Issuu

Monthly Newsletter for KREIA Members

Vol 10-17 October 2017

President’s Letter

New Sponsorship Rates

Main Meeting: How to buy foreclosures and auction properties

Welcome, New Members!

Nina Musgrave: The foreclosure numbers prove it, Louisville

Holiday Party Preview: Magic returns to Woodhaven

KREIA Photos

KREIA Members, Last month Equity Trust taught us how you can leverage the power of self-directed IRAs and 401(k)s to invest in real estate and lend money to others for their deals. Over 50 people attended the Saturday Wealth Building Workshop and were blown away by the knowledge gained and the potential to grow their retirement accounts exponentially faster than the stock market can provide!

Eric George

Now, this month we’re teaching you how to find and purchase foreclosed houses from banks and at auctions! Some of the best deals I’ve bought have been purchased this way, and it should definitely be one of the ways you actively use to acquire deals. However, if you are not familiar with the requirements needed to purchase houses these ways and have not done your due diligence prior to making offers, you can find yourself in hot water quickly!

L.O.T.S.: Hitzelberger & Snider rehab a Jtown turnkey rental

Master Commissioner’s Sale: Tips for new investors

Member Spotlight: Terry Bishop 16 On the Web: Real estate auction 16 sites Julia King: Equifax hack puts millions at risk of identity theft

Ask Hampton: How can I make taxes less taxing?

Upcoming KREIA Events

Avoid the common mistakes investors make when trying to purchase from banks and auctions and learn from our local experts who do this every month! We’ll have a local auctioneer, an REO agent, and investor-buyers on our panel of experts to teach you the right ways to buy! Also, make sure you sign up for the Saturday Workshop, October 28th, where we spend 6+ hours with our local experts diving deeper into the details on how to buy from banks and auctions! These workshops are always an excellent opportunity to learn in a smaller group environment and ask our experts more questions, as well as network with other local investors in our area! See you October 26th and 28th! Eric George KREIA President

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 Eric George

V. Pres. Erik Hitzelberger

Advertise With KREIA

Secretary Treasurer Treasurer-Elect Dave Coffey Mike Grinnan CPA Wally Kallbreier

Board of Directors

Put your message in front of the most active rehabbers, landlords and wholesalers in the state! KREIA offers five membership levels for businesses. Go to KREIA.com and join at one of these annual sponsorship levels to get your ad in every issue of KREIA's newsletter and be invited to make sponsor pitches at meetings:

Business Card Membership . . . . . . . . $199 Includes your business-card-sized ad. Admission at monthly meetings remains $20. Premium Levels: These four sponsorship levels include your ½-page ad in each issue!

George Foree

Rue McFarland

Lauren Willoughby

Darin O'Neil

Parliamentarian Hank Schildknecht

Past Pres. Frank Miller

Dennis Erhard

Tamara West

John Jones

Jeani Bryant

Rick Littrell

Mike Fallot

Clay Smith

Hampton Scurlock

Get involved with KREIA. You can help with the monthly meetings, L.O.T.S. program, this newsletter, Saturday workshops, Government Affairs roundups, marketing, the KREIA website and more. PLUS You Get EXTRA KREIA points for everything you do! Ask for someone to direct you as you check in at the front desk at monthly meetings.

KREIA's newsletter is published monthly and serves both to educate and to remind you of upcoming monthly meetings. About KREIA: The Kentuckiana Real Estate Investors Association is a members-only, nonprofit organization focused on education, networking and resources for today's investor. 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. Group discounts are available. Contact us at News@KREIA.com if you want to: Advertise on KREIA.com • Sponsor a monthly meeting Sponsor a L.O.T.S. program • Sponsor Saturday Workshops

Bronze Membership . . . . . . . . . . . . . $499 Includes free admission to monthly meetings for one person. Silver Membership . . . . . . . . . . . . . . $699 Includes free admission to monthly meetings for two people. Gold Membership . . . . . . . . . . . . . . . $999 Includes free admission to monthly meetings for two people and gives you a skirted table in the vendors area. Platinum Membership . . . . . . . . . . $4,995 Includes everything the Gold level offers, plus extra promotion from KREIA. You'll be our designated events sponsor, and we will promote you accordingly! New ½-page sponsorship levels and pricing are in effect for new member signups and upon renewal for current sponsors. Questions? Send email to News@KREIA.com or catch up with KREIA Sponsor Chair Dennis Erhard at the meetings.

Join KREIA Joining KREIA is easy: Go to KREIA.com and click the "JOIN" option on the menu. The cost to join as an individual member remains at $125 per year, with a charge of $20 at the door for monthly meetings. Click JOIN at KREIA.com to find out about all the benefits of membership for both individuals and businesses. Too many to list here!

Louisville Properties Going Once, Twice … Sold! Real estate experts accept a bid to share tips at Oct. 26’s meeting Looking for a great deal? Buying a foreclosed house at auction can be lucrative — and exciting. Isn’t that one of the reasons why we tune in to HGTV’s “Flip or Flop?” It’s not just to watch Tarek throw a fit over corroded plumbing or Christina run screaming at the sight of an insect. Watching them win the deal, especially when facing off with other investors, makes for dramatic TV. If you’ve wanted to raise a paddle yourself and walk away the proud owner of a bargain rehab house or rental, there are plenty of opportunities to pursue here in the Kentuckiana area. There are also many reasons why you should put the paddle down. Auctions attract lots of competition, and the houses can be risky mysteries. What you need is some perspective. We have invited three panelists who can help you get started right — and raise your game Bennett-Webb if you need a tune-up. Joining us are:  Sherry Bennett-Webb (bennettwebbrealty.com) Sherry is a HUD and REO specialist who lists and closes more than 400 properties a year. She’s been focusing on HUD and REOs for more than half of the 25+ years she’s been an agent. And if you’ve ever bid on a HUD home, you probably already know her name.  Stephanie Gilezan (gilezanrealty.com) Stephanie is the principal and co-owner at Gilezan Realty. ”Our company specializes in residential, land, commercial, new construc- Gilezan tion and investment properties.”

 Jennifer Fields (bordersandborders.com) Jennifer is an

attorney who focuses on real estate transactions, real estate investors, foreclosure purchases, business formations and IRS section 1031 tax-deferred exchanges. Here are some of the things these experts will discuss at the October main meeting: • Learning the steps of the foreclosure process and how you can get involved as Fields an investor • Learning how to buy short sales, foreclosure sales and REOs (Real Estate Owned: properties retained by banks) • Tricks of the trade to make sure the investment is profitable • Pitfalls to avoid in each case And if you like what you hear on Thursday night, be sure to sign up for Saturday’s workshop, where we’ll dive even deeper into auctions, foreclosures and REOs. Get all your questions answered! See info on the workshop below!

Sign Up for Our Foreclosures and Auction Workshop, Oct. 28 Get an entire day of practical advice on buying auction properties and REOs!  Get prepared for the Commissioner’s Sale — including the bond process  Learn techniques for estimating repairs on houses you haven’t even seen  Hear horror stories of investments gone awry (hey, it’s almost Halloween)  Ask any question you can think of to those who buy at auction week in, week out! When: Saturday, Oct. 28. 9 a.m. – 5 p.m. Where: Home of the Innocents, 1100 E. Market St., Louisville, KY 40206. Basement of Hockensmith Building

Cost: $149 for members (Only $99 with early-bird pricing)  Sign up now at kreia.com!

5:30 p.m. Early Meeting: Zac Banta Active Members: $20 • Guests: $30 • Former Members: $30 Receipt Auto-Emailed to You for Your Records

Zac Banta of Citizens United Bank will be on hand to talk about how to get funding for your deals.

Welcome, New KREIA Members! Richard Adams

Ricardo Garcia

Justin O'Dell

Steve Armstrong

Ken Hodge

Shawna Ross

Angela Bolotte

Todd Hunter

Melissa Stover

Megan Brown

Christopher Moore Winnie Tarter

T Renee Buster

Stephen Moorhead

The Numbers Prove It, Louisville By Nina Musgrave With all of the buzz of “when will the bubble burst” and “what will happen with real estate now,” I try to keep my Magic 8 Ball out of reach. I can’t predict the future of America’s housing. I keep hearing that foreclosures are at alltime lows. The recent headline of my source article is U.S. Foreclosure Activity Drops to More Than 11-Year Low in Q3 2017. I am a new investor, trying to figure out – if this is an alltime low, what did the all-time high look like? (Do you not see the list of properties going up at the Jefferson County Commissioner’s Sale?) Then I found the most recent ATTOM Data Solution Report, which may put Kentucky – specifically Louisville – and our foreclosure situation in a different light.  Foreclosure starts down nationwide, up in 24% of local markets. Counter to the national trend of posting year-over-year decreases in foreclosure starts, 51 metro areas posted an increase in Q3 2017, including Louisville (up 27%). Other markets showing an increase include Cincinnati (5% increase); Columbus, Ohio (up 23 percent); Austin, Texas (up (Continued on Page 19)

Cell: (502) 714-4371 Office: (502) 222-5212 jared@louisville-ky.com

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HOLIDAY PARTY PREVIEW JOEL MEYERS, CELEBRITY MAGICIAN You’ve seen him on TV. Now you’ll see him onstage at Woodhaven Country Club.

Mark your calendar for Thursday, November 16, and don’t miss this amazing show. RSVP now at kreia.com before seats fill up. KREIA members GET IN FREE. Guest admission is $30. Watch a preview video at kreia.com!

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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.

KREIA Photos

Photo coming

Frank Miller coached students in his new real estate mentoring program.

The entrance at Woodhaven, moving through KREIA’s check-in, is a good place to get in some quality networking. Deals have been made in line!

John Bowens of Equity Trust, last month’s main meeting speaker, showed us how we can invest in rentals tax-deferred or even tax-free.

photo courtesy of bruce w. hinson www.obedientcamera.com “Tax-free profits” sounded like a good thing to a crowd of KREIA investors! Insurance for the Real Estate Investor realprotect.com

See more photos online — in color — in KREIA's private Facebook group.

Jtown L.O.T.S. Home: A Closer Look Erik Hitzelberger and Bryan Snider rehab a turnkey rental KREIA Vice President Erik Hitzelberger and Bryan Snider, partners in the turnkey company Freedom Property Group, bought a house in Jtown, renovated it, marketed it to a passive investor, and were a few days away from moving in a tenant at the time of the L.O.T.S. open house event in early October. They’d picked up the three-bedroom, one-bath ranch at the Jefferson County Commissioner’s Sale. And while they’d researched the house online and gleaned what they could by driving by, Erik and Bryan weren’t able to check out the inside before the auction (it had apThe house at 4113 Angel Terrace hid a surprise that threw off the ARV and rehab budget. peared to be occupied). When they did Erik and Bryan brought in a contractor to manage the rehab. take possession, they found a surprise. Surprises abound when you buy houses sight unseen (or Landscaping crews took out scraggly trees and cleaned up the significantly unseen) at auction, and they’re often costly. In yard. Roofers tore off the old roof and replaced it with a new this case the surprise was a bonus room that was structur- one. Carpenters removed the dated blue shutters and added ally unsound. Erik said it was something they would have new siding. They replaced the windows and exterior doors. All spotted right away if they’d been able to do a walkthrough. the lighting fixtures, switches and outlets were changed out. “We would have properly valued the house when we did Behind the scenes, all the mechanicals received an update. A comps and determined our ARV,” Erik said. “Maybe we new furnace and A/C were installed. An electrician added a wouldn’t have gotten the house, but we would have new electric panel. Plumbers redid everything, using new PEX lines throughout, and replaced the water heater. adjusted our bid.” “As part of our turnkey model we replace all of the major The room had to go, costing the guys in both unanticisystems,” Erik said, “and that really allows the investor to get a pated demolition expense and about 400 square feet of living space — which reduced the planned sales price and consistent return, especially for the first few years while they profit by thousands of dollars. build up some reserves.” Besides saving the investor from the The upside is that the space morphed into an attractive expense of major repairs right out of the gate, new systems covered back porch. And the house still yields a profit, if not also mean that Freedom Property Group, as the property as much as they’d hoped. manager, has less maintenance to perform. Inside, the contractor renovated the kitchen, adding dark cabinets, a new counter, and stainless steel appliances. He updated the bathroom with a tub enclosure, new vanity and fixtures, and put down a monochromatic tile floor. Workers painted the rooms a light gray (Sherwin Williams Repose Gray) with white trim. They laid new flooring throughout. If you’ve been on the fence about vinyl plank, this house could sway you. The flooring used here could pass for hardwood, looks beautiful, feels solid and yet is easy on the feet. The rehab resulted in a handsome house, inside and out, photo courtesy of bruce hinson one very appealing to a prospective renter. “This is a standard www.obedientcamera.com finish for us,” Erik said. “Because we do so many houses, we try to standardize as much as we can.” Host Erik Hitzelberger, right, described his rehab process and (Continued on the next page) answered KREIA members’ questions.

Erik and Bryan are on pace to buy 40 houses this year. Wholesalers, if you’d like to supply these guys with rehab fodder, check out their wish list: “Our ideal house has an ARV between $90,000 and $140,000,” Erik said. “I personally love brick ranches.” THE NUMBERS Acquisition Cost: $72,700 Total Rehab Cost: $31,550 Carrying and Closing Costs: $6,563 Estimated Sale Price: $124,000 Estimated Profit: $13,187 Erik and Bryan also reported numbers on the turnkey investor buyer’s side of the transaction: Gross Rent to Passive Investor: $1,100/month Freedom Property Group’s Management Fee: $88/month photo courtesy of bruce hinson They presented the profit and ROI in two scenarios: cash www.obedientcamera.com purchase and financed. Under a cash purchase, the buyer would see an annual operating profit, after taxes and insurance, of $9,838, with a long-term ROI of 9.23%. If the buyer purchased with financing The bonus room may be gone, but that sure is a nice covered porch left in its place. (Photo by Bruce Hinson) (20% down, 30-year loan at 4.5%), the annual operating profit Find more photos online in KREIA’s private Facebook group. would be $3,806 with a long-term ROI of 19.95%.  For more information on the Master Commissioner’s Sale Why is it called “L.O.T.S.”? Because we Learn On The Site! and auction tips from Erik Hitzelberger, see Page 14.

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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.

Tips for Buying at the Commissioner’s Sale By Lauren Willoughby with Erik Hitzelberger Looking to buy a local house at auction? One resource to put at the top of your list is the Jefferson County Master Commissioner’s Sale. Visit jeffcomm.org for guidelines, instructions, a calendar of upcoming sales, a list of properties to be sold, and spreadsheet files of past results. Dozens of tax-delinquent and foreclosed houses are put up for auction by the Master Commissioner every two weeks in downtown Louisville. More than 2,100 properties went to auction last year. And if you’re wondering how cheap they can go, the least amount an investor paid to buy a property at the sale last year was only $100. (Makes you wonder, right?) The next sale will be held on Nov. 3. That’s a Friday. These sales are always held at 9:30 a.m. on a Friday. Have you ever heard the expression “sold at the courthouse steps”? This is that kind of sale — but instead of having to perch outside on concrete stairs, you can bid in comfort from a chair in the second-floor jury pool room at the Jefferson County Judicial Center, 700 W. Jefferson St. Your goal may be to snag a bargain house — or residential or commercial lot — but keep in mind that the hundred other investors packing the room have the same goal. Also keep in mind that if you’re just starting out, most of the investors you’re competing against — let’s call them

The sales take place at 700 W. Jefferson St. (Google photo)

sharks — will have deeper pockets than you, and they’ll have had years of experience swimming these waters. Have you heard the expression “pig in a poke”? There’s a lot that can go wrong when you’re buying a property at auction. Too many things to possibly list here. If you’re determined to do it, sound out seasoned investors on the idea, and be sure to come to this month’s main meeting. Prolific house flipper Erik Hitzelberger, who has found many of his rehab houses at the Commissioner’s Sale over the years, offers a couple of tips: (Continued on Page 16)

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Terry Bishop Email: mrtproperties@yahoo.com Phone: (502) 310-9777 Company: MRT Properties, LLC City You Grew Up In: Louisville College: Webster University Current or Previous Occupation: Pipefitter Ford Motor Company. KREIA Member Since: 1996 Why Did You Join KREIA? Grow a small business, Advance Heating & Cooling, and learn real estate investment information Why Are You a KREIA Member? The vast knowledge, experience and opportunity the group has to offer. Year You Began Investing: 2005 Your Real Estate Investing Preferences: single family rental homes, and on a small scale fix and retail. What Real Estate Lessons Have You Learned? For me, watch and listen to others that have done it. Your Top 3 Tips for Investors: 1. Have some starting goal. 2. Read, listen and plan. 3. Repeat what works, change what didn't. What Special Skills Do You Have to Benefit KREIA Members? HVAC information

(Commissioner’s Sales Tips: Continued from Page 14) 1. Learn the rules. You can read the rules on the jeffcomm.org website. Be sure to follow the link to the frequently asked questions at the bare minimum. One important rule is that you must have a bond on file — proving you have funds — if you aren’t prepared to pay in full in cash on the day of the auction. The only alternative to paying in full on the day is to put 10% down and pay the remaining 90% within 30 days. If that’s your plan, you’ll need a bond. Yet Erik said some investors still haven’t figured that out: At every sale there are winning bidders who are shocked to learn they can’t actually buy the house because they hadn’t earlier filled out and filed a bond form. Don’t let that happen to you. 2. Do as much research as possible. “You’re buying houses that you generally don’t have access to,” Erik said. “Sometimes you can only see it from the street.” Even if you can’t inspect the house, you still need to run the numbers. “You need to find a way to be confident in your ARV [afterrepair value], and you need to find a way to be confident in your repair estimate. Because if you can’t, you’re really just wasting your time.” While guessing wrong on the numbers and paying too much for a dud is always a possibility, you can also be too conservative and not bid enough. “There are enough investors down there who know what they’re doing that you can’t be superconservative — you won’t get anything.”

Auction Resources on the Web  jeffcomm.org — The Jefferson County Master Commissioner’s Sale is the motherlode for local foreclosures.  hudhomestore.com — Hud.gov is where defaulted FHA loans go. Owner occupants get first dibs, so the pickings are slim by the time the leftovers filter down to investors. While competition is fierce, you may still score a bargain house. You must get a HUD-registered selling broker to bid on your behalf.  hubzu.com — Hubzu lets you bid on bank-owned houses (REOs), foreclosures and short sales.  auction.com — Auction.com is another place to bid on residential bank-owned and foreclosure properties. Attend this month’s meeting and Saturday workshop to find other places to source auction deals. 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.

Equifax Hack Puts Millions at Risk of Identity Theft By Lauren Willoughby with Julia King Hackers’ theft of data from Equifax, a consumer credit reporting agency, exposed the personal information of 143 million American consumers — about 44 percent of us. The data leaked includes names, addresses, Social Security numbers, birth dates, credit card numbers and even driver’s license numbers. Because we have a credit expert among us — Julia King of King Financial Repair — we asked for her take on all this. Julia’s first piece of advice is to be proactive, not reactive, and sign up with a credit-monitoring company so that you get early warnings should someone attempt to open credit in your name. The company she recommends to her clients is FreeScore360 (freescore360.com). “I like it the best.” Being proactive isn’t cheap at $39/month, but it could save you in the long run. Julia said people who sign up for FreeScore360 through her company get a 50% discount using this link: goo.gl/XD2Qf4 FreeScore360 lets you examine your credit report from the three main bureaus — Equifax, Experian and TransUnion — every 30 days. It also sends an alert any time there’s an inquiry on you, an early warning that a thief may be trying to

obtain credit. Julia said credit reports are hard to read for many of her clients, but FreeScore360 makes it easy for them to look up inquiries. It also gives them their credit scores. If you want to look at your credit reports for free, you can do that at annualcreditreport.com — but only once a year. Were your personal details included in the hack? If you have a credit report, they probably were, according to a Federal Trade Commission website addressing the breach. The FTC recommends visiting an Equifax website to help you find out, but Julia advises that going to Equifax for this may not be a good idea: “They’re the people that leaked the information in the first place.” Also, Julia said hackers have been putting up phony “am I affected?” sites. Besides the financial risk of impostors using your identity, there’s the risk they could also be using fake IDs to commit crimes under your name. Julia said it’s common for illegal immigrants to use fake IDs to get into the country. “The bigger risk could be five, 10 or 15 years down the road when people have forgotten about the Equifax hack, and then their identity is stolen,” Julia said. “And they have the sheriff come knocking at the door to arrest them.” Scary stuff. (Continued on Page 19)

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(Louisville Foreclosure Numbers: Continued from Page 4)

(Equifax Hack: Continued from Page 17)

29%); and Milwaukee (up 97%). Q3 2017 foreclosure activity was above pre-recession averages in 94 of the 217 metros analyzed in the report (43%).  Foreclosures with mortgages during the boom are low, except for one specific product. Foreclosure rates on loans that originated during the housing boom are below historic averages, with one notable exception. FHA loans originating in 2014 have the highest foreclosure rate of any since 2009 – 29% above the historic average for FHA loans, although still 55% below the peak in 2007. FHA foreclosure rates on these 2014 vintage loans were at a 7-year high in Louisville. Other markets include Austin (10year high); Nashville (9-year high); Cincinnati, Cleveland and Columbus (9-year high). Using this information, I can see that Louisville trends don’t look like the vast majority of other U.S. major markets. When I hear national podcast guests comment, “It’s hard to find deals here” – I wonder if it’s a cliché or if they aren’t looking hard enough. I hear certain KREIA members in my head saying, “You can find deals in any market!” and I will continue to buy in. The numbers above reinforce this declaration for me. Please share with new investors. – Nina

What can you do to fight identity theft chaos? Hire legal representation, for starters. “It can take 400 hours for someone to fix their own identity theft problems,” Julia said. She recommends being proactive by using a service called LegalShield (legalshield.com), a membership site that offers identity theft plans starting at $9.95/month — and includes investigators who can tackle fake ID problems for you. (To sign up under her affiliate link, go here: https://goo.gl/twQocz) What else can you do? The FTC advises you to think about placing a credit freeze on your files, which would make it difficult for an impostor to apply for credit in your name. (In lieu of a freeze, the FTC says to consider a fraud alert, which should trigger extra verification steps.) You should also monitor existing bank and credit card accounts closely. And while you’re at it, be careful of the apps you download. Julia warned about an Android flashlight app that runs in the background to steal your banking information. A last tip from Julia: “Never carry your Social Security card with you, because if your wallet gets stolen, then they’ve got your driver’s license and your Social Security Number.” If you want to sign up for any of the services Julia recommends, she invites you to call her at (502) 689-1001.

Ask Hampton: How Can I Make Taxes Less Taxing? By Hampton Scurlock Last month my article and our main meeting topic was about self-directed retirement plans. These plans offer many benefits and can provide a huge tax savings. Another benefit that was seemingly overlooked is that self-directed retirement plans can also save you huge amounts of time when preparing your taxes. You don’t have to track depreciation or expenses for tax purposes on assets owned within your retirement plan. Heck, you don’t even report the income that flows back into your retirement account (often in the form of rent or proceeds from selling property). This makes tax time much more simple and less stressful. Many people don’t like preparing their taxes or often need to file an extension so they have time to get their tax returns completed. As real estate investors, taxes can be complex or expensive if you have a professional prepare them. Here is an idea to make taxes less taxing: Buy properties in your selfdirected retirement accounts rather than outside of these accounts. This could save you lots of money in taxes and lots of time.

Hampton Scurlock, is now a full-time real estate investor in Louisville, Ky. He can be reached at 502-694-BEST (2378) or 859-433-3095 or scurlockfinancial@yahoo.com *Disclaimer: Information is not legal, tax, investment, or retirement advice. Consult a professional on all matters and how they relate to your personal situation. Refer to IRS publications for all tax regulations. Complex issues are going to be mentioned here and there is not adequate time/materials to discuss all aspects, types of accounts, various examples, rules, questions, benefits/drawbacks, etc. This is for general informational purposes only. Do not rely on it to make personal investment, legal, or retirement decisions.

Self-Directed IRA Resources  IRAlawyer.com — The website of John Hyre, an attorney, accountant, author, investor and educator. Many longtime KREIA members follow John Hyre and attend his workshops. Check out his site for articles such as this recent one: “My Roth 401k Bought a Land Contract.”  selfdirected.org — The website of Bryan Ellis, a private equity fund manager who also hosts a popular podcast on investing in real estate and more using retirement accounts. Recent podcast titles include “How to Set Up a Bitcoin IRA” and “Real Estate IRAs: Getting Started Right.”

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Events Happening Soon

Future Events

How to Buy Auctions and REOs

Holiday Party

Local experts talk about buying foreclosed properties from banks and at auction. Thursday, Oct. 26.  Saturday Workshop, Oct. 28.  October 31 — noon-1 p.m. L.O.T.S. event. Location TBD. Check your email. Lunch is provided for KREIA members.  November 7 — 11:30-1 p.m. Louisville Lunch and Learn. Location TBD. Check the private Facebook group. You buy your own lunch. Ed Gibson is the organizer.  November 11 — 11:45 a.m.-1:30 p.m. KREIA Indiana SubGroup Luncheon Meeting. Meets the 2nd Wednesday each month at Tucker’s Restaurant in New Albany on State Street and I-265. Open to all, but you buy your own lunch. Brian Haeseley chairs.

Prepare to be amazed! Magic is coming back to Woodhaven Country Club. Celebrity magician Joel Meyers will blow your mind. And … admission is free for KREIA members! Thursday, Nov. 16. "KREIA advertising is by far, hands down, the absolute best advertising dollar ever spent for Borders & Borders!" Harry Borders Attorney Borders & Borders, PLC

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