July 2021 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 7-21 July 2021 President’s Letter

Paid Advertising Rates

BRRRR & House Hacking: Great 3 strategies for new investors! (And more experienced ones too) Welcome, New Members!

Mike Butler: What can landlords learn from hotels?

Michelle Rawn: Courts Update

KREIA Election Results

Government Affairs Links

Hampton Scurlock: A ‘thank you’ 14 to KREIA Sharon Vornholt: Resources to 18 grow your investing business KREIA Photos

L.O.T.S. Recap: Frank Miller 21 rehabs foreclosed Shively house for $60k+ profit National REIA News Briefs

Dear KREIA Members and Friends, As KREIA welcomes new leadership this month in the top officer positions, along with several new board members, this is my final month in office, and this is the 24th and final letter of my monthly newsletter contributions as the KREIA president. Two years ago this month I was sworn in as the new president in what I assumed would be a continua- Chris McCarty tion of the status quo – with the anticipation of serving, just as my predecessors did, to support our growing organization with its mission of education and networking opportunities amid the background of a prosperous real estate market. This term started out as usual but six months in, just like every other person, government and organization on the planet, KREIA was abruptly challenged by COVID. For us, our challenge was to pivot to virtual meetings and create new ways to communicate and serve our membership. One of the most outstanding and longtime traits of KREIA is the selfless “help the new folks” culture that has always welcomed new members. This is a club-wide culture. And though it begins with the rank-and-file membership, it is the officers and board members of the organization who methodically and each month keep the club efforts on track and focused on the mission.

KREIA, like the rest of the world, had to adapt and change to COVID and could no longer hold the in-person meetings and various monthly gatherings. The efforts of temporarily changing to online communications were challenging – sometimes more so than the physical meetings – and even as we have resumed our in-person meetings, we are a much better organization with more digital and online resources Continued on Page 4

Nina Musgrave: Mortgage 30 defaults may soon add to supply Tom Jenkins: A common-sense 32 approach to mold Saturday Workshop

Copyright MMXXI 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 is $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

Rob Bergeron

Christopher Jaquith

Jordan Pohn

Stacey Duvall

Alexis Fentress

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 shoulder-to-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 support@KREIA.com if you: Want to advertise on KREIA.com • Need help • Have a question

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. 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. Tell all your investing friends. The cost to join as an individual member is $125 per year, with a door fee of $20 at our monthly meetings (which covers the buffet meal and rent on the hall). Click JOIN at KREIA.com to find out about all the benefits of membership for both individuals and businesses. Too many to list here!

Two Strategies Tailored for Beginning Investors KREIA’s July 22nd main meeting will teach the basics of House Hacking and the BRRRR If you’re a beginning investor looking for the most painless and affordable ways to jump into real estate, you’re in luck: Our July 22nd main meeting covers the two most promising strategies for you: BRRRR and House hacking. And KREIA is bringing in two experienced investors to break down these strategies for you – Luke Neubauer and Bryant Grimes. House hacking is where you use your own house as the launchpad into investing. With house hacking, you can rehab a property while you’re living in it – and then flip it a year or so later. Don’t want to flip? You could instead bring in roommates, whose rent payments to you may cover most or even all of your mortgage payment. And because it’s your own house you’re buying and living in, you can take advantage of FHA loans, where the down payment can be as low as 3.5%. FHA loans can also be used for multifamily properties of up to 4 units. House hacking is the kind of investing you can undertake even while you’re carrying debt from student loans. Did you think you couldn’t get started in real estate until your student loans were paid off? Well – you can! The BRRRR method – which stands for “Buy, Rehab, Rent, Refinance, Repeat” – is a strategy you can use to bootstrap your way into a portfolio of rentals by rehabbing one house at a time. The magic happens with the third ‘R’: refinance. When you refinance a renovated house, the new appraisal will likely leave enough room so that a banker can let you cash out the amount you put into the house – which means you can take that cash and do another project just like the first. Keep going, cookie-cutter fashion, and before long you’ll end up with a portfolio of rental properties that can launch you into financial freedom. And BRRRR is not just for beginners, though it is a beginner-friendly strategy. Longtime investors are BRRRRing too, and they’ve been doing it for years! Find out how to join them at our July 22nd meeting. If you’ve been looking to introduce a friend to KREIA, this would be a great meeting to get them started.

Meet Luke Neubauer Luke describes himself as a “regular guy,” a lifelong learner and former middle school science teacher who invests alongside his wife, Christina. They have two children. Luke says they started investing parttime in 2011 with a $3,500 down payment and $5,000 in savings. They bought two properties that year and kept going.

Illustration by Nina Musgrave

By using the BRRRR strategy to buy and hold two or three rental properties a year over the next six years, Luke was able to transition into investing full-time in 2017. He says their family’s real estate income now supports their lifestyle. Luke says he enjoys sharing his experiences in the hopes that it inspires other people to follow their dreams to financial freedom.

Meet Bryant Grimes Bryant is a CPA with over eight years of experience in accounting and finance. He began his career at Ernst & Young. Bryant is 32 years old with six years of gradual real estate investing experience and a full-time W-2 job. He describes himself as a “House Hacker x3” and says that after his first property purchase, he has lived exclusively in house hacks. Bryant currently owns and self-manages 15 doors (short- and long-term rental) and has two flips in progress. Outside of work and real estate, he enjoys motorcycle touring, camping, and exploring new places.

Agenda for KREIA’s July 22nd Main Meeting • 5:30 p.m. – Early Meeting: Insurance with Greg Nalley • 6 p.m. – Orientation with Jordan Pohn & Stacey Duvall • 6:15 – Welcome, announcements, property pitches, sponsor pitches & more. Buffet line opens! • 7 p.m. – Feature presentation with Luke Neubauer and Bryant Grimes And there’s a BRRRR/House Hacking Workshop! See Page 34!

5:30 p.m. Early Meeting: Greg Nalley Greg Nalley, a partner in Nelson Insurance, answers all your insurance questions & presents on this topic: “Things to Know Before the Insurance Claim – Are You Really Covered?”

Welcome, New KREIA Members! Jamie Beverly Robert Beverly Meishca Bryant Kanetha Dorsey Emerald Feland Jessica Gaines Jarboe Jamie Greenwell Patrick Hickman Jerry Higgins Sherry Horn Jeffrey Jewell William Kazane

Ronald Knuckles Madison Martin Alex Morrison D Olden Yvonne Timothy Owen Elea Sherrod Torie Smith Jake Smith Lauren Speaker Collie Taylor Ruperd Wilson

KREIA’s New Member Orientation Jordan Pohn and Stacey Duvall will give a short presentation of the benefits of joining KREIA at every regular monthly main meeting. Please join them in the small conference room at 6 p.m. Online Presentation: You can view a recent session with Jordan and Stacey by visiting the Intro to KREIA page at kreia.com (About/Intro to KREIA on the menu). On the Member Benefits page (Join/Member Benefits), you’ll learn how to secure your discounts and bonuses.

Chris McCarty: President’s Letter Continued from Page 1 due to the stellar efforts of our board and volunteers. All of the KREIA board worked hard to adapt to the COVID challenges, but I would like to acknowledge and give some special thanks and praise to Lauren Willoughby, John Jones and Michelle Rawn. Without these three very dedicated KREIA members, COVID could have claimed more casualties in the form of neglected member benefits and communications, and we may well have not held onto as much membership momentum as we have today. Lauren Willoughby kept the KREIA “trains” on time and the candles burning bright in the online windows. She upped her email communications with continuous and sometimes daily communications on everything KREIA and real estate and she put the website updates, videos and content in overdrive. We are a much better organization today from her efforts. Thank you, Lauren! John Jones already had a full plate of KREIA volunteer responsibilities, but when duty called, he stepped up to the new virtual Zoom platform, managed and solved a big bunch of new technological challenges, and ran all the online meetings at a great expense to his own business and available time. Thank you, John! Michelle Rawn, attorney and KREIA Parliamentarian and board member, kept about half the states’ landlords through KREIA and other groups informed with her monthly written updates on the almost day-to-day changes by the CDC and any other bureaucratic entities that were also working hard to monitor, control and assist with landlord and resident challenges. In addition to her many written updates, she answered countless individual calls, free of charge, from our members – answering specific questions on specific situations and guiding members through individual circumstances with residents. Thank you, Michelle! I can go on and on praising KREIA and the benefits of membership. If you have not personally experienced what I say here, you likely have just not been around enough. I encourage you to take advantage of everything KREIA has to offer and if you take a few steps towards participating, we will take it from there and surprise you with what we can offer to assist with your real estate investing. It has been my honor to have served such a group! Chris McCarty Outgoing KREIA President [Editor’s Note: Chris, the honor is all ours! Thank you for leading us through these difficult times and always reaching out a hand to investors needing answers.]

Some of KREIA’s national sponsors via National REIA. For the full list, and info on discounts, visit nationalreia.org/benefits

What Landlords Can Learn from Hotels By Mike Butler As you travel attending real estate seminars, conferences, boot camps, and family vacations, you have a golden opportunity to really expand your insights on how to run a more lean, efficient, and profitable real estate business. It doesn’t matter what area of expertise you pursue in your business: From rental homes to multi-family communities, flippers/floppers, BRRRR, self-storage, marinas, mobile home parks, commercial, and yes, even hotels! Every time you stay in hotel, after the dust has settled from checking in and moving in your gear, slow down, take a chill pill and grab your notebook and crayon to take some notes. Or, open up your smart phone to take some photos. Hotels are a great learning tool because the owners want the maximum income and profit with the least amount of headaches and expenses. I trust you want the same. Here’s a short list of things you can benefit from by taking a careful look at hotel rooms. Hotel rooms… ✓ NEVER have a medicine cabinet in the bathroom. • You will see a mirror with a light bar on top instead. • You may see shelves or a large vanity top to place items. ✓ SELDOM will you see a vanity with cabinet doors below the sink. This area is usually open for two reasons – first is easy access, second is that this prevent customers from stuffing items under the sink to knock drain and water lines loose. Lesson Learned: avoid vanities in your rentals’ bathrooms. Instead, install pedestal sinks and mount a $49 cabinet with double doors, a shelf and towel bar above the toilet. ✓ FAUCETS: Bathroom sink faucet, tub-shower faucet, and kitchen sink faucet in suites… • All use single-lever faucets. (We use the Moen brand “Adler” series faucets in our rentals.) • These faucets will lower your maintenance costs because they last almost forever. And when they do start leaking, you simply replace a “cartridge” in less than 5 minutes! Kitchen Faucets…  In rentals, always use the single-lever faucet WITHOUT a sprayer.  In Class A rentals or a buy-fix-up-and-sell house, always get an upgrade faucet with a sprayer. ✓ GARBAGE DISPOSALS: Remove them from all of your rentals. They’re OK for properties you sell. ✓ LIGHT FIXTURES: Use the same ones in every room. • Remember, today you can usually find good, cheap light fixtures that include LED bulbs. Use these – some are cheaper than buying a single, high-quality LED bulb.

✓ CARPET: Although I’m no longer a fan of carpet in rentals (prefer refinishing hardwood floors or using good vinyl planking), take a look at how hotels use a 4-inch carpet roll instead of traditional wood baseboards. ✓ VINYL PLANKING: You will find this all over hotels. • Baseboards are also the same planking cut to 4 inches. ✓ PAINT: They use the same color paint on all walls and white for ceilings. • My real estate business uses the same interior paint, and we created our own color called “Vista Taupe.” My bride Beth picked this color. ✓ HVAC: Some alternatives to consider… • Many hotels use the General Electric Zonelines installed under the window. These are super easy to service, and you can still use a wall thermostat. FYI, I’ve found that 110-volt window “heat pumps,” both a heater and air conditioner in one window unit, are great for studios and 1BR apartments. • In the suite I am staying in right now, they have a vertical furnace-AC installed in a closet with a louvered wooden door with a deadbolt lock to keep folks from tampering with it. No need for ductwork as they have installed a wall register vent and a return into the closet. ✓ WATER HEATER: This is not usually found in hotels, but make sure you put a water heater drain pan under your water heater in your rentals. When the heater leaks, it will not ruin your floors. The water is caught and drains outside. ✓ LAUNDRY ROOM: Always place a drain pan under the washing machine. This way, when – not if – the washing machine leaks, the drain pain will catch it and dump it into your drain. No water-damaged floors ever again. Mark your calendar now for the August 26th KREIA meeting. You will learn “How to Consistently Get Paid Over 100% of Your Rents Every Month, even during COVID!” Get this and much more at the 3-Day LIVE Landlord Certification Training Oct 15-17, 2021, in Louisville. Register online now at MikeButler.com Remember, LIFE does NOT have a Pause or Rewind Button! It’s up to you to make it happen. To your continued $uccess,

P.S. Sign Up for Your FREE Investor Training Every Tuesday at 12 noon: MikeButler.com/PowerLunch Mike Butler is a KREIA Past President, a recipient of the Ed Melton Award, a property manager, a high-volume landlord, a principal in Tenant Finder Service, a retired Louisville undercover police detective, and the author of the bestselling real estate book “Landlording on Autopilot,” now available in its 2nd edition.

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Attorney Provides an Update on the Courts By Michelle Rawn As I’m sure you are aware, the CDC eviction moratorium for non-payment of rent evictions was extended until July 31, 2021. Even through multiple federal courts have held the CDC did not have the authority to institute a nationwide eviction moratorium, the stay that is currently in effect regarding the enforceability of the moratorium will also remain in effect until July 31, 2021. The CDC eviction moratorium only applies to evictions for non-payment of rent where all adults of the leased premises have submitted a signed CDC Renter’s Declaration. In addition, the City of Louisville has been given a few more millions to help with rental assistance. The tenant has to apply for the assistance. The process is very slow, but it has helped several landlords receive their rental income for more than a year. Evictions for non-rental lease violations (unauthorized occupants, disturbing the quiet use and enjoyment of the neighbors, etc.) and non-renewals/lease terminations, even though not affected by the CDC eviction moratorium, are also progressing at a much slower rate. The moratorium did not cancel or suspend rental payments, but basically guarantees that a tenant cannot be evicted for non-payment. While this moratorium is in place, if your tenants reach out to you to accept payment from a rental assistance program or want to try and work out a payment arrangement, you will want to think strongly about this before saying no. These rental assistance programs might be your only chance to receive payment for at least part of the rent owed while the moratorium is in place. Some of the assistance programs can pay as much as 12 months past rent, plus 3 months future rent. Please be sure to review all of the requirements of the rental assistance programs as most of them require the landlord to not evict the tenant for non-payment of rent or lease termination/ non-renewal for a set time period, and some also require you to provide a 30-day notice going forward for nonpayment of rent instead of the standard 7-day notice. Please note: If your property or your tenant fell under the protections of the CARES Act, you must give a 30-day notice for non-payment of rent before you are able to file an eviction. Obtaining an eviction judgment has become more difficult in all situations. Per Order of the Supreme Court of Kentucky, the courts are slowly starting to open up and return to normal. Most counties, outside of Jefferson, are now requiring everyone to show up in person just like pre-COVID times. Hopefully, things will be able to return to pre-COVID normal someday soon. As all of us know, things are still changing rapidly. Please feel free to reach out to me or John Benz in my office to see if there have been any

more developments or updates. I hope you and your families are staying safe and healthy. Michelle R. Rawn Rawn Law Firm, PLLC Tel: (502) 639-9396 Fax: (502) 276-0607 Email: Michelle@rawnlawfirm.com

How Your Tenants Can Claim Assistance Landlords, you cannot directly tap into the millions sent to Louisville for rental assistance – but your tenants can. If you have any residents who are behind in rent and that you have filed eviction on, please direct them to this website: StopMyEviction.org The site offers a form they can fill out and instructions on how to proceed.

2021 KREIA Election Results The board would like to thank everyone who ran for positions this year in the 2021 election. The results are as follows: Officers: President, Erik Hitzelberger; Vice President, Stacey Duvall; Secretary, Jordan Pohn; Treasurer, Mike Grinnan; Treasurer Elect, Wally Kallbreier Board at Large – 2-Year Term: Alexis Fentress, Ian Hooper, Rue McFarland, Frank Miller, Greg Nalley and Hampton Scurlock Board at Large – 1-Year Term: Mary Conrad, Eric Feller and John Mays We are looking forward to an exciting year with many great speakers, events and programs. We appreciate all of our members and are excited to see everyone in person at our monthly meetings, happy hour, game night, lunch and learn, and so many more events. – Michelle R. Rawn

GOVERNMENT AFFAIRS LINKS 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

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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

Thank You, KREIA By Hampton Scurlock I want this article to serve as a giant thank-you card to KREIA. This wonderful organization has done so much for me (and others) over the last few years, and I appreciate the opportunity to serve on its Board of Directors again. I am truly blessed to be involved with such a great organization and people. I was recently discussing the benefits of KREIA with a newer investor and offering reasons why they should join. We discussed some of the events that KREIA organizes, such as L.O.T.S, Lunch & Learn, Happy Hour, Game Night, workshops, the main meetings, and more. We then talked about the KREIA discounts on paint and the Home Depot rebate program, as well as the benefits of using an IRA (and the Equity Trust special offer/discount for members). Finally, we talked about the networking and wonderful people I have met, learned from, and have had the privilege of doing business with over the years. I had just bought some houses from a KREIA member and told the potential member that I had bought, sold, or partnered with dozens of KREIA members on properties over the years. It got me wondering how many KREIA members had I bought a house from, sold a house to, or partnered with on a house as I had never actually counted the members with whom I had done business. I decided to pull out my fingers and toes and start counting. The list reached over 100 different KREIA members before I stopped! This list did not include people I had loaned money to, lenders I had borrowed from, pest control services, windows/siding suppliers, insurance agents, contractors, mold remediation, roofers, flooring sales, and the wonderful attorneys who have done numerous closings (and a few evictions) over the years – or other vendors/ sponsors of KREIA with whom I have done business. Just house sales, purchases and partnerships were included on the list. The number really would have been much higher had I included these other companies and individuals. Please encourage others to join KREIA. Bring a guest to some events. We can learn and grow our knowledge and businesses together. Heck, you may even partner with them, buy a house from them or sell them a house. We all can benefit from more members and the knowledge, expertise and contacts that they have. Thank you to KREIA leadership, members, and sponsors. As a small token of appreciation for any KREIA member who comes to KREIA’s August Game Night on August 19th, I will pay for your first drink.

Game Nights are held on the third Thursday of each month at Martin’s Bar-B-Que on Indian Lake Drive from 5:30 p.m. – 8 p.m. I hope to see you there. I also look forward to doing business with more of you. Thank you again, KREIA. Hampton Scurlock is a KREIA Board Member, investor, lender and more. He enjoys helping others and has a passion for real estate. Contact him with any questions or opportunities financialwhiz1@gmail.com

Resources to Grow Your Investing Business By Sharon Vornholt Editor’s Note: This is a condensed and annotated selection from Sharon’s “30 Resources to Grow Your Real Estate Investing Business” handout, which she has compiled into a handy downloadable PDF guide. For an overview of the tools she describes (some of them free!) – along with links to download or use them and a podcast episode that describes them – visit her blog article here: bit.ly/k2106sharon. Scroll down the article’s page for the link to download the PDF. For Sharon’s other offerings, visit LouisvilleGalsRealEstateBlog.com ● Carrot Websites for investors and Realtors Why should you use these sites? The reason is that they are “done for you sites,” created by a real estate investor, that you can have up and running in about an hour or two. (You can add customization later.) Carrot also has awesome training and weekly coaching calls to help you generate more leads with your website too. Plans begin at $69 per month.

small-batch mailings starting with only 200 mail pieces. (Most companies require 1000.) Want free sample marketing pieces? Just contact them and they will be happy to send them to you. Pricing varies depending on your use. Forefront CRM Another way to manage leads You can get started with this CRM to manage your leads completely free, and you can stay on this plan as long as you like. There is an opportunity to upgrade as your business grows. Propstream Comps if you don’t have access to the MLS This is very robust software for your business. There is both an online app and a mobile app that has nationwide property data from the MLS, county records, etc. You get 10,000 property downloads a month on the basic plan. It starts at $99/month with a free 7-day trial. Zillow Just watch out for the Zestimate! You can use Zillow to get an idea of the price of homes in your market, but be careful to look only at homes that have sold. Don’t look at the listing price. ConvertKit Email marketing ConvertKit is a very powerful yet affordable email service provider. It has amazing, easy-to-use automation capabilities. This is a company that I have used for a long time. You can collect leads, send out follow-up emails, and stay in touch with potential sellers, cash buyers, and more. You can get started for free. As your list grows, you will need the paid version.

Open Letter Marketing A CRM to manage all your leads and direct mail campaigns This company is a favorite of mine. They have an awesome CRM (Customer Relationship Management software – databases to manage your leads’ contact info and your workflow in dealing with them). Open Letter Marketing can also manage your direct mail campaigns: you can order your campaigns right from their hub. They have a wide selection of quality marketing materials, as well as several other innovative marketing “add-ons” like ringless voicemail, IP marketing, and skip tracing to name a few. They are also one of the few companies that will do

Sideline A separate phone line for your business Need a different phone number for your business, or to align with your marketing campaign? You don’t need to buy an extra phone when there is software like Sideline, which lets you create and use a virtual phone number. It can also help you with SMS marketing and sending text reminders to your clients. Continued on Page 24

photo by bruce w. hinson www.obedientcamera.com

Speaking at our June 24th main meeting on local and national trends in real estate and business were Rebecca Fleischaker and Jeff O’Brien from Develop Louisville (above and above right) and KREIA’s Mary Conrad (right).

photo by bruce w. hinson www.obedientcamera.com

KREIA photo by bruce w. hinson www.obedientcamera.com Above: KREIA sponsor Willie Harden, left, talked business with investor and restaurateur Donnie Adkins. Below left: More KREIA members doing what they do best – networking! Below right: Investor Karen McKnight asked a question during the meeting’s Q&A time.

photo by bruce w. hinson www.obedientcamera.com

Photos

Visit KREIA’s Private Facebook Group to see more of Bruce Hinson’s photos from last month’s meeting – in color!

photo by bruce w. hinson www.obedientcamera.com

Shively Flip House: A Closer Look Frank Miller brings a long-vacant foreclosure back to life By Lauren Willoughby Frank Miller stepped up to the plate at June 29th’s L.O.T.S. event and hit another home run – and did it in front of a record crowd. So many investors showed up to the KREIA Past President’s recent Shively flip house that we ran out of food. (We always order 50 box lunches for KREIA members attending. Usually, that’s enough!) Besides curious investors looking to see how Frank has transformed another project, some local politicians were also in attendance: Kentucky Senator Gerald Neal (Kentucky’s 33rd District), State Representative Nima Kulkarni (District 40), and a representative from Keisha Dorsey’s office (Louisville Metro District 3) – The house at 4047 Glenhurst Avenue may look narrow, but it runs deep. Want who got a chuckle from the crowd when she to see more of this project? Google the address to find the listing on Zillow.com said she loves seeing renovation work going on or Realtor.com to view 19 more photos from the house, which was kitted out “because less people call us to complain about by Staged for Success by Shannan, a KREIA sponsor. (Photos by Alexis Fentress) houses that are dilapidated.” Frank also pointed out a benefit rehabbing houses brings We at KREIA love it when local leaders attend our L.O.T.S. to the neighborhood – and to other investors and nearby events, because it helps us get out the message that KREIA improves neighborhoods by turning eyesores into attractive sellers: rising comps. This house appraised for $170,000 properties – and brings revenue to the city by putting vacant after repairs. “So, if you guys live in the area or in a mile radius, you’re welcome,” Frank said, laughing. houses back on the tax rolls. How did Frank bring this house back to life? His crew added new flooring, put on a roof, added new windows, tiled the bathrooms, bumped out a bedroom, and more! Frank said he likes to rehab in Shively, because that’s where a lot of first-time homebuyers are looking. “We like to make these houses special and nice for them.” Frank and his wife, Tommi, have been rehabbing houses for 16 years, and it shows. This home looks stunning. Workshop: Frank and his mentoring company, KREIA sponsor Believe Investment Group, will be conducting a $49 rehabbing seminar/ride-along bus house tour of investment properties on July 24th. Get more info at bit.ly/k2107believe

Frank Miller, left, along with Kentucky Senator Gerald Neal and event sponsor Mike Fallot of MM Lending, right. (Thanks, Mike, for providing our lunches!)

THE NUMBERS Purchase: $63,250 Repair Costs: $28,250 Miscellaneous Costs: $16,224.40 Total Invested: $107,724.40 Expected Sales Price: $170,000 Potential Profit: $62,275.60 * At press time there was a contingent offer of $185,000.

Look for the video from this L.O.T.S. event to be posted soon to our Videos page. Visit bit.ly/k2107frank to see the numbers breakdown posted to our Private Facebook Group by Alexis Fentress.

Why do we call it “L.O.T.S.”? Because we Learn On The Site!

Copyright MMXX 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.

Trello Organization and sharing I use Trello for project management, brain dumps, content ideas Rehab Valuator and so much more. I especially Spreadsheet-like tool for estimating repairs love the ability to color-code If you are stumped on how to estimate repairs on a property, Rehab Valuator is the perfect tool for you. You can things. calculate offers, analyze deals, and so much more. LeadPages Landing pages for your real estate business LeadPages is a tool that has helped me build beautiful landing pages for my business. When they are integrated with your email provider, you have a powerful way to collect leads and stay top of mind with sellers, showcase your “freebies” for sellers, and so much more. It has monthly as well as annual plans depending on your needs. Sharon Vornholt: Resources to Grow Your Business Continued from Page 18

RehabValuator has calculators for flipping, buying-andholding and BRRRR-ing and comes in both free and paid versions.

LastPass Keeps track of your passwords I love this free password manager. Let’s face it: No one can remember dozens of passwords. What happens is you end up using the same password for most of your accounts. LastPass lets you keep all your passwords in one place, and you have one master password to access LastPass. It inserts your password when you log in to any site (like Google), but it’s so much more secure.

Unroll Me Cleans up your email’s inbox Unroll Me is another free tool that I love. We all like a clean inbox, but when it comes to unsubscribing from certain emails, we just can’t do it. FOMO sets in. With Unroll Me, you can just move those emails over to the rollup folder. Each day you will get one email with every email that has been “rolled up.” You can choose to look at them (or not). When you unsubscribe to mailing lists through Unroll Me, it keeps a list of those things too. You can go back anytime and move emails back into your inbox. SmarterQueue Social media scheduler One of my favorite social media scheduling tools is SmarterQueue. It’s easy to use and very affordable compared to many other similar services. All your blog posts, podcasts, and other social media posts are stored in a library that you create. Next, you add your social media profiles, create a posting schedule and SmarterQueue does the rest. It will cycle through all your content in each category. If it runs out of all the content in a category, it will simply start recycling the existing content. SmarterQueue can post to Facebook (profiles, pages, and groups), Twitter, and LinkedIn (profiles and company pages).

LastPass also allows you to securely share account access with other people without sharing your password. This is especially useful when you’re working with other people like VAs. They always have your latest password this way. Pic Monkey Image creator and editor Pic Monkey is a tool I have used many times for creating or editing images. I’m pretty low-tech when it comes to this stuff, and I think it’s easy to use. Continued on Page 26

Do You Want Your Business Card to Appear Here? Join KREIA as a Business Card Advertiser for only $199/year and see your ad in a year's worth of KREIA newsletter issues! Copyright MMXXI 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.

Sharon Vornholt: Resources to Grow Your Business Continued from Page 24 Bonjoro Sends video messages to contacts This is one of my favorite marketing and branding tools. You can pull out your phone or your computer and shoot a quick video using Bonjoro. You can answer questions, thank sellers for showing you the property, keep in contact with other investors, agents and wholesalers, and so much more. You can email the videos straight from the app. It’s so easy! You can get started for free. Their paid plans are very inexpensive. Dropbox Online storage for all your files Store all your files in Dropbox and you’ll never lose your files again due to a computer problem. You can access files from PCs and your smart phone. There are free and paid versions.

I hope you find this resource list valuable. These are some of the tools I use in my own business. Check back periodically as I will be adding to this list and updating it from time to time. Wishing you much success in your business. – Sharon Vornholt Want a PDF Version of This Guide? We couldn’t fit all of Sharon’s recommended resources in these pages. There are so many more for you to discover! Please go to bit.ly/k2106sharon for more info and the full PDF guide. Sharon Vornholt is a local marketing expert with a national presence. Visit her blog and website, LouisvilleGalsRealEstateBlog.com, to find years and years of articles with tips on wholesaling, marketing, branding, probate, and other real estate topics. On her podcast, Sharon interviews well-known investors from all over the country.

National REIA Real Estate News Roundup ???

Landlords Struggle to get Federal Rental Assistance

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 CNBC’s Diana Olick says news and resources that Brad Beckett, NREIA’s Director of getting rental assistance to Education & Outreach, has compiled. For more news, visit the estimated 6 million+ RealEstateInvestingToday.com tenants behind on their rent has been incredibly difficult, and landlords are Now that the pandemic is waning, Americans are hitting being “left in the lurch.” the roads again. Realtor.com points out that more than twoWatch the report: bit.ly/k2107landlords thirds of Americans said they plan to travel at some point this summer. Their number-crunchers put pen to paper to find the most profitable real estate markets for buying a shortterm rental property to list on sites like Airbnb or VRBO. Read the article at Realtor.com: bit.ly/k2107vacation On a recent episode of the Rental Property Owner & Real Estate Investor Podcast, Brian Hamrick talked with Brian Spear about the state of Mobile Home Park Investing. A graduate of the University of Kentucky, Spear discusses the trajectory that led him to investing in real estate, and the The NAHB’s Eye on Housing systems and tools he’s using to not only build a world-class says that the general window mobile home park portfolio, but to manage it as well. characteristic that home buyers Listen to the podcast: bit.ly/k2107podcast value more than any other is energy efficiency. Citing data from the 2021 “What Home Buyers Really Want” report, they say the top three were ENERGY-STAR rated windows, followed by tripled-pane Rental information site Zumper recently released their insulating glass, and low e-insulating glass. Buyers tended to latest monthly National Rent Report showing that their be indifferent about materials used for the window frames. median national rent for 1-bedroom apartments in June Read the report: bit.ly/k2107windows was $1,315 (up 4.9%) and the median two-bedroom rent was $1,644 (up 6.5%). Read the report: bit.ly/k2107zumper

Best Places to Buy a Vacation Rental

Podcast Talks Mobile Home & Parking Lot Investing

Energy-Efficient Windows the Top Pick Among Home Buyers

Zumper’s National Rent Report for July 2021

Construction Employment Declines as Material Costs Soar

According to data from the Associated General Contractors of America, construction employment in May remained below April’s level in 40 states. The AGC says skyrocketing material prices as well as delays in receiving construction supplies were holding back the industry’s recovery. The largest declines occurred in New York, Illinois and Pennsylvania. Read the report: bit.ly/k2107employment

FHFA House Price Index Up 15.7% from Last Year According to the latest Federal Housing Finance Agency’s (FHFA) House Price Index (HPI), U.S. house prices were up 1.8% in April and up 15.7% from April, 2020. Read the report: bit.ly/k2107index

Pending Home Sales Up 8% in May The National Association of Realtors is reporting that pending home sales were up 8% in April, 2021, and up 13.1% from one year ago. The NAR’s Pending Home Sales Index (a forward-looking indicator based on contract signings) was up 8% to 114.7. Read the report: bit.ly/k2107pending

Housing Starts Up 3.6% in May The U.S. government is reporting that privately‐owned housing starts in May were at a seasonally adjusted annual rate of 1,572,000, which is 3.6% higher than April’s revised number. This figure is 50.3% higher than one year ago.?? Read the PDF at the Census site: bit.ly/k2107starts Continued on Page 30

Mortgage Defaults May Soon Add to Supply Smart borrowers can avoid foreclosure using increased property values By Nina Musgrave, KREIA Volunteer Millions of homeowners in the United States are still struggling with their mortgages. An updated report from the American Enterprise Institute shows 14.7 percent of the 7.6 million mortgages backed by the Federal Housing Administration were delinquent in May 2021. An additional 10.5 percent of those loans were delinquent by more than 90 days, at risk of going into default. However, the swift levels of appreciation we’ve seen will hopefully inspire these borrowers to take action — sell their properties, cover their loan and sales expenses, and move on. As investors, we can offer these motivated sellers options as well. MSA LOUISVILLE/JEFFERSON COUNTY, KY-IN LEXINGTON-FAYETTE, KY INDIANAPOLIS-CARMEL-ANDERSON, IN CINCINNATI, OH-KY-IN NASHVILLE-DAVIDSON-MURFREESBORO--FRANKLIN, TN

COVID Forbearance programs offer flexibility to get loans current. Yet selling the property may be the best resolution. These homes will add to our tight inventory. Unfortunately, the report shows that the vast majority of these exposed borrowers are in areas with high levels of FHA and other high-risk loans. Areas often taken advantage of by investors. These ZIP codes are low-income, mostly households of color. The pandemic added widespread, unequal stress to these borrowers. If a large number of these owners decide to sell at the same time, home values in these ZIP codes may decline due to supply, although the report states that price appreciation should mitigate such an outcome. I’ve included the chart below, showing current FHA delinquency rates, in case you’re curious.

Total Delinquent In Foreclosure Loans as of 5/31/21 Count 5,677 92 1,386 27 10,933 166 9,176 212 8,160

% Delinquent Loans 13.0% 10.8% 13.6% 13.3%

Nina Musgrave is an investor and past KREIA board member. She is passionate about real estate, technology, and potato chips. Most platforms: @onlyonenina

13.2%

National REIA Real Estate News Briefs Continued from Page 28

Nosy Neighbors Should Be a Landlord’s Best Friend

Key Trends from Remodeling Magazine’s 2021 Cost/Value Report

On a recent episode of the Rent Perfect Podcast, David Pickron says that, as a landlord, having more eyes and ears looking out for your property can only help protect its value and that knowing the neighbors of your rental properties can give you the upper hand in better managing and protecting your asset. Listen to the podcast on Spotify: bit.ly/k2107nosy

According to key trends from the 2021 Cost vs. Value Report, exterior improvement projects continued a multiyear trend of providing the greatest return on investment for homeowners. It points out that 11 out of 12 projects with the highest ROI were exterior improvements. “At the top is the replacement garage door (No. 1), sidings, and windows.” Read the report: bit.ly/k2107remodeling

Home Price Gains Surged to 14.6% The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index reported a 14.6% annual gain for April 2021. Their 10-City Composite annual increase came in at 14.4% and their 20-City Composite posted a 14.9% year-over-year gain. April’s figure marked the highest annual rate of price growth since the 1987, the year the index began. Read the report: bit.ly/k2107gains

Top Areas with Rising Flipping Rates According to ATTOM Data’s Q1 U.S. Home Flipping Report, the nationwide flipping rate fell to its lowest level since 2000. However, some areas nearly doubled in increases. Louisville didn’t crack the Top 10 list, but Columbus, Ind., just up the road a bit, did. Read the report: bit.ly/k2107flipping Continued on Page 36

A Common-Sense Approach to Mold By Tom Jenkins First, if you see mold, you do not need a test to tell you have a mold problem that needs to be addressed. If you can see mold, it is at an elevated level and needs to be remediated If you cannot see mold, but you are wondering if you have a mold issue that needs to be addressed, the only way to know for sure is to have the area in question tested for mold. You can have an environmental engineering firm run the test for you, but they can be quite expensive, or you can DIY. People going the do-it-yourself route can pick up home test kits online or at the store of their choice. I like local hardware stores, just because When mold attacks: It may look like modern art, but it’s something investors never want to see decorating a wall. (123RF stock photo) I like to patronize local businesses. DIY mold test kits should cost about $10, and they you live in Colorado. But if you live in the Ohio Valley area, include instructions on how to send the sample to the lab. the answer is “probably so,” unless something is done to You should have your results back in about a week. Then control the humidity, such as using a dehumidifier. A good you will know if you need to treat or not. Also, the smell test dehumidifier can cost from $200 to $250 and is one of the is a good indicator of an elevated mold count. best investments that you can make in contributing to the If you do have a mold situation that needs to be treated, health of your home. It all really comes down to common before you decide on the method of treatment, try to sense! determine what is causing the mold situation in the first place. It does not make much sense to treat for mold if the Tom Jenkins is the founder and owner of Mold Solutions a initial cause of the mold has not been addressed. Once the 16-year-old mold remediation company based in Louisville, cause of the mold has been identified and fixed, now you’re Kentucky. Mold Solutions treats all types of molds, offers ready to treat it. free consultations, and includes a warranty for one year Mold is a systemic problem. In other words, if you have it from date of service. Mold Solutions remediates using a in one location, then you have it in the entire house – i.e., it High Ozone Shock Treatment, which treats every area of is in the HVAC system and will remain there unless the air the home or office, including the air handling equipment. handling equipment is treated as well. The cost of a treatment is under $1,000. Mold Solutions’ Chemicals will not do anything to treat an HVAC system. goal is to educate and remediate. You can reach Tom by You need a gas to do this, and ozone gas is recommended. calling (502) 224-2073. Ozone is the most powerful thing on the planet that I am aware of to treat mold, and it has to be generated at a level high enough to oxidize the mold. This is accomplished by performing a High Ozone Shock treatment. Note ► Ozone is found in nature and readily dissipates in a short time, as opposed to chemicals that not only act on the mold but also on humans and leave a chemical residue. ► The cost of doing mold remediation can range from $1,000 to $25,000 and more. An effective High Ozone Shock Treatment can be done for around $1,000, and a reputable treatment should include a warranty. ► A common question is, “Will the mold come back after the treatment?” And the answer is “probably not” – if Copyright MMXXI 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.

Join Us for the BRRRR & House Hacking Workshop Luke Neubauer and Bryant Grimes return on Saturday, July 24th, to conduct a seminar on how to use the BRRRR and house hacking strategies to create cash flow and lay the foundation for a life of financial freedom based on rental income. Be prepared to take plenty of notes, because they’ll be presenting more case studies and digging deeper into deal structure. Plus, they’ll have time to answer your questions! ► When: Saturday, July 24th (exact times to come) ► Where: Café of Trinity Chapel Church Assembly of God ► Cost: $99/member, $149/non-member. (Early-bird pricing: $79/member, $129/non-member) Find more information and register at kreia.com

National REIA Real Estate News Briefs Continued from Page 30

Yardi Says Market Reaching PrePandemic Performance Levels

Residential Construction Input Prices Up 23% Year-Over-Year

According to the latest Yardi Matrix, the average U.S. multifamily rents in May increased 2.5% (YoY). In addition, Yardi says this is almost exactly where rent growth was when the pandemic began spreading in the U.S. Read the report: bit.ly/k2107yardi

According to recent economic data analyzed by the NAHB’s Eye on Housing, the prices paid for goods used in residential construction (excluding energy) rose 3.6% in May and have increased 16.5% over the past year. Read the report: bit.ly/3i6dPeo

Top Places Where Homeownership Has Increased & Decreased the Most Where did homeownership rise and fall the most across the country during the pandemic? The number crunchers at realtor.com took a look. They looked at the 75 largest metropolitan areas (including the main cities & surrounding towns, suburbs, and smaller urban areas). Read the report: bit.ly/k2107owners

Local Market Monitor’s National Economic Outlook for June 2021 Local Market Monitor, a National REIA preferred vendor, recently released their monthly National Economic Outlook, where they share their thoughts on developments taking place in the U.S. economy. Read the report: bit.ly/k2107outlook

Biden Administration Extends Eviction Moratorium Through July The Biden administration has extended the CDC’s federal pause on evictions by one month through the end of July. The CDC said in a release that this action “…is intended to be the final extension of the moratorium.” Read the article: bit.ly/k2107eviction

Tornado Season is Upon Us Do you know your supercell from your dust devil? Now that summer is here, get up to speed with those funnel clouds no one wants to see. At the link below, also check out Home Depot’s emergency preparedness checklists. View the Infographic: bit.ly/k2107tornado

States with the Most Investment by IRA Holders The Equity Trust Company recently released their list of the top 10 most & least expensive real estate markets. Their Trust Self-Directed Real Estate Market Report reveals how & where Equity Trust clients used their IRAs and other retirement accounts in the past year to invest in real estate with tax advantages. Read the report: bit.ly/k2107ira

Biggest Business Risks in 2021 This infographic from the Visual Capitalist reminds us that we live in an increasingly volatile world, where change is the only constant. Combine that with the fact that, whether we like it or not, we are living in a global economy that is affected by an increasing amount of variables – most of which are out of our control. View the infographic: bit.ly/k2107risks

How to Power Through Your Day on No Sleep This infographic presents an hour-by-hour plan for getting through the workday after a night without sleep. These tips are supposed to “make the day seem shorter and more bearable.” Read the report: bit.ly/k2107nosleep

Were Our Homes Ready for COVID? A report from the U.S. Census Bureau says the Coronavirus pandemic has made many reevaluate how to keep themselves and others safe as well as changing the way they manage space in their homes. Their conclusion said there were not enough rooms in many U.S. homes for an effective COVID-19 quarantine. They also say that housing characteristics don’t just impact a household’s ability to quarantine during a pandemic, they also affect how Americans work and learn at home. Read the report: bit.ly/k2107pandemic

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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/reiaky facebook.com/reiaky (public) • facebook.com/groups/kreiaky (private)

UPCOMING EVENTS

BRRRR & House Hacking

❖ Aug. 3rd — Noon-1:30 p.m. Lunch & Learn. Meet up for education & networking. Members only. Featured speaker this Just getting started in real estate? Lookmonth is Frank Miller. Hosted by Ed Gibson. ing for strategies where you can get into properties easily – and where hav❖ Aug. 10th — Noon-1 p.m. Tool Tip Tuesday. Tamara West hosts a virtual Zoom call where she demonstrates software ing W-2 income is especially helpful? You’re in luck – this month we’re exploring BRRRRing and house and resources helpful to investors. Members only. hacking, and we’re bringing in two knowledgeable guys to teach ❖ Aug. 12th — 5 p.m.-7 p.m. KREIA Happy Hour. Networking us how it’s done: Luke Neubauer and Bryant Grimes. You won’t at Woodhaven Country. Everyone is invited. want to mis this meeting! July 22nd, 5:30 p.m. - 9 p.m. ❖ Aug. 19th — 5:30 p.m.-8 p.m. KREIA Game Night: CashFlow. Want to get out of the Rat Race? Play CashFlow with us. ► 5:30 p.m. Early Meeting: Greg Nalley on “Things to Know Everyone invited. Hampton Scurlock and Alexis Fentress host. Before the Insurance Claim – Are You Really Covered?” ❖ July 24th — BRRRR & House Hacking Workshop. Luke and Bryant return with more case studies and helpful how-to info. Check the website for more details. ❖ July 27th — noon-1 p.m. L.O.T.S. event. We visit Alexis Fentress’s latest rehab project. Members only. Lunch provided!

Main Meeting Preview Here’s what’s coming in the months ahead: August 26th: Buy-and-Hold Landlording September 23rd: Creative Financing

We’re Back at Woodhaven, Baby! PRE-Register Now at KREIA.com