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Providing Education, Resources & Networking Since 1978 Kentucky’s premier investment club for landlords, rehabbers and wholesalers Meeting the 4th Thursday of every month (except November & December) KREIA.COM • facebook.com/groups/kreiaky • twitter.com/reiaky

Monthly Newsletter for KREIA Members

Vol 01-18 January 2018

President’s Letter

Sponsorship Rates

Wholesaling for Fast Cash: We’re kicking off 2018 with a focus on marketing to motivated sellers and closing deals

Welcome, New Members!

Mike Butler: How renters insurance protects you

Ed Melton Award: The 2017 winner is revealed

KREIA Photos: Holiday Party!

Sharon Vornholt: The power of writing down your goals

Outside the Metro: We quiz Katie Crotzer on real estate in rural areas

Call for Volunteers: The Fuller Center requests help for mom and disabled child

Nina Musgrave: Tips and reflections on transforming from beginning investor to landlord

Government Affairs Report

Upcoming KREIA Events

Welcome back, KREIA members! I hope you had an excellent winter break and are ready to hit the ground running in 2018, because all signs are pointing toward another EXCELLENT year for real estate investors! If you’re already doing your marketing and networking for deals, you should have no problem selling real estate this year.

Eric George

If you’re new to the game or not already doing consistent marketing to bring in leads for motivated sellers, then make sure you attend this month’s meeting and Saturday workshop on Marketing & Wholesaling for Fast Cash!

This is always one of our most requested topics, and we’re expecting more than 200 people to attend the monthly meeting. Last year over 50 people attended the Saturday workshop, where we spent six hours with local wholesaling experts digging deeper into the “how-to’s” and “things to avoid.” And for only $99, the workshop is simply a BARGAIN for all the knowledge and expertise you’ll gain! Don’t wait — pre-register now. Go to KREIA.com and sign up today before it’s sold out! Lastly, please remember, KREIA is completely run by volunteers for the benefit of all members to learn, network, and educate one another. Without our members and volunteers, KREIA could not exist. If you’d like to give back to KREIA and volunteer in any way, please let me know! Eric George KREIA President

Copyright MMXVIII 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!

Find Motivated Sellers & Close the Deal Three of the most active local wholesalers show us how they get it done The lifeblood of real estate investing is access to good deals. Whether you’re a landlord or a house rehabber, you need a good deal: You need a distressed house you can buy well below market value, fix up and package for tenants or retail buyers. But finding good deals requires marketing dollars. And it takes time and negotiation skills to bring motivated sellers to closing at a price that makes the deal worthwhile. As Sharon Vornholt often says, real estate investors really aren’t in the real estate business – they’re in the marketing business. Because without marketing, you can’t find deals. And if you don’t have a deal…. Enter the wholesaler, a real estate pro who’s mastered both marketing and negotiating with sellers. Who can feed landlords and rehabbers with a steady supply of houses. Who gets paid a premium for helping these investors go straight to work on a house – which is what they really want to do – while leaving plenty of room in the deal for them to make a healthy profit. In our current seller’s market, good deals are scarce, and wholesalers who can deliver are in demand. Would you like to learn what wholesalers know? Come to KREIA on Thursday, January 25, to find out how to attract motivated sellers and close the deal. Find out how to earn $2,000 or $5,000 or even $20,000 for being the middleman wholesaling deals to other investors. Find out how to do this using very little of your own money! Vornholt, a wholesaler with expertise in marketing and branding, will be joined by Frank Miller, KREIA’s past president, and KREIA board member Hampton Scurlock. These three are among the most successful wholesalers in the area, and combined they’ve done hundreds of deals. They’ve also all been landlords and house rehabbers, so they know every side of the business.

Frank Miller

Sharon Vornholt

Hampton Scurlock

Here are some of the topics the three panelists will cover at the meeting: • How to market to find motivated sellers • Wholesaler math — determining your profit and theirs • Structuring the deal • Finding buyers • Assigning contracts vs. double-closing • And much more... The buffet line opens at 6 p.m., and the wholesaling presentation begins at 7. See you there!

5:30 p.m. Early Meeting: Attorney Michelle Rawn on Wholesaling Legally While Frank, Sharon and Hampton will cover how to find deals, estimate costs, find buyers and get paid, Michelle will explain how to do all that within the bounds of the law.

Get More Tips and Training in Saturday’s Workshop! Register Now! Our three panelists will cover as much as they can in an hourand-a-half on Thursday. But they have so much more to share with you. Attend Saturday’s workshop for the opportunity to ask all the questions you need answered. Invest in yourself! When: Saturday, January 27, from 9 a.m. to 2 p.m. Where: Home of the Innocents, 1100 E. Market St., Louisville, KY 40206, in the basement of the Hockensmith building  Cost: $99 for members and $199 for non-members. For a map of the HOTI campus, go here: bit.ly/hotihockensmith  

Early Bird Pricing! Five hours with wholesalers who routinely pull in 4 and 5 figures per deal? Five hours to learn about their processes and pick their brains? That’s a bargain at any price! But you can save $20 more with earlybird pricing! $79 vs. $99! And $179 vs. $199! Just register before this month’s main meeting!

AND SAVE $20!

Welcome, New KREIA Members! Erica Alexander Rob Bergeron Robin Bray Ryan Bruzan Clint Camomot Taryn Dixon Larry Gatti

Jackie Hancock Todd Hancock Randy Hollis Shannon Huffer Mark Johnson Christopher Koch Anna McKinnon

Kenneth Miller Brent Mills Shawn Owens Conner Parsons Tom Slone Gene Stein

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

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How Renters Insurance Protects YOU By Mike Butler In almost three decades of investing in single-family homes as rentals, there’s no telling how many painful and expensive mistakes I’ve made along the way. Almost immediately after joining KREIA back then, we were always encouraged to make our tenants buy renters insurance. Yeah, yeah, yeah… but when I have a vacant house and house payment, it was pretty daggone difficult to implement 100% when we felt like we were doing good to get a full month of rent and security deposit before the new tenant gets keys to our investment property. It almost felt like if I demanded they get a paid renters insurance policy up front, odds are, these new tenants would go rent a house where they did not have added extra expense. Fast forward to today’s market. Everybody and their brother advertises on TV to help us find somebody to sue. Jerry Springer, Maury, and other TV shows run these ads every day. You and I would probably agree there are boatloads of folks who want to steal everything you have worked your butt off for to build your nest egg. MY HUGE LESSON LEARNED: Years ago after implementing the requirement that renters insurance is a must before anyone can rent one of our homes, one of our residents cooked bacon naked on a Sunday morning. (I don’t know if they were really naked, but I thought you might like the image.) Anyhow, she obviously splashed some piping hot grease on herself and ran to the bathroom to help heal her burns. When she returned to the kitchen, she saw half of the kitchen ablaze with fire and smoke everywhere. She was too late to put the fire out herself and she called the fire department. You probably got the rest of the story on the fire stuff in the kitchen. Our resident’s renters insurance PROTECTED me. How? We filed a claim on the resident’s renters insurance policy, and her insurance policy paid for all of the repairs. This included all brand-new cabinets, countertop, sink, window, double back doors to patio, gutters, overhang, flooring, painting, electrical and more.

I Did NOT File a Claim on My Insurance Policy – this keeps my insurance record clean as a whistle. Simply put, make a requirement for every new tenant and renewing tenant to have a renters insurance policy and make sure to have your rental property business included as “additional insured.” Happy Investing. To Your Continued $uccess!

Katie Crotzer Is 2017’s Ed Melton Award Recipient Longtime KREIA member recognized for service, education and dedication By Henry Schildknecht Congratulations to Katie Crotzer, the 2017 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. Katie was the 20th person to receive this prestigious award, which was established in 1998, to honor Ed Melton for his devotion to KREIA and its members. Every year, prior recipients gather for their annual dinner meeting. This year we met on Oct. 19, and 14 past honorees were in attendance for our reunion. We discussed those members of KREIA who have given their time and effort to our organization, and we selected this year’s recipient. We found Katie Crotzer to be very deserving of the award for many reasons. Katie has been a member of KREIA for 25 years, having joined in 1992. She has been extremely active since that time. She served as a board member and as secretary of KREIA when Mark Lechner, the first recipient of the Ed Melton Award, Ed Melton was president.

photo by bruce w. hinson www.obedientcamera.com Mark Lechner congratulates Katie Crotzer after she is called forward to accept the Ed Melton Award.

The Ed Melton Award is given in recognition of a member’s dedication to KREIA in several different ways. Two of the attributes are contribution to our members’ real estate education and devotion to fellowship among our members. Katie was very instrumental in organizing summer and fall educational retreats for KREIA members when she was (Continued on Page 12)

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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 MMXVIII 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

The Holiday Party Edition

photo by bruce w. hinson www.obedientcamera.com Free admission for KREIA members, great food, drinks on the house, lots of prizes… it was a party to remember! Let’s do it again next holiday season.

photo by bruce w. hinson www.obedientcamera.com Celebrity magician Joel Meyers escaped from a straitjacket, littered our floor with playing cards — and blew our minds.

photo by bruce w. hinson www.obedientcamera.com Party man Frank Miller got some help from his wife, Tommi, in drawing raffle prize winners.

by bruce w. hinson obedientcamera.com Thanks for footing the bill, SurePoint Equity!

photo by bruce w. hinson www.obedientcamera.com

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Hampton Scurlock and The Branch BrosTM: You just met them, and this is crazy. But get their numbers, and call them maybe. Maybe you’ll make a deal! (With apologies to Carly Rae Jepsen, Hampton, Wesley and Jacob.) See more photos online — in color — in KREIA's private Facebook group.

The Power of Writing Down Your Goals The secret to your success in 2018 By Sharon Vornholt What’s the secret to success? I believe that it just might be writing down your goals — as opposed to simply thinking about them. Dr. Gail Matthews, a psychology professor at the Dominican University in California, found that you are 42% more likely to achieve your goals and dreams simply by writing them down on a regular basis. I would like you to take out a piece of paper and write down three or four big goals you want to accomplish in the next 12 months. (Remember, no more than three or four.) The reason for this is when you have too many goals, it often becomes overwhelming and you end up doing nothing. There is a good chance you’re just setting yourself up to fail. Now I’m not suggesting you shouldn’t have big goals. Your goals should be a stretch. They should make you uncomfortable. In fact, if they don’t feel challenging, you need to go back to the drawing board and do the process over. When it comes down to really creating a plan there are a lot of things to take into consideration. Not only do you have to look at things like how much money you would like to make or how many deals you want to do, but there are bigger questions to ask yourself. This involves figuring out how you will get where you want to be. What are the steps you need to take? What can you do to assure that you consistently implement those steps on the path toward your goal? Here’s a tip: You need an accountability partner to help you stay on track with your goals! Think about these fundamental principles when you’re setting your goals: • What is your “Why”? What do you want so badly that you will do just about anything to achieve it? • Who do you have to become to reach your goals? Maybe it’s the person who is willing to finally get rid of some bad habits and replace them with habits that will help you make it to the finish line. Maybe it’s the person who gets up every day at the crack of dawn. • What do you need to do to find some balance in your life so you can avoid burnout? • What would you have to do to “get a life” outside of work? I’m talking hobbies, fun or whatever it is that you enjoy that isn’t work. • Finally, if you could wave a magic wand and create the perfect lifestyle, what would that look like? If nothing were off limits, what would you create?

Achieve Your Goals in Record Time With ‘The 12 Week Year’ I have to tell you I love this book! The basic idea in “The 12 Week Year” is that you can get more done in 12 weeks than others do in 12 months when you implement the concepts outlined in this book. The magic word here is “impleplementation.” If you create your 12-week plan and implement it, you will succeed. Most of the time it seems like we’re on a hamster wheel. There is too much to do and too little time to get it all done. We just keep chasing our tail day after day, week after week. It’s like a race that never ends. And most of us are a big, hot mess when it comes to staying focused. This book has taught me that with planning and some trial and error, we do get better at it with practice. Big annual goals are great and they are necessary for growing your business. But how do you nail the implementation piece when life continually gets in the way? The answer is to create 12-week blocks of time and decide what you will put your focus on for just that 12week period. Once you have your plan for the next 12 weeks, you then create a weekly plan that is implemented by your daily actions. It sounds simple, doesn’t it? It is simple, but it’s not always easy — like a lot of other things in your real estate investing business. — Sharon Vornholt

Sharon Vornholt is a local wholesaler with a national presence. She blogs and hosts podcast interviews with other real-estate experts at her website, The Louisville Gals’ Real Estate Blog: louisvillegalsrealestateblog.com Visiting her site is like taking a master class in real estate. Sharon also writes and coaches on marketing and branding in addition to wholesaling. She is a frequent guest on other podcasts, including The BiggerPockets Podcast and, most recently, Flipnerd’s REI Classroom. Be sure to attend this month’s meeting: She’s on the panel!

(Ed Melton Winner: Continued from Page 6) head of the social committee. These weekend trips were great for learning and bonding for our membership. She put in countless hours coordinating the reservations of our members with the hotels, hospitality rooms and seminars for our education. Her selection represented all of the attributes of a recipient of the award: a longstanding KREIA member, an active investor, an advocate of fellowship among our members, and an educator to our membership. So we all give a great deal of thanks to Katie Crotzer for her years of service to KREIA and congratulate her for receiving the 2017 Ed Melton Award.

photo by bruce w. hinson www.obedientcamera.com Past Ed Melton Award winners gather for the announcement.

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

Outside the Metro We quiz Katie Crotzer on real estate in rural areas

Fuller Center Requests Help for Family in Need

Katie Crotzer is a real estate investor and broker whose farm area includes many counties south and east of Louisville. As she recently was awarded KREIA’s Ed Melton Award, we decided to get her perspective on real estate in general and rural investing in particular. We learned, as if the award weren’t indicator enough, that she truly has a heart of service. When did you start investing? In 1990. I bought my first rehab house and I actually lived there. We had to do the floors, walls — everything had to be done. And then we went to the Commissioner’s sale and bought our first investment property in 1992. And we just kept going. When we started investing, we focused on Taylor Boulevard and photo by bruce w. hinson Southern Parkway. Then we also did www.obedientcamera.com Portland, West End revitalization and Smoketown. We worked with Katie Crotzer receives the Ed Melton the housing partnership, did new Award from Hank Schildknecht. construction, and renovated airport relocation homes with the housing partnership. Then we went out to McNeely Lake. Rue McFarland said, “Keep your investment properties close to home.” So when we moved to Shelby County, we said, “You know what, that makes sense.” So we started investing in Simpsonville and Shelby County and Henry County. What I’ve found is that there’s not as many services or investors in the more rural areas, but there’s still a need. So when I started working with the small towns and the municipalities on economic redevelopment, and they knew that I did things like main-street historic projects and restoration of historic buildings and homes, they would ask me to come in for economic redevelopment. When I went into small towns, they’d say, “Katie, can you help? Can you renovate this building? Can you try to bring in new business?” That’s how we ended up getting involved with the more rural communities, and plus they were close to home. Do you think there are plenty of opportunities in rural areas for investors to rehab, hold rentals and wholesale? Well, I don’t think there are as many, no. There’s lots more, obviously, in larger metropolitan areas, because there are more homes. Do you think there’s less competition in rural areas? There’s competition everywhere now. But there’s also opportunity everywhere. It’s truly more about staying focused on your niche. There are so many ways to do real estate, which is the part I love about it. There’s not just one way to do it. It has to fit your personality. What counties do you work in? We have a brokerage that services Louisville to Lexington. We work (Continued on Page 20)

You’ve heard of Habitat for Humanity, but did you know about the Fuller Center? It’s a Christian organization developed by the founders of Habitat for Humanity, and the mission is to help people build and live in affordable houses of their own — people who can’t afford to obtain good, safe housing by conventional means. Locally the Fuller Center’s membership has a lot of overlap with KREIA’s. Katie Crotzer, who’s a member of both, is asking for help in building a new home in the Cane Run/Lees Lane area for a single mom and her disabled child. If you have time to swing a hammer or lift a paintbrush, the Fuller Center would love to hear from you. They’d also welcome rehab materials left over from your renovation. Monetary donations are appreciated too. So how much time would you need to devote to the project? As much or as little as you’re willing to give. The Fuller Center welcomes your help even if it’s just for a few hours on a single day. “Lots of labor would be fantastic,” Katie said, “but we’ll take whatever we can get!” What if you don’t know anything about carpentry or construction? Contractors, there to supervise the work of volunteers and also the family members who’ll end up living there, will be on hand to teach you and answer questions. If you’ve been curious about how houses are put together, this is a way to find out. “It’s a great way to learn the trades without having to commit to do the entire project yourself,” Katie said. Find out how to put up drywall, install cabinets, paint walls, lay flooring, apply vinyl siding, and more. The experience you gain here can only benefit you when you rehab your own projects or embark on your first new construction deal. Think of it like a L.O.T.S. event — on steroids! Three homes are planned to be built in the area on lots donated by KREIA’s Rue McFarland. This family, in particular, has inspired Katie to put out the call. Groundbreaking is planned for March, though work is already underway: “We’ve got the walls framed in a warehouse.” If you’d like to do a good deed while gaining knowledge for future rehabs, contact Katie. She invites you to call her at (502) 376-5582, or send email to katie@newoutlookrealty.com.

Centerpieces & Soundbites: My First Two Years in KREIA Tips and reflections on transforming from beginning investor to landlord By Nina Musgrave My introduction to KREIA came from a newbie agent in January of 2016. For the next five months, I assured myself, “I’m going to go to that KREIA meeting.” The fourth Thursday of the month would wander around, and lo and behold, I wouldn’t go. Eventually, in May, I promised myself (again) that I would go – No Matter What. This time it happened. I arrived at Woodhaven Country Club, early. I walked in, dazed by the shiny table centerpieces, and introduced myself to two ladies. The women were welcoming, and I was grateful for the company. After short small talk, one asked me, “What kind of investing do you do?” I wish this conversation was recorded because I would pay to watch the expression on my face and the fumbling of words that proceeded. I had no answer for them, as I did zero real estate investing at that time. My answer was, “I am using online calculators to get comfortable with numbers, trying to figure out what works, and I have been reading a lot.” I leaned in and added, “Reading a lot,” to emphasize that I wanted to do this, to become a real estate investor. I shifted the conversation to them and asked some basic questions – what kind of investing did they do? Turns out they both were living, breathing real estate investors, working on rentals or remodeling properties. Exactly like I desired to be! Those sparkly centerpieces caught my eye again, and I thought – I don’t ever want to forget what it’s like to be new. It’s now January of 2018, and I haven't forgotten. If you recently became a member, I offer this: keep coming back to KREIA meetings. As time progresses, don’t forget what it’s like to be a beginning investor either. Retain the momentum you have today, the photo by bruce w. hinson hunger you feel to become www.obedientcamera.com financially independent, to pay off debt, to exit your rat When you visit KREIA, check out race. Keep it close. the sparkly centerpieces. And be I’m also going to offer five sure to look up Rue McFarland, incredibly-unoriginal-genericKREIA’s founding member, who pieces-of-advice that I kept has helped many investors on their path to financial freedom. hearing in the beginning (and

still hear today). These are soundbites of suggestions from experienced members, my initial response, the actions that I have or haven't taken, and my solutions for today. Unoriginal, Generic Advice #1: “Network with other investors; stay after the meeting.” Me: “But I’m an introvert.” Action: Introvert or not, I asked someone (with a fancy name tag) for help with the frequent login trouble I was having. This led to volunteering for KREIA, which gave me access to a group of investors whom I can call on for advice. Solution: Continue to stay after the meeting, volunteer, ask questions and experience life outside of my comfort zone. Encourage every member to become involved. Generic Advice #2: “Know your numbers.” Me: “I have saved over one hundred pretend deals in three different online calculators. I know my numbers, thanks.” Action: I missed vital information (aka – I didn’t know my numbers). Ends up some auctions charge premiums for their services, which was noticed after reviewing the ad. Oops. An extra 10% in acquisition costs affects the deal – regardless of where it originates. Solution: Read and reread the transaction details and fine print. Watch for added premiums, points, flat fees, and closing costs. Use exact financing numbers (like payments, interest, draw fees), insurance and tax amounts. Generic Advice #3: “Start forming your investor-friendly team today." Me: “What’s the difference between those who specialize in real estate investing and those who don’t?” Action: Used friends of friends for initial professional services. Today, I want a specialized REI accountant to ease my mind on the new tax laws. Solution: Use KREIA sponsors or other REI trained professionals, effective immediately. Generic Advice #4: “Stay organized with paperwork.” Me: “I'll do that tomorrow.” Action: Some organization materialized. However, I drove to Sherwin-Williams last week and asked them to reprint a few missing receipts. I stopped by a Walmart on my way to Sherwin-Williams for the same reason. What mileage? W-9s are on the way. Solution: Create a folder for each month. Get an app or three. Sign up for online accounts that can email and store (Continued on Page 20)

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JC4PropertyMedic@gmail.com

(502) 645-4375

(Outside the Metro: Continued from Page 14) in Oldham, Henry, Shelby, Bullitt, Anderson, Franklin, Woodford, Fayette and Spencer counties, and I’ve got a commercial property listed in Jessamine County. So we’re not geographically bound, because we’ve got a great team. I’m on the tourism board in Spencer County and a member of the Chamber of Commerce there. I love the economic development part – and the schools. I feel I can help more in the more rural counties because there are fewer services available. There’s less grant money available. There’s not the economic incentive that you have with the large, metropolitan areas. It’s not just about making money. You must do a lot of driving! What kind of vehicle do you use to get around all this territory in all kinds of weather? Are you ready? A Kia Soul.... It’ll go anywhere. I’ve had tons of Jeeps and 4-wheel drives and everything else, but my 5-speed Kia Soul will go anywhere. I take it out on the farms. I take it out in the snow, as long as it’s not too deep. I’ll take it to West Louisville, and I’ll take it to a million-dollar property. It gets great gas mileage, and no one bothers me. My little Hammy goes anywhere. Your little what? I call it “Hammy.” You know those Kia commercials they have with the hamsters rocking out? We have other vehicles, obviously. I put about 35,000 miles a year on my cars. If a new KREIA investor were to find a lead in your areas, would you be interested in partnering, mentoring or helping them out with the deal? Sure. In fact, some of the deals I’m working on now have come from KREIA members. Is the experience of new construction different in rural areas as opposed to the metro? I’ve built in Jefferson County, Bullitt, Shelby, Henry and Oldham County – all over the place – and it is easier. It takes less time to get an inspection usually when it’s in a more rural county. But not always. It just depends. Do you wholesale? No, we really don’t, unless I have an opportunity to buy, say, multiple lots. If I buy out a builder or developer, I can sell lots to another investor who wants to build. Can you do HUD bidding for investors? We do that. What kind of marketing do you do? Once you get established, people send you leads. But I’ve done postcards to neighborhoods. I have dressed up on Halloween and put bags of candy on their door in target areas. I’ve put antlers on and Santa Claus hats and done candy canes. Yeah, I have no shame. I had someone take off with these posters with my picture on them. He posted them all over my target area, at every 4-way stop and at the ramps coming off the highway. People thought I was running for some kind of political office. It was hilarious.

GOVERNMENT AFFAIRS REPORT Kentucky Realtors Legislative Update January 15, 2018 Governor Bevin will deliver his State of the Commonwealth Address to the General Assembly on Tuesday evening. In his speech, the Governor will preview the budget and chart a course ahead for filling the projected $1 billion gap between revenues and expenses, and then the difficult job of creating the two-year budget will fall to the legislators. House and Senate leaders have also signaled that they are inching closer to filing an official pension reform bill, noting that they received some new actuarial scoring information on the proposal last week. Kentucky REALTORS® supports meaningful pension reform that sustains funding for the critical areas of state government involved in attracting new investments and growing our economy.  Read more at Kentucky Realtors site: bit.ly/kyr_lu

(Centerpieces & Soundbites: Continued from Page 16) receipts. Keep a calendar of daily work and utilize check-off lists to ensure forms are collected. Review accounts monthly and find a system that functions. Complication isn’t required. Implementation is. Generic Advice #5: “Consider hiring a property management company.” Me: “I believe this means more time on the beach. Done.” Action: Hired a property manager for the first and so-far only property. Did not incur midnight phone calls from the tenant. Peacefully observed bank account growth and trusted someone else to handle late rent payments or busted pipes. Solution: Continue to employ property managers and travel to the beach more often. Keep property management expense in the cash flow analysis. That's where I'll end, with cash flow analysis – with the deal, because that's the reason I come to KREIA. If you haven’t done your first deal, and you’re asking how you can step into real estate investing in 2018, here’s some solid advice. Network with other investors; stay after the meeting. Know your numbers and start forming your investor-friendly team today. Stay organized with paperwork and consider hiring a property manager! Here's to shiny centerpieces, soundbites, beach time and an outstanding 2018.

Join us! Classes begin in March

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THE Local Resource for Landlords, Rehabbers & Wholesalers Meeting the 4th Thursday of every month (except November & December) at Woodhaven Country Club, 7200 Woodhaven Road, Louisville, KY 40291 KREIA.COM • twitter.com/reiaky • instagram.com/reiaky • youtube.com/KreiaDotCom facebook.com/reiaky (public) • facebook.com/groups/kreiaky (private)

UPCOMING EVENTS

Wholesaling for Fast Cash A trio of high-powered local wholesalers cover finding motivated sellers and closing the deal. Thursday, Jan. 25.  Early Meeting: Michelle Rawn on wholesaling legally

 February 14 — 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. You buy your own lunch. Brian Haeseley chairs.

Workshop: Wholesaling in Depth

Tax Tips for Real Estate Investors

Spend five hours learning more from our experts on how they earn up to $20,000 per deal. Saturday, Jan. 27, 9 a.m.-2 p.m.  January 30 — noon-1 p.m. L.O.T.S. event. Location TBD. Check your email. Members only. Lunch is provided.  February 6 — 11:30-1 p.m. Louisville Lunch and Learn. Location TBD. Members only: Check the private Facebook group. You buy your own lunch. Ed Gibson is the organizer.

"KREIA advertising CPA Mike Grinnan addresses the burning question: How does by far, down, President Trump’s new tax planis affect us?hands Thursday, Feb.the 22. best advertising  Early Meeting: Bruce Hinson absolute on snapping great photos dollar ever spent for Borders & Borders!"

Making Income With Rental Properties Harry Learn best practices for Borders managing tenants, and get tips on Attorney increasing cash flow. Thursday, March 22. Workshop to follow. Borders & Borders, PLC

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