slow now? Wesley, left, and Jacob got interested in real estate after (Continued on next page) reading a few books and attending some real estate seminars that came through town. 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.

TIPS FROM THE BRANCH BROTHERS  Jacob: “Don’t pay people for work they

haven’t done... especially the drywall guys. We found that out the hard way.”  Wesley: “Join KREIA. Don’t only join KREIA, but be active in KREIA. Network with people. Call other people that are running the show and go hang out with them. Take them out to lunch. And don’t give up.”  Jacob: “Be coachable, and find somebody who is willing to coach you. Definitely don’t stop reading... The more you read, the more possibilities open up in front of you.” THE NUMBERS Jacob Branch, left, and his brother, Wesley, got back to work on their Newburg-area

Acquisition Costs: $32,460 rehab house after hosting a Derby week L.O.T.S. meeting. Great job, guys! We can’t wait Total Rehab Costs: $29,206 to see what projects you’ll tackle next. (Photo by Bruce Hinson) Carrying Costs: $583 Find more photos online in KREIA’s private Facebook group. Estimated Commission & Closing Costs: $6,300 Estimated Sales Price: $105,000 Why is it called “L.O.T.S.”? Because we Learn On The Site! Estimated Profit: $36,451

WIN THE DEAL We’re not a bank and we don’t like red tape.

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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.

Get Involved: Run for KREIA’s Board By Hank Schildknecht Your president has selected this year’s nomination and election committee, and we would like to inform you of KREIA’s election procedure, which is as follows. KREIA is run by a board of directors consisting of five officers, twelve at-large board members, the immediate past president, and the parliamentarian. The five officers, president, vice president, secretary, treasurer and treasurerelect are filled each year for one-year terms. The twelve atlarge board members are elected for two-year terms, with six new members being elected each year. There are no term limits, and all incumbents may run for re-election if they so desire. Nominations will be taken from the floor at the May meeting for the five officer and six at-large board positions. As in previous years, nominations will be closed after the May meeting. The election will be held at the June regular meeting, and those elected will take office in July. If you would like to nominate someone to serve, or would like to run yourself, please contact me or be prepared to make a nomination from the floor at the May meeting. Only serious applicants need apply. The Board sponsors many activities on an ongoing basis, and it is the diligent effort of all the board members that bring these programs to life. The board runs primarily through the committee system. Most

board members serve on more than one committee, and many chair a committee. It is simply not possible for someone to serve on the board without being an active participant. If you have any questions about the governing process of KREIA, please feel free to give me a call.

Hank Schildknecht Chairman of the Election Committee (502) 893-4494 hankatty@gmail.com

Property Medic New to house flipping? Need a diagnosis on a prospective rehab house? Do a walkthrough with Jeff Colgate — he can help you write a scope of work for the contractor you end up hiring.

JC4PropertyMedic@gmail.com

(502) 645-4375

Lifeonaire Workshop: Transform Everything 3-day LifeBuilders event comes to Louisville May 18-20 Learn How To Have More Free Time, Make More Money, Find True Fulfillment, And Enjoy Freedom Like You Never Have Before! Which of these sound like you? Overworked…Struggling Financially…Zero Free Time… Stressed Out…Relationships On The Rocks…Sleepless Nights Wondering… “Is Life Supposed To Be Like This?” If any of those descriptions sound like you… You Are Not Alone. And that’s why you’re here… You want more out of life and Know You Were Meant For Something Much Better, but you’ve been struggling to get there. But It Doesn’t Have To Be That Way! There’s A Solution, And It’s Called Lifeonaire!

GRAB A FRIEND! THEN GRAB ONE MORE! Admission: 1 person for $197, or 3 people for $297! Dates: May 18-20 Location: Ramada Plaza, 9700 Bluegrass Parkway, Louisville, KY 40299

You may have heard of it. It’s changed the lives of THOUSANDS of people already and you’re going to be next. Did you miss April’s main meeting with Steve Cook of Lifeonaire? Catch the audio replay on our private Facebook group!

Join Jason Wojo, right, Steve Cook and other coaches for a 3-day life-changing event

PO Box 91225 Louisville, KY 40291 Return Service Requested

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KREIA’s Monthly Meeting! Thursday, May 25, 2017 5:30 p.m. Early Meeting: Darrell DeVore of Century Mortgage discusses financing options

7 p.m. Main Meeting: Show Me the Money! We’ve invited four local lenders who’ll explain how you can get your deals funded.

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