September 2019 KREIA Newsletter by KREIA .com

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 09-19 September 2019

L.O.T.S. Recap: Luke & Christina 17 Neubauer rehab J-town house as a flip or a rental

KREIA Members, This may be a big and bold statement, but I challenge anyone to provide the argument that these words are not 100 % true! “KREIA membership can provide a blueprint to participate in the greatest side hustle ever invented or imagined for the part-time generation of substantial wealth by the average person.” The KREIA organization provides educational programs and opportunities, access to real estate member experience and a pathway to participating in the greatest source of wealth in the world. Short of winning the lottery or making a large and early buy-and-hold position on Amazon, Google Chris McCarty or Microsoft, there is no part-time endeavor that comes even close to owning real estate long-term as a passive investment. What other investment is there where someone else pays your investment debt, as tenants do, by amortizing your mortgage slowly over time, all while giving you tax advantages as your investment likely increases in value? Not everyone can just quit their day job and become a fulltime investor, but part-time real estate investing allows great flexibility with each investor choosing their own level of side hustle involvement. It is commonplace for real estate investors to structure deals with little or no cash out of pocket and over time end up with huge returns and often in the millions of dollars. You choose if you prefer to be hands-on, saving expenses with your own sweat equity and perhaps even involving your family in the effort, or be completely hands-off on any physical involvement and manage the decisions and money that goes in and out of your business passively. With any approach you choose, proper diligence and providing a good product to your occupant are key. Way too often I have witnessed bad landlords attracting bad tenants, and too many bad tenants causing an eventual early, unsuccessful exit from the greatest side hustle ever! The greatest detractor to the greatest side hustle therefore is excessive turnovers and vacancies directly related to negligent landlords foregoing proper maintenance and professional behavior, which are the time-tested enemies of profit in property ownership. Many times in my years of KREIA involvement and witnessing my friends and fellow members, I have seen the successful, well-thought-out Side Hustle become the Main Hustle as real estate wealth surpasses the income provided by the J-O-B and the real estate investments have achieved the means to the end of a well-thought-out financial plan. Take action! The first step is often the most difficult. KREIA can help you! See you at the meeting!

Member Spotlight: Paul Cobb

Chris McCarty KREIA President

Got a Business? Upgrade your membership!

Government Affairs Roundup

Calendar of Events

President’s Letter

Paid Advertising Rates

Single-Family vs. Multifamily: Investor panel weighs in

Welcome, New Members!

KREIA Member Directory: Verify 4 your contact information Opt In: How to be included in the KREIA Yellow Pages

Mike Butler: Price does NOT always equal killer deals

Chris Judd & Pam Merritt: The 8 3 L’s of Property Lead Generation National REIA News Roundup

KREIA Photos

Copyright MMXIX 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 Chris McCarty

Secretary Erik Hitzelberger

Advertise With KREIA

Treasurer Mike Grinnan CPA

Treasurer-Elect 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.

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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 & more. Work shoulderto-shoulder with active investors! 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 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 . . . . . . . . Reserved Includes extra promotion. There can be only one advertiser at this level. Our current Platinum Sponsor, MM Lending, holds exclusive renewal rights until 2021. New ½-page advertising levels and pricing are in effect for new member signups and upon renewal for current advertisers. Questions? Catch up with KREIA Sponsor/ Advertiser Chair Dennis Erhard at the meetings. Or email support@KREIA.com.

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!

Apartments or Houses? Investor panel debates pros and cons. Bring your questions! We’re inviting a panel of investors to make a case for their favorite type of properties: single-family homes or multifamily. Which do you put in your portfolio? If you’re a new landlord or want to be one, what would you like to invest in? Do you know how single-family and multifamily investment properties are similar and how they’re different? Around 7 p.m. at the September 26th main meeting, prepare to find out. KREIA President Chris McCarty will act as moderator and kick things off with a few questions to the panel, but then it’s up to you. Find out everything you’ve wanted to know about apartment communities, fourplexes, triplexes, duplexes – and single-family homes. Ask for insight on how they’re alike and how they’re different regarding financing, due diligence, property management, profitability, and more. Ask about how to use 1031 exchanges to “trade up” your investments without taking a capital gains tax hit: to turn a portfolio of rental houses into an apartment building

Saturday Workshop! Want to go further with Single-Family vs. Multifamily? In this 5-hour workshop, experienced investors lay out the nuts and bolts on why they pursue their preferred investing strategies. Learn from Joe Hampton (KREIA Past President and 1031 Exchange expert) about his experience with apartments. Hear from Luke Neubauer and Todd & Kim Hunter about why they invest in single-family homes. ► When: Saturday, Sept. 28, 9 a.m. – 2 p.m. ► Where: 900 Envoy Circle, Louisville, KY 40299 ► Cost: $49 for KREIA members, $99 for non-members

or go the other way and turn your one big roof into lots of little roofs. Ask about what happens when you venture beyond four-unit properties into the realm of commercial loans, cap rates and economies of scale. Ask about how smart investors force appreciation and pump up the value of multifamily properties. There’s so much you can ask! So please write down your questions in advance and have them ready. Our expert investor panel will include: • Ray Hass, a longtime multifamily investor who will talk about his experience with apartments here in the Louisville area • Martha Schildknecht, who, along with her husband, attorney Hank Schildknecht, has built a portfolio of single-family rentals in the East End • Kim and Todd Hunter, who’ve been investing in single-family properties for 19 years (along with flipping and wholesaling) • Luke Neubauer, who in 2011 jumped feet-first into investing and, with his wife, Christina, has put together an enviable rental portfolio This will be a topic and panel you won’t want to miss, so pre-register now at kreia.com for the meeting! When you register online, you can zip in quickly through the pre-paid line. While the main meeting gets going at around 7 p.m., you’ll want to arrive at Woodhaven in time to catch the…

5:30 p.m. Early Meeting 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!

KREIA President Chris McCarty, who’s been investing using tax-advantaged accounts for many years, will offer insight into investing in real estate inside an IRA.

Welcome, New KREIA Members! Keri Amanortey Kelly Bao Brandon Bennett Tiffany Brown Travis Campbell Janice E Carter Jalen Cooper Michael Digman Alexis Fentress Audrey Griffith

Kari Guy Renotta Henson Sara Heuglin Adam Hicks Justin Howell Jeffrey Jackson Kevin Massey Vincent McClendon Terry O’Bannon

John Rooney Tom Schmoetzer Buddy Slone Jackie Snyder Tyler Speer Leighann Valdez Shaun Wallace Sam Ward Erin Wegrzyn

The 2020 KREIA Member Directory Needs Your Help The Member Directory crew is putting together the next edition, but we can’t do it without you. Please log into your account at kreia.com to verify that your contact information is correct – we’ll be pulling from it to create the White Pages part of the printed directory. Here’s how to do that, assuming you’re on a desktop, laptop or tablet: 1. Go to kreia.com 2. Click the “Sign In” link at the top of the screen 3. Type in your email address and password where prompted, then click the “Log in” button 4. Click the “My Dashboard” link at the top of the screen 5. Scroll down until you see “My Profile Information” 6. Please confirm that all information is correct – especially your name, company name, phone numbers and email address, because we’ll be harvesting this information for the directory If your information is correct, there’s nothing more to do. Thank you for looking! 7. But if something is incorrect, please click the Edit button below the phone numbers, fix what needs fixing, then click the Save button. That’s it! How to Opt Out If you do not want to appear in the White pages, you will need to opt out. Here’s how to do that: 1. In your dashboard, click the “About Me” link to the left of “My Profile Information” 2. Find the box next to “Allow Members to Find Me” and make sure the box is UNchecked If the button is already unchecked, there’s nothing more to do. 3. But if the button is checked, please click the Edit button near the bottom of the screen, uncheck the box, then click the Save button

How to Opt In for the Yellow Pages Do you offer a product or service beneficial to investors, or have a real estate-related side gig, and would appreciate free advertising in the KREIA Member Directory’s Yellow Pages? Or are you a landlord or rehabber who wants wholesalers to contact you with deals? Please opt in to our Yellow Pages by visiting this link and filling out the online form: bit.ly/kreiayellowpages Or, pick up and fill out a printed Yellow Pages Questionnaire during the September main meeting and turn it back in at the registration desk. Copyright MMXIX 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.

Price Does Not Always Make Killer Deals By Mike Butler Hey, fellow investors! In this short article, you are going to get a few of the key critical components to make any marginal deal into one of your best ever “Killer Deals.” See, most investors assume price determines the degree of your killer deals. Way back, once upon a time in the previous millennium, all of today’s super-successful investors were brand new, greener than a gourd, including myself. We joined our local REIA group and launched our journey to financial freedom. Back then and even today, new investors started out using the caveman method, and guess what? It works. Here’s the caveman investor buying blueprint: • Find a property and negotiate a great price • Find your funding – your cash or borrowed – and buy it • This allows you to label yourself a “cash buyer” This works, and it reminds me of the farmer who grew tomatoes for 30 years. This farmer labeled himself as “an experienced 30-year farmer.” Hold on, Scooter! NOT correct. This farmer is a 30-year expert on growing tomatoes, not an expert on all aspects of farming. See the difference? Before the next part, keep this in mind: Jay Long and I travelled all over, investing our money and time attending advanced investor boot camps, seminars and coaching. Just a few years ago while driving down Sale Avenue off Taylor Blvd., I saw fellow KREIA member and 30+ year investor Warren J on the front porch, crunched over trying to get a key lockbox open on a big, white house. I stopped and sorta-kinda invited myself to walk through the house with him. As we walked, Warren just kept shaking his head no, no, no. HVAC stolen, holes in walls, busted plumbing fixtures – a $10,000-plus rehab project. He ended up walking away, saying there was no deal on this one. My brain was on fire on this great opportunity. I asked Warren for his permission to contact his seller. Warren gladly gave me the contact, and he told me the sellers were two old-time investors who wanted to retire and sell off the property. After learning this, my brain began doing the Toyota Happy Dance! ✓ ARV at the time was $45,000 ✓ Seller wanted $40,000 ✓ 4-bedroom, 2-bath home ✓ VACANT – previously rented for years ✓ HVAC stolen ✓ Cabinets and plumbing fixtures busted up ✓ Holes in walls and floors ✓ Birds nesting in 2nd floor due to broken window ✓ Needed $10,000 plus in repair ✓ RENT for 4-bedroom, 2-bath house was $995

Caveman Investing Buying Plan is to negotiate the price down, then pay cash at closing. Advanced Investor Buying Machine Result – Here’s what was put together with the seller, and you can do this too: ✓ Purchase price: $28,000 ✓ Seller-financed package • $3,000 down – paid at closing • $25,000 seller-financed • $250 monthly payment for 100 payments • Payments start on the 6th month after closing date Here’s what I did – and you can too: One of my 11-year tenants asked me to help him find a fixer-upper. Great match – just two streets from where he lived. I did NOT seller finance it or take the $5,000 cash he’d saved up as a “down payment.” That would’ve left him with ZERO cash, and this house was a fixer-upper. Not good. To make a WIN-WIN-WIN deal, we went “Rent with Option to Buy,” or using today’s sexy slang – “Rent to Own.” Take a look at this overview of what we put together: 1. Option to Buy – $1,000 option fee to purchase at a price of $40,000 within 12 months, and he can renew every year for an additional $1,000 for 5 years. 2. Rent – $995 monthly with annual increases 3. Rental agreement properly processed and signed 4. Move-Out Package sent on the home he is moving from. 5. He has over $4,000 to start doing repairs. The resident was super-excited to get his own home. He went to town on rehabbing and updating everything. This resident followed the plan to a T, and at the end of his 5th year, we seller financed his loan on a house he fixed up. This worked like a charm. To wrap this up, please ask yourself if you can see and create killer deals like this one. If you want to achieve the lifestyle you have been dreaming with true financial independence in three to five years, you must invest in yourself and your real estate business. Now you have your opportunity for advanced investor training to get results like this and, man, better than this one. Register now and Get Your KREIA 50% Discount to learn How To Buy Without Bank, Money, Credit, Private Lenders or Partners and achieve your true financial independence safely in three to five years… even with your job! Grab Your KREIA Early Bird 50% Discount Now at MikeButler.com/3daybwob Don’t delay, this one always sells out. To Your Continued $uccess!

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The 3 L’s of Property Lead Generation

How to find great investment real estate properties and leads By Chris Judd and Pam Merritt of 2nd Wind, LLC 2nd Wind, LLC is dedicated to serving the needs of our local investors. We specialize in identifying and purchasing quality properties that provide unique opportunities to our growing network. We understand how difficult investing in real estate can be to newcomers and that even veteran investors can get burned out. We believe that sometimes all you need is a little push to get over the finish line to financial security. The name “2nd Wind” came from our desire to provide the helping hand our investors need to make it through the buying process and take their portfolio to the next level. • Shows like Flip or Flop and Fixer Upper glamorize investing and make it seem simple to find great investment properties to flip or hold, but real investors know it’s not as easy as the TV shows make it out to be. Finding great properties before they hit the market is truly a skill that must be honed and cultivated. Real estate investing is an ever-changing game, and those who learn and adapt are the ones who stay on top. In this article we want to outline three simple rules that any investor can use to find great properties before the competition: The 3 L’s of Property Lead Generation.

Look Keeping an eye out really is the most powerful way to find great properties. Spend an evening combing through an area you are interested in and look for signs that a property may be vacant: tall grass, overly filled mailbox, boarded windows. Great properties are everywhere. In fact, you are probably living in a neighborhood full of them — you just need to open your eyes. Have you seen a property that meets the criteria above on your block? Maybe on your drive to or from work? Stop, drop off a card, and keep an eye out. Odds are your gut was right and someone has either forgotten about the property or they are ready to give it up. If you haven’t gotten a response from your card or a friendly knock on the door (please be courteous), there are several other ways to get in touch with or find the owner. Services such as Spokeo, White Pages, and even local tax assessor records are a great way to find out who the current owner of a property is. In person “looks” are great, but another way to use the “Look” rule is to take advantage of social media. Facebook Marketplace is a growing tool for people to list their property before it reaches the MLS. Additionally, Craigslist classifieds are often full of off-market leads.

Lean In It should be obvious, but people can’t sell you their property if you don’t talk to them. Don’t be afraid to follow up with leads. Be respectful, but it’s okay to reach out to sellers over a period of time. Maybe you didn’t hit them at Listen the right stage the first time, but now they are ready to sell. The first ‘L’ is often the first to be forgotten: Listen. Or maybe they have fallen into another property they will Always keep your ears open: People are constantly mention- gladly let go of. ing interest in selling properties long before they are ever Often times a dig lead — someone you’ve worked with in listed on the MLS. Many individuals simply don’t want to deal the past — is your greatest asset. They may continuously get with the hassle of selling their home and would jump at a their hands on new properties and by simply reaching out to cash offer from an investor. them periodically you increase your chances of hitting them Listen to family: Grandparents, parents, and siblings are at the right moment. all potential sellers that you may not have even considered. Follow-up and prospecting can be a huge time drain. We Often times individuals want to keep a property in the family recommend using CRM software to help you manage your for sentimental reasons, and this could be a great opportucalls, or use email-specific platforms like Mailchimp to make nity to add to your rental portfolio while holding true to a sure you are keeping in touch with sellers. family member’s wishes. Another example of “leaning in” is simply letting people Listen to your friends on Facebook: when a family memknow you are in the business of buying properties. Announce ber announces their plans to move, when a friend is getting to your friends this is something you have an interest in and married, or unfortunately even when a death occurs. All they will likely reach out to you before anyone else. After all, these major life events often coincide with a property people won’t know you are buying unless you tell them. changing hands. Continued on Page 20 Copyright MMXIX 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.

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 MMXIX 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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National REIA Real Estate News Roundup National REIA, of which KREIA is a chapter, reports on issues affecting real estate investors and also links to stories of interest from other organizations. Here is a sampling of recent news and resources that Brad Beckett, NREIA’s Director of Education & Outreach, has compiled.

Trump Administration Wants to Privatize Fannie & Freddie The Wall Street Journal is reporting (reposted on Realtor.com) that President Trump supports returning mortgage-finance giants Fannie Mae and Freddie Mac to private hands, which they say is a development that could keep the two companies at the center of the housing market for decades. Read the full story: bit.ly/k1909_fanniefreddie

Mortgage Debt Hits Record, Eclipsing 2008 Peak The Wall Street Journal (reposted by Realtor.com) says that U.S. mortgage debt reached a record in Q2, exceeding a peak last seen in 2008. Data from the Federal Reserve Bank of New York show that mortgage balances were up $162 billion to $9.406 trillion. Read the report: bit.ly/k1909_mortgagedebt

Credit Card Debt by State OK, mortgage debt is climbing, but what about credit card debt? Check out this infographic showing America’s credit card debt by state. Spoiler alert: Kentucky consumers have just about the least credit card balance per capita. Check it out: bit.ly/k1909_ccdebt

Top Markets for Out-of-State Home Shoppers So where are people moving now? We have had many posts about internal migration and the states that are gaining/losing population. With that in mind, Realtor.com ran the numbers for their new Cross Market Demand Report, which identifies the top markets for out-of-state home shoppers. It’s probably no surprise that out-of-state buyers were mostly attracted to lower-cost markets in the South and West. Read the full story: bit.ly/k1909_homeshoppers

From Obsolete Buildings to ClimateControlled Self-Storage Have you ever thought about turning obsolete buildings into climate-controlled self-storage? That subject was tackled in a recent episode of the Rental Property Owner & Real Estate Investor podcast. Host Brian Hamrick interviews Scott Krone, the managing partner of Coda Management Group, a company that teams up with investors to purchase and convert undervalued warehouse space. Read and listen here: bit.ly/k1909_selfstorage

Online Flipper Opendoor Buys Title Company to Expand Share of Market Online flipping site Opendoor recently acquired OS National, a national title and escrow firm. According to CNBC, the purchase allows them to integrate title, escrow and closings into their online buying & selling portfolio. Read more at CNBC.com: bit.ly/k1909_opendoor

Grocery Stores’ Impact on the Housing Market Did you know that a Trader Joe’s or an ALDI near your property might increase its ROI? This is according to ATTOM Data’s recent Grocery Store Battle analysis, which looked at how living near a Trader Joe’s, a Whole Foods or an ALDI can affect your home’s value – or flipping ROI! View the infographic at NREIA’s site: bit.ly/k1909_grocery

Construction Employment Rises by 14K in Aug., Firms Still Shorthanded According to recent data from the Associated General Contractors of America, construction employment increased by 14k jobs in August and was up 177,000, or 2.4%, over the past 12 months. Read the full release: bit.ly/k1909_construction

Americans View Real Estate as The Safest for Longterm Retirement We like these kinds of surveys because they always point out what we real estate investors already know – that investing in real estate is not only a smart choice but the best choice for the long run! Read more: bit.ly/k1909_retirement Continued on Page 20

photos by bruce w. hinson www.obedientcamera.com Look at that crowd! August’s meeting was one of KREIA’s biggest ever, and attorney Michelle Rawn (above and at right) was the featured attraction. Michelle gave us the scoop on assistance animals and the Uniform Residential Landlord Tenant Act, which is enforced in Jefferson County and surrounding areas. If you missed this info-packed meeting, or want to hear Michelle’s presentation again, make sure to catch the audio replay when we post it to KREIA’s private Facebook group. At left: MM Lending’s Mike Fallot chats with a prospective house flipper. Below left: Kathleen Helm and Wally Kallbreier work the registration desk. Below right: KREIA President Chris McCarty presents an award to Past President Eric George.

KREIA

Photos

See more photos in KREIA's private Facebook group.

photo by bruce w. hinson www.obedientcamera.com

J-town L.O.T.S. Home: A Closer Look

Luke & Christina Neubauer rehab house as a flip – or rental By Lauren Willoughby When Luke and Christina Neubauer hosted the Aug. 27 L.O.T.S. event at their rehab house in J-town, they hadn’t decided yet what to do with it. They were pursuing two promising exit strategies with the house: flip it or keep it as a rental. During the presentation when Luke announced their estimated sales price of $229,900, some investors in the audience voiced good-natured disagreement. Too low! A nearby house had recently sold as-is for $250,000, someone The house at 4813 Nottinghamshire was an off-market deal. (Photos by Lauren Willoughby) called out. Luke grinned and started over. “So we’re listing it for using the BRRRR strategy. (BRRRR = Buy, Rehab, Rent, $280,000…” he began, to laughter and approval from the Refinance, Repeat) The linchpin ‘R’ here is “Refinance”: KREIA crowd. Keeping it is dependent on refinancing out of their short-term The brick tri-level was nearly finished, needing only a few rehab loan (they used MM Lending) into a long-term loan. last-minute touches. The house boasts some high-end “I’m talking to a lender right now,” Luke said. “If I can get a finishes. Both bathroom floors are tiled, and the walls 30-year mortgage at a low interest rate that’s fixed for the life around the tubs are tiled to the ceiling. of the loan, then why not keep it?” The dining room and kitchen feature more floor tile, and “It’s partly too because of the tax implications,” Christina attractive granite was used for the countertops and also for said. “We’ve done a couple of flips this year. Maybe we’ll a built-in desk/work area in front of double windows keep it for two years and then do a 1031 exchange after we overlooking the back yard. The white brick fireplace in the sell it.” lower-level family room is flanked by white bookshelves. What have they decided to do with the house – flip it or The four bedrooms have new light gray carpet, and some keep it as a rental? Come to KREIA this month and ask them! of the bedroom closets include built-in shelving. The paint Luke and Christina are on the panel for this month’s Singlejob in all rooms is a Family vs. Multifamily main meeting on Sept. 26th. pleasing gray with white accents. THE NUMBERS A quick tour of Purchase Price: $137,500 the house showed Rehab Costs: $27,721.20 that a sale price of Holding and Closing Costs: $12,000 $229K was starting ► If BRRRR’d as a Rental to look very much ► If Flipped All-In Cost: $177,221 (77% LTV) like a bargain! And Sale Price: $229,900 Rent Received: $1,750 mo. even at $229K it Commissions: $13,764 Mortgage Payment: -$900 mo. would be a profitPotential Profit: $38,915 Taxes: -$137.64 mo. able flip. Insurance: -$95.83 mo. If Luke and ChrisPotential Cash Flow: $616.53 mo. tina keep the house as a buy-and-hold, they said they’ll be Why do we call it “L.O.T.S.”? Because we Learn On The Site! Christina and Luke Neubauer

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.

The 3 L’s of Property Lead Generation Continued from Page 8

National REIA Real Estate News Roundup Continued from Page 12

Putting the L’s into Practice Real estate investing is scalable, and your individual lead generation efforts are able to be scaled as well. At a certain point every investor must decide exactly where their time is best spent in the investing process and whether to outsource lead generation or double down on their own personal capabilities. We at 2nd Wind reached this turning point by following the rules we just outlined and found our time to be maximized by partnering with HomeVestors as an area franchise. This partnership allows us the freedom to do what we do best: connect investors to great properties, while HomeVestors handles the bulk of our lead generation. Our $35K monthly budget with HomeVestors provides TV spots, billboards, yard signs, cold calls, 3,500 postcards a month, online ads and more that culminate in providing enough leads to successfully purchase and sell 100 properties a year! A lead generation platform at the magnitude of HomeVestors isn’t the right choice for every investor, but each stage of investing creates new and exciting options. By following the rules above, any investor can grow into a true lead-generation machine!

Ten Fastest Growing Retirement Cities in the U.S. We have kept our eyes on that rapidly retiring cohort known as the Baby Boomers. With that in mind, a recent article on Realtor.com caught our attention. They put their number-crunchers to work to come up with a list of the top 10 cities experiencing a “boomer boom.” Read more: bit.ly/k1909_boomers

Lawn Fertilization Tips for Fall The Autumnal Equinox – the first day of Fall – will take place on September 23, and that means it’s time to start thinking about lawn care for the upcoming months. Here’s an infographic from The Home Depot that lays out exactly what needs to be done to prepare your yard for the winter months so it’s in tip-top shape for Spring. Check it out: bit.ly/k1909_lawnfall

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Name: Paul Cobb Email: paul.cobb@homevestors.com Cell phone: 703-586-3393 Your company name? COBB RESOURCE GROUP LLC, an independently owned and operated HomeVestors franchise City where you grew up? Ft. Lauderdale, FL High school attended? Pine Crest College attended? U.S. Air Force Academy Tell us about yourself: Married 26 years, 2 daughters Current or previous occupations? USAF for 24 years, government contractor, Google, now full-time investor Passions and hobbies: DIY projects, model railroads What year did you join KREIA? 2018 Why did you join KREIA? Networking and education Who referred you to KREIA? Franchise recommendation How did you get into investing? Owner of a Homevestors franchise What year did you start investing? 2018 Number of properties/units you own? I’ve purchased 14 homes in the past 12 months and have 4 in inventory at this time. Your real estate investing preferences? Wholesale, rehab, rentals of SFRs What kinds of deals are you looking for? Rehabs and rentals Lessons you have learned? Focus on the seller and how you can help them. What are your top 3 tips for other investors? 1) Focus on helping the seller 2) Follow up 3) manage your cash flow

Do you have a real estate-related business or side gig? If you do and you’re a member of KREIA as an Individual Member and not at one of our many business levels, you are missing out on a ton of inexpensive promotion. For as little as $199 per year, you can be a KREIA Business Card Member and receive a 1/8th-page ad in a year’s worth of KREIA newsletters. Your ad is also displayed in the slideshow that loops before the feature presentation begins at our main meetings – and it’s included in our online advertiser gallery. But we’ve added one more way to give you exposure, and it’s huge: Business members’ ads will be included in our upcoming 2020 KREIA Member Directory at no additional charge! All you have to do is upgrade your membership to any of our business levels before October 4 and we will work with you to get your ad in. Don’t get us wrong – we love having you as a KREIA member at any level. We just want to help make you topof-mind for other investors if you’re running a business that could help them. KREIA is about networking, after all, and ads help with that. A Business Card membership costs only $74 more than an Individual Membership. A bargain! Upgrade today at kreia.com/MembershipInfo.aspx

Government Affairs Roundup Summary of GLAR Report, Sept. 16, 2019 Rue McFarland, KREIA Government Affairs Chair 1. Louisville Metro’s Develop Louisville has sent out for review and comment a draft plan for the South Floyds Fork Area Plan. The recommendations are a culmination of a taskforce that has worked for over a year on trying to figure out the best way to move forward with development around the Floyds Fork area. GLAR is in constant discussions with Develop Louisville on this issue. 2. Louisville Metro Councilman Bill Hollander has filed a resolution that asked the Planning Commission to review the Land Development Code chart dealing with minimum tree canopy requirements for new developments. The Metro Council voted it out positively. To view documents related to this proposal, visit: www.louisvilleky.gov/PlanningDesign. 3. The Louisville Metropolitan Sewer District has unveiled the preliminary revised floodplain maps for review. According to MSD there are 1,100 new buildings in the floodplain and 1,500 buildings that have been removed from the floodplain. Currently, MSD is taking comments on these new maps, which will not be final until late 2019 or early 2020. See the new maps at bit.ly/k1909_lojicmaps

4. Louisville Metro Council has introduced an ordinance that would institute a new system development charge for new developments. This charge would be based on the number of lots and type of development. This ordinance is sponsored by Anthony Piagintini of east Louisville. Councilman Piagintini came into the GLAR Government Affairs Committee to discuss the need for this development charge and the infrastructure needs it will pay for. He is to put together a stakeholder group to discuss this issue

GOVERNMENT AFFAIRS REPORT State Government Roundup Kentucky Realtors Legislative Updates. Read weekly updates on bills in play in Frankfort at the Kentucky Realtors’ site: bit.ly/KYR_LEGU

Local Government Roundup Louisville Metro Government: Get a summary of local affairs (and state) by the Greater Louisville Association of Realtors (GLAR): bit.ly/LRGAU

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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

Single-family vs. Multifamily

❖ Oct. 8 — Noon-1:30 p.m. Lunch & Learn. Meet up for Houses or apartments? Our panel of experts debates the merits education and networking. Members only. You buy your own of each. How are they similar and how are they different when it lunch. KREIA Past President Dennis Erhard, a buy-and-hold guy, is the speaker. Check your email for the location. comes to due diligence, financing, property management and ❖ Oct. 9 — 11:45 a.m.-1:30 p.m. KREIA Indiana Sub-Group profitability? Bring your questions! Sept. 26, 5:30 p.m. Luncheon Meeting. Meet up and network with Hoosier ➢ Early Meeting: Chris McCarty on investing inside your IRA investors. At Tucker’s Restaurant in New Albany (State Street ❖ Sept. 28 — 9 a.m.-2 p.m. Saturday Workshop. Our panel of and I-265). You buy your own lunch. Brian Haeseley chairs. experienced investors goes more in-depth with a nuts-and-bolts ❖ Oct. 17 — 6 p.m.-7:30 p.m. KREIA Game Night: CashFlow. looks at Single-family vs. Multifamily investing. Featuring Joe Want to get out of the Rat Race? Play the CashFlow board Hampton, Luke Neubauer, and Todd & Kim Hunter. game with other investors pursuing financial freedom. Cost: $49 for members, $99 for non-members Hampton Scurlock hosts. ❖ Oct. 1 — noon-1 p.m. L.O.T.S. event. We visit Karl & Pam Bergklint’s current house flip project in Camp Taylor. Members Main Meeting Calendar only. Lunch is provided by Platinum Sponsor MM Lending. Here’s what’s coming in the next couple of months: ❖ Oct. 3 — 5 p.m.-7 p.m. KREIA Happy Hour. Networking at a • Oct. 24: REIPro’s Explosive Marketing Formula local restaurant. Check your email. Jeff OBryan hosts. • November 14: Holiday Party

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