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

Monthly Newsletter for KREIA Members

Vol 8-21 August 2021 President’s Letter

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Landlording: How to Consistently 3 Get Paid Over 100% of Your Rents Every Month, Even During COVID … with Mike Butler

Dear KREIA Members and Friends, As in life, real estate investing goes through seasons. Market conditions and external factors change and force investors to adjust accordingly. Sometimes the changes are subtle or take place gradually. During other times, the impacts are more dramatic. This is a season defined by rapid and extreme volatility. From government actions that include eviction and foreclosure moratoriums, to increasingly accommodating fiscal policies, to the ongoing medical, social, andpolitical pandemic challenges, the chaos is very real. For seasoned Erik Hitzelberger members, keeping up can be tiring. For newer ones, the constant change can be intimidating if not debilitating.

Welcome, New Members!

“Chaos isn’t a pit. Chaos is a ladder.” – Peter ‘Littlefinger’ Baelish, Game of Thrones

National REIA News Briefs

Change, uncertainty, and the unknown all breed fear and inaction. As investors, though, we should also understand that they also create opportunity. Education is both the key to overcoming fear and to unlocking opportunity. Whether you are looking for income, wealth, or both, real estate investing remains one of the best ways to achieve financial freedom. We simply need to know how to adapt to the current season. Since its inception, KREIA’s mission has been to provide its membership with real estate education. Your Officers and Board are committed to continuing this mission and providing you with the knowledge and information you need to make a plan, step through the fear and take the actions you need so that you can continue down the path toward financial security. As importantly, this is an abundance-minded organization. Not only has another member done what you want to do, but they are most likely willing to share how to do it successfully. Your role is simply to ask. This month Mike Butler, who literally wrote the book on landlording, will be sharing valuable lessons for buy-and-hold investors. He will be covering best practices for generating passive income during this, or any other, season. Anyone who wants to grow or improve their long-term real estate portfolio (and I hope that’s everyone) should attend. We will continue to meet both in-person and via Zoom this month. Please join us whichever way you feel most comfortable by pre-registering at KREIA.com. This is the season of opportunity. It is sitting and waiting to be seized. You need to show up, get educated, and take action. KREIA is here to help. To your investing success!

Saturday Workshop: How to 6 CYA with Section 8, + 175 RapidFire Landlording Tips Michelle Rawn: Courts Update

Government Affairs Links

Hampton Scurlock: Is it a ‘novation’ or an assignment?

Tonya Allen: Put a ‘face’ on your 16 brand with a good logo KREIA Photos

L.O.T.S. Recap: Alexis Fentress 21 shares a Taylor Blvd. turnover Nina Musgrave: Want to build an 28 Accessory Dwelling Unit? Calendar of Events

Erik Hitzelberger KREIA President

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 Erik Hitzelberger

Vice President Stacey Duvall

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Secretary Jordan Pohn

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

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Greg Nalley

Hampton Scurlock

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Alexis Fentress

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Mary Conrad

Eric Feller

John Mays

Michelle Rawn Parliamentarian

Chris McCarty Past President

Lauren Willoughby Media Manager

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 alongside active investors! Ask for someone to direct you at the checkin desk at the main 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!

Succeed With Rental Property, Despite the Pandemic KREIA’s Aug. 26th main meeting features landlording problem-solver Mike Butler All during the COVID pandemic, the eviction moratorium was scheduled to stop “at the end of the month,” or the month after that – only to be extended again. For out-of-work tenants unable to make their rent payments, the moratorium was a blessing. For landlords with mortgage payments to make, it was a curse. Even if a succession of programs, both government and communitybased, sprang up to help tenants pay their rents, not all tenants were cooperating to get payments into their landlords’ hands. And the moratorium, which was supposed to end “for good” on July 31st, received a reboot and is next set to expire on Oct. 3rd. What are landlords supposed to do? For the first time in decades, it feels like the landlord’s playbook has changed. That the dependable rules of the rental housing business have been turned upside-down. This month we are pleased to announce that Mike Butler is headlining our August 26th main meeting. Mike wrote the practical playbook many landlords and property managers follow – Landlording on Autopilot, a #1 bestseller from 2006 and revised in 2018 for its 2nd edition (a #1 bestseller again)! Mike is also a known problem-solver, and the pandemic has been one huge problem for rental property owners. You really, really need to hear what Mike has to say about managing your rental business through the pandemic and going forward. Mike plans to cover these things during his presentation: • How to consistently get paid over 100% of your rents every month … even during “COVID crap” • How to get your tenants to pay you for their damages and repairs … while living in your unit • How to $lash your tenant turnover costs by 50% and more! • 7 new profit centers you can turn on yesterday • Make your real estate business FUN again with less effort and more time to enjoy life! Please be in your seat by 7 p.m. at Woodhaven Country Club (or on the Zoom call) to learn from Mike. And if you want to pick his brain further, plan to attend his follow-up Saturday workshop on Aug. 28th!

Meet Mike Butler Mike began his real estate investing while working his full-time job as an undercover Louisville police detective, investigating murder-for-hire, contract killings, and organized crime. His original plan was to buy three little two-bedroom

Illustration by Nina Musgrave

houses to supplement his police pension in retirement. Then he met an investor named Ed Melton, a real estate investing evangelist who introduced him to KREIA. It took Mike over a year before he attended his first KREIA meeting, which was around 1992 or 1993. He said he was so intimidated by the prospect of wading into a crowd of 40 to 50 successful investors that he hung around outside the door and listened. He wasn’t unsure for long, though, and his investing horizons broadened. Mike served two terms Beth and Mike Butler as KREIA’s President, from 2003 to 2005, and he spent more than a dozen years on our group’s board. Along the way he became a broker and Continued on Page 6 And there’s a Saturday Workshop on Aug. 28th! See Page 6

Agenda for KREIA’s Aug. 26th Main Meeting • 5:30 p.m. – Early Meeting: Renee Buster on land trusts • 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 Mike Butler there’s a BRRRR/House Hacking Workshop! See Page 34!

5:30 p.m. Early Meeting: Renee Buster Renee Buster, a skip tracer with My REI Secret Weapon and a paralegal with Borders & Borders, gets us up to speed on the asset privacy vehicle known as the land trust.

Welcome, New KREIA Members! Cornelius Anderson Allyson Behnke Jose Bonilla Vicky Bouchard Mark Bush Faustine Caldwell Beatrice Cobb Alrenay Dowdell Matthew Gadson Russell Goodwin Nicholas Grimes Jerry Higgins Michael Hill

Todd Hunter Hallie Jones Wayne Kessler Aundra Lipscomb William Lowry Nik Lunsford Aaron Mason Terri Mattingly Steven Miles Frank Morgan Christina Neubauer David Padron Mona Page

Dylan Palmer Robert Perkins Jami Rogers Kimberly Russell Michael Setuain Elea Sherrod Chadonia Smith Wesley Smith Reid Suer Trey Watson Randall Webb Pamela West Tracey 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.

National REIA 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. For more news, visit RealEstateInvestingToday.com

Legal Battle Looms Over CDC’s New Eviction Moratorium The Wall Street Journal (reposted on Realtor.com) says there is a looming legal battle coming over the CDC’s new eviction moratorium. They reported that a group of property managers and realtors lodged objections in federal court to the new moratorium right after it was issued. This group, supported by the National Association of Realtors, alleges that the Centers for Disease Control and Prevention lacked legal authority to issue the new moratorium. Interestingly, the Biden administration has acknowledged that it might be on tenuous legal footing. Read the article at Realtor.com: bit.ly/k2108battle

NREIA’s Statement on Moratorium Charles Tassell, COO of National REIA: “The Executive Branch is acting as if it were the Legislative Branch, meanwhile the Judicial Branch is asleep at the wheel.” Read the full statement: bit.ly/k2108nreia

Landlord Out $24k In Back Rent While Tenants Buy Boats A landlord in North Carolina is frustrated that the eviction moratorium has not only cost him over $24k in unpaid rent, but he has also watched as one of his tenants bought three boats. FOX News reports that the landlord (who owns 35 properties) has not only been forced to maintain his properties but even had to repair an air conditioner ($4,500) at the residence of the same tenant. It’s been reported that, of the $46 billion made available to the Emergency Rental Assistance Program, less than $3 billion has been spent. Watch on FOX News: bit.ly/k2108boats

August Rents Climb Sharply August’s one-bedroom units rocketed up almost 2.5 percent from July while two-bedrooms gained almost 2 percent. One-bedrooms are now up 5.87 percent for the year and two-bedrooms have risen 4.87 percent. Read the report: bit.ly/k2108rentable Continued on Page 10 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.

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

Succeed With Rental Property, Despite the Pandemic Continued from Page 3 founded a local property management company (Vista Properties). He also formed a tenant placement company (Tenant Finder Services, a KREIA sponsor), which he runs alongside his wife, Beth. Mike became a real estate mentor, an author and a national speaker. And he was named the 2005 recipient of a KREIA award named in Ed Melton’s honor. Mike is also a charter member of the local chapter of NARPM (National Association of Real estate Property Managers) and a member of KREE (Kentucky Real Estate Exchangors). He served a three-year term as board member of the National Real Estate Investors Association, and he is a supporter of the Home of Innocents, “a great organization to help disadvantaged abused and neglected children.” Mike’s book Landlording on Autopilot is all about systems – which Mike said he had to master in order to run a real estate business while having a full-time job and also being a husband and father. In fact, Mike said he owned and operated 75 rentals while working his full-time job before he made the “huge decision” to hire a part-time office person to work five hours per week in his basement office. If you haven’t yet read Mike’s book, you should. It’s the go-to landlording guide for many investors, including BiggerPockets’ Brandon Turner and attorney Harry Borders, who both say they re-read it yearly. While the book is popular with landlords across the country, there’s a built-in advantage to KREIA members reading his book – the local laws he describes are the same ones you must follow here in Jefferson County. And Mike gives you some of his own battle-tested forms and documents. It’s a leg up on being a Louisville landlord. Mike’s investing success has been featured in Money magazine’s article “Can Real Estate Make You Rich?” and the Wall Street Journal Radio network, with over 170 syndicated radio shows, and he was instrumental in getting them to do articles on KREIA’s very own Jay Long and David Coffey. Mike has shared stage with Sir Richard Branson, Tom Brokaw and Condaleeza Rice, and he was a speaker at the National Apartment Association Conference for six years. About Mike’s plan to buy three rental properties? Let’s just say he fulfilled that goal decades ago. Mike won’t reveal how many rental properties he owns now. But beginning in his third year as an investor, he set a goal to buy 100 rentals a year – and said he did 84 deals that year alone. You do the math. Mike is one of the biggest fish in our pond, and we are lucky to have him here.

Saturday Workshop: How to CYA with Section 8, + 175 Rapid-Fire Landlording Tips Join Mike Butler for an intensive deep dive into landlording and property management. He plans to cover: ▪ Do’s & Don’ts with Section 8 ▪ Tons of practical tips from his background of mastering systems ▪ Answers to your thorny landlording questions — take this opportunity to pick his brain! Getting educated on working successfully with Section 8 is more important than ever, because all Jefferson County landlords must now consider Section 8 tenants for their rentals. When: Saturday, Aug. 28, 8:30 a.m. – 3 p.m. (Class starts promptly at 9 a.m.) Where: Wildwood Country Club, 5000 Bardstown Rd. Cost: $79/members and $179/non-members early-bird pricing up to midnight Aug. 26th. $99/$199 afterward. A buffet lunch is included, courtesy of Mike Fallot of MM Lending. Network over a meal! Register now at kreia.com and lock in your discount!

Mike’s New Podcast Mike is known for telling it like it is, and for many years we in KREIA have enjoyed hearing his lessons and stories. Now he’s telling them to the world. He launched his 5 Hour Real Estate Week podcast in April of this year, and as we go to press, he’s already up to 67 episodes. Add it to your playlist! Mike said he enjoys training and creating new millionaires and multimillionaires with all of his A-to-Z systems for real estate investors, and the podcast is an extension of that. He is a sought-after featured speaker and real estate trainer. “Imagine what your life would be like with 20 nice rentals paid for,” Mike likes to say, “and do it safely in 3 to 5 years… even with your job!” He’ll tell you all about how to do that. Mike is also known for saying, “I have never gone to a bank to buy an investment property.” And he uses the podcast to talk about how he did that too – and how you can, as well. Check it out all the podcast episodes at 5hrRealEstateWeek.com And be sure to visit his website at MikeButler.com for live investor training events, coaching programs and more.

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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 October 3, 2021. Even though multiple federal courts have held the CDC did not have the authority to institute a nationwide eviction moratorium, there is a stay that is currently in effect regarding the enforceability of the moratorium and therefore until that stay is lifted, the moratorium will remain in effect until October 3, 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 nonpayment of rent. 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. Some also require you to provide a 30-day notice going forward for non-payment of rent instead of the standard 7-day notice. 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 preCovid 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 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

National REIA News Briefs Continued from Page 4

Home Prices Jumping in Every Segment of the Market A new report from Redfin says the median sale price prices of mid-priced and affordable homes grew 16% and 13.2%, respectively. Most affordable homes rose 18.7%, while luxury homes have jumped 25.8% year over year. Read the report: bit.ly/k2108prices

Total Household Debt Keeps Rising A new report from the NY Fed says total household debt rose by $313 billion (2.1%) to reach $14.96 trillion in Q2, 2021. Mortgage balances were the largest component of household debt, rising by $282 billion. Auto loans are up by $33 billion and credit card balances by $17 billion. Read the report: bit.ly/k2108debt

Recent Recession Was the Shortest in U.S. History While we’re discovering that the COVID-19 pandemic is apparently not even close to being over, the folks over at Statista remind us that last year’s recession (brought on by the pandemic) officially “is” over. View the Infographic: bit.ly/k2108recession Continued on Page 32

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

Is It a Novation, or Is It an Assignment? By Hampton Scurlock I recently encountered two wholesalers who, independently of each other, told me that they had novation deals for sale. I asked each to explain what that was. One was honest and said that he didn’t know. The other said, “It’s the same thing as an assignment.” “Why don’t you just say you have an assignment deal?” I asked. His response was that a novation sounds exciting and new – also, his mentor thought people would pay more for a novation than for an assignment. I was intrigued (but unwilling to pay more for something just because of a fancy or confusing label) and thought KREIA members may be interested in finding out about the results of my research into novations and assignments. Many buyers and wholesalers have been used to doing assignment deals or are at least familiar with them, but the term novation has not been widely used in wholesaling. I am not an attorney (don’t even play one on TV) and am not going to cover if you should use an assignment or a novation. But you should at least be aware of the definitions of each (according to Wikipedia) and the slight differences. Assignment is a legal term used in the context of the law of contract and of property. In both instances, assignment is the process whereby a person, the assignor, transfers rights or benefits to another, the assignee. An assignment may not transfer a duty, burden or detriment without the express agreement of the assignee. The right or benefit being assigned may be a gift (such as a waiver), or it may be paid for with a contractual consideration such as money. Novation, in contract law and business law, is the act of: 1. Replacing an obligation to perform with another obligation; or 2. Adding an obligation to perform; or 3. Replacing a party to an agreement with a new party.

contractual obligations cannot be assigned without their consent.” The United Kingdom-based website netlawman.co.uk highlights the differences between the two terms as: “Novation and assignment are ways for someone to transfer his interest in a contract to someone else. Whilst the difference between assignment and novation is relatively small, it is an essential one. Assigning when you should novate could leave you in a position of being liable for your original contract when the other party is not liable to perform his obligations.” As many of us know or have experienced, it is not necessary for all three parties to sign an assignment agreement – just the assignee and assignor, not the seller. One interesting article compared the two terms to sisters (but they are not twins). They may share some features and look similar, but they are different. Wikipedia also had a lot of information on assignments and novations when you look up assignment (law) on their website. Beware if wholesalers tell you that the original sellers do not need to sign the novation agreement. After all, the wholesalers are not lawyers either (typically) and are dealing with an unfamiliar term and are not familiar with the requirements of a novation. It seemed to me that wholesalers trying to sell me novation deals were actually selling assignment deals and just trying to call them novation deals because they didn’t know any better. Good luck and happy investing. Hampton Scurlock is an investor and KREIA board member. The preceding is not legal, tax or investment advice. Consult a licensed/paid professional on all such matters. Information here is based on research from various websites, including Wikipedia. If you have a great assignment (or novation) deal, please contact Hampton at financialwhiz1@gmail.com or 502-694-2378.

An important difference between the two is that a novation terminates the original contract while an assignment does not. This may remove liability from the wholesaler who sells his/her contract via novation to an end buyer. The original seller must sign off/agree to the contract novation. When I did some research to find out about who must sign a novation, rocketlawyer.com states, “A novation is a complex process, as all the parties involved (the original parties and the incoming party) have to sign the novation agreement. This is because while the benefits under a contract can be assigned without the other party’s consent, 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.

Put a ‘Face’ on Your Brand With a Good Logo By Tonya Allen Branding is giving your business an identity by defining its mission and values. The face of your brand is a logo. I know this isn’t news to most of you – there have been some great articles published in the newsletter about branding and why it’s so important. However, few address the face of it. I like to keep it simple, so let me give you the CliffsNotes or SparkNotes – depending on your generation. According to a Small Biz Genius article:

Graphic artists can be found everywhere now that our world has become so digital. Ask friends, neighbors or contact your local university for referrals. I like reaching out to the different colleges and universities because you can usually find great young talent for a discount or reasonable price. A good graphic artist will take the time to get to know you and your business values, mission and goals. This gives them insight and inspiration to build a custom logo just for you. The processes should be fun, with lots of interaction and hopefully few modifications. You might say, “But I already have a logo.” Well, is it working? Don’t be afraid to update your logo as your ❖ It takes 5 to 7 impressions to remember a logo. business evolves. Make small changes or redesign your logo ❖ It takes 10 seconds for a person to decide if they like or altogether. A great example is Starbucks. dislike your logo. A simpler ❖ Color improves logo recognition by 80%. approach to up❖ Blue is used in 1/3 of the world’s top 100 brand logos. dating is adding ❖ 72% of the most recognized logos are made of words or a tag line. Think acronyms (examples: Coke, UPS, Ford, Amazon, Yum of some of the Brands, NBA, NCAAA, NFL) biggest companies 1971 ❖ 89% of clients stay loyal to brands that share their core 1987 in the world. Nike’s values, while 62% of people boycott a brand that 1992 “Just Do It” or McDonald’s “I’m politically or socially offends them. ❖ 94% of individuals highly recommend a brand they have a Lovin’ It.” McDonald’s changes its tag line 2011 quite often. These are all great ways to personal connection or attachment to. This is perfect for spark renewed interest in established businetworkers like you! nesses, capture prospective clients and remind others Okay, now you know the stats. What now? Since your logo you’re still a player in your industry. Before committing to a logo or tag, you could run it by represents you and your entire company’s foundation wrapped in one tiny little design, choose wisely. No pressure. your mentor, family, friends and random strangers. Remember, it only takes someone 10 seconds to judge Make it memorable, personal and professional. Stay clear of anything that could be offensive and exclusive. Be welcoming, your logo good or bad. Be specific when you ask them their thoughts. Ask them what’s the first thing that pops in their diverse and inclusive. For smaller or newer businesses, head when they see it. choose a logo that visually explains your operations. Do you Do they like the color scheme? Are they offended in any build houses or loan money? Are you an attorney or way? Does the logo give them any idea what your company contractor? Incorporate that in your logo. is about or do? How do they “feel” about your logo (happy, There are countless websites and apps designed for the do-it-yourselfer: See Canva, Adobe and Freelogo.com. These sad, angry, aggressive)? Word of caution, their opinion is just sites will range from $20-$50. They are a great place to start, that, an opinion. If you put yourself out but beware of the pitfalls of low-quality resolutions and there for feedback, don’t take it persontemplates. Unless you really know exactly what you want, ally. The goal is not to make you feel betgoing to a logo-maker site might overwhelm with its endless ter about your “face,” it’s about making possibilities. I highly suggest, if the budget allows, using a graphic artist. sure your logo represents your company properly. Here are a couple of examples, I make this recommendation as a printer of logos. Yes, an organization and a business that appargraphic artists will cost you more up front, ranging from $65 an hour to a flat fee of $500. Graphic artists can put your logo ently didn’t have any friends and family or decided not to listen to them: into multiple formats with very high resolution and sizes for Does anyone even remember the various printing modalities (swag, paper, banners). If your logo doesn’t meet specific printing requirements, it may cost 2012 Olympics, let alone the logo? And for those of you who like the house, you more on the back end to fix or convert your logo into Continued on Page 28 something printable. 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.

photo by bruce w. hinson www.obedientcamera.com Parliamentarian Michelle Rawn swore in the re-elected and incoming board members and officers who, during their oath-taking, and with some regret, promised not to challenge anyone to a duel. At Left: Chris McCarty manned the podium for the last time as KREIA President. Thank you for leading us through challenging times, Chris!

photo by bruce w. hinson www.obedientcamera.com

KREIA

Photos

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

At Right: Can you tell what kind of an investor someone is just by looking? You can now, thanks to our new lanyard system! Be sure to pick up your lanyards on the way in. And keep them to reuse at the next main meeting!

photo by bruce w. hinson www.obedientcamera.com

Luke Neubauer, at right and below, co-headlined July’s BRRRR & House Hacking main meeting. Luke presented on the BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat), and Bryant Grimes (not pictured) shared case studies in house hacking.

photo by bruce w. hinson www.obedientcamera.com

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

Taylor-Berry Turnover: A Closer Look Alexis Fentress takes us inside a rental after the tenant leaves By Lauren Willoughby Alexis Fentress was working in retail, moving up through the ranks at Dillards, and also developing her own clothing line, when she was introduced to investing. The introduction happened in a way familiar to many real estate investors: someone gave her a copy of “Rich Dad Poor Dad” by Robert Kiyosaki. “And that’s really what changed my entire life – this one book,” she said. “I can work less and make more money?!” Investing stayed on the back burner for a while, but when her KREIA members gathered in the front yard of 1212 Homeview Drive, just off Taylor Boulevard, grandmother passed away, Alexis as Alexis made her presentation. (Photos courtesy of Alexis Fentress) found herself an instant landlord: she had inherited a rental property – and a tenant. And then Instagram. And now she works behind the scenes on the she found her way to her a KREIA meeting. L.O.T.S. committee. Alexis said the first thing she did was walk up to two But for the July 27th L.O.T.S. event, Alexis stepped up to strangers, who turned out to be Alisha Higgs and Dennis host a L.O.T.S. event herself for the first time. “Here you’re Erhard, and announce, “Hey, I’m new. What do I do?” seeing what it looks like when a tenant moves out,” she Dennis, a KREIA Past President and prolific landlord, told said, pointing out that most L.O.T.S. events feature polished her, “This is exactly what you do.” If there’s a secret sauce to rehabs for retail sale (flips). KREIA, it’s this: Network, and ask people questions! “People said Alexis’s Tips: your network is • Don’t try to do everything yourself. “I don’t like asking your net worth, for help. Becoming a part of this organization has helped and I never really me become more open and ask for help.” understood what • Understand how leverage works. “Since being an investthat meant until or for two years, I’m just now getting comfortable with here recently.” leveraging. I probably could have scaled a lot quicker – I That first meetjust didn’t know how to.” ing was in August • Try to do most of the communication with your tenants of 2019. Now online. “I no longer give my phone number out. I had a Alexis is a KREIA problem with tenants calling and yelling at me.” board member. HVAC: $4,000 THE NUMBERS She heads up the Water Heater: $700 Purchase: $36,000 Social Committee TOTAL INVESTMENT: $54,000 Closing Costs: $300 alongside Hampton Insurance: $700 Scurlock. If you’ve Look for the Electric: $300 video from checked out Materials: $3,000 this L.O.T.S. event KREIA’s social to be posted soon to Labor: $4,300 Alexis works on the L.O.T.S. committee media presence, our Videos page. along with longtime investor George Tree: $4,700 you’ve probably Foree. Would you like to volunteer your house for a L.O.T.S. event? Please touch noticed her on Why do we call it “L.O.T.S.”? Because we Learn On The Site! base with Alexis or George. Facebook and 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.

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.

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.

Looking to Build an Accessory Dwelling Unit? Guidelines changing as Metro Land Development Code is under review By Nina Musgrave, KREIA Volunteer Once, I held a huge, heavy binder containing the entire Jefferson County/Louisville Metro Land Development Code (LDC) as it currently reads, and I thought, “Thankfully, I will never need any of this. Can you imagine?” Little did I know that this code would come into play in my future real estate investing endeavors. To be honest, it has affected plans and gotten in the way of many ideas. I was delighted to read that, last year, Louisville Metro asked for citizen input for an equity review on our LDC, which has not been revised since the early 1960s! The government recognizes that our code lags behind similar cities and that, if structured correctly, LDCs are a powerful tool to open housing opportunity. One area of focus nationwide is Accessory Dwelling Units (ADUs). ADUs are secondary housing units that allow additional family or friends to live on a parcel. They increase housing choice by allowing property owners to add backyard structures, basement apartments, cottages, and “bump-outs” to single-family lots. ADUs give older adults, those with disabilities, and young people the potential to keep their independence while supportive family members are close by. ADUs are a popular way to increase property value and homeowner income, yet every year for the past 10 years, fewer than four ADU applications have been submitted Metro-wide. Currently, a homeowner must follow a process similar to obtaining a Conditional Use Permit (CUP) as for an Airbnb rental. This process involves paying an application fee of $510, mailing notices to adjacent property owners, and getting approval from the Board of Zoning Appeals (BOZA) or the Planning Commission to move forward. These steps can be unnecessary barriers in a property owner’s quest to build a small, affordable structure that has minimal impact on the physical appearance of a neighborhood. The recommended ADU changes are in Phase 1 of Phase 3 of the LDC Review. The goal is to have Phase 1 amendments finalized in the next 6+ months, with the entire revision being complete in 24+ months. ADUs would be permitted with special standards, so — as long as guidelines are met, the property owner may build an ADU by right. Such guidelines stipulate that new, detached ADUs be no more than 19 feet tall, that they follow any setback requirements already in place (also under review), and that new exterior staircases can’t be on the front of a house.

These are a piece of cake compared to current regulations. Unless there is a special exception, which is rare at this time, the property must fall under certain zoning categories for an ADU to even be considered. Other prerequisites the homeowner must figure out are the floor area ratio, green space/yard space, density requirements, and any outdated or unknown deed restrictions. The proposed LDC seeks to simplify all of this for Metro citizens, which is great news for our community. To offer your input on the LDC revisions, or to ask questions, you can call (502) 574-4PDS from 8 a.m. to 5 p.m. Monday through Friday, or send email to LDCreform@louisvilleky.gov. A PDF outlining the 3 Phase plan can be found at bit.ly/ldcreform Nina Musgrave is an investor and past KREIA board member. She is passionate about real estate, technology, and potato chips. Most platforms: @onlyonenina

Tonya Allen: Put a Face on Your Brand With a Good Logo Continued from Page 16 please don’t give it legs. Whatever you do, keep it simple. Whether you use pictures, symbols, designs, words, letters and/or tag lines with lots or a little color, make it as memorable as you. It takes 5 to 7 times to be recognizable. But who wants to be recognizable when you should be memorable? Also keep in mind, you are going to be putting this “face” all over your social media platforms, website, business cards, signage, items and garments. That’s where I come in. I want to plaster your business’s “face” all over. I don’t do paper products or banners, that’s a different KREIA sponsor. You know, the one who prints these awesome newsletters. I specialize in DTG (direct to garment). This is very different from screen printing. Since I use a printer, I do not have set-up fees or minimums. There is no restriction or limitation on design or colors. I can print from JPEG or PNG image formats, as long as the resolution is higher than 300 dots per inch and the image doesn’t need to be enlarged. Enlarging distorts the image when printing. I enjoy printing your logo, saying, pictures or pretty much anything on garments, hats, bags, etc. Give me (Tonya) a call at Make Your Mark Swag, 502-628-6967, catch me at a meeting, or send me some email at tonya@mymswag.com. I look forward to earning your business.

National REIA News Briefs Continued from Page 10

A Host of Start-Ups are Helping Buyers Make Cash Offers On a recent episode of Real Estate News for Investors podcast, Kathy Fettke says competition is so fierce among homebuyers that we’re seeing a surge in all-cash offers. In fact, a recent Redfin study said that all cash-offers are up almost 5% nationwide in the last year. There are also a host of start-ups popping up that will help buyers make cash offers, and they are expanding. Cash is king. Listen to the podcast: bit.ly/k2108cash

COVID-19 Integrated County View Interactive Map The CDC has a powerful interactive COVID-19 map that provides an integrated county-level view of COVID-19 infections. The CDC says it allows for the exploration of standardized data across the country. Interact with the map: bit.ly/k2108tracker

Nationwide Median Lot Sizes Just Under 1/5 Acre The NAHB’s Eye on Housing says that median lot sizes remained low in 2020. According to their data, the median lot size of a new single-family detached home sold in 2020 is 8,306 square feet, or just under one-fifth of an acre. Read the report: bit.ly/k2108lotsize

WSJ Says Lumber Prices Are Way Down, But Don’t Expect New Homes to Cost Less Lumber prices are finally coming down from the stratosphere. In fact, the Wall Street Journal (reposted on Realtor.com) suggests they’ve fallen so far that they are starting to look cheap to some buyers. However, for new home buyers the WSJ paints a different picture. Read the article at Realtor.com: bit.ly/k2108lumber

Places Where Land Prices are Growing the Most Realtor.com says the places where raw land prices have risen the most since last year all have vibrant and growing economies, making them good bets for relocation. See the hot spots: bit.ly/k2108land

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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

Succeed With Rentals, Despite the Pandemic Mike Butler, a master of landlording systems, shows how housing providers and property managers can prosper even in uncertain times. Aug. 26th, 5:30 p.m. - 9 p.m. ► 5:30 p.m. Early Meeting: Renee Buster explains land trusts. ❖ Aug. 28th — Saturday Workshop. Mike Butler returns with Section 8 guidance and “175 rapid-fire landlording tips” ❖ Aug. 28th – Picnic in the Park. Food and fun for everyone! ❖ Aug. 31st — noon-1 p.m. L.O.T.S. event. We visit a member’s rehab project in Newburg. Members only. Lunch provided! ❖ Sept. 7th — Noon-1:30 p.m. Lunch & Learn. Greg Nalley of Nelson Insurance speaks, and Ed Gibson hosts. Members only.

❖ Sept. 9th — 5 p.m.-7 p.m. KREIA Happy Hour. Networking at Woodhaven Country. Everyone is invited. ❖ Sept. 14th — Noon-1 p.m. Tool Tip Tuesday. Tamara West hosts a virtual Zoom call where she demonstrates software and resources helpful to investors. Members only. ❖ Sept. 16th — 5:30 p.m.-8 p.m. KREIA Game Night. Want to get out of the Rat Race? Play CashFlow with us. Hampton Scurlock and Alexis Fentress host. Everyone is invited.

Main Meeting Preview Here’s what’s coming in the months ahead: September 23rd: Creative Financing October 28th: Office & Marketing Online Tools November 11th: KREIA’s Holiday Party

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