January 2022 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 1-22 January 2022 President’s Letter

Be the CEO of Your Real Estate 3 Business: Heidi Fore coaches us on goal-setting and business planning. Plus, workshop at Wildwood! Welcome, New Members!

Mike Butler: Are you really ready 6 for changes and new trends in the real estate market? L.O.T.S. Year in Review: 2021’s 10 hosts reflect on their experiences

Hampton Scurlock: KREIA 16 Retreat is back Feb. 25th & 26th! Ed Melton Award: 2021's recip- 18 ient is announced KREIA Photos: Holiday Edition 20 John Jones: KREIA teams up with REIA Mastermind Group

Vena Jones-Cox: Jan. 29th deal 24 analysis workshop on Zoom National REIA News Briefs

2022 KREIA Directory: Help us finish it

Dear KREIA Members and Friends, Happy New Year!!! I hope everyone had a wonderful holiday season with family and friends and is ready to make 2022 the best year yet. The simplest way to achieve this is to 1) know and believe that abundanceminded people like you need to be successful and 2) relentlessly focus on doing deals. Erik Hitzelberger I could write extensively on the first point (and I may in the future because I apparently have to keep writing these things), but I want to cover the second today. So, I’ll leave it at this. Money is a tool that magnifies your impact on the world. If you desire to leave a positive impact, you owe it to yourself and the rest of us to accumulate enough money to be as significant as possible. Stop making excuses and get it done! The second point comes down to understanding what is and what is not a deal. Too many people prevent themselves from achieving their goals because they confuse themselves on this point. Even experienced investors occasionally get hung up. A deal is an investment that helps you meet your investing goals The corollary to this is that anything that delays or prevents you achieving your goals is not a deal. One of your goals may be to spend a month in Italy. You may further decide that you want to learn a little of the language before you go. If you purchase the Chinese language Rosetta Stone package because it is half the cost of the Italian version, you did not get a deal. Similarly, imagine you work a 40- to 50-hour work week and spend 10 hours a week on your dream of being a financially-free real estate investor. Further imagine that you receive a job offer for $20,000 more per year, but you know the time commitment will be in the 60- to 70-hour per week range and you will have to travel. Taking the job has the same outcome as buying the course on learning Chinese. You prevent yourself from achieving your goal. Deals are created when the Price (what you pay) is less than the Value (what you get). The most common mistake new or struggling investors make is not properly assessing value. This is often because we forget what we are buying. Buy-and-Hold investors do not buy houses. We buy income streams and appreciating assets. Both are measured over time. If you have ever said anything close to “I can’t pay $150,000 for a house that’s Continued on Page 4

Ian Hooper: Products to donate 28 to Home of the Innocents this time Government Affairs Links

Calendar of Events

Copyright MMXXII 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!

Plan for Success With Heidi Fore For real estate startups or tune-ups, you’ll want to be at KREIA’s January 27th meeting Join us on January 27th, our first main meeting of the year, to find out how to be successful in launching your business. Or, if you're already in business, making it more efficient. Need help reaching milestones in your investing? Want some help with business planning? Business consultant / realtor / investor Heidi Fore is an expert in turning vision into reality, and she's going to coach us. Learn how to be the CEO of your real estate business by making a plan and following it. Heidi will cover.... • Why you need a business plan to increase your profit • How to make a simple business plan that will give you clarity of what to do next • What numbers to track in 2022 that will keep you on the right path toward your investing goals • Income minus Expenses equals Profit, so what can be adjusted in each piece of this equation? Find out! • How to set goals that you will achieve in 2022 • How to stick to your plan once you make it

Meet Heidi Fore Heidi Fore has been selling houses for 19 years and is an international real estate trainer. She is a business coach for 34 real estate agents. She is a leader of the River Valley Group, a team that sells houses in Kentucky, Indiana, and Ohio. Heidi Fore is also a real estate investor with 53 rental units. You may have read about Heidi in Realtor Magazine’s “30 Under 30” or Business First’s “40 Under 40” or Real Estate Magazine’s “Realtors on the Rise” articles. Maybe you saw her on HGTV’s “House Hunters.” Her passion is teaching and coaching people to achieve their goals in life, and not just to realtors. She teaches life skills to teenagers about to age out of orphanages around the world to prepare them for a life of independence.

Illustration by Nina Musgrave

Agenda for KREIA’s Oct. 28th Main Meeting • 5:30 p.m. – Early Meeting with Rebecka Taasaas • 6 p.m. – Member Orientation with Jordan Pohn • 6:15 p.m. – Welcome, announcements, property pitches, and sponsor pitches. Buffet line opens! • 7 p.m. – Feature presentation: “Be the CEO of Your Real Estate Business” with Heidi Fore Register now for this event at kreia.com. We’ve decided to re-open Zoom registration, so if you can’t make the meeting in person at Woodhaven Country Club, you can still attend online over a Zoom call. For KREIA members, in-person attendance at Woodhaven costs the usual $20 (to cover our expenses); participating in the Zoom call is free for members. • 34!

Heidi Returns for a Saturday Workshop! Join Heidi on January 29th at Wildwood (not Woodhaven) for a 3-hour deeper dive. She says you will: • • • •

Leave with your business plan for 2022 Know your goals for the next week, month & quarter Decide your actions to stay on track Learn about tools to make following your plan easier

Just $39/members and $49/non-members. Register now! Wildwood Country Club, 5000 Bardstown Rd. 9 a.m. - noon

5:30 p.m. Early Meeting: Rebecka Taasaas Have you ever thought about adding security systems to your rental properties? Tenants love it, and it protects both of you. Rebecka Taasaas, from America’s Choice Security, talks about how.

Welcome, New KREIA Members! Christian Barrett

Rafael Leal

Shaun Robinson

Cole Chambers

Steven Little

David Robinson

Benjamin Crews

Bruce Little

Valentina Roby

Bobby Fakunle

Darnell Lockett

Angela Sales

Lance Ferrell

Jason Lopp

Roderick Sherman

Michael Gentry

Kent Maguire

Nicholas Slahta

Ferrando Gomez

Oksana Makarova Jeanine Sloan

Richard Goodwin

Clay Mcmillan

Nathan Tucker

Garrett Grubbs

Latesha Mitchell

John Tyler

Rhonda Gummer

Jon Morgan

Sean Waddell

Vickie Hardman

Eric Payne

Teresa Walker

Jarron Hayden

Cathy Payne

Courtney Welch

Zach Haynes

Blake Payne

Benjamin Welsh

Dipesh Jadav

Jordan Pearl

Patricia

Andre Jones

Margarita

Jake Kittle

Quintana

James Kovacs

Eric Riddle

Williamson Danylo Yevtenko

KREIA’s New Member Orientation Jordan Pohn will give a short presentation of the benefits of joining KREIA at every regular monthly main meeting. We offer many educational and cost-saving opportunities! Join him in the small conference room at 6 p.m. Online Presentation: You can view a recent session with Jordan and Stacey Duvall 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.

President’s Letter Continued from Page 1 only worth $160,000,” you have fallen into this trap. Today’s value of the property is nearly meaningless. The only factors that matter are whether the projected income stream and appreciation moves you closer to your goals. Savvy investors know how to evaluate value. They know that cash flow is a factor of rate and time as well as price. Moreover they understand that $300 a month in net income is $300 a month toward their overall goal. If there is a better deal, great! When there is not, successful investors move forward and make progress toward their goals. No one but you can tell you what your goals are or should be. Only you know your innermost hopes and dreams. The rest of us can simply remind you to identify, document, visualize, and pursue them zealously. If you can communicate them well, I guarantee someone at KREIA can and will help you with the details. Depending on your goals, any of the following may be a deal 1) Buying your first, fifth, or forty-second rental property 2) Selling a troublesome rental and using a 1031 exchange to convert the gains to a better property 3) Taking inflation risk off the table by refinancing 4) Cashing out of rental properties and becoming a private lender 5) Taking the gains from the stock market (the S&P is at a near record P/E ratio) and becoming a silent partner in a business or investing in a fund 6) Hiring a property manager so you can move to Puerto Rico and retire KREIA is here to support you. From an educational perspective, we have another great year of programming in the works for both main meetings and for the deeper dives that occur during Saturday sessions. In addition, we are planning special events such as the KREIA Retreat that will be a power-packed weekend of content. Because who you know is as important as what you know, Happy Hours, Game Nights, Lunch & Learns, and other social events are offered for you to have fun and make connections. The value is worth way more than the price. 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. As I mentioned, you owe it to yourself and to those around you to do more deals so that you can do more good. Start now and make this the best year so far! To your investing success! Erik Hitzelberger KREIA President

Are You Really Ready for Changes and New Trends in the Real Estate Market? By Mike Butler Yesterday is the time to take action to make sure you are properly prepared to maximize your investing strategies in the very near future. Many investors hit the wall, went belly-up and filed bankruptcy during the 2009-2012 financial implosion and the foreclosure tsunami. There are huge lessons to be learned from history. Real estate has repeated history cycles, and we have already reached the peak on this one. Variables having a major impact on our real estate market for both homeowners and investors:

✓ Low Inventory: the old supply and demand thing. Not enough properties for sale creates a “Seller’s Market,” resulting in too many buyers. This created the bidding wars where sellers were getting multiple offers over asking price within hours of putting their property up for sale. ✓ Super-Low Fixed-Rate Loans: Since the last cycle, interest rates for loans have remained at all-time record lows for 10 years! ● The Federal Reserve has kept the rate at almost ZERO percent. ● This allowed buyers to qualify to buy more higherpriced properties! ● This triggered outrageous spikes in appreciation – bidding wars. ✓ Lenders Loosened Up Qualifying Standards: ● Immediately following the last tsunami, lenders cancelled HELOCs, cancelled credit cards and, believe it or not, went back to using credit scores to qualify for loans, making it much more difficult to get approved for loans, especially for investors. ● For the last several years, lenders have really loosened up their qualifying standards resulting in a market chock-full of buyers. ✓ PROOF: ● Recent massive and explosive growth in membership of REIA groups ● Return of investor training events, both online and in-person. Most of these disappeared during and following the last tsunami. ● In our region, OREIA hosts an annual investor training in Cincinnati. Before the last tsunami, attendance teetered around 1,600 people with a boatload of exhibits, and it dropped to barely 400 people following the tsunami. (Attendance is back up to well over 1,000 again.)

Now Let’s Look at Things Affecting the Current Market What’s happening in our real estate market: CDC Eviction Moratorium – Caused a ton of grief for rental property owners. CDC Foreclosure Moratorium – Lenders were not allowed to foreclose on properties for almost 18 months. This included both homeowners and rental property owners. These two federal moratoriums have expired, and the foreclosure proceedings are active again. NOTE: Some states and cities have created their own moratoriums extending the expiration dates. Forbearance: This was promoted heavily during the onset of COVID-19 shutdowns that began in March 2020. Network news encouraged real estate owners to contact their lenders to enroll in their “Forbearance Program.” Most loan documents have a paragraph about it; however, the details are never spelled out. Each lender can have their own forbearance program. There is no universal standard or procedure. Many real estate owners, seeing this all on network news, believed this is their life-saver, allowing them to survive the COVID shutdown. Here is what many were told: Contact your lender, sign up for their forbearance plan, and your lender will allow you 6 months of no loan payments. Unfortunately, these news outlets failed to tell the borrower to get all of the “fine print” and the details about their lender’s forbearance program. Most lenders allow 6 months of no payments but they fail to tell the borrower: On the 7th month, the borrower must make their loan current. This means they have to pay ALL 6 months of deferred payments, many with late charges and extra fees. This shows up on your credit report, destroying your score for non-payment. Many investors have more than one property and one loan. Just imagine the nightmare discovering the fine print in the week or two before your 7th month payment is due. Interest Rates: This huge variable is already affecting our real estate market. This crazy, high-priced seller’s market cannot continue. There will be a major adjustment in our market. Why? History says so. For the last 12 to 18 months, my opinion on a market adjustment will be the result of all of these things combined, including the Feds raising the interest rate. For the last 12 months, my gut feeling on the excuse the Feds would use to raise the interest rates would be to Continued on Page 36

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L.O.T.S. 2021 Recap – a Year of Rehabbed Properties Learning on the Site (L.O.T.S) ranks in my Top 5 reasons to join and stay in KREIA. Last year brought back a full lineup of in-person L.O.T.S. events, and we also had the option of livestreamed video. We toured projects from a multi-unit remodel to a new build, and several experienced investors shared their flip properties. We learned tips of the trade for longterm holds and saw firsthand that creating wealth through real estate is possible – all while eating a delicious lunch provided by MM Lending. As you can see, deals do exist in this highly competitive market! Remember – L.O.T.S. events start at noon on the Tuesday following our main meeting. Address details are sent out via email, so make sure you’re signed up to receive them. L.O.T.S. events are for current members. If you’re interested in hosting a L.O.T.S. event at one of your properties, call L.O.T.S. Committee chair George Foree at (502) 541-1811 for the requirements and calendar availability. As always, thank you to our hosts and all who make L.O.T.S. a success! Here’s a brief synopsis of how the projects ended up. Read on for answers to follow-up questions from some of the participants (in order received). – Nina Musgrave Address

ZIP

PURCHASE

Est. ARV

LIST PRICE

SALE PRICE

L.O.T.S. Date

Hosts

2409 Mercer Ave. (lot purchase, new build)

40216

$8,000

$159,000

$168,000

2/2/2021

Steve Craven

5515 Del Maria Way

40291

$71,000

$154,900

$156,000

3/2/2021

Frank Miller

111 E. Adair St.

40214

$60,000

$153,900

$155,000

3/30/2021

Jonathan Fletcher

5904 Tralee Lane

40219

$49,000

$215,000

4/27/2021

Stacey Duvall & Ron Burns

6500 Hackel Drive

40258

$605,000

$965,000

6/1/2021

Freedom Property Group

4047 Glenhurst Ave.

40216

$63,250

$170,000

6/29/2021

Frank Miller

1212 Homeview Drive

40215

$36,000

Rental

7/27/2021

Alexis Fentress

5110 Shepherdsville Rd 40218

$65,000

$140,000

Rental / BRRRR

8/31/2021

Diamond Shirley-Alexander

9/28/2021

Jacob Michal

11/2/2021

Regina Porter

7104 St. Anthony Church Rd

40214

$140,000

$220,000

1010 S. 45th St

40211

$58,000

150k - 170k

Rental

$155,900

$219,000

Did you stay within your budget, timeframe and schedule? Please describe. Alexis Fentress: Yes, I was able to come in under budget and within the timeframe. Stacey Duvall: We did! We budgeted pretty good, so we were able to stay on track. But it took much longer than I wanted it to (doesn’t it always :) Regina Louise Porter: No...I didn’t stay within the original budget but I feel really good about where I am right now. The additional items I had to add to the budget were offset by some budget-cutting measures I was able to do. When I set a budget, I always put in the reasonable and customary costs based on previous budgets. And then, when I am able to find ways to reduce that amount, I always do in anticipation of expenses that may come up. That way, even though there may be an increase it’s only a partial increase. For example, since this house was purchased through the Commissioner’s Sale, I was unable to see inside the house until after I pur-

$158,000

$219,000

In Progress

chased it. So, right off the bat, I had to build a budget in anticipation of what we might find. We decided to paint (inside and out), install the insulation, tile, lay LVP flooring and landscape ourselves to save on the labor costs. I got three bids for every major repair and took the advice of some other investors I know when choosing the lowest cost. If they had used them with no problem and saw high-quality work, then I felt confident that I could save while knowing they would do good work. I found ways to save on material costs as well. So, after we went into the property, we found out we had to do $9,650 worth of foundation repairs, $7,200 for a new sidewalk and driveway, and $700 in tree trimming. But overall, I think my budget increased about $10,000. Jonathan Fletcher: No. Too long and over-budget. Diamond Shirley-Alexander: Yes, but it takes experience to learn budgeting and time frame successfully. I was able to keep my contractor busy enough that he wasn’t taking on Continued on Page 16

5236 Dixie Hwy Copyright MMXXII 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.

SomeMMXXII of KREIA’s national sponsors via National REIA.•For list,•and info on visit nationalreia.org/benefits Copyright Kentuckiana Real Estate Investors Association P.O.the Boxfull 91225 Louisville, KY•discounts, 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.

KREIA Retreat Is Back and Bigger on Feb. 25th & 26th! By Hampton Scurlock It’s that time of year again. The KREIA Retreat or “KREIATREAT” is right around the corner. This two-day event will start on Friday, February 25th, in the late afternoon, and go all day on Saturday, February 26th. We are blessed to have such great speakers/presenters as Mike Butler, Sharon Vornholt, Harry Borders, Frank Miller, Dennis Earhard, Andrew Schlag and many more. This retreat will feature a wide array of classes to choose from such as: short-term rentals (Airbnb, VRBO, etc.), 1031/commercial real estate investing, working probate deals, how to flip houses, creative finance strategies/lease options, wholesaling, landlording, how to use LLC’s, and a panel of experts for the Women in Real Estate presentation. There will be a networking/social hour after the classes wrap up each day, and lunch will be provided on Saturday. This event, which costs only $20, includes your lunch and will be held at the Cottages at Taylorsville Lake (map/directions will be provided to those who register). A special thanks to the event sponsors MM Lending, One Choice Mechanical and Greg Nalley of Nelson Insurance. If you want to stay in one of the Cottages at Taylorsville Lake, please reach out to me at the main meeting or after

L.O.T.S. Recap: The Year in Review Continued from Page 10 side jobs. This allowed us to flip the property in right at a month’s time. Did you use the exit strategy you originally intended? And please tell us a little about your strategy. Alexis Fentress: My plan was to rent the property and it is still vacant. Stacey Duvall: We did. We always planned on keeping this home as a rental! Regina Louise Porter: I have not exited yet. I am going to put the house up for sale first (without involving realtors) and see what shakes out. But, ultimately, I will be fine if I just rent it. Jonathan Fletcher: I intended to create a rental, but the cost was too high and the work was too nice for a rental. Diamond Shirley-Alexander: We used the BRRRR method. We were able to successfully refinance and pull out equity. This allows us to own the property with none of our own money in it.

you sign up for the event. You can text/call me at 859-4333095. There are a few cottage owners who will make rooms in their cottage available for only $25 a night per person (to help cover the cleaning fee). Registration for KREIATREAT will be open at/around the January main meeting. You can register online or at the main meeting. You must be a KREIA member (or spouse) to attend. There is a limit of 45 spots for this great event. Hope to see you there. The speakers are volunteers, and the lineup/classes are subject to change. Space is limited and filled up quickly last time, so act fast if you want to attend this education-filled event. Liability waiver or release may be required. Please bring a chair. Hampton Scurlock is a real estate investor and KREIA Board Member. If you need help closing a deal or negotiating with a seller, call or text Hampton at 859-433-3095. You can also send deals to him at financialwhiz1@gmail.com. He hosts the NexGen real estate meetup at Roosters at 10430 Shelbyville Road every 2nd Tuesday of the month from 6 p.m.-8 p.m. He also co-hosts the KREIA Game Night and Happy Hour events. The preceding is not tax, legal or investment advice; consult a paid professional on such personal matters. What, if anything, would you do differently if you were starting work today on the house featured in the L.O.T.S. event? Alexis Fentress: Nothing. Stacey Duvall: I would have spent more time on the site to make sure things were done to my liking. That is unrealistic but my control freakness would have liked that :) Regina Louise Porter: I would not have chosen the HVAC contractor we chose. Even though he came with good recommendations, he doesn’t manage his time well. So, when it came time to paint the house, he still didn’t have the heat on in the house which made us have to run propane heaters to continue to work. What he promises he doesn’t deliver in the timeframe he promised. Jonathan Fletcher: Get bids and coordinate the contractors better. Diamond Shirley-Alexander: No, it worked out as planned. What was the biggest lesson you learned in working this project? Continued on Page 30

Revealing the 2021 Ed Melton Award Winner Eric George is named latest recipient at KREIA’s Holiday Party Congratulations to Eric George, the 2021 recipient of the Ed Melton Award, the recognition given annually at our November meeting to a KREIA member who has contributed to the growth and success of our real estate organization. Eric is the 24th person to have received this prestigious award, which was photo by bruce w. hinson established in 1998. The www.obedientcamera.com award was created in honor and in memory of Ed Melton, Eric George gave his acceptance speech from Florida via Zoom call. He said he didn’t know he was who was a great advocate of going to win and that he had registered to attend a seminar on self-storage happening at the same time. Previous recipients of the Ed Melton award watched Eric on the projector screens as he spoke. KREIA. Ed encouraged all its members, but he gave special attention to the new investors, 2008. His experience in investing covers the gamut: wholeas he felt they needed the most guidance, direction and saling, flipping, buy-and-holds, BRRRRs, Airbnbs and selfinspiration. storage. KREIA’s board set the following criteria for selecting the Eric has been involved in KREIA’s leadership for many recipient. The recipient must: years, having served as a board member, vice president and president. He’s always one of the first to volunteer at any of 1. Contribute to membership education the meetings in any way needed. 2. Work toward development of fellowship — This introduction comes from KREIA 3. Actively participate in the real estate industry Parliamentarian Michelle Rawn and includes 4. Actively recruit new KREIA members notes written by the late Hank Schildknecht

photo by bruce w. hinson www.obedientcamera.com Eric’s wife, Christina, left, accepted the award on his behalf from Michelle Rawn, right.

Eric George is passionate about real estate and exemplifies all of the qualifications to be eligible to receive this honor. He purchased his first true rental property in 2008 after he moved to Kentucky. It was a rocky start for Eric, because the property caught fire after he’d owned it for only about four months. He didn’t let that precarious beginning stop him, and he has never looked back. Eric also became a member of KREIA in

We visited Eric’s house and did a video Q&A with him in mid-December. Watch the interview at KREIA’s membersonly Videos page. Eric shared tips from his investing career, answered all our questions – we had soooo many questions – and even took us for a ride in his Tesla.

photo by bruce w. hinson www.obedientcamera.com Above: Master of Ceremonies Frank Miller kicked off KREIA’s Holiday Prize Giveaway in front of a packed house. At Left: Who won the cash and who won the plungers? It’s so hard to tell…

KREIA

Photos

Holiday Party Edition photo by bruce w. hinson www.obedientcamera.com

Visit KREIA’s Private Facebook Group to see more of Bruce Hinson’s photos from the Holiday Party – in color!

At Left: OK, I think we know who won the cash. And we found out what it takes to pry a camera from the hands of a photographer. Congratulations, Bruce – to you and to your lucky prize companion! At Right: It was Regina Porter’s turn to face Frank’s prize-picking dilemma. Below: Howl2GO, the traveling musicians from the Howl at the Moon Chicago nightclub, rocked us with our own song requests. Yes, there was dancing!

photo by bruce w. hinson www.obedientcamera.com

photo NOT by bruce w. hinson www.obedientcamera.com

photo by bruce w. hinson www.obedientcamera.com

photo by bruce w. hinson www.obedientcamera.com Were Rob Bergeron, Joe Worth and Wesley Branch the only ones to get the Holiday P.J. Party Memo?

photo by bruce w. hinson www.obedientcamera.com

photo by bruce w. hinson www.obedientcamera.com Above Left: KREIA co-founder Rue McFarland introduced Paul Robinson, the President of the Home of the Innocents. HOTI does a phenomenal job of taking care of abused children, and we cannot raise enough money to support their cause. But we will keep trying. Above Right: Jonathan Leal volunteered to sell prize tickets, which helped raise money to add to the check we gave to HOTI at the end of the night. At Left: The fireplace nook at Woodhaven was a great spot to take a break from the music and the food and kick back and network with other investors.

KREIA Teams Up With REIA Mastermind Group This collaboration is designed to improve your learning experience By John Jones Dear Fellow Investors, Your KREIA board is always striving to improve member benefits and education programs to enable us to be better investors. To that end, in February of 2021 KREIA joined the REIA Mastermind Group (RMG). What is RMG? It’s a group of non-profit and for-profit Real Estate Investor Associations (REIAs) from around the country that get together for monthly Zoom meetings and occasional in-person Mastermind sessions. These gatherings are geared to help member REIAs grow their membership by improving education, processes, staffing and overall operational efficiencies. They also provide accountability and require active participation from all groups. Only one REIA from a region can participate. When we joined in 2021, we were the tenth REIA to make the list. KREIA board members are designated to participate in a monthly Zoom call where a presentation and open discussion are held on topics such as technology, Zoom meetings, staffing, programming, retaining volunteers, etc. We also give and receive insight on national speakers we’d like to book for our main meetings. During the in-person Mastermind sessions, REIA representatives come together for three days at a site near a member REIA. On Day 2 the members go to the local REIA meeting. This allows everyone to learn and share what they observe. The hosting REIA is forewarned that, along with compliments, the members are going to be honest with them and share what they need to hear, not necessarily what they want to hear. Each REIA also shares successes and asks for guidance on their current challenges. The highlights from these Zoom meetings and Masterminds are shared at the monthly KREIA board meetings. Motivation to Join: As a non-profit organization, KREIA is always working to recruit, train and retain volunteers for our board. We need help with event coordination, greeting/ check-in at the door, equipment maintenance, marketing and more. Being consistent and retaining tribal or domain knowledge is very difficult with an all-volunteer group. RMG has been very helpful in sharing what they have found to be successful and what has not worked. (If you’d like to volunteer with KREIA, please ask a board member during our meetings. We’d love to have you.) An added bonus with RMG is the additional training offered to REIA members throughout the year – via Zoom calls – on topics from top presenters. KREIA members were invited to participate in the Jan. 15th workshop with Damon

Remy. And on Jan. 29th Vena Jones-Cox, a well-known investor and national real estate investing speaker, will lead a 6-hour Zoom call on deal analysis. You can expect more top-tier virtual seminars like these in the months ahead! In Closing: You are part of one of the best REIAs in the nation, thanks to the dedication of the many board members and volunteers who were committed to real estate investment education before us Your KREIA board continues to improve the education offerings for our benefit. RMG is just one the many things they utilize to that end. Take advantage of all the benefits your membership provides, and be a blessing to your family and sphere. John Jones is KREIA’s Immediate Past Vice President, a marketing pro, and an active landlord and rehabber. John was instrumental in getting KREIA into RMG.

Vena Jones-Cox Leads Deal-Analysis Workshop on Zoom Speaking of the benefits you get by KREIA’s association with RMG, this is one of them! Vena is a longtime investor, real estate educator, mentor and national speaker – from just up the road a bit in Cincinnati. On January 29th you can spend six hours learning from her about how to run comps, guesstimate repairs and perform due diligence on leads. After the Zoom call is over, people who registered will receive links to download the video replay and also the documents she shares. Yes, we know Vena’s workshop happens at the same time as Heidi Fore’s – but the good news is that you can “attend” both. Heidi’s presentation will be recorded too and made available to registrants. Your job is to choose which event to attend in “realtime” – or if your day is already totally booked, sign up and get the replays on both. ► What: “Workshop: How to Analyze Leads from Your Desktop, Fast, and Get More Deals, with Vena Jones-Cox” ► When: Saturday, January 29th, 9 a.m. – 3 p.m. ► Where: Virtually, via Zoom. Register now at kreia.com! ► How Much: $47 for KREIA members, $97 for non-members

Future KREIA/RMG Workshops Planned • Feb. 12th: Rental Management Bootcamp with Mark Dolfini • Feb. 26th: How (and WHY) to Get 0% Interest Financing When You Buy properties with Vena Jones-Cox • March 12th: Hands-on Workshop: How to Crunch the Numbers Right with Kathy Malcolm • March 26th: How to Negotiate Win-Win Deals with Sellers with Ray Sasser

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

Lumber Prices Are Soaring Again Mortgage News Daily is reporting that after a few months of moderation, lumber prices are once again climbing. Citing data from the NAHB, they say lumber prices have nearly tripled over the past 4 months, causing the price of an average new single-family home to increase by more than $18k. Read the article: bit.ly/k2201lumber

CoreLogic Says 2022 Will Be Another Strong Year for Home Prices According to the latest CoreLogic Home Price Insights (HPI) report, home prices nationwide, including distressed sales, increased 18.1% year-over-year in November. Read the report: bit.ly/k2201core

Zillow Economist Says Hottest Housing Boom Will Be in Tampa A recent CNBC report featured Jeff Tucker, senior economist at Zillow, where he discussed areas he expects to housing demand to boom in 2022, as well as those areas where it won’t. View the video at CNBC: cnb.cx/3FSSMWl

Investors Buy Up Metaverse Real Estate in Virtual Land Boom The Wall Street Journal says investors are buying up metaverse real estate in a “virtual land boom.” It might be kind of hard to get your arms around what they’re talking about, however, when you hear that millions of real dollars are being poured into virtual real estate. Makes you wonder. Watch the video: on.wsj.com/35flzrT

Demand for Second Homes is 77% Above Pre-Pandemic Levels According to a recent Redfin analysis of mortgage-rate lock data from real estate analytics firm Optimal Blue, demand for second homes remains well above pre-pandemic levels as affluent buyers continued to take advantage of remote work and low mortgage rates. Read the report: bit.ly/k2201vacation

Inflation Remains a Wild Card in the GDP Outlook The Federal Reserve Bank of St. Louis says inflation will remain a wild card in GDP outlook for 2022. In fact, they point out that inflation is on pace to be the highest in more than 30 years. Read the full report: bit.ly/k2201inflation

Smart Homes and Security Products If you’re like many Americans, you might have a doorbell camera, a security system or maybe even a smart lock or two. It’s a good piece of mind to have and great way to protect your property – not to mention your home & family! This infographic from Statista takes a look at the approximate household penetration (worldwide) of smart home security products … and it’s only going up. View the full-size Infographic: bit.ly/k2201smarthome

25% of New Homes are Infills or Teardowns in Older Neighborhoods In some metros. practically the only land available for development are infills. Recently, the NAHB’s Eye on Housing revealed that one in four new single-family detached homes were built in established neighborhoods in 2020. Read the report: bit.ly/k2201infills

Home Flipping Profit Margins Continued to Drop Across U.S. in Q3 According to Todd Teta, chief product officer at ATTOM, home flipping produced another round of competing trends in the third quarter of 2021 as more investors got in on the action “but got less out of it.” Read the report: bit.ly/k2201flipping

It’s More Expensive to Own a Home than Rent in Most Metro Areas We have seen stories like this before; is it cheaper to rent or own your home? A recent report from the National Association of Realtors says that in 101 out of 178 metro areas (56%), it is indeed more expensive to own a singlefamily existing home than to rent. Read the report: bit.ly/k2201owning Continued on Page 28

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.

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 MMXXII 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.

Please Help Us Finish the 2022 KREIA Member Directory

Donate ‘Most Needed Items’ to the Home of the Innocents

We’re in the home stretch of preparing the 2022 KREIA Member Directory, but we need some help. Could you:

By Ian Hooper In addition to KREIA’s raffles and cash donations to the Home of the Innocents, let’s donate in other ways – by helping them source their “Most Needed Items.” You can find an updated list of HOI’s requests by following this menu path at their website – Help the Home / Donate / Wish List. Or you can go there directly using this URL:

► Verify that your contact information is correct? ► Fill out a quick Yellow Pages form? Here’s How to Verify Your Contact Information 1. Log into your account at kreia.com 2. Go to your Dashboard (My Account/My Dashboard) 3. Scroll down until you see “My Profile Information” 4. Check to see if the values for First Name, Last Name, Email, Company (optional), 1st Phone and 2nd Phone (optional) are accurate – and are what you would like other investors to use in order to contact you. If any of these values need changing, scroll down and click the Edit button to make the fields editable, make your corrections, then click the Save button. The values above will be included in the directory’s Member Roster unless you take the step of opting out. If You Choose to Opt Out, Here’s How In the Dashboard, scroll until you see the Cover illustration by Nina Musgrave menu option called “About Me,” and select it. At the “About Me” page, scroll down to the bottom and click the Edit button. Now scroll back up and UNcheck the “Allow Members to Find Me” option. Then go back to the bottom and click the Save button. That’s it, you’ve opted out. Here’s How to Fill Out Our Yellow Pages Google Form Go to http://bit.ly/kreiayellowpages and follow the prompts. If you have a business or side gig that helps other investors, a Yellow Pages listing is free advertising for you. You can also use it to let wholesalers know you’re looking for deals. This time we are planning to mail out copies of the directory to all active members, so you do not need to attend a KREIA event in order to pick up yours.

https://www.homeoftheinnocents.org/help-thehome/donate/wish-list/ Here’s the Current List of Most Needed Items 1. Hair grease 2. Hair moisturizer 3. MP3 player/radio 4. Baby wipes If you bring any of these items to KREIA’s Jan. 27th main meeting, I will deliver them to the Home of the Innocents. Look for a box on your way in at Woodhaven. Another way to help donate is to buy requested items through HOI’s Amazon Wishlists. At the same website link above, you’ll find links to wishlists for essentials, clothing, personal hygiene products, art therapy products and more.

National REIA News Briefs Continued from Page 26

Foreclosure Activity Up 94% from One Year Ago According to ATTOM Data’s November U.S. Foreclosure Market Report, there were 19,479 properties in the U.S. with foreclosure filings. This figure is down 5% from the previous month, but it is up 94% from a year ago. In addition, November marks the 7th consecutive month of annual increases. Read the report: bit.ly/k2201foreclosure

Selling a Smoker’s House: Tips to Remove Smoke Residue, Get It Sold According to Realtor.com, smoking in a home can reduce the resale value by 29%, and not just because all that smoke is unsightly and stinky. Read the report: bit.ly/k2201smoke

L.O.T.S.: The Year in Review Continued from Page 16

renovating a short-term RV that will be located at Rough River. Stacey Duvall: We have 4 rehabs going right not and will Alexis Fentress: To update my fee sheet for move-out be closing on another one next week! All are long-term inspection. holds. Stacey Duvall: Constant communication with the Regina Louise Porter: The same one. We should have it contractors is a non-negotiable. They are not mind readers completed by the end of January. and I learned to make my SOW very detailed. Jonathan Fletcher: Taking Frank Miller’s flipping class and Regina Louise Porter: You have to look at a task as it putting offers on properties. relates to the total process. If it is mapped out correctly, step Diamond Shirley-Alexander: We bought 10 properties last by step, you can eliminate the possibility of having to do year and our goal is to double that this year. more work or double work. When I did the layout for the main floor bathroom, I put the toilet position in a certain What advice would you give a new investor looking to flip a place without taking into consideration where the piping for house? it would land in the basement. The piping had to be moved Alexis Fentress: Always run the numbers as conservative over 6inches!!! I will never forget to look in the basement as possible and always have a plan B. when drafting layouts. Stacey Duvall: Just do it! Jonathan Fletcher: Have a plan, not just a vague idea of Regina Louise Porter: Join KREIA unless you have a where I was going. mentor...or do both. Educate yourself. Even though you Diamond Shirley-Alexander: We allowed the previous might have a general contractor, don’t depend on him(her) owner to leave all their belongings. I underestimated what it to know it all. They make mistakes too. Know how to check would cost to clean the house out but ultimately it all behind them. Start small. Have someone take a look before panned out. you buy. Just know that you learn by doing. Be an active participant What project or projects are you working on now? in the project. Keep track of what you are spending. I have Alexis Fentress: I am currently working on renovating a an Excel worksheet I use. You don’t have to spend big money short-term rental for traveling nurses by UofL hospital, and Continued on Page 29

L.O.T.S.: The Year in Review Continued from Page 26 on software to track your expenses. AND, above all, make sure you are enjoying what you’re doing. It doesn’t seem like work when you’re having fun. Jonathan Fletcher: Accept that your first one might not be the slam-dunk you hope it will be, but that’s okay. You’ll do better next time. Diamond Shirley-Alexander: You make your money on the buy. It’s not an emotional purchase but a financial one so don’t be afraid to pass on a deal. FIND OUT MORE To read more about each investor’s experience with these L.O.T.S. houses, check out these KREIA newsletter issues at bit.ly/kreianewsletters • Steve Craven hosting at 2409 Mercer Ave. – Page 19 of the Feb. 2021 issue • Frank Miller hosting at 5515 Del Maria Way – Page 21 of the March 2021 issue • Jonathan Fletcher hosting at 111 E. Adair St. – Page 21 of the April 2021 issue • Stacey Duvall & Ron Burns hosting at 5904 Tralee Lane – Page 21 of the May 2021 issue • Freedom Property Group hosting at 6500 Hackel Drive – Page 21 of the June 2021 issue • Frank Miller hosting at 4047 Glenhurst Ave. – Page 21 of the July 2021 issue • Alexis Fentress hosting at 1212 Homeview Drive – Page 21 of the Aug. 2021 issue • Diamond Shirley-Alexander hosting at 5110 Shepherdsville Rd – Page 24 of the Sept. 2021 issue • Jacob Michal hosting at 7104 St. Anthony Church Rd – Page 19 of the Oct. 2021 issue • Regina Porter hosting at 1010 S. 45th St – Page 19 of the Nov. 2021 issue

ing your real estate business, consider cash-out refis with 30-year fixed-rate loans. At the moment, money is still cheap. Do NOT make additional principal payments on your loans. Instead, put your additional principal payments into “Curb Inflation.” Well, this seemed to be a bull’s-eye, but I a dedicated savings account. Doing this allows you to get never expected the Feds to announce they are planning to immediate benefit, whereas making additional principal raise interest rate two to four times in 2022. payments gives you no benefit until the end of the loan. 2. EDUCATION! All sharp investors have education in the So, Let’s Put All of the Pieces of this Puzzle Together business plan for the year. No different than budgeting for Inventory of properties for sale will grow. Back to supply property taxes, insurance, utilities, etc., you should set an and demand. Too many properties for sale and not enough buyers causes prices to plateau or even drop in some markets. annual dollar amount for education in a topic you want to learn more about. Getting the right training and education Interest rates rising 2 to 4 times means buyers can afford allows you to see killer deals your friendly competition less house. cannot see… remember the “Easter Egg Hunt on How to When foreclosure rates rise, lenders usually tighten their Find Deals.” qualifying standards, including shutting down HELOCs and 3. INCOME TAXES are Rising! Learn how you can get Tax credit cards. Free Profit & Income for Life! using your Self-Directed Roth If you invest in Mayberry USA, just like Louisville, odds are we’ll see a drop in market values on the high end and low end. IRA for you, your spouse, kids and grandkids. Also, an HSA – The median price-ranged first-time homebuyer houses will Health Savings Account – and a CESA (education) account for your kids and grandkids. For the lowest-priced annual see a ripple effect in market value, not a huge drop. fees for your accounts, I highly recommend Carl Fischer’s CamaPlan.com as an IRA custodian – check it out for free Things You Can Do Now So You Don’t Miss the Boat training. We still have some old accounts with Mid-Ohio 1. CASH is ALWAYS KING! – carefully review all your loans Continued on Page 38 with a goal of restructuring your debt. If you are still growMike Butler: Are You Ready for Changes in the Market? Continued from Page 6

Mike Butler: Are You Ready for Changes in the Market? Continued from Page 36 Securities, which is now known as Equity Trust. As Carl Fischer says, “If you were a farmer, would you rather pay taxes on your seeds now and keep your harvest 100% tax free, or defer paying taxes on your seeds resulting in your paying taxes on your harvest?” In summary, this article intends to give you some insight on how you can take action now so you can stay several steps ahead of the trends in our market. Always keep education a top priority in your life and business. Remember, LIFE does NOT have a Pause or Rewind Button! It’s up to you to make it happen To your continued $uccess,

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

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.

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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

Be the CEO of Your Real Estate Business Need help reaching milestones in your real estate investing? Want some help with business planning? Consultant/ realtor/investor Heidi Fore is going to coach us in January’s main meeting. January 27th, 5:30 p.m. - 9 p.m. ► 5:30 p.m. Early Meeting: Rebecka Taasaas tells us why it’s a good idea to install security systems in our rentals. ❖ Jan. 29th – 9 a.m. – noon. Workshop: Be the CEO of Your Real Estate Business. Heidi leads a 3-hour deep dive.

❖ Feb. 1st — Noon – 1 p.m. L.O.T.S. event. We visit an active investor’s rehab project. New Platinum Sponsor Flippin Loan provides a free lunch to members! ❖ Feb. 9th – Noon – 1:30 p.m. Lunch & Learn. Duna Bolotte hosts this educational event. For members only. ❖ Feb. 10th — 5 p.m. – 7 p.m. KREIA Happy Hour. Networking at Woodhaven Country Club. Everyone invited. Bring a friend! ❖ Feb. 15th — Noon-1 p.m. Tool Tip Tuesday. Tamara West hosts a Zoom call where she demonstrates software and resources helpful to investors. Members only. ❖ Feb. 25th & 26th — KREIA Retreat at Taylorsville Lake. Local real estate pros headline 10 investing seminars! Limited to 45 active KREIA members. Registration page goes live on Jan. 27th.

❖ Jan. 29th — 9 p.m. – 3 p.m. Workshop: How to Analyze Leads Main Meeting Preview from Your Desktop, Fast, and Get More Deals. Vena Jones-Cox Here’s what’s coming next month: teaches a Zoom-based seminar. There will be math! February 24th: Tax updates with CPA Mike Grinnan

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