1308 KREIA Newsletter August 2013

Vol 13-08

President’s Letter page 1

August Meeting Metro Louisville’s Developer Agreement for Rehabbers Jim Mimms & Team page 4

5:30 Pre-Meeting

Habitat Restore KREIA Discounts page 6

Member Spotlight “Eric George” page 9

KREIA.com Update!

LOTS Program Duffy Ford 6322 Hackel - 40258 page 9

Welcome New Members!

Page 9

Pre-Pay Monthly Meeting with EXPRESS PAY! page 4

Monthly Newsletter for KREIA Members

President’s Message Rents are up! Tenants are plentiful and there’s a shortage of nice rental houses in our area. I hope everyone is buying!

If not, you should be.

This month’s speaker Jim Mimms and Friends will teach us how to work with our local government and IPL to keep Dennis Erhard code enforcement officers off our backs and for up to 6 months while you fix the houses up for resale or for rentals.

Come and learn the process it will save you headaches and lots of $$$$$.

Thanks to Eric George for Hosting LOTS (Learn on the Site). There has been a great response to his willingness to share info! That’s the way I learned and that’s what KREIA is all about paying it forward.

Check in using the Express Lane. You can pre-pay and zip right thru the doors avoiding the lines. And remember, you never know what the door prize will be. It may range from a book to a free seat at a National speakers training event.

This promises to be one of the best features to come along in years. Try it now and you could be our next Winner!!

I want to personally thank all of the board members and volunteers who work hard behind the scenes to make your KREIA one of the best REIAs in the country.

Your President Dennis Erhard Quote of the Month: “Change is the law of life. And those who look only to the past or present are certain to miss the future.” - John F Kennedy

Saturday Workshop!

How To Do Deals with Your IRA for TAX FREE Profit & Income Copyright MMXIII Kentuckiana Real Estate Investors Association • P.O. Box 17592 • Louisville, KY• (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 Dennis Erhard

Vice President Frank Miller

Secretary Treasurer Treasurer Elect Chris McCarty Mike Grinnan CPA Fred Helm

Board of Directors

Mike Butler

Tamara West

George Foree

Duffy Ford

Eric George

Dan Jones

Jean Hall

Aru Tarr

Mark Hass

Fred Butler

Rue McFarland

Wally Kallbreier

KREIA Newsletter published monthly and serves both as a newsletter and a reminder notice of your upcoming monthly meeting.

KREIA is a member only association focused on education, networking, and resources for today’s investor. o educate real estate investors from the basics to the complex. We are an excellent choice for all levels of investors. 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.

To Subscribe to the KREIA Newsletter is simple and easy. Go to KREIA.com and join the Kentuckiana Real Estate Investors Association.

Group Discounts are available.

To Advertise in the KREIA Newsletter To Advertise on KREIA.com To Sponsor A Monthly Meeting To Sponsor A LOTS Program Please contact News@KREIA.com

KREIA Sponsorships Diamond: Full Page Ad + Table + Pre-

Meeting Speaker Only $995 or $99 mo.

Gold: Half Page Ad + Table + PreMeeting Speaker Only $499

Silver: ¼ Page Ad Only $299 Parliamentarian Hank Schildknecht

Past President Connie Horsey

Your KREIA Leaders are involved and chair several committees to make KREIA happen every month for you and your fellow KREIA Members.

Get involved with KREIA. You can help with the monthly meetings, L.O.T.S. Program, this newsletter, Saturday Workshops, Government Affairs, Social, Annual Picnic, Marketing, the new KREIA website and more PLUS You Get EXTRA KREIA Points for everything you do!

Get phone and emails of all KREIA members with the new KREIA Online Member Directory.

Reach out and tell them they are doing a great job! (It makes them do more for KREIA!)

Business Card : Ad Only $149 Event Sponsor: Meeting, LOTS,

Saturday Seminars, and more!

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Place Your Ad Now at KREIA.com --------------------------------------------”KREIA Advertising is by far, hands down, the absolute best advertising dollar ever spent for Borders & Borders!”

Harry Borders, B&B Attorneys

Copyright MMXIII Kentuckiana Real Estate Investors Association•PO17592 • Louisville, KY• (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.

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Featured Speaker

METRO LOUISVILLE’S “DEVELOPERS AGREEMENT” FINALLY… GREAT NEWS FOR INVESTORS! Jim Mimms and Experts from Metro IPL There has been a lot of buzz in recent years about Metro Louisville attacking investors who purchase properties in need of repair. In case you did not know this, it was very common for an investor to purchase an abandoned, vacant, or in need of major repair properties only to have Metro Louisville’s IPL race to the property and write thousands of dollars in fines and violations. They monitor Louisville’s real estate transfers and when a property with liens was sold to a new owner, this would trigger the 911 response to reinspect the property immediately to slap these fines on to the new owner.

This kind of action caused experienced investor to simply stop buying properties that are targeted by IPL. Behind the scenes, George Foree and Rue McFarland have been working very hard attending meetings, hearings, and more with local, state, and federal government. In fact, Mayor Greg Fischer has appointed a special committee to deal specifically with these issues. George Foree attends the mayor’s public meetings and George has shared there is NOT person on the mayor’s committee that knows anything about the real world of investing in real estate. They are all political appointments.

Enough of the bad news. Time for some good news. You

can thank Rue and George for their diligent work and effort in helping to discover an old code already on Metro Louisville’s books, that addresses this specific issue.

It is called the “Developers Agreement” and it’s purpose is to “work with,” not against, investors who buy fixer uppers. In a short para-phrased summary learned from Rue, IPL will give the investor a 6 month grace period to get the property in compliance.

The “Developers Agreement” has been around for years, but it has been buried and never used for years.

Now it has surfaced as sort of a new program from Metro Louisville.

If you are a rehabber or ever intend to purchase a fixer upper in Louisville, you must attend this meeting with Jim Mimms and his experts.

Jim will have a short presentation and will be answering questions from KREIA members AT THE END OF HIS PRESENTATION. I wrote this article to help you get some insight into this powerful meeting on Thursday. My personal opinions are obviously reflected in this article and my opinions are not intended to be the voice of the KREIA Board.

– Mike Butler

Copyright MMXIII Kentuckiana Real Estate Investors Association•PO17592 • Louisville, KY• (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.

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10 TIPS to Keep Tenant Repair Requests in Control Tenant repair and maintenance request can turn into a huge cash eating monster. You are placed in a “Catch 22” position. If you continue to do all repair requests as they come in, you will turn your once profitable rental into a money pit. On the other hand, if you fail, ignore, or drag out repair request, you can really put yourself in the trick bag because most landlord tenant laws allow the tenant to make repairs and deduct it from your rent. Section 8 will STOP PAYING RENT if your unit is not in compliance.

Here are 10 Tips to control maintenance and repair requests: 1. MUST – Document Every Repair Request. If possible, an online repair request form should be used to capture date and time and tenant’s exact words. Note the date and time when the request is received. If requests are taken over the phone, make a written note of the conversation in the tenant file. Repair requests need to contain enough information to determine how urgent the problem is and how to prioritize requests. A landlord or manager needs to know who to send in to fix the problem — and where to send them.

2. Respond Quickly Evaluate the urgency, and give the tenant an estimated time for the scheduled repair. If the request is a low priority, at the very least assure the tenant that the request has been noted and will be completed at a later date.

3. Follow Up Phone Call to Tenant: to verify the service has been completed and you get feedback on your service people.

4. Place All Documents in your file for the Tenant. Property owners need to flag tenants who are making too many requests, and at the same time, they may need to show the overall maintenance history on the property.

5. ACCESS to Property: It is highly recommended for single family home rentals to have a WRITTEN policy requiring your tenant to be home before service people can do the requested repairs. This removes all opportunity for accusations of theft and or damage to personal. Your entire service team and staff, including all licensed trades, must be briefed on your policies for service.

6. Get Tenant’s Signature and Date on your Work Order Form— that documents the tenant requested these items and they have been done in a timely, professional manner. We have our service people using mini-tablets allowing for a paperless system, just like your UPS or FedEx delivery people.

7. Do NOT Allow Tenants to Pile On Extra Tasks. Without training, your Tenants attempt to add on more tasks directly with the service person. Make sure your service people are trained to stay on task and refer all additional request to the office.

8. PHOTOS Before and After: all of our service people, both inhouse and licensed trades are trained to take before and after photos of service requested. When you start this, tenants will balk and complain. Once trained in your new “system,” it becomes routine and it does not bother them. Many benefits with these photos. You get to the see the condition of your property PLUS if this repair is tenant chargeable, you have photos to prove it.

9. Your Lease must spell out in detail the maintenance and repair responsibilities of both landlord and tenant. Keep records of any items that should come out of the tenant’s security deposit. Discuss these repairs with the tenant in advance to avoid legal disputes.

10. Work Order Queens and Kings: Should you discover you have a tenant who wants to be treated like a guest at the Ritz-Carlton, you have two choices. First, you if you believe they are trainable, you can a very serious heart to heart pow-wow. Second, if they are not trainable, go ahead and extend an invitation to help them find another home and do not renew their lease.

Get more details and advance training to increase cash flow and profit, reduce expenses, and get more time for YOUR LIFE! Mark Your Calendar Now for http://MikeButler.com ’s“3 Day LIVE Landlord Certification Training Workshop” at the Crowne Plaza Airport on Oct 11-13, 2013

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KREIA Meeting Coupons

Jan 12-19, 2014

Brand New “Invite A Friend To KREIA Program” allows YOU to attend your next meeting for FREE! How It Works: 1. At your next KREIA Meeting, go to the membership table and ask for 10 KREIA Business Cards.

2. You must sign the sheet showing how many KREIA Cards have been signed out by You. Most members will sign out 10 cards at a time; however, if you have an office or you expect to run into many investors in your line of work, you may request to get 25 cards (max) to display in your lobby, on your desk, etc.

3. IMMEDIATELY, while at the Membership Table, legibly PRINT Your Name on the backside of each card in the “Referred By:” field.

4. Now you can begin using the KREIA Business Card Program to get your next meeting for free.

5. Simply hand out your KREIA Cards (with your name already pre-printed on the backside) to folks who you feel would or could benefit from joining KREIA. The KREIA Card you give them allows real true “guests,” not former members who let their membership lapse, to attend a meeting for Only $10 – thanks to you. They will submit their $10 Meeting Coupon at the door and their card already has your name on the back.

6. When your guest turns in your card, joins KREIA and becomes a member, you will get your next meeting absolutely Free. This is not ANY meeting, or meeting of your choice, but the next monthly meeting following the month your guest joins KREIA.

What Are You Waiting For? Get Going Now! Sign Out at least 10 KREIA Business Cards on Thursday and let’s get KREIA to be THE MEETING of the Month for all local real estate investors!

http://GreatInvestorCruise.com Copyright MMXIII Kentuckiana Real Estate Investors Association•PO17592 • Louisville, KY• (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.

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Government Affairs Update Rue McFarland 502.897-6060 ruemac@bellsouth.net Reprinted with permission from GLAR Greater Louisville Association of REALTORS Government Affairs Update August 9th, 2013 Louisville Metro Government 1. The Louisville Metro Council, as mentioned in previous reports, introduced an ordinance in the fall of 2012 dealing with registration requirements for vacant and abandoned properties. GLAR was approached by the sponsor of the bill and the Mayor’s office to discuss expanding this registration to other properties that are vacant and abandoned. GLAR leadership met with Mr. Schreck and relayed concerns with the ordinance as written and gave feedback on the whole issue of vacant and abandoned properties from GLAR members’ perspectives. The outcome of the meeting was that some members of GLAR were going to go through the ordinance in detail to highlight areas of concern and get back with Mr. Schreck in July. This meeting is still currently being scheduled.

2. Louisville Mayor Greg Fischer will hold his second VAPSTAT, Vacant & Abandoned Property Statistics, meeting on August 23rd at 5:00 PM at the Louisville Free Public Library.

3. The Louisville Metro Council continues to review the Land Development Code revisions brought to them by the Land Development Code Taskforce. GLAR is actively participating in the various subcommittees dealing with design review process, fair and affordable housing and others. The first set of proposed revisions has been passed at this week’s Metro Council meeting. The second set of proposed revisions is still being finalized by the full committee and will continue throughout the summer. GLAR continues to actively participate and follow these revisions. This process will continue throughout the year.

4. Mayor Greg Fischer this week presented to Metro Council an ordinance that keeps the Metro Government real estate tax at the same level it has been since he took office in 2011.

“Louisville has, like most cities, faced serious fiscal challenges in the past few years,” Mayor Fischer said.

“But I have remained determined to fix our structural budget issues by finding efficiencies, by cutting waste, by using technology, and by fostering economic growth.”

The Metro Government real estate tax for residents outside the Urban Services District remains at 12.55 cents per every 100 dollars of assessed valuation. The rate for those inside the Urban Services District is 49.21 cents .

Scan with Your Cell Phone To Register Now!

Your Business Card Would Look

Mah-Vuh-Lus Right Here!

Go To KREIA.com Copyright MMXIII Kentuckiana Real Estate Investors Association•PO17592 • Louisville, KY• (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.

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Copyright MMXIII Kentuckiana Real Estate Investors Association•PO17592 • Louisville, KY• (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.

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KREIA.com Member Update Call 502.896.2595 Your KREIA.com website is always striving to make things simpler for you. Now you can review and update your contact info and Newsletter Mailing Address when you log in.

3 Day LIVE Landlord Training Boot Camp Oct 11-13, 2013 Louisville, KY KREIA Discount - Call 502-896-2595 Copyright MMXIII Kentuckiana Real Estate Investors Association•PO17592 • Louisville, KY• (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.

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Welcome NEW Members!

Eric George email: kypropertysolutions@gmail.com cell: 502-509-5535 referred by: Online search Member since: 2008 Why did you join: When I first moved to Louisville I knew I wanted to start investing in real estate, but needed advice on where to buy and what to buy. KREIA was the perfect group to help me get up and running!

Short Bio: Graduated from IU's Kelley School of Business in '03 with a double major in marketing & entrepreneurship. Helped run two family businesses in the insurance restoration and insulation industries from '04'08. Started The Building Performance Group in May '08 and BlueGreen Properties in '09 and manage both companies to this day. Married to Christina George in 2010 and had daughter Ava in November 2011. Love basketball, football, auto racing, home improvements, music, and spending time outdoors!

Involved in: We primarily focus on renting to college students and rehab older houses near U of L and Bellarmine College. Also fix and flip 3-5 single family homes each year.

Grow Up To Be: Goal is 20-30 student rentals in next 10 years and enough passive income to retire by age 50 (if I want to).

How has KREIA Helped You: Networking with other highlevel investors, learning new investing techniques and strategies, asset protection and proper financial accounting. Finding good educational material both locally and nationally.

Read Newsletter: YES! Newsletter Preference: Online Biggest Tip: Don't be shy! Talk to as many people as you can at KREIA meetings and build your network of people and resources!

Most Memorable Moment: The presentation I did at KREIA for the main meeting with The Energy Pro's in March 2013. Had a great response from the crowd and received a lot of great compliments!

Scott Hampton Mary Pugh Jerilyn Phipeny Dave Slaughter David C DeKold

Rosemary Hatcher Pam Leavell James Kelley J Schenckenfelder Craig Jennings

Eric currently serves on KREIA’s Board and “gives back” to KREIA with a boatload of behind the scenes volunteer hours.

Submit Your “Member Spotlight” online 24/7 at KREIA.com

Rick Wardlow, Joe Gribbins, Allee Harmon, Bill Dollinger, Frank Miller Call 502-489-5515

http://wardlowauc.com

Copyright MMXIII Kentuckiana Real Estate Investors Association•PO17592 • Louisville, KY• (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.

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7 MUSTS BEFORE YOU HIRE A CONTRACTOR How can you and your fellow investors protect yourself from shady contractors?

When I got started years ago, I graduated from the very expensive “School of Hard Knocks” when dealing with contractors. They promise the moon and they can not find Shively.

Follow these simple rules and you will increase your odds of not getting ripped off.

1. MUST Ask for Referrals: not retail customer and homeowner referrals, but have them rattle off a list of investors or “real estate people” they have done repeated jobs. Ideally, you want to give you a name of an investor you know, but never let them know you are friends with this person. (Now you can call their reference, the investor you know and get the real scoop on them) 2. MUST Ask What They Charge for Labor? You will get labor rates from $8.00 to $300 or more per hour. This has no reflection on the quality or timely-ness of their work.

3. MUST Get Their Certificate of Insurance: use caution here, many “Today We Do Windows” simply use white-out and enter their dates. This can be done fast and easy in photo shop and other free computer programs. The key for you is to call the Insurance Agent involved and ask them to email you their insurance certificate. Some trades have very huge workers compensation policies such as roofers and tree service.

4. NEVER Meet Them At A Property for an ESTIMATE: Rule #1 You Always Get A Price, NOT an Estimate. Rule #2 – Your time is precious and valuable. Do NOT waste by driving all over town meeting a contractor for a price. Use the “vacant, 3 bedroom brick ranch, 1000 square feet, paint everything – woodwork, ceilings, walls with one color “ Have them give you a price on the phone, then ask them how long it will take them to complete.

5. NEVER Get Involved In A DRAW! DRAWS are for politicians and those old folks who got into gun fights. You are NOT in a gun fight. NEVER Draw! In fact, if you hear this word, RUN! A huge Red Flag.

6. NEVER Give Them Access to Your Credit Cards or Accounts: It’s best to have them provide materials, but worst case scenario, you can call in your material list to Home Depot, Lowe’s or your paint store and have your contractor pick it up at the store. NEVER deliver supplies to your job site.

7. ALWAYS Get Them to Sign Your Independent Contractor Agreement: Many investors complain they can not get them to sign their IC agreement. How can you get them to sign your IC agreement? Simple, it must be completed and signed BEFORE they can get your check. Amazing!

I hope these simple steps help keep you from getting yourself jackpotted. Make your investing life easier and more profitable by registering now for http://MikeButler.com ‘s 3 Day LIVE Landlord Certification Training Workshop Oct 11-13 - Mike Butler

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PO Box 17592 Louisville, KY 40217 Return Service Requested

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KREIA’s Monthly Meeting! Thursday Aug 22nd

METRO’S “DEVELOPERS AGREEMENT” GREAT NEWS FOR REHABBERS! Jim Mimms and Experts from Metro’s IPL Pre-Pay Online with Express Pay PRE-Meeting: “Habitat Restore” Discounts and Coupons Habitat Restore