November 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 Vol 11-21 November 2021 President’s Letter

Holiday Party: Music, Dancing, Prizes, Food, Friends … and FREE for members

Home of the Innocents: A call for 3 donations of ‘most-needed items’ Heads-Up: We’re planning the next Taylorsville Lake Retreat for the last weekend in February

Welcome, New Members!

Government Affairs Links

Mike Butler: How to get your January rents paid early!

Nina Musgrave: Zillow stops buying homes until end of 2021

John Mays: When was the last time it felt like the first time?

KREIA Photos

L.O.T.S. Recap: Regina Porter rehabs Chickasaw fixer-upper

National REIA News Briefs

Monthly Newsletter for KREIA Members Dear KREIA Members and Friends, Seeing frost on the pumpkin this week made me smile. It means Summer has given way to Fall, and Fall is about to give way to Eating Season! I love food, and knowing that I’ll spend a large part of the next eight weeks around dinner tables brings me great joy. I’m getting hungry just thinking about turkeys, hams, stuffing, casseroles and many, many desserts. Erik Hitzelberger In all seriousness, while I do the enjoy the food, it’s the people who really matter. This is the time of year when we gather to reflect and to give thanks. The people I expect to see at my tables are those who constitute my Why: family members, friends and fellow investors who make all the effort worthwhile. As an investor, I have so much to be thankful for. First and foremost is the opportunity to take control of my financial future by educating myself, surrounding myself with the right people and by taking action. Knowing that I can determine my own financial legacy is powerful. I am thankful for the abundance mindset at KREIA. The 4th property I purchased as a wannabe investor was a foreclosure in Floyd’s Fork Estates. Mark Hass was the listing agent and, at the closing, he invited me to KREIA. A few months later, I showed up to my first meeting. Then-President Jay Long was moderating an “Ask the Experts” panel featuring Mark, Rue McFarland and a few others. I learned more that evening than in my previous two years of bumbling and stumbling through rehabs. I’ve been hooked ever since. Continued on Page 4

Facebook: Stay in contact with 28 other investors over the holidays Ed Melton Award: The 2021 recipient will be named at the Holiday Party

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

Advertise With KREIA

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

Frank Miller

Greg Nalley

Hampton Scurlock

Rob Bergeron

Christopher Jaquith

Alexis Fentress

Ian Hooper

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!

Music, Dancing, Prizes, Food, Friends … All FREE for You!

Illustration by Nina Musgrave

Calling for Donations for the Home of the Innocents Wishlists for clothing, gift wrapping, crafts, music therapy, and sensory therapy items. Thank you for supporting HOI throughout the year and with this special Holiday Party collection of HOI's most-needed items. ● Why do we give to the Home of the Innocents? Because they go above and beyond in caring for abused and medically fragile children. More info: ▪ Watch the “Heroes for the ▪ Dryer sheets Home” video: bit.ly/k21hoivideo ▪ Q-Tips ▪ Read the article from KREIA’s ▪ Dove sensitive body wash 2017 visit: bit.ly/k21hoiarticle ▪ Men’s deodorant ● Many thanks to our KREIA Holiday We’ll have a box or container for Party sponsors: you to drop these items in on your ➢ Platinum Sponsors Mike Fallot way into the party, and I'll take all of & Wendy Kays of MM Lending the items to HOI the next day. If there ➢ Karl & Nan Roth of A.N. Roth is more than my car will hold, I'll Heating & Cooling figure it out on the fly. ➢ Harry Borders of Borders & Members who want to send items Borders directly to HOI can use this link – Please show them some love! bit.ly/k21donations – to find Amazon By Ian Hooper The proceeds of KREIA’s monthly 50/50 raffles go directly to the Home of the Innocents. Please give generously at the Holiday Party, just as you do every month. This year, to mark the beginning of the holiday giving season, KREIA will collect other items in addition to cash donations at the party – HOI’s mostneeded items. HOI always needs:

Join us Thursday, Nov. 11, at Woodhaven for KREIA’s Holiday Party. It’ll be our last “main meeting” of the year, and we’re going to close out 2021 with some awesome entertainment! Party planner extraordinaire Frank Miller has booked traveling musicians from the Howl at the Moon nightclubs. They’ll be setting up their duelling electric grand pianos and playing your requests. And they’re bringing a drummer and guitarist too. They know all the songs! Dancing will probably break out – so put on your boogie shoes. And bring your appetite! There will be tables around the room overflowing with hors d’oeuvres. If you’ve got friends you've been trying to recruit into KREIA, bring them to the party! If they join on the way in, their door fee is waived. (Non-members are charged the usual $30.) But for you, KREIA member – there is no door fee. This party is free for you as KREIA’s way of giving back. Even though you’re getting in free, please do pre-register at kriea.com as early as possible so that we can give Woodhaven’s chefs an estimate of attendance. Help keep the food flowing! Besides the musical entertainment, there will be raffles, the presentation of the Ed Melton Award, and KREIA’s gift to the Home of the Innocents. ► Get a taste of the musical fun to come at Howl2GO’s website: howl2go.com

What: KREIA’s Holiday Party When: Nov. 11th, 5 – 9 p.m. Where: Woodhaven Country Club How Much: Free for active KREIA members. $30 for nonmembers.

Heads-Up on February Retreat at Taylorsville Lake

Erik Hitzelberger’s President’s Letter Continued from Page 1

Hampton Scurlock, who chairs KREIA’s Social Committee, is planning a retreat for 2022 at the cottages of Taylorsville Lake. It will be free, or low-cost, for KREIA members. It’ll be not one – but two days – of educational workshops. You’ll learn from longtime investors who are heavy hitters in our market on topics of interest to beginning investors and seasoned pros alike. Hampton is scheduling 2022’s retreat for the last weekend in February: Friday the 25th and Saturday the 26th. So, mark your calendar now if you’re interested. We do not have a sign-up page ready yet, but we’ll give you plenty of notice. When the page is live you’ll want to register ASAP, because if this retreat is like the last one it’ll fill up fast. The first Taylorsville Lake retreat was held on Leap Day, 2020 – just a couple of weeks before COVID shut everything down. We skipped 2021 (COVID-19, of course), so we are raring to go for 2022! If you missed 2020’s retreat, we have video replays posted from the seven sessions. To view them, make sure you’re logged in at KREIA’s website, and then head on over to bit.ly/k21retreat And if you’d like to relax and crash after your live workshops this time around, check out the Airbnb rentals on Taylorsville Lake. A surprising number of them are owned by KREIA investors … some of whom will be on-site. So, if you’re thinking about launching a vacation shortterm rental of your own, this could be a live case study. Pick some brains.

Without Mark, Jay, Rue and so many others I’ve leaned on, asked questions of, and done deals with throughout the years, not only would I not be writing this article, but I also very likely wouldn’t still be in real estate. My family and I owe an unpayable debt to this organization, and we are eternally grateful. I am thankful for our Board of Directors. The passion and willingness to serve that I get to see every month is inspiring. The commitment to quality education, to community outreach, and to making events as impactful as possible is palpable. In addition to main meetings, KREIA offers L.O.T.S. events (Learn On The Site), Lunch & Learns, Happy Hours, Game Nights, Saturday Sessions and other special educational events throughout the year. All of this is handled by volunteers. We are all blessed by their efforts. I am thankful for our 800+ members and for everyone reading this letter. You show up with energy and enthusiasm. You ask questions and you share knowledge. It’s invigorating to see and to hear. Over the past 13 years, I have only missed a few meetings. Never once have I left without having learned something. That is a testament to you. In the spirit of celebrating, showing gratitude and sharing food and drink with good friends (whether we’ve met yet or not), KREIA is kicking off the holiday season with a huge celebration on November 11th. Past President and Chief Party-Planner Frank Miller has lined up an evening of music and entertainment featuring dueling pianos from Howl at the Moon. In addition, there will be gifts, drinks, and FOOD. Best of all, it’s FREE to all members. Guests are welcome for $30. Make sure to register online at KREIA.com. I hope to see you there! Did I mention there would be food? To your investing success! Erik Hitzelberger KREIA President

Welcome, New KREIA Members!

GOVERNMENT AFFAIRS LINKS

Sherri Balyoz Cynthia Cuevas Peri Eryigit Katharine Hatcher Rob Hemmerle Brad Hicks Nico Jorcino Brent Logsdon Philip D Marbry

Joseph Mattingly Hauwa Nuru Greg Raque Sean Reischel Victor Rocha Tanikka Shoulders Matt Shrewsberry Darlene Swanagan Hoa Truong

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

•

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

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

How to Get Your January Rents Paid Early! By Mike Butler Years ago when I began my real estate investing career while working my full-time job as an undercover police detective in Louisville, I tried to use “common sense” in dealing with my residents. WRONG! Do you remember the old TV show WKRP in Cincinnati? Well, I pulled a Les Nessman Turkey Drop fiasco, thinking my residents would really fall in love with me. Even though my heart was in the right place, I really screwed up big time. Before getting hired by the police department, I was a store manager for Winn-Dixie supermarkets, a grocery chain in the southeastern states. This is probably why I picked turkeys as a gift. So here comes Turkey Day Holiday Weekend. Do NOT try this at home. On Wednesday morning, the day before Turkey Day, I bought a big, fresh, not-frozen turkey for each of my residents. My mindset was in the right place, but it was the WRONG Gift. I honestly thought giving each resident a fresh turkey the day before Turkey Day would allow me to kill two birds with one rock. It would make me feel good by giving them a turkey, and it would make them fall in love with me for thinking of them on this holiday. I kinda felt like Clark Griswold delivering those turkeys on Wednesday afternoon. No one answered the door, and I left the fresh turkey with a note on their front porch. WRONG, SCOOTER! What I actually did was something out of the “fire, ready, aim” process. Long story short, almost all of my residents had traveled out of town on Wednesday to spend their Turkey Day holiday weekend with their families “back home.” Sunday evening and Monday, my phone rang off the wall. My residents were calling me and just throwing a fit because dogs and other critters had destroyed the boxes, devoured the turkeys, and left a mess of scattered cardboard and turkey bones all over their front yards. This made me feel like Les Nessman on WKRP. (You must Google WKRP Turkey Drop for the 3-minute video to appreciate this story.) HUGE LESSON learned for me. My good intention actually backfired Big Time and caused negative attitudes, along with labeling myself as an idiot. As a result, the next year I bought grocery store gift certificates to give my residents. This worked a lot better, but it cost a lot more than what I really wanted to spend, and I did not see any better results for my real estate business.

After these acts of kindness on my part, I truly expected my great residents would become more loyal and pay their rent better. I honestly expected my residents to make their rent payments on time, at least for the next few months. Here’s what I learned from My School of Hard Knocks, and here’s where you can benefit from my mistakes. Now is the time to pick your brain for a moment and ask yourself this question: What is the worst month for getting your rents paid on time? Your first mental knee-jerk response is probably December. Slow down, ask yourself again, think about it, and you will figure out that January is your worst month on getting your rents paid. Why is January the worst month? Because most of your residents have gone hog-wild on buying gifts in December. It happens every year, and it happened to me, even after giving them a holiday gift. Whenever I experience a problem of any kind, personal or business, and I want to eliminate this problem, I rub my old rusty Genie Bottle and ask, “What can I do to make January my best month for rent payments on time and early?” My Genie Bottle gave me the answer, and I’m going to share it with you now. “How to Get Your January Rents Paid Early” is remarkably simple. It’s solved by using a Holiday Rent Coupon. This is PROVEN and it works with a proven track record of almost 30 years. Take a look at my HOLIDAY RENT COUPON – it pretty much explains itself. Here’s how it works, along with your benefits: 1. Using my Landlording on AutoPilot System, along with Tenant Tracking (50% KREIA Discount) a. Send your monthly “statement” on the 20th of each month to every resident. b. Yes, we use direct deposit today, but it all began with snail mailing a monthly statement just like a credit card statement. For these folks we email monthly statements. 2. Enclose Your Holiday Rent Coupon with each monthly statement for your A and B residents. 3. Use a red ink pen and write “GIFT FOR <FIRSTNAME>“ on the outside of envelope. 4. Sit back and watch your January Rents come in early. Continued on Page 28 with a link to get Mike’s coupon

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‘Zillow Offers’ Stops Buying Homes Until End of 2021 The company is taking stock, most likely learning from mistakes By Nina Musgrave In 2018, Zillow moved into the iBuying sphere. In 2019, Zillow Offers sold 2,086 homes. For the second quarter of 2021, Zillow purchased 3,805 properties. As you can see, their iBuying program has grown, even though since inception it has yet to turn a profit. However, Zillow recently announced it wouldn’t sign new contracts to purchase homes until the end of 2021. They will close on houses that are already under contract. Why the sudden change of plans? Zillow cites construction labor shortages, long closing timelines, supply chain woes, and COVID-19 challenges as (valid) reasons it’s putting a stop to Zillow Offers for now. Are there other reasons? Perhaps. According to Bloomberg, Zillow tweaked its algorithms to make higher offers through Zillow Offers. With appreciation slowing, overpaying means selling at a loss. In fact, Zillow has lowered asking prices on almost half of its listings in the United States. It could lose $7 million in Phoenix alone this year.

Yet, a review of Zillow Offer’s losses shows that the gap is getting closer and closer to break-even each year. Hundreds of millions of dollars of loss on a balance sheet is a drop in the bucket to Zillow, which is building a new business model. Another interesting piece of Zillow’s iBuying is the $450 million in bonds, backed by homes it has purchased but not sold, that was oversubscribed in August of this year. Zillow is now in the process of selling another $700 million in bonds, with more inevitably coming. Zillow has plans of purchasing 5,000 homes a month by 2024, and it will have the funds to do so. Currently iBuyers account for about 1% of overall U.S. sales. In Phoenix, that number is 5.7% for Q2 2021, up from 3% in Q1 2021. To sum up, while Zillow is taking a break for the rest of this year, I believe it is simply adjusting its model to prepare for shopping sprees in the near future. Nina Musgrave is an investor and past KREIA board member. She is passionate about real estate, technology, and potato chips. Most platforms: @onlyonenina

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.

5236 Dixie Hwy 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.

When Was the Last Time It Felt Like the First Time? By John Mays “Now is the accepted time, not tomorrow, not some more convenient season. It is today that our best work can be done and not some future day or future year.” — W. E. B. Du Bois I remember how excited I was when I did my first real estate deal. It was a 3-bedroom, 1½-bath single-family home in beautiful West Louisville, Ky. Suddenly, I knew I was basically a real estate tycoon and was about to take over the world. I was unstoppable, and undeniably on a path to be the richest man in Babylon. The stars were bright, and the weather was always right. Everything was going my way. Don’t lie, you know you were just like me! You were so elated about what you had learned and how you conquered your fears that the people closest to you completely stopped bringing up real estate around you, because at any given moment you would give them a whole two-hour dissertation about the joy and benefits of being a property owner and a real estate investor. I believe this level of excitement and zeal is more exaggerated for those of us who are first-generation real estate investors; we wake up grateful every day because we didn’t know any of this stuff was possible or attainable for ordinary people like us. You were unapologetically obsessed with real estate, and you knew there was no more secure and engaging path to financial freedom and economic abundance. It felt like it was too good to be true – so we want to tell everybody. My question here today is simple: When was the last time it felt like the first time? When was the last time you couldn’t sleep from the eager anticipation of hearing back if your offer was accepted on a smokin’ hot deal? When was the last time you pulled an all-nighter reading your favorite real estate book or binge-watched your favorite real estate YouTube series? When was the last time you rushed out so you could spend an extra two hours to make a 5-mile trip to the store… just so you could make sure you hit every street on your way, driving for dollars? When is the last time you ran up to a person you loved, gave them a hug, sat them down, looked them deeply in their eyes and retaught an entire KREIA meeting like a kindergartener describing her first day of school? When is the last time you were so excited about real estate that an ordinary trip to Home Depot or Lowe’s felt like a special adventure?

What happened? Today I would like to encourage all of us who are off and running on this road to remember the first time, the joy, the excitement, the rush, the passion, the desire, the exuberance, and the precious feeling of those moments. If we have found out nothing else in this last year, we know life is short, precious, and tomorrow is not promised. Let’s not get stuck in the boredom and routine. Make Real Estate Fun Again!!! Remember to take time in gratitude every day and appreciate the abundance and the prosperity of today. Enjoy your work today, enjoy your health today, enjoy your relationships today, and remember to make it feel like the first time, today. John Mays is an investor and current KREIA board member. John and his wife, Joy, are passionately in love with each other and unapologetically obsessed with real estate investing. They enjoy supporting and coaching other couples on their journeys to build generational wealth while putting love and family first.

photo by bruce w. hinson www.obedientcamera.com

Above: Jenny Fields, left, Greg Nalley and Eric Shadowens rocked the panel at October 28’s “Protect Your ASSets” main meeting. There were lots of folks taking intensive notes! Did you miss it? Watch for the video replay soon. At Left: KREIA co-founder Gene Dyson, left, caught up with longtime board member George Foree. This is the brain trust, folks. Below Left: Angie Tonini-Rogers volunteered to hand out lanyards to investors. Below Right: Looks to be some high-powered networking going on at this table!

KREIA

Photos

photo by bruce w. hinson www.obedientcamera.com

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

Chickasaw Rehab House: A Closer Look Regina Porter recruits family for second house makeover By Lauren Willoughby Regina Porter’s second act – becoming a real estate investor – is off to a great start. Regina retired in 2019 after 30 years as an accountant and thought, “What next?” She and her brother had been pondering real estate investing for a while, and the budgeting and recordkeeping aspect came naturally to her. “I’m a numbers girl,” she said. When a former boss, Craig Jennings, invited her to lunch, she thought it was leading to an offer to re-hire her. Instead, she found out In front of a KREIA crowd, Regina Porter described the process of turning 1010 S. 45th that Craig was a longtime investor Street from a cramped 2BR/1BA house into a comfortable 3BR/2BA home. (Photos himself – and a KREIA member. courtesy of Mike Fallot and Wendy Kays of MM Lending) With Craig’s encouragement and guidance, Regina embarked on her first house. She bought it owner along the way dug it out, because aside from the from the Land Bank, rehabbed it over a period of 14 months structural problems she found the furnace in a first-floor – when “catastrophic things” happened – and then flipped it closet. for about $20k profit. Finishing it taught her a lot about Other surprises included a tarp protecting part of the houses, she said, because it was practically a rebuild. roof, the kitchen being situated in a hallway, a tiny little This second house, the focus of our Nov. 2nd L.O.T.S. bathroom, tiny little closets, and off the back a jackleg event, is one she found at the Commissioner’s Sale and has addition that was supported only by 1x6 boards. Plus, the been working on for addition was sprouting leaks. about five months. The work she has done on the project so far involves Regina pointed out correcting structural issues and improving the floor plan. that when you buy She hired PermaJack to shore up and support the houses like this at the basement and the addition’s crawlspace. courthouse steps, you The kitchen, no longer in a hallway, is now part of an don’t get to look open-concept living area at the front of the house. She has inside. So, you’re turned the addition from a family room into a master often in for a surprise. bedroom, adding another bath. She moved the furnace to She found plenty of the basement and turned the first-floor furnace closet into them here! “It’s not a pantry. She enlarged the original bathroom. And she also for the faint of heart,” reconfigured framing in the bedrooms, allowing for larger she said. Continued on Page 30 One big surprise THE NUMBERS Find the was a leaning basevideo from Purchase: $58,000 ment wall, among this L.O.T.S. event to Rehab Cost: $65,000 foundation issues. be posted soon on Estimates if selling: our Videos page. Actually, the baseFind photos in our Sales Price: $150,000 - $170,000 ment itself was a KREIA Facebook surprise – Regina said Closing, Carrying, Etc.: $12,000 Group. Profit: $15,000 - $35,000 it wasn’t mentioned Regina Porter and her brother, James Alexander, flank Mike Fallot for a photo on the PVA report. Why do we call it “L.O.T.S.”? Because we Learn On The Site! just before the presentation. She suspects that an 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.

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

Foreclosure Starts Jump Nationwide According to ATTOM Data’s Q3 2021 U.S. Foreclosure Market Report, lenders started the foreclosure process on 25,209 U.S. properties in Q3, up 32% from Q2 and up 67% from a year ago. Read the report: bit.ly/k2111foreclosure

Best & Worst Places for Flippers Realtor.com says that for flippers, it really is the best of times and the worst of times. They crunched the numbers to come up with the five best and worst places in the United States to flip a house. Spoiler: Louisville didn’t make the Top 5 in either list. Columbia, South Carolina, took the top spot for best, and Chattanooga topped the “worst” list. Read the article: bit.ly/k2111flip

Number of Americans Living With Disability There is one thing that unites all of us, whether we have a disability or know someone who does, and that is the need for safe, clean and quality housing. This U.S. Census graphic illustrates the number of Americans living with different types of disabilities, broken down by age and sex. View the full-size infographic: bit.ly/k2111disability

Is Artificial Intelligence Taking Over the Real Estate Industry? CNBC’s Diana Olick says it might be. She discusses the overall impact artificial intelligence (AI) is having on real estate with companies like Zillow, which is now using machine learning in its Zestimates. Watch the CNBC report: bit.ly/k2111ai

FHFA House Price Index Up 18.5% According to the latest Federal Housing Finance Agency’s (FHFA) House Price Index (HPI), U.S. house prices were up 1% in August and up 18.5% from August of 2020. Read the PDF: bit.ly/k2111index Continued on Page 34

Mike Butler: How to Get your January Rents Paid Early Continued from Page 6 Here’s why and how it works. Your residents are short on cash, especially during this Covid-19 mess. They have shot their wad shopping in December. On December 22nd or 23rd, your resident will see the envelope with red ink “Gift for <FirstName>“ and they will open it. Without the red ink, they might put it in the B or C pile of bills to get paid. After opening the envelope, they will see your Holiday Rent Coupon, and then they will put your Rent Coupon on top of their “A Pile” of bills to pay first. It includes a few no-brainers:

✓ Their account must be current ✓ Payment must be received on or before January 1st ✓ They must complete the backside of the coupon (which updates their contact info for you) What dollar amount should you put on your Holiday Rent Coupon? When I got started I probably had a $25 Holiday Rent Coupon. But just like for you, this amount was pretty darned expensive. Today, our Holiday Rent Coupon is $10, and it works just as good as a $25 coupon, and it’s a lot cheaper. It’s your choice. Who gets the Holiday Rent Coupon? Carefully review your list of residents and give them a score of A, B, C or F. We send the coupon to all of our ‘A’ and ‘B’ quality residents. As a rule of thumb, we do not send to C or F residents, nor do we send to any resident who pays ZERO rent, such as those where Section 8 pays all of their rent. If you have residents who are a royal pain in the whatoosie, don’t send them a coupon. If you have great residents who got behind on rent due to the Covid-19 crisis, I would send them a coupon too. Your objective for using the Holiday Rent Coupon is to get your January rents paid early, update residents’ contact information and to encourage good residents to make their account current. COVID-19 TIP: if you have great residents who are upside-down due to Covid, do a little research in your town to see where they can sign up to get help and financial assistance. Remember, your residents do NOT think like you and me. Do NOT tell them a website where they can go to get assistance because, odds are, they will NOT do anything. While you have them on the phone, go to the website, find the online form and you fill it out for them while you are on the phone with them. This is simple. FYI, my real estate is still getting paid over 100% of the rents owed, even during Covid-19 garbage. Here’s our $10 Holiday Rent Coupon: Get it for free at bit.ly/k2111mikebutler

Here’s the long link: https://MikeButler.kartra.com/page/holidayrentcoupon 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 best-selling real estate book “Landlording on Autopilot,” now available in its 2nd edition. He’s also the host of the “5 Hour Real Estate Week” podcast.

Keep Up With KREIA Over the Holidays Via Facebook KREIA as an organization takes a break over the holidays. After Tamara West’s Nov. 16th Tool Tip Zoom call, we do not have any events on the calendar until January 2022. But that doesn’t mean we’ll be completely off the grid. We’ll still be sending out emails. And we’ll be posting on KREIA’s Private Facebook Group – along with many other active investors. If you’re a KREIA member who hasn’t already joined our Private Group, please do so now by going here… facebook.com/groups/KREIAKY … and clicking the Join button. After we confirm you’re in KREIA’s database as an active member, you’ll be invited in. More than 600 of KREIA’s 800+ members have joined the Facebook Group. Members interact on Facebook by asking questions, posting wholesale deals, sharing contractor recommendations, showing us photos of their flip houses – even uploading video walkthroughs – and more. I recently posted a request for members to share their thoughts on what would be a great gift to give an investor – ’tis the season, after all. Got a suggestion? Please go to bit.ly/k21gifts and tell us! And let us know if you spot an amazing bargain – like Nishea Foley did when she found a cross-line self-leveling laser for $20 off at Home Depot. And check out our Public Facebook Page (facebook .com/REIAKY/), where anyone is welcome to watch a free replay of the Oct. 30th Beginning Investors Workshop. Need to learn how to get funded? This workshop tells you! – Lauren Willoughby

Announcing the 2021 Ed Melton Award This year’s recipient will be named at the Holiday Party By Hank Schildknecht [Editor’s Note: Hank passed in August of 2020, and we will always miss him. For years Hank helmed the Ed Melton Award selection process, and he explained it best. It seemed right to have him do it one more time. This is Hank’s article from 2019.] Many longtime members of KREIA had the privilege of knowing Ed Melton, Sr. Ed was, without a doubt, the greatest recruiter in the history of KREIA. Every person Ed came in contact with regarding a real estate matter was told of the merits of the Kentuckiana Real Estate Investors Association and encouraged to join. Ed was an active KREIA board member for many years. He was a dedicated mentor to novice investors and enjoyed passing on his experience and wisdom. I had the privilege to serve as Ed’s attorney for many years. It was a unique learning experience for me to close Ed’s purchases and observe firsthand his methods of ensuring a true win-win situation for all parties involved in each transaction. After his death in 1998, KREIA’s Board of Directors established an award to be given in his name. The board set the following criteria for selecting the recipient: 1. Contribution to membership education; 2. Development of fellowship; 3. Active recruitment of KREIA members; and 4. Active participation in the real estate industry. The following have previously received this award: 1998 - Mark Lechner 1999 - Rue McFarland 2000 - Chris McCarty 2001 - Hank Schildknecht 2002 - Chris Dischinger 2003 - Rosetta Melton 2004 - Joe Hampton 2005 - Mike Butler 2006 - Jim Gardner 2007 - George Foree 2008 - Alan Johnson 2009 - Dick Vreeland

2010 - Connie Horsey 2011 - Noble Roberts 2012 - Jay Long 2013 - Gene Dyson 2014 - Mark Hass 2015 - Dan Jones 2016 - Dennis Erhard 2017 - Katie Crotzer 2018 - Ken Harrison 2019 - Frank Miller 2020 - Harry Borders

As you can see from reviewing the above-named recipients of the award, each has been very active in KREIA and has greatly contributed to its success.

L.O.T.S. Recap: Regina Porter’s Chickasaw Rehab Continued from Page 19 closets. She put on a new roof, and she trimmed a huge tree whose heavy branches were resting on the house. Her repair budget has surpassed the purchase price. The drywall had just gone up at the time of the L.O.T.S. event. Regina said she hopes to complete the project by the end of the year, and that the finishes she’s budgeted for are upscale ones – lots of tile and granite in the kitchen, for example. She said she likes to work with tile. “We’re tilers.” She wants to make it a house she herself would like to live in. But whether she’s going to flip it or BRRRR it into a rental, she hasn’t yet decided. If she were to flip it, she’s looking at a list price of between $150k to $170k, depending on what the market does. As a rental, she estimated she’d ask at least $1,200 per month. Working on this house has revealed clues to look for next time, she said. For example, finding cracks in the driveway next to the house may be a tipoff that there are issues with the foundation. And for the next house she takes on, she said she will look for financing. “Everybody keeps telling me to use leverage.” She self-financed the first two houses. Regina got her family involved in this project. She brought her brother, Regina Porter shared her numbers. James Alexander, on board. James had also helped out on the first house, but he got his license from the city for this one, and now he’s the General Contractor. For years James has worked in maintenance at a large hotel chain, so he knows his way around just about everything involved in repair and construction. “My brother is my backbone,” Regina said. Regina’s son and daughter both helped with demo – and both came in from out of town – and that was a lot of work. Her husband is on the team too. You can really feel her joy when she describes these projects as a way to spend time with her family. And she said she can count on her family to do things on time – she had issues with the hired GC on her first house. Congratulations on all you have accomplished, Regina! We can’t wait to see what you tackle next.

National REIA News Briefs Continued from Page 24

Fall 2021 Emerging Housing Markets Index

America’s Best College Towns for Homebuyers

Realtor.com & the Wall Street Journal recently released their 3rd Emerging Housing Markets Index, which identifies markets they believe will be good areas to purchase a home for both homeowners and investors. Topping the list is the Elkhart-Goshen area in Indiana. As with last quarter, their Top 20 on the index is dominated by smaller markets – but more larger markets did enter the list. Raleigh, Colorado Springs and Durham-Chapel Hill made the list. Read the report: bit.ly/k2111markets

There’s nothing quite like the buzz of a college town. That’s why Realtor.com crunched the numbers to find the best college towns to buy a home for any stage of life – from starting careers to raising a family, to forever homes. Read the article: bit.ly/k2111college

Mortgage Payments Rose Faster Than Rents for 8th Month RedFin says average monthly rents increased 11% nationwide over the past year – the highest growth rate in at least 2 years. However, the national median monthly mortgage payment for homebuyers went up even faster. Read the report at RedFin: bit.ly/k2111payments

Share of New Homes with Decks Drops Below 20% The NAHB’s Eye on Housing says new homes being built with decks has declined for the third straight year. Read the report: bit.ly/k2111decks

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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

KREIA’s Holiday Party Ready to kick up your heels? There will be dancing at our Nov. 11th party! There will be music, food, prizes, networking with friends, the Ed Melton Award presentation, and our gift to the Home of the Innocents. Did we mention music? Party Man Frank Miller booked us Howl2GO, a rockin’ group bringing singers and duelling electric grand pianos to Woodhaven Country Club. They take requests! They know all the songs! And yes, the Holiday Party is free for active KREIA members – and the usual $30 for non-members. It’s gonna be epic! Register now at kreia.com! Many thanks to our Holiday Party sponsors, who make our appetizers and wine and cheese service possible: Karl and Nan Roth of A.N. Roth Heating & Cooling; Harry Borders of Borders & Borders; and Platinum Sponsors Mike Fallot and Wendy Kays of MM Lending. Also… ❖ Nov. 16th — Noon-1 p.m. Tool Tip Tuesday. Tamara West hosts a Zoom call where she demonstrates software and resources helpful to investors.

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