October 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 10-19 October 2019 President’s Letter

Paid Advertising Rates

Explosive Marketing Formula: 3 Marketing masters Chris Goff and Bo Manry share expert tips Welcome, New Members!

Holiday Party Preview: It’s free for members on November 14th!

Mike Butler: Trick-or-Treat time triggers tax-time strategizing

Nina Musgrave: 10 reasons why 10 tenants leave rental units KREIA Photos

L.O.T.S. Recap: Karl & Pam 17 Bergklint tackle Camp Taylor gut job rehab for their second flip Rob Bergeron: What is the BRRRR method?

National REIA News Roundup

Calendar of Events

KREIA Members, The dictionary defines mentorship and mentoring this way: “a mentor may share with a mentee information about his or her career path, as well as provide guidance, motivation, emotional support and role modeling.” Throughout our lives we learn from others. Parents teach us to parent and teachers teach us how to use education to further every Chris McCarty aspect of our lives. Mentors help by sharing their struggles and success and hopefully accelerate our journey toward the success we seek. I have been fortunate throughout my life to have been mentored by some outstanding people who have selflessly helped me achieve success in my professional career. At times the mentors made themselves available by volunteering, but by far, the relationship was the result of me seeking out the mentors and asking specifically for help as I had identified them as models of success I was seeking. Any endeavor requires us to measure our performance or results against the success of others. How else are we to know what is possible? Mentors can help shortcut the learning curve. This is a straightforward business but is not without challenges. It is way more difficult to figure out the journey by trial and error and needlessly experience all of the failures when someone else (a mentor) has already experienced this failure and is happy to help you avoid the same. The awesome and gracious volunteer panel that shared their individual experiences last month at the September KREIA meeting were all mentors. They each shared their unique successes and failures with the eager membership sitting in the seats soaking up knowledge. The KREIA membership has this wonderful culture of abundance with information and knowledge, and it is this unique component of this great group that has kept me coming back for so many years. Most members are at times mentors sharing information freely, but at times these same members are mentees trying to understand some new facet or approach to the business. A great example of this is the emergence of Continued on Page 4

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

Advertise With KREIA

Secretary Erik Hitzelberger

Vice President John Jones

Treasurer Mike Treasurer-Elect 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.

Rue McFarland

George Foree

Dennis Erhard

Frank Miller

Lauren Willoughby

Greg Nalley

Hampton Scurlock

Katie Crotzer

Rob Bergeron

Nina Musgrave

Rick Littrell

Christopher Jaquith

ParliamenPast tarian Michelle President Rawn Eric George

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!

Join Us for a Marketing Master Class October 24’s presentation from REIPro founders begins at 7 p.m. Real estate is hot right now. That’s the good news. The problem is that it’s so hot and competitive that finding good deals is downright difficult. If that’s your experience too, come to KREIA this month. Good deal flow depends on good marketing, and we’ve invited two marketing experts to teach us how it’s done. Chris Goff and Bo Manry will explain their 6-step formula to help investors and agents put their real estate businesses front and center: ❑ ❑ ❑ ❑ ❑ ❑

Sell properties faster Never reduce sales price Write killer ad copy Eliminate the competition Implement 6 simple steps to marketing Be a top-producing investor/agent

About Chris Goff

Chris Goff and Bo Manry are the co-founders of REIPro, a company that consolidates lead generation, CRM software, deal analysis, comps, direct mail marketing and more into a single system.

About Bo Manry

● Successful Real Estate Investor since 1999 ● Specializing in Creative Real Estate Investing ● Three-time Best Selling Author, Coach and Mentor ● Real Estate Marketing Expert ● Co-founder of REIPro Real Estate Investor Software

● Successful Business Entrepreneur since 1997 ● Real Estate Investor since 2007 ● Two-time Best-Selling Author ● Expert in Online Marketing Strategies ● Google Adwords Certified Specialist

Chris Goff lives in Georgia and is a husband and a father of three. He grew up in Virginia, where in 1999 he began investing in real estate. He didn’t have any money to work with, so he learned “no money down” strategies. In his first 20 months, Chris did 46 deals with NO money down. Chris took what he learned from others and combined it with what he had found by trial and error to develop a system that would produce as much income as possible, while avoiding pitfalls. Over the years, Chris has mentored hundreds of real estate investors, written many books and created many teaching programs. In January 2012, he was honored to be nominated as one of the Top 30 Entrepreneurs in America and was a featured guest expert on the Brian Tracy Show, airing on ABC, CBS, NBC and FOX affiliates across the country.

Bo Manry graduated in 1997 with a degree in Electrical & Computer Engineering. Since that time, he has mastered the art of creating and delivering automated systems that sell. Bo is also a successful entrepreneur and business owner. Currently he owns several companies and all but his real estate investment company are 100% online businesses. Using proper marketing and social media strategies, Bo’s companies generate millions of dollars each year in revenue. Bo is a national speaker, mentor and coach, where he teaches people how to be successful in today’s digital world, and he provides tools to make it easier. He enjoys travel, his large lap dog and spending time with his family. As often as possible, you can find Bo hanging out around the local golf course, always trying to master the game.

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!

Attorney Michelle Rawn follows up her August Landlord Tenant Law main meeting presentation with more information on the hot topic of assistance animals.

Welcome, New KREIA Members! Krishnamraju Ankireddy Colin Barnhill Karen Bhatt Mark Birtles Mark Cantrell Chad Cunningham Brandon Davis Bill Ditsch Charles Edison Emily Fackler Frank Fitzwater

Scott Gilmour Whitney Graves Tracy Gregoire Audrey Griffith Fikre Gurja Tamela Holland Austin Horvat Stalyce Johnson Jo Jones Danielle Kantlehner Mark Key

Evan Lamb Justin Leanhart Kellie Logsdon Isaac Mouser Jackson Noe Lisa Presley Philip Speck George Verner Steve Watts Todd Wiggen

Holiday Party Is Free for Members! Kick your holiday season off right! Mark your calendar now for Thursday, November 14th. That’s the date of KREIA’s 2019 Holiday Party, and it’s going to be a blast. Party Man Frank Miller has lined us up some great entertainment. The headliner is Alex Voz, a magician and mentalist based out of New York City, who’ll take the stage to perform a 40-minute show. For the rest of the evening, local musical duo JacknLindsey will be rocking our socks off. Tables full of hors d'oeuvres will be located near the bar, so bring your munchies! This evening of entertainment is free for active, duespaying members! For guests and non-members, the door fee is the usual $30. Speaking of doors, they open at 5:30 p.m. on Nov. 14.

Get a taste of the fun to come at the entertainers’ sites! ► AlexVozMagic.com ► JacknLindsey.com or facebook.com/JackandLindsey

President’s Letter Continued from Page 1 recent short-term rental opportunities that so many members have embraced and shared openly to the membership – in spite of new competition – but in the same spirit of abundance and sharing. Seek out a KREIA member who has found success in your chosen approach to investing. Be bold! You will be amazed at how readily individual members of this group will help you reach success. Meet for coffee or just pick up the phone. If you’re one of the fortunate who have already found your real estate investing success, I bet KREIA had a role. Be open for that contact from a new member who has singled you out to emulate! See you at the meeting! Chris McCarty KREIA President 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.

Trick-or-Treat Time Triggers Tax-Time Strategizing By Mike Butler Hey, fellow KREIA members! It’s exciting to see so many of you rock’n’rollin’ and killing it in your real estate business – from part-timers getting started to veteran investors turbo-charging their profits. Ain’t Real Estate Great! So many ways to achieve true financial independence. Keep on Learnin’ to Make for Earnin’! You get a FREE gift just for reading this article! Let’s get on the Learnin’ Train for this article. One of my favorite books is Steve Covey’s 7 Habits of Highly Effective People. This 1989 book not only was a huge seller, it also ended up somehow as the Franklin/Covey classic man purse daily planner. One of the big basics in his book described the “4 basics quadrants” in life. We’re going to focus on “Quadrant 2” – “The Not Urgent But Important” stuff. All super-successful investors and business owners do this every year at this time because you have roughly 60 days from Halloween before you wrap up your year for IRS purposes. Wouldn’t it be a good idea to take time to do a serious review of your business right now before it’s too late to make any adjustments before December 31st? Quadrant 2 is very important to both your life and your real estate businesses, but you often treat it as if you are a politician. You kick the can down the road to deal with it later. It can easily get overlooked with your day-to-day and week-to-week activities. You MUST force yourself to spend scheduled quality time for Quadrant 2. Not just a simple to-do or a task. You must prepare properly for this scheduled time to dive into it. Here are some things you must have to properly prepare: 1 . Your written-down goals and objectives for this year – both personal and business a. FYI, you should have already achieved 75% to 90% of this year’s goals. b. Review your performance during this year. c. Did you meet your weekly and monthly goals when you took your goals for the year and broke them down into eating one bite at time to conquer your big elephant goal? d. Carefully review these to learn what you did right when you exceeded your one-bite-at-a-time goals and what needs help when you fell short. e. All of the above is labeled “experience” and will help you to move forward more efficiently with more time for your life while increasing your profits and income. 2. Real true and accurate “Cash Flow Report” by month, by year to date, and by property and entities, and by previous year-to-date numbers (you can push one button to see these in QuickBooks Pro®)

a. Use these reports to measure your results when you carefully review everything listed above. b. Treat it very seriously. This is your business, your pride and joy. Don’t you want your real estate business to give you the lifestyle and financial independence you always dreamed of? If you answered yes, you must act like a real business owner. Treat it like your Amazon, your Google, your Ford Motor Company, your McDonald’s or Starbucks. c. Take a careful look at your income numbers – what can you do to increase income forever? d. Take a careful look at your expenses numbers – what can you whack, remove, or decrease to make your business more efficient and more profitable? Perhaps insurance and property taxes (are you appealing assessments)? 3. Balance Sheet Report – today’s date vs. previous year’s date a. Don’t wig out if you are not sure of what a Balance Sheet is really about. Simply put, it’s a report showing your Assets (“What You Own” – dollars you have invested) and Liabilities (“What You Owe”). b. It’s that simple. c. As you buy more investment property and do refinances to restructure debt for the long term, your balance sheet will grow. d. Carefully reviewing this along with all of the above helps you gain a better understanding of how your business is growing and performing. After you complete the above activities, then you should schedule a 45-minute meeting with your real estate investing expert CPA. Now is the time to do it. Here’s what you should bring to this meeting. Print 2 copies of each of these – one for your CPA and one for you: 1. Cash Flow Report by Property including previous year’s numbers in the 2nd column 2. Balance Sheet Report with today’s number including previous year’s numbers in 2nd column 3. Cover worksheet with a bulleted list of your questions and concerns. Here are some questions you should ask : 1. At this meeting, your CPA will carefully review your reports and ask you questions. What is this? What is that? As questions surface, you write on your copy what needs to be done to “fix it” or make it proper. This happens to me every year. Do NOT beat yourself up as if you have done something wrong. In fact, it’s just the opposite. You are doing something right by having an expert on your business team. 2. After the review Q&A, you might ask, “What entities do you recommend for my best tax strategies?” Continued on Page 28

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Ten Reasons Why Tenants Leave Rental Units Offering answers to each may create life-long relationships & cashflow By Nina Musgrave Find more information about the chart below, on rental income and price changes in the US, at https://tinyurl.com/zumper. Looking ahead to 2020, I am happily refocusing on rentals. Sometimes I get off course and need to make a commitment towards my original goals. Flipping houses can be magical (or horrific, depending on the date and timestamped photos I’ve accumulated), but the reason I joined KREIA was to gain financial freedom through passive income and rental properties. So, back to basics I go. I heard a story at our last KREIA Lunch & Learn of a tenant who signed a lease for seven years, so “tenants for life” seems possible. I started to wonder why tenants would leave. Brainstorming, Google, and other investors helped me create the chart to the right. The chart below is an update for Kentucky from Zumper’s Rent Report. Enjoy! October 2019 Market Louisville, KY Lexington, KY

1 Bedroom 2 Bedroom Price M/M% Y/Y% Price M/M% Y/Y% $890 -4.30% 6.00% $970 -2.00% -4.90% $740 -1.30% -2.60% $950 -1.00% 3.30%

Tenant Issue

Possible Solution

1. Size of the apartment (too small or too big)

Own a variety of sized units (1BD, 2BD, etc.)

2. Cannot afford the rent

Ensure unit is priced right, offer creative payment plans

3. New job or relocation

Offer to connect with a REI friend through networking

4. Maintenance issues or high utility bills

Fix problems, train tenants, install HE units or insulation

5. Change in financial situation

Understand situation, have offer other units to offer

6. Problems with neighbors

Screen for multi-family, promote community

7. Want to change neighborhoods

Own properties in various areas for easy transfer

8. Life-changing events

See Solution 1

9. Negative interactions with landlord/property manager

Just be nice? Document conversations

10. Ready to purchase a home

Offer lease options, refer to a real estate agent

photos by bruce w. hinson www.obedientcamera.com September panelists speaking at the Single-Family vs. Multifamily main meeting included, left to right: Todd & Kim Hunter, Martha Schildknecht, Christina & Luke Neubauer, and Ray Hass.

KREIA

Photos

See more photos in KREIA's private Facebook group.

photo by bruce w. hinson www.obedientcamera.com Clockwise from top: Ed Gibson met up with Denise & Wade Ramey at the September meeting. Mike Butler manned his Tenant Finder booth. The tables at the front of the room remain popular spots for paying careful attention and taking notes. At the early meeting, KREIA President Chris McCarty described how to invest inside an IRA. Want to listen to his presentation? Find it in our private Facebook group.

photo by bruce w. hinson www.obedientcamera.com

Camp Taylor L.O.T.S. Home: A Closer Look Karl & Pam Bergklint tackle gut job rehab for second flip By Lauren Willoughby Karl and Pam Bergklint joined KREIA about a year ago and hit the ground running. After taking on a house in Bardstown as their first project – partnering with another investor – the couple tackled a house in Louisville’s Zachary Taylor neighborhood as their second. Partner-free this time! During their presentation, Karl’s first piece of advice to other new flippers was, “You don’t want to work with somebody that you don’t know – Google the address of this L.O.T.S. home – 1619 Belmar Drive – to see the listing and photos especially on a first flip.” of the beautiful job the Bergklints did. (Photos by Lauren Willoughby) Karl and Pam did work with KREIA advertisers they knew on this project, the focus of our Oct. 1 make changes.” The original floorplan here was bizarre. The L.O.T.S. event. The rehab funding came from MM Lending, kitchen was at the back of the house, and the sole bathroom and they chose Greg Kelley of R&G Homes as their GC. accessible only through a bedroom. So, they reconfigured the Karl, with his background as a CPA, and Pam, who recent- layout with some graph paper and advice from their GC. ly retired from Humana after 39 years, were not afraid to What had been a 4-bedroom, 1-bath house with bad flow get their hands dirty, and they pitched in on the project. turned into a gracious 3-bedroom house with 2 baths. They The Bergklints found this house on the MLS. There were converted the back of the house into a master bedroom with multiple offers, but they clinched the deal by offering full luxurious en suite bathroom. The tile work in the two bathprice with closing in 10 days – after confirming with MM rooms looks great – though an expensive choice, Karl said. Lending’s Wendy Kays that their funds would be available. They brought the kitchen to the front of the house, where This flip project was a challenging one: It’s an older house it’s the star of the open living space. White Shaker cabinets, (built in 1949), rather large (at 1,890 sq. feet), with a huge granite counters, granite-topped island and stainless applirehab (fixup costs at over $100,000). Even after encounter- ances catch the eye. And the engineered hardwood floor is an ing budget-inflating surprises – rotted fascia, caved-in pipes, attention-getter too. a 5-week delay in electrical inspections – the couple still Pam advised rehabbers to expect the unexpected and to looks to collect a nice profit for four months’ work. wake up every day “with a can-do attitude and a sense of What did they do to the house? Everything! determination.” She also recommended that you take the “Everything in this house had to be gutted out, right time to get to know the people who are working on your down to the studs,” said Karl. “New electrical, new plumbrehabs. “Say their names,” she said. “Thank them.” ing, new drywall – Karl also had a message for Mike Fallot of MM Lending: “I everything. There’s want to thank you for having the faith in us that we could not a speck inside actually do this.” And he gave Mike a shoutout for providing the four walls here, our lunches, which was met with applause from the crowd. except the fireTHE NUMBERS place, that’s still standing. Est. Selling Costs: $16,000 Purchase Price: $72,000 “Take a look at Total Rehab Costs: $107,406 Est. Sales Price: $224,900 the layout,” was Estimated Profits: $24,199 Holding & Carrying: $5,295 Karl’s second piece All-In Costs: $184,701 of advice. “If it doesn’t make sense, Why do we call it “L.O.T.S.”? Because we Learn On The Site! Pam & Karl Bergklint don’t be afraid to 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.

Do You Have a Product or Service to Offer Kentuckiana Investors? Become a Business Card Member for only $199/year and see your ad in a year's worth of issues! You can upgrade to Business Card at any time.

What Is the BRRRR Method? By Rob Bergeron The BRRRR method stands for Buy, Rehab, Rent, Refinance, and Repeat! What it means is, once you have purchased and renovated a property, then rented it out to a tenant, you approach a bank to refinance you. You get back out about the same amount of money you put in – and you get to keep the house and collect cash flow while the tenants pay down your new mortgage. After refinancing, use the money you received to purchase more rental properties! Conceivably you can do this until you desire to quit. The BRRRR method is a well used model in KREIA for building rental portfolios. The idea is similar to the concept of making friendship bread. When you finish making one loaf, you have new yeast to make another. Recently David Greene of the BiggerPockets Podcast wrote a book about how to do it – Buy, Rehab, Rent, Refinance, Repeat: The BRRRR Rental Property Investment Strategy Made Simple. You can find it at Amazon.com The biggest hurdles to doing BRRRR deals are finding the funds for the original investment, finding homes with enough equity, and putting in good enough work to be able to refinance your money out. If you’re able to tank-proof a property while you’re renovating it, that allows you to cut down on your CapEx costs. Capital expenditures are the costs that go into a holding a rental, such as providing for a new roof, HVAC, water heater, windows, etc. By replacing all of these major items upfront, you have fewer expenses to cut into your margins and a better product to offer your future tenants. I personally recommend using rentometer.com to get an idea of what rents can be collected for in the area where you’re analyzing BRRRR deals. While the BRRRR model might sound “cold,” it sure can warm up the outlook of your investing future! Be sure to tell your investor-friendly real estate agent (like me) that you're looking for properties with good BRRRR potential. If you have questions, write me at rob@roilouisville.com. 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.

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.

FTC Says Flipping Seminars with HGTV Stars Are Scams We have all watched those TV reality shows, the ones that make it look really easy to flip an old rundown house into thousands of dollars in profits. Well, Tarek & Christina aside, the Federal Trade Commission and the State of Utah recently announced that they were charging a Utah-based company with lying to consumers in order to convince them to attend allegedly free real estate seminars across the country. Read the HousingWire story here: bit.ly/k1910_scams

2020 Census Could Expand Opporttunity Zones With the 2020 Census happening sooner rather than later, Bloomberg Tax is reporting that investors across the country who’ve been asking officials to expand areas designated as Opportunity Zones might get their chance when Census Tracts are redrawn. Read the Bloomberg story here: bit.ly/k1910_census

Redfin Says Housing Market will Continue to Cool in 2019 The chief economist for Redfin, Daryl Fairweather, recently discussed what she saw in the housing market for 2019. Among her observations is that the housing market will continue to “cool,” and there will be higher rates of homeownership. Watch the video at CNBC: bit.ly/k1910_redfin

California's Shambolic Housing Policies Explained If you've been following the Rent Control issue, you will undoubtedly be familiar with current epidemic of “dosomething-ism” regarding the issue. Recently, California’s governor signed landmark Rent Control legislation (even after voters rejected rent control at the polls last year) that limits (among other things) rent increases to 5% per year. Read the City Journal essay at bit.ly/k1910_rentcontrol

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Trick-or-Treat Time Triggers Tax Strategizing Continued from Page 6 3. If you are going to have to pay income tax, your CPA might recommend you to pay ALL of your January bills before Dec 31. If you have a closing scheduled in December, perhaps bumping it to Jan. 2nd might lower your income tax bill for this year. 4. Additionally, if you have room to add more income this year without increasing your income tax, do the re-verse: Postpone and pay December bills on Jan. 2nd, etc. 5. It’s almost impossible to write generic cookie-cutter tax strategies for you. WHY? Because you must factor in everything for your big picture when creating your tax strategies. Some investors have full-time jobs, others do not. Some have other businesses they own and operate. CAUTION #1: Everything here deals primarily with IRS concerns and tax strategies. It’s intended to give you some insight on why you must take action now, because as of Halloween, you have 60 days until December 31st. Please consult your CPA for your specific detailed plans of action. CAUTION #2: This article deals with reviewing your business in preparation for tax time. It does NOT involve Asset Protection – a completely different animal. Congratulations on having read almost all of this article. For you investing your precious time, you have qualified for receiving a special gift just for you, my 11-page PDF: “7 Must Ask Questions (with answers) Before You Hire Your Real Estate Investing Expert Attorney and/or CPA.” Here’s the link to get it www.MikeButler.com/7questions FYI, attorney Harry Borders and CPA Mike Grinnan helped in preparing these 7 questions. To Your Continued $uccess!

P.S. Sign Up for Your FREE 30-minute Investor Training Webinars Every Tuesday at 12 noon https://MikeButler.com/PowerLunch

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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

Explosive Marketing Formula Chris Goff and Bo Manry of REIPro show us a 6-step formula to “put your real estate business front and center.” REIPro is a company that consolidates lead generation, CRM software, deal analysis, comps, direct mail marketing and more into a single system. Oct. 24, 5:30 p.m. ➢ Early Meeting: Attorney Michelle Rawn on service animals

❖ Nov. 7 — 5 p.m.-7 p.m. KREIA Happy Hour. Networking at a local restaurant. Check your email. Jeff OBryan hosts. ❖ Nov. 13 — 11:45 a.m.-1:30 p.m. KREIA Indiana Sub-Group Luncheon Meeting. Meet up and network with Hoosier investors. At Tucker’s Restaurant in New Albany (State Street and I-265). You buy your own lunch. Brian Haeseley chairs. ❖ Nov. 21 — 6 p.m.-7:30 p.m. KREIA Game Night: CashFlow. Want to get out of the Rat Race? Play the CashFlow board game with other investors pursuing financial freedom. Hampton Scurlock hosts.

❖ Oct. 29 — noon-1 p.m. L.O.T.S. event. We visit Brad & Katie Noe’s current project in Louisville’s East End. Members only. Main Meeting Calendar Lunch is provided by Platinum Sponsor MM Lending. ❖ Nov. 5 — Noon-1:30 p.m. Lunch & Learn. Meet up for educa- Here’s what’s coming in the next few months: • November 14: Holiday Party tion and networking. Members only. You buy your own lunch. Guest speaker Dan Jones will talk about how to find properties • January 23: Topic to be announced below market value. Check your email for the location.

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