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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 06-18 June 2018 President’s Letter

Paid Advertising Rates

Protecting Your Assets With Contracts: Attorney Harry Borders gives us a crash course

Welcome, New Members!

Announcement: Ethics committee forming

Mike Butler: Would you do this 11 deal? Test your mental knee-jerk reaction L.O.T.S. Recap: Frank Miller keeps it simple, profits $57K

Nina Musgrave: Infographic

KREIA Photos

KREIA Election Sample Ballot

Board Candidate Bios: Dave Slaughter Mike Butler Jeani Bryant Josh Hardy Chris McCarty Phillip Frazier Michelle Rawn Greg Nalley Clay Smith George Foree Armand Bolotte Jr. (Duna) Mimi Guarnieri John Jones Lauren Willoughby

KREIA Members! It’s election time once again and we need your votes! There are 15 people running for only six seats on the board this year, which is a record number for at least the last decade. I’m very thankful we have this many people wanting to give back to KREIA and help us continue to grow and improve as a group! Make sure you cast your votes at this month’s meeting, and if Eric George you can’t attend but still want to vote, you can email your votes to Hank Schildnecht at hankatty@gmail.com. This month’s meeting may be the most important one you attend all year! We’re featuring local real estate attorney Harry Borders from Borders & Borders, PLC, and Harry will be teaching the legal do’s and don’ts about real estate contracts, explaining why you shouldn’t be using the same contract for every purchase. Many investors aren’t aware that they are using poorly written contracts that may create liability issues down the road. Some may even be using “template” contracts found online (big no-no) or contracts they’ve received from out-of-state “gurus” that have no clue about our local laws! Learn how to keep yourself out of trouble from one of the best attorneys in our industry! Lastly, our board is working to create a new KREIA welcome package and directory for our members! There’s been much debate about what should be included and how it should be made available, so this month when you vote for the new board members we will also have a two-question survey for you to answer. The survey will ask 1) Do you agree to share your contact info with all KREIA members? And 2) Do you prefer a printed or online version of the member directory? We may end up doing both printed and online, but we want to hear what our members prefer before moving forward.

See you at the meeting!

Eric George KREIA President

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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 advertising levels to get your ad in every issue of KREIA's newsletter and be invited to make ad pitches at meetings:

Business Card Membership . . . . . . . . $199 Includes your business-card-sized ad. Admission at monthly meetings remains $20. Premium Levels: These four advertising 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 to educate you 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 advertising levels and pricing are in effect for new member signups and upon renewal for current advertisers. Questions? Send email to News@KREIA.com or catch up with KREIA Sponsor/Advertiser 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!

Contracts 101, 202, 606 … With Harry Borders Attorney explains how to write contracts that protect your interests Attorney Harry Borders writes: “For every different type of real estate deal, there is a very different and very specific contract needed. Your contract to purchase a rental should look similar to your contract for a wholesale deal, but it is NOT the same. And your contract to sell looks different from your contract to purchase. Subject-to contracts? Different. Assignable contracts? Different. Double closing contract? Different. You get the idea. “On June 28th we will dive deeply into the differences and the why’s and how’s. If you think your contract is sufficient, I bet we can convince you it needs some tweaking at the least — if not a total overhaul. We hope to see you there!” As the featured speaker at the 7 p.m. main meeting, Harry plans to school us on contract law, covering these topics:

Q&A With Harry Borders

How long have you been investing in real estate? And did your involvement with KREIA inspire you to start investing?  The differences between general warranty deeds and special warranty deeds For me, investing is NOT about  Enforcement of contracts working my way out of my attorney job  The consequences of breaking a contract and how to avoid and into a new job. I LOVE my day job. expensive judgments Best job in the world. For me, it’s about  Good faith deposits: How much should they be, and who working my way out of a job PERIOD. I’ll holds them? never really quit my day job... I just want to BE ABLE to quit and be able to spend Harry is a real estate investor himself as well as a prolific more time with family and at the lake. closing attorney with Borders & Borders. Can he do contracts So, my goals are modest. 30 paid for houses. That’s enough income to support anything I want to do, but not so much involving seller finance and creative financing? Yes, he can! work that I cannot do it from a boat or a beach or a Whatever deal you’re trying to put together — subject-to, contract for deed, etc. — Harry is ready with the paperwork. mountain top. I watched investors succeed at making money for about 5 “It’s pretty rare that somebody says ‘I need a contract for... years before I said, “I need to figure out what this is all fill-in-the-blank... and I don’t have it,” he said. about.” So, I spoke with Mike Butler and he invited me to Doing a wholesale deal and need a wholesaling contract that’s blessed by a Kentucky attorney? Harry will give you one KREIA. Then the journey of investments began. And, I’m as giddy as a school kid about real estate investments to this for free. Any of his contracts, he said. Just ask him. day. I do it because 1) I LOVE it; and 2) I understand it; and “I think I’m doing a service for people. I’m a believer that 3) I TRUST it for my future retirement. I’m 20+ years into what you send out into the world comes back to you in the world,” Harry said. “And if I give to you, you might give back. investing and I love it. And now, my kids are taking a strong interest in investing as well. My oldest, Ben, is only a few And if you don’t, then somebody else will. I’m a believer for years away from being a full-time investor, and he’s only 24. karma.” (Continued on the next page)

Special Door Prize for Pre-Paid Registrations! Active Members: $20 • Guests: $30 • Former Members: $30 Register now at kreia.com. Receipt emailed for your records.

PRE-PAY NOW!

5:30 p.m. Early Meeting: Jay Bowman Jay Bowman, broker/owner of 60 Day Realty, will talk about how to save more money at closing.

Welcome, New KREIA Members! Joe Burnett Anna Carroll Michael Crouch Joanna Dennis Abby Durham Patrick Flaherty Sherry Henry Tim Huse

Tamika Jackson Lisa Kemper Cynthia Nickell Matt Rostosky Steve Schnell Michael Trover Christopher Vincent Kevin Weis

Q&A with Harry Borders Continued from Page 3 Can you recommend any books or resources about contracts that interested folks can turn to for further reading? Mike Butler’s “Landlording on Autopilot.” I re-read that every single year. “The Millionaire Next Door.” I made all my kids read that. “Rich Dad Poor Dad.” “Who Moved My Cheese.” “7 Habits of Highly Effective People.” Mostly old school stuff. My biggest source for learning more about real estate is my friends and clients. I’m ALWAYS trying to pick up tips from the best in the business, and the KREIA folks are at the top of their game. I wouldn’t have had the courage to start without the support of the investor community. You’ve been monitoring the Dodd-Frank situation. Would you like to see the repeal of the part that’s put the brakes on owner financing? I certainly hope so because it’s a real disservice to home buyers that are struggling to be able qualify for a loan because they had a bankruptcy recently or whatever it may be. Right now you can do one deal per year, with a five-year minimum term. If you do more than one — if you do two through four — you have to fully amortize it. What investor wants to fully amortize a loan? If you want to fully amortize it you’re going to put it on a five-year loan or something like that, but what buyer can afford to pay fully amortized in five years? Nobody can do that. If you’re doing five or more, you’ve got to be a loan officer or you’ve got to partner with a loan officer. So it’s a really sticky situation that is really helping nobody and hurting a bunch of people. We have a lot of people doing onesie-twosies, but everybody is afraid to do it in volume because the consequences of violating Dodd Frank are you lose any ability to profit. Which means that effectively you’re giving a 0-interest loan for that full term. And the way they catch you is the borrower stops making their payments and therefore you, the lender/seller, push them. The borrower then goes and hires an attorney, who realizes it’s a violation of Dodd Frank. The attorney turns around and says, not only should you not have done this, but they’ve been paying you for three years, and of your payments, 90% of it was interest, and you’ve got to give it all back to us. It’s a mess. Do you have a favorite lawyer joke, and if so, what is it? A guy in a bar stands up and says, “All lawyers are a**holes.” Another guy stands up and says, “Hey...I resent that...” The first guy says, “Why? Are you a lawyer?” The second guy says, “No. I’m an a**hole.”

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New KREIA Ethics Committee in the Works KREIA is forming a Committee for the Enforcement of the Code of Ethics that will consist of at least three members, including the current president and former presidents of KREIA. If any KREIA member feels that another member has violated the Code of Ethics, that person may submit a complaint. Stay tuned: more coming on this later.

KREIA’s Code of Ethics We, The Members Of KREIA, recognize the importance of achieving our mission, as stated in Article II of our Association’s Constitution, to encourage and uphold sound, honest practices and maintain real estate investment activities on a high profes-sional and ethical plane and to freely aid, encourage, and share knowledge with members in pursuit of their goals. We person-ally feel that building a good reputable business requires a strict code of ethics, which shall encourage fair play among its membership and shall constantly raise and improve our stand-ards of practice. The members of this association are mindful that the soundness, usefulness, prosperity and future depend upon the honor, integrity and fidelity of all personnel engaged in this organization. We do hereby commit ourselves to the highest ethical and professional conduct, and hereby agree: Honesty Is the Best Policy — We try in every way to be com-pletely honest in all of our dealings with the public, our clients, customers, and our fellow members. Be honest and realistic in stating claims or estimates based on available data and to avoid injuring others, their property, reputation, or employment by false or malicious action. To Make No False Misrepresentations — Avoid real or per-ceived conflicts of interest whenever possible, and to disclose them to affected parties when they do exist. To Accept Responsibility — Follow through with integrity and good administration and at all times remain fair in all of our transactions. To Hold All Confidences — A member shall not knowingly, during or following the termination of a transaction, reveal confidential information or use confidential information to the disadvantage of the parties involved. To Maintain Integrity — A member shall act with integrity in all of their dealings. All oral promises and agreements will be as binding as if they were reduced to writing. We strive to the axiom, that our handshake is as good as our word. To Seek Education — A member shall strive for both knowledge and understanding of the real estate investing process. Each member shall assist colleagues in their professional development. 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.

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Would You Do This Deal? What is your first mental knee-jerk reaction? By Mike Butler STOP! To maximize your learning on this short, make you think article, please stop and give yourself a full 3 minutes of your undivided attention while participating in this newsletter training. Will You Do This Deal? Three months ago, Ralph contacted you about buying his house at 123 Mayberry Lane. It’s an owner occupied, very well maintained, (no repairs needed), three bedroom, one bath, brick ranch in a great mostly owner occupied neighborhood in the South End. These homes sell quickly for $100k. Ralph was in financial distress with foreclosure looming around the corner. You could not work out a deal back then with Ralph. On a Wednesday, three months later, Ralph calls you to buy his house. He said you were the only person who treated him like a human being. He tells you his house is going to the courthouse auction on Friday at 10am. Ralph says he owes the bank $40k and he would rather see you get it for $40k than the bank, but you must close tomorrow and pay off the bank’s $40k balance to buy this house from Ralph along with dismissing the auction. Here is your pickle. You Have No Cash! Stay focused with me right now. Do not let your brain wander around. Stick to this for one more minute. Let’s pretend you have no cash and no bank, credit union, family member or friend will loan you the money. Your ONLY Resource to FAST CASH to do this deal tomorrow, is Uncle Guido, your local friendly loan shark. You call Uncle Guido to borrow $40k to do this deal tomorrow and Uncle Guido says “No Problem! I will gladly loan you $40k to close tomorrow at 48% interest.” What is your first mental knee-jerk reaction? Be Honest with yourself. Odds are, you were raised in an environment where you were told credit cards get you in trouble and always, always, try to get the lowest interest rate when you borrow money. When I do this exercise in a classroom environment, almost half of the investors in the class raise their hand and say they would NOT do this deal due to the 48% interest rate. Then about a third of room say they will do the deal and a few more will never raise their hand. Check this out. In this exercise, I use 48% interest for two reasons. The first it’s an outrageous interest rate and second, it’s a very good training exercise. Let’s run the numbers. Borrow $40k at 48% interest equals 4% per month… correct? What is 1% of $40k… $400? Now take the 1% and multiple it by 4 to get your 4% which equals $1,600.

Therefore, the simple end result is this. Would you pay $41,600 for a $100k house to own it for 30 days? One month of interest is $1,600 and this is cheaper than a roof, a furnace, etc. You simply factor one month of interest into your offer. When you can wrap your head around the big picture here, you will have opened your mind to all kinds of additional creative financing. Imagine what you can do with this house you bought for $41,600. Could you sell it in a few days to another investor for … let’s say $61,600 for a $20k profit? Could you re-finance it and get a super low, fixed rate loan and make it a great rental? The purpose of this exercise is not to get to go out and borrow money at 48% interest. It’s a great little exercise to show you how the interest rate, no matter how high, is just another variable to factor into your offers. I still struggle today with these things we have been brainwashed with growing up. SLOW DOWN Your Brain and remember to RUN YOUR NUMBERS first before you make your offer. Please send me some feedback on this powerful training exercise. To Your Continued $uccess!

www.MikeButler.com www.QuickBooksForInvestors.com

Buechel L.O.T.S. Home: A Closer Look

Frank Miller keeps it simple, sets the stage for $57K in profit

Frank Miller’s mantra for rehabs is: “Keep it simple.” At the May 29 L.O.T.S. event, the KREIA past president told the crowd that he uses the same paint color over and over (Stonington Gray for the walls), so that there’s no question for his crew. And if it’s not broke, don’t fix it. The furnace and A/C for example: In this house in Buechel, it checked out OK, so he had it serviced, not replaced. Using the same materials and keeping what works helps him profit more. For this house in Buechel, it’ll help him profit around $57,000. Frank picked up the house for The house at 5919 Six Mile Lane offered built-in seating for the crowd to enjoy their box lunches, $80,000 at the Commissioner’s Sale in November. It was occupied. provided by MM Lending. (Photos by Lauren Willoughby) This is how Frank got the occupant to move: He knocked on to completely furnish a house. “Now my wife comes in and the door and told him, “We’re a friendly investor. I’m sorry the stages the houses.” Every time a house closes, they move all situation happened, but what kind of terms are you looking the furniture back into a garage, where it’s stored until they for?” When Frank found out the guy was looking to just rent a decide to stage another house. house, he referred him to a landlord friend, giving him 30 days Frank said the cost of the furniture equaled about what to move. “So it was a pretty simple one,” he said. you’d pay a stager to stage a single house. “We bought the What do you do if it’s a more difficult situation getting the furniture three years ago, so it’s paid for itself five times occupant out, someone wanted to know. over.” Frank clasped the shoulder of attorney Michelle Rawn, who Does Frank’s wife, Tommi, offer her staging services for was standing next to him. “If they’re hard, you have to hire other investors, someone asked? “I will give you her phone someone like this right here to do the eviction.” number,” Frank said, grinning, “and you can negotiate that Another of Frank’s tips for rehabs is to do them quickly, but with her.” he had to let this house sit on the back burner for a while What did Frank do to the house? because he had 12 projects going at the time. He refinished the hardwood floors on the first floor, for Frank staged this house — giving $1,700, using the KREIA advertiser Pro-Tech Flooring. He added all-new kitchen cabinets, at a cost of $1,850, from KREIA members lots of places to KREIA advertiser Express Cabinet Store. perch while eating their free He added ceramic tile to the walls of the kitchen and lunches – and listed the cost of bathrooms. staging on his breakdown at a The granite counter in the kitchen ran him $1,350. His bargain price. “Here’s the secret to granite guy has access to remnants, “so that’s why that’s so that,” he began. “Three years ago cheap.” Frank said he told him, “Just throw something in we went to Value City Furniture. there that’s a light gray color.” We opened up a card, 60 months His plumbers reconfigured the bath and added a rain same as cash. We bought $4,000 shower for $2,150. worth of furniture.” Frank bought all his lighting fixtures and his roofing maBecause most of the furniture terial at Menard’s over in Indiana. “We get all our material KREIA Past President Frank was on clearance, that turned out (Continued on the next page) to be a lot of furniture — enough Miller hosted the event. 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.

from Menard’s at about $60 a square,” he said. “And then I have roofers put it on for somewhere around $80 a square. So if you’re paying more than $140 to $150 a square, you’re getting ripped off.” The dishwasher, stove and microwave were acquired for $1,100 from Lowe’s — Frank opted not to get a fridge. “We usually save somewhere between 30 to 40 percent on appliances at Lowe’s,” he said. Frank added that painting the exterior siding instead of replacing it saved him about $8,000, and that most people would not be able to tell the difference. His crew pressurewashed the siding, originally yellow, and spray-painted it gray with latex paint. “This is about the fifth house we’ve done this way, and it only cost us $1,350.” The KREIA crowd enjoyed the beautifully furnished, staged setting. The house got all-new windows at a cost of $4,248, including all labor and material, through the KREIA THE NUMBERS advertiser Benthall Brothers. Total Invested: $118,347 Purchase Price: $80,000 “The only major thing we did to this house, structurally, Carrying Costs on Loan: $7,350 Sale Price: $184,900 was upstairs,” Frank said, describing how they moved the Closing Costs: $8,923 Labor and Materials: $30,168 setup of the upstairs bathroom and added a walk-in closet Misc. Costs (LG&E, water): $829 Projected Profit: $57,630 to the master bedroom. Another way Frank is saving is by paying less on commisTo see more photos from the rehab, along with the cost sions. “We only pay 2% now, because the market is so crazy breakdown sheet, check out the photo gallery online in and the inventory is so low,” he said. “Agents will still show KREIA’s private Facebook group. your house and still sell it. So, to you agents out there, sorry, but that’s what we’re doing.” Why do we call it “L.O.T.S.”? Because we Learn On The Site!

Infographic by Nina Musgrave 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.

photo by bruce w. hinson www.obedientcamera.com ???

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photo by bruce w. hinson www.obedientcamera.com

The featured speakers manning the mics at last month’s “Rehabbing for FAT Cash” main meeting were Brian Snider of Freedom Property Group, Joe Burnett Jr. of Joe Jr.’s Flooring, and Jordan Pohn.of SurePoint Equity.

KREIA

photo by bruce w. hinson www.obedientcamera.com photo by bruce w. hinson www.obedientcamera.com T. Renee Buster of B&B Location Services addressed the crowd During the vendor pitch.

Photos

photo by bruce w. hinson www.obedientcamera.com

photo by bruce w. hinson obedientcamera.com

Samuel Wilburn, left, and Steven Roberts networked before the meeting. Joe Burnett Sr. advertised a property for sale during the property pitch before the main meeting.

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

photo by bruce w. hinson www.obedientcamera.com Clockwise from top: Great meetings keep packing the house. KREIA President Eric George confers with Past President Rue McFarland. Investors look for new houses to buy on the Deal Table. Loretta Varda checks out our L.O.T.S. banner.

photo by bruce w. hinson www.obedientcamera.com

KREIA 2018 Elections Sample Ballot Vote Early – Vote Often

Please see below a sample ballot for the KREIA 2018 elections, which will take place at the June 28th meeting. Voting will take place between 5:30 and 7 p.m., close to the front registration desk. If you are unable to attend the meeting but would still like to cast your ballot, please contact Hank Schildknecht or Brad Lammi at (502) 893-4494 or hankatty@gmail.com. — Hank Schildknecht

OFFICERS (To serve a one-year term) President Vice President Secretary Treasurer Treasurer-Elect

□ Eric George □ Tamara West □ Erik Hitzelberger □ Mike Grinnan □ Wally Kallbreier

Write In:

□ _________________________ □ _________________________ □ _________________________ □ _________________________ □ _________________________

BOARD AT LARGE (Vote for up to 6) □ Jeani Bryant □ John Jones □ George Foree □ Lauren Willoughby □ Michelle Rawn

□ Dave Slaughter □ Clay Smith □ Mike Butler □ Chris McCarty □ Greg Nalley

□ Armand Bolotte □ Josh Hardy □ Christopher Jaquith □ Phillip Frazier □ Mimi Guarnieri

6 to be elected for a 2-year term

Meet the KREIA Board Member Candidates… Fifteen people are running for only six open board seats in this year’s election! Competition is fierce. These will be the people who help decide the future of KREIA – and it’s your job to decide who they will be. We invited all 15 candidates to write an article introducing themselves and talk a little about their backgrounds, what they’d like to do for KREIA, and offer a tip. One of

KREIA’s functions is to provide education, and these investors have accumulated some wisdom over the years. Fourteen out of 15 candidates took us up on our invitation. Please see their articles over the next few pages. They are presented in the order in which they responded (for the most part).

KREIA BOARD CANDIDATES

Dave Slaughter: Professional Wholesaler Tip #1 I’ve been a member of KREIA for about 5 years now. In addition to my W2 job, I wholesale single-family and small multifamily homes in Jefferson County. Wholesaling is one of the hardest components of the real estate investment model, yet one of the most popular to begin, as seen with the growth of KREIA in the past year. With the additional set of wholesalers added to our group it is important for us to present our service as professionally as possible. Most of us have already seen the less than honest folks disguised as professional wholesalers attempting to degrade this part of the investment model. One of the ways wholesalers can maintain a high level of professionalism is to make contact with everyone who engages you. Answer your phone or call back incoming calls.

It’s funny that this basic step often gets overlooked by wholesalers and takes away our credibility as a pro. I call back everyone who leaves me a message within 24 hours, and do my best to exceed that expectation in all cases. This little tip alone will help make you thousands. Answering your phone or calling back messages with urgency gives your clients the feeling that they are important to you. Even incoming calls that you know won’t end up a deal for you will be a deal for someone. If you’re the one putting that together then that is a seed planted for your future. Or it may end up as a referral of a couple hundred bucks for you. Keep it professional, wholesalers. I’ll be running for a seat on the board in the upcoming election and would appreciate your vote. Please let me know if I there is anything I can do to add to your success.

Mike Butler: Why you should vote for Mike First of all, it is exciting to see KREIA growing again. Yes, real estate is trending and many folks are joining KREIA to learn more about investing in real estate. Just a few meetings ago, there were 268 people in attendance. (reminds me of the old days at Masterson’s with 350). My main reason for running for the board again is to be a part of this great organization. I served 3 years on the board at National REIA and two term past president of KREIA. Here’s what I would like to see happen:  Slash Membership Dues to $49 – KREIA is booming today and I believe KREIA should not be exclusive to members with money. I love Ed Melton’s mindset to keep dues as

low as possible so KREIA membership is very affordable to those who need it the most!  Implement a Welcome Guests and New Members system  In-House Online Mentor Program – with 24-7 online access It’s awesome to see how Rick Littrell took charge of the registration and front door and loaded it all up with fantastic members and leaders. By far, the best I have ever seen KREIA handle and process folks coming to our monthly meeting. Lauren Willoughby is the silent gladiator producing KREIA Newsletter. Nina Musgrave is kicking butt getting KREIA out in cyberspace with her social media marketing wizardry. Thank you and I would appreciate your Vote for Mike Butler.

Jeani Bryant: ‘It’s not what you make, it’s what you keep’ I’ve been a member since 2012. I attended my first meeting and joined KREIA the same evening. I am a buy-and-hold investor. I mainly rehab to hold and rent, only single-family homes. We bought our first investment property in 1998. “It really did go well. We did not get rent for the first 10 months. The tenant was more experienced than we were.” ☺☺☺ The first workshop I attended was Mike Butler’s “Landlording on Autopilot” and my rental agreement went from 2 pages to 9, and still growing. I attend the same workshops every year and if I learn 1 new thing, I feel like it is worth it.

Everyone is talking how to make money, big money, a lot of money and quick. Unfortunately, no one talks about managing money. My tip for investors: Learn how to save money, how to manage your money, and have strong money discipline. It is not what you make, it is what you keep. Make sure you save for a rainy day. I believe that I should give back for all my knowledge and experience I get from KREIA. That’s why I help at the front desk and L.O.T.S. setup. And the last: if you like Penn Station subs, you should vote for me to continue enjoying Penn Station catering at L.O.T.S. projects!

KREIA BOARD CANDIDATES

Josh Hardy: Network, ask questions, and take action My name is Josh Hardy and I’m asking for your vote to serve on the Board of Directors. I started my venture into real estate by attending my first KREIA meeting in March 2017, encouraged by fellow member Kurt Gutting. I joined KREIA the very next day because I felt I could benefit from the wealth of knowledge shared amongst patrons. I formed my company, Virtue Properties, LLC, in May 2017. I have successfully flipped two properties and just acquired my first rental property in Fern Creek. In the short time I’ve been a KREIA member, I’ve been serving as a volunteer on two committees under the leadership of Rick Littrell. He encouraged me to consider running for this position. The tip I would share as a newbie is to network, ask questions and don’t be afraid to pull the trigger on a great

opportunity when it presents itself. There are other investors out there that will capitalize on it if you don’t! A little about me: For my day job, I am an Operations Manager for Louisville Tile Distributors, a company I’ve been with for 24 years. While at LTD full-time, I put myself through college at IUS, earning dual business degrees and then my MBA from Indiana Wesleyan. I have been married six years and have two young girls, Kynzie and Kyla, ages two and four, respectively. Having a servant heart coupled with a sound business mind and strong work ethic, I am confident I can help this organization continue its path to longevity in the future. I would love to be a part of your team making those decisions. I am passionate about real estate and learning from others. My plan is to attend as many KREIA events as possible and will stay involved and serve no matter the outcome of this election. Thank you for your vote.

Chris McCarty: 25 years invested in KREIA Hello, fellow KREIA friends and investors. I attended my first KREIA meeting in 1993. Twenty-five years and half a lifetime ago. I had just moved back to my hometown of Louisville after living away for 15 years working in an unrelated field. I did not own a single rental property, with only a dream of building a business acquiring a rental portfolio and seeking to secure my future. At that very first KREIA meeting I was impressed with the positive attitude of the members I met and was immediately offered assistance with analysis of the market and any help I could ask. A remarkable and positive influence on my life began that 1993 December night! For twenty of the past twenty five years, I have held many KREIA board positions including two terms as president. I have mentored members, shared stories and dreams, and believe I have contributed to the club we all enjoy today. I currently own and manage a portfolio of rental homes and

am the founder of Flippin Loan, LLC, a private lender providing rehab and hard money loans to investors flipping homes and other non-owner occupied real estate-related endeavors. KREIA offers access to every aspect of the real estate industry and a membership that is always willing to help new investors gain the skills and knowledge to succeed. I chose to follow the model of buy and hold rental properties for cash flow and appreciation. Over the next 25 years, I accumulated, bought and sold hundreds of single-family homes and apartment units all in addition to my day job. If you are a new investor and whatever your real estate field of interest, I encourage you to take advantage of the information available to members, build relationships, attend meetings, learn and listen. Real Estate is a great wealth-building strategy either full or part-time, but is not a get-rich scheme. I am running for an open KREIA Board of Directors seat this term and look forward to continuing to serve and pay back what KREIA has given to me.

Phillip Frazier: A new set of eyes on the issues Hello. I have been attending KREIA meetings for several years. My first few meetings were at Masterson’s restaurant near U of L. I have learned a great deal from KREIA and met some great people. I have personally been in real estate since 2005 and been around single family rentals my whole life.

As a board member I would like to continue to bring education to the members. Bring new and exciting speakers with new ideas and techniques to be successful in the coming years in ALL forms of real estate. Have an ethics panel or member to address members’ concerns. I would like to learn the inside workings of the board and bring a new set of eyes on the issues. As well as some other ideas. For the new investors: “Don’t always believe a tenant’s excuses.”

KREIA BOARD CANDIDATES

Michelle Rawn: Attorney keeps up with RE legislation Hello, I am Michelle R. Rawn, a real estate attorney and owner of Rawn Law Firm, PLLC, and I am running for the position of KREIA board member. I’ve been a member of KREIA for several years and actively participate at meetings, speak at pre-meetings, and attend the various educational and social events

managers with their real estate needs, including but not limited to closings, evictions and collections. I enjoy keeping up to date on the current legal issues and changes in the law that affect real estate investors. I am currently on the board of the Louisville Apartment Association and sit on the Legislative Committee in order to stay on top of those governmental changes which affect our industry. As a past President and current Vice President of hosted by KREIA. the Kentucky Real Estate Exhangors, I’m constantly working I started working in the real estate industry in 1997, while earning my law degree. In 1999, I became licensed to practice with investors to address their ever-changing needs and to law in Kentucky. Since 2000, I’ve been licensed to practice law grow my practice to better serve those in the real estate industry. in both Kentucky and Indiana and have helped real estate I think I’d be a great addition to the board with my legal investors on both sides of the Ohio River. experience and would love the opportunity to serve you as a I started my own firm on April 1, 2011, and decided to focus my practice on assisting real estate investors and property KREIA board member. Thank you.

Greg Nalley: Are you covered for ‘Errors & Omissions?’ The demanding and fast-paced nature of the real estate industry can give rise to errors, often resulting in costly legal fees and settlements. The typical E&O lawsuit brought against real estate agents amounts to approximately $44,000 in legal costs alone, with settlements averaging much higher. Thirteen states require agents to purchase individual insurance policies as their firms’ coverage can leave professionals exposed to significant losses due to shared limits. Even agents in states that do not have this mandate should have their own policies to ensure they are properly covered. Real Estate Errors & Omissions Coverage is designed to

protect you from unexpected litigation costs stemming from business activities. I spent 22 years in the Air Force and retired in 2005 and got right into insurance. While serving, I worked for six 3-Star Generals heading up process improvement teams and going into offices plagued with issues and made the necessary changes to resolve them. I was always sought out as a problem solver throughout my career and I like making a difference. Insurance has been a great fit with my military background as well as my BA’s in Information Resource Management and a Major in Human Resources. Helping companies and individuals navigate through their insurance challenges is very rewarding and they appreciate it.

Clay Smith: Project management pro rehabs 100 houses I am a former US Marine Military Policeman with a bachelor’s degree in Business Management and an MBA, both from Sullivan University. In addition, I’m a certified Project Management Professional (PMP), Six Sigma Green Belt, and LEAN process leader. I’m also a licensed contractor and owner of LREI PROPERTY MANAGEMENT and LREI CONTRACTING, and I’ve renovated more than 100 houses. I have hosted a couple of L.O.T.S. events and been a featured speaker at two main meetings — one on rehabbing and the other on property management. I’ve also taught at two Saturday workshops. If you attended those workshops, I gave you access to my website where I store budgets and

scope of work documents that you’re free to download and study. I enjoy teaching, so if you vote to help me retain my current seat on KREIA’s board, I look forward to sharing more of what I’ve learned when I have the opportunity.

“We belong to 5 different associations as well as spend advertising $$ with several other companies, but our KREIA membership is without a doubt the best ROI of anything we've done. A+++” — Steve Brown, River City Clean Team LLC

KREIA BOARD CANDIDATES

George Foree: Be patient and learn your neighborhood I’ve been investing in real estate for 30 years. I joined KREIA over 20 years ago and have been on the board for the last 10 years. I am a wholesaler and a landlord. You probably know me from working the checkin desk at KREIA meetings. Sitting at the front desk, I meet a lot of people and talk to a lot of people. I really like networking. I also follow government affairs and attend govt. meetings. I try to be updated all the time about what the government is doing and how it affects investors. Look at the taxes we pay! Even just to the city of Louisville. Small businesses are the biggest employers in the United States, and real estate owners are the biggest small businesses. Landlords. In KREIA we have 400 members who have thousands of houses. We pay plumbers, electricians and all the trades. Think about it. We put a lot of people on the payroll. Here at KREIA I’ve won the Ed Melton Award. I think I’m one of two people who have won it who haven’t been KREIA presidents. I’m also on the Fuller Center board and on the boards of veterans’ groups. I really don’t like talking about myself, but I am up for reelection on the board and would appreciate your vote.

Here are my tips for new investors: Be patient. People get in a hurry and buy too fast. New people want to buy something tomorrow, when they should be taking their time. Get yourself a neighborhood and learn that neighborhood. Don’t go all over town. And use KREIA’s advertisers, because they know what we’re doing as investors, and that makes it easier for everybody. Also, you have to be careful buying these real estate teachers’ books and tapes, because they all don’t know Kentucky law. If I can help somebody, I will. Call me at (502) 541-1811. You can talk with me or ask for help. Or write me at gforee@bellsouth.net. If you write me, call me to let me know to look for your message.

Join us! Classes begin in March

KREIA BOARD CANDIDATES

Armand Bolotte, Jr. (‘Duna’): Lt. Colonel works to give back Profession outside Real Estate: Lieutenant Colonel, Kentucky Air National Guard. Duties include logistics management and operations, training operations, sexual assault response program coordinator and motorcycle safety program management. Investing experience: I started buying houses and multi-plexes in 2005. When I started I had eight units in six months’ time. I divested of the four-plex and my lease option property actually exercised. I held on to the three-plex in the West End for over 10 years. Currently my wife, Angela, and I are focused on the rehabbing section of the industry. Education through KREIA includes Wholesaling & Marketing, Rehabbing for Fast Cash, Foreclosures, Building Wealth with Rental Properties, Taxes, 4 stages of financial prosperity with Steve Cook of Lifeonaire. Personal Goals: Working toward developing a full-time career in real estate investing. Purpose for wanting to join the board? Just to be able to run for the board of KREIA is truly an honor and a privilege. Being a board member is a way for me to give back to the

organization which has helped us out in so many ways! From experienced mentors to education and networking and offering the best vendor services, the organization has been wonderful to us. I am currently serving as a membership committee member, where I have worked in helping members with the auto-pay system of the website. As a board member, my goals include helping to secure members’ data and information on the website, to promote the organization throughout the city by working to bring community leaders into the organization to gain a better understanding of how KREIA contributes to our local area, and assist in making KREIA an organization that stands on integrity, service and excellence. Real Estate tip: There is a lot to learn in Real Estate so determine where you want to be in 5, 10, 20 years and decide what would be the best vehicle to get you there, then find a mentor in that field and Act! Other tidbits: Read Gary Keller’s “The Millionaire Real Estate Investor” and Dale Carnegie’s “How to Win Friends and Influence People.”

Mimi Guarnieri: Tips from a longtime agent/investor My real estate career began in the late 1980s with the handling of the sales and marketing for the Louisville & Jefferson County Riverport Authority, a 1,600-acre commercial and industrial development located in Southwest Jefferson County, KY. In the course of my career, I have had the opportunity to work with local, regional, national and international clients. Currently I work with RE/MAX Real Estate Center Commercial Group. Prior to my affiliation with RE/MAX, I worked with John D. Klein Co., Williamson-Malloy, Prudential Parks and Weisberg, and Louisville & Jefferson County Riverport Authority. I have held a real estate license since 1994 and work in both Ohio (commercial) and Kentucky (residential and commercial). Currently, I am divesting my personal holdings out of state and consolidating my investments primarily in Kentucky. Aside from my personal investments, I am also an active REALTOR® and support my clients, both buyers and sellers, by being a good generalist, knowing where to go to get the information that is needed by a client. Before the real estate market downturn in 2008, I rehabbed several homes. I would buy, usually at auction. I

was lucky enough to sell the last house I rehabbed, at a good price, just before the bottom fell out of the market. I am a current member of the Greater Louisville (GLAR), Kentucky (KAR), and National Board (NAR) of REALTORS®. I am a current member and past President of the Kentucky Real Estate Exchangers (KREE), and a member of the National Council of Exchangers (NCE). I am honored to be asked to serve on the KREIA Board and will do my best, if elected, to uphold the principles by which KREIA was founded and support its membership. Food for Thought  Surround yourself with people who are smarter than you are and manage them well.  Learn to be able to find out who, what, when, where, how or how much within 5 phone calls.  Even when people tell you they understand, assume that they don’t.  Write it, don’t say it. Document, document, document....  Let a REALTOR® fill your property pipeline, handling your acquisitions; assist you with dispositions; and, save you time.  Keep a good attorney and accountant on retainer.

KREIA BOARD CANDIDATES

John Jones: Volunteering helps KREIA — and you, too I was born and raised here in Louisville and married my best friend, Melanie, 39 years ago. We have 4 children and 5 grandchildren. I began investing part-time in 2008. In 2013 I took early retirement From the Airline IT industry and began investing full-time. That is when I met Mike Grinnan in a bowling league and he invited me to KREIA. My only regret now is not knowing about KREIA 10 years sooner. I have met some of the best people and have learned more than I ever imagined about investing in a short period. I love to rehab for retail and am building my rental portfolio as well. I have wholesaled but prefer to rehab or hold. For those just getting started, the biggest hurdle is taking the first step and buying a property. There are lots of people here at KREIA who will help point you in the right direction. You will learn as I did that there is no single path to success. It

will depend on your goals, tolerance for risk, skills, experience, etc. Take advantage of the meetings and find a few of us you can relate to who will help you along the way. You will be amazed as I was at how willing seasoned investors are to help you. I gladly will help others even though I still feel like a newbie constantly learning from the seasoned veterans. When asked to serve on the KREIA Board 2 years ago, I was more than willing to volunteer my time to help the club members. For the past year I have been working to improve our door processing to get you in the door more smoothly. We have purchased new equipment, put procedures in place to make sure the equipment is ready for the meetings, and trained volunteers on the check-in process. There is lots of work to do, and volunteers are always encouraged. You not only help the club but you meet great people and learn at a faster pace. I hope you get as much and more from KREIA as I have!

Lauren Willoughby: Stop procrastinating and take action When Frank Miller talks about people who buy real estate courses and never take action, he may not know it, but he’s talking about me. I’ve probably spent more than $10,000 on real estate education, learning about everything from wholesaling to rehabbing, landlording to lease options. I’ve bought the courses, read the books, browsed the blogs, watched the YouTube videos, and listened to the podcasts. I’m all over the map. Look! Squirrel! I am not a landlord. I have neither rehabbed nor wholesaled a house. Though I did once buy a house on ebay and, realizing I was in over my head, tossed it like a hot potato to another investor. Investing Tip: Do not buy a house on ebay (unless you know what you’re doing). I’ve done some private lending, but right now I’m more of a wannabe than a full-fledged investor. And I’m running to keep my seat on KREIA’s board because being an education junkie with board access helps me give back. More precisely, it helps me help others give back. You KREIA investors are amazing. You do such cool things and have so much to teach, and I love learning from you and helping you tell your stories. I work on the newsletter. I love everything about working on the newsletter: interviewing rehabbers for the L.O.T.S. recaps; helping advertisers put ads together; working with graphics and laying out copy; and coordinating with the wonderful writers/investors who regularly contribute. Thank

you, Mike Butler, Sharon Vornholt and Nina Musgrave (who also does our meeting graphics!). Thank you, photographer Bruce Hinson. Thanks to Eric George, who writes a great President’s Letter and keeps us moving forward. And thanks to our awesome printing company, PrintWorx of Louisville. I’ve been volunteering on the newsletter since August 2015, and it’s been a blast. While I’m working up the nerve to move forward into wholesaling, rehabbing and landlording (the trifecta!) and emulate the investors here I admire so much, I would like to keep telling your stories. Here’s my real tip to new investors: At some point, you’ve got to stop studying and procrastinating and take action. KREIA is full of guys and gals who have taken the scary steps and come out the other side — many into financial freedom and some even into wealth. Talk with them and find out how they did it, then set goals to make it happen for yourself.

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UPCOMING EVENTS

Protecting Your Assets With Contracts Are your contracts sufficient? Attorney Harry Borders bets they need some tweaking – and maybe even an overhaul. Check out his crash course at the main meeting. Thursday, June 28, 5:30 p.m.  Early Meeting: Jay Bowman on how to make more at closing  July 3 — noon-1 p.m. L.O.T.S. event. Location TBD. Check your email. Members only. Lunch is provided.  July 5 — 5 p.m.-7 p.m. KREIA Happy Hour. Networking at a local restaurant. Check your email. Members only.  July 10 — 11:30-1 p.m. Louisville Lunch and Learn. Members only: Check the private Facebook group. You buy your own lunch. Ed Gibson is the organizer.

 July 11 — 11:45 a.m.-1:30 p.m. KREIA Indiana Sub-Group 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.  July 19 — 6 p.m.-7:30 p.m. KREIA Game Night: CashFlow. Want to get out of the Rat Race? Play CashFlow with other investors pursuing financial freedom. "KREIA advertising is by far, hands down, the absolute best advertising Is it time to trade up? To take stock of your Monodollar ever real-life spent for poly board and turn some housesBorders into hotels (or apart& Borders!"

1031 Exchanges With Joe Hampton

ments or …?) – while deferring hefty capital gains taxes? KREIA Past President Joe Hampton explains how it’s done. Thursday, July 26, 5:30 p.m.

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