13 10 kreia newsletter oct 2013web

Vol 13-10

President’s Letter page 1

October Meeting How To Use Your Self Directed ROTH IRA to Invest in Real Estate Tom Hennigan page 3

5:30 Pre-Meeting

Loans for Investors Doug Miles 1st Bank of Carrolton

LOTS Program 8601 Blossom Rd.

Welcome New Members!

Page 7

Saturday Workshop!

How To Use Your Self Directed ROTH IRA to Invest in Real Estate & Notes Rue McFarland, Chris McCarty Attorney Harry Borders Rod Owens Carl Fischer, Cama Plan

Only $49 for Members 2/$79 Guest $99 Includes Hot Lunch Page 5

Monthly Newsletter for KREIA Members

President’s Message Hello Fellow KREIA MEMBERS. A Big Thanks to your September meeting speaker Scott Meyers. The response to Self-Storage Dennis Erhard Acquisition was overwhelming.

Make sure you use the Xpress lane this month. There’s going to be a line at the door!!!! And don’t forget the Xpress lane drawling!!!

You could be our next lucky winner.

There are lots of reasons to pay close attention to this month’s speaker Tom Hennigan from San Antonio, Texas. He’s not holding his hand out or even selling ANYTHING!!! Tom is the founder of National REIA, New Orleans REIA, and AlamoREIA.com. Tom has not only one rags to riches story, but two. If you are a serious investor, this is a must attend KREIA meeting.

Do you want to learn how Tom makes six figures using his SelfDirected Roth I.R.A.? By the way IT’S TAX FREE FOREVER!!!

He’ll be talking about dos and maybe some don’ts. Tax FREE income for life. If you miss this meeting you’re missing the boat!!

PLUS, you get a full day Saturday Seminar, filled with Local Investors and maybe a Guest or two whom will share deals they have done in their Self-Directed Roth I.R.A. This class will sell out!

Don’t miss the Boat!!! Seats are LIMITED!!!!

See You There at the Saturday Seminar Your President Dennis Erhard Quote of the month: “Formal education will make you a living; self-education will make you a fortune.”

Jim Rohn

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 and to 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!

-----------------------------------------------------

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 Tom Hennigan – successful investor

How To Use Your ROTH IRA to Invest in Real Estate & Notes Tax Free Income & Profit for Life!

KREIA is very lucky to get Tom Hennigan to share his knowledge about how to use your Self Directed ROTH IRA to invest in real estate and notes and mortgages.

Tom is NOT a national speaker and he is not selling anything – no books, courses, or boot camps. Just rock solid, straight from the heart real world information for today’s real estate investor, just like you and me.

How did Tom agree to speak at your KREIA Meeting?

This weekend, Tom had already made plans to travel to Cincinnati for a National REIA Board meeting. Tom Hennigan is the founder of National REIA and stills serves on the board today. While in Cinci, your KREIA leaders twisted his arm and he agreed to drive down to Louisville to speak Thursday evening.

Tom Hennigan also founded New Orleans REIA years ago and after Hurricane Katrina wiped out New Orleans, Tom and his wife Peggy moved to San Antonio to be closer to his son and grandchildren. While in San Antonio, Tom also founded AlamoREIA.com for local investors and he is the President of Alamo REIA. As you can tell, Tom is very passionate about helping new investors learn the right way, the safe way to become successful investors. You might say REIA groups are Tom’s passion and hobby.

You will not get a pep-rally, high spirited, life is wonderful and everything is easy in the world of real estate investing. In fact, Tom is not going to give you one “rags to riches” success story, but he is going to give you TWO “Rags to Riches” stories about his real estate investing career.

Tom has been investing in real estate for decades. Tom will share from his heart, his experiences of surviving and losing to market trends and changes in tax laws.

After building an empire before the 1986 tax law change, Tom got clobbered and pretty much lost everything around 1989-1990. Dead broke, back to ground zero, Tom did not give up. He did it all over again, much wiser, and a lot more successful. Tom gives banks a lot of blame to his demise of his first career.

Pay close attention to Tom’s words of wisdom

regarding banks.

After launching his second investing career, Tom used his “School of Hard Knocks” experience to create an empire with minimal risk, effort, and maximum profit.

Tom Hennigan is going to show you how he took action on creating his Tax Free Income and Profit for Life plan as a key component of his second career investing.

Today, Tom enjoys playing golf almost every day, having cookouts with his son and grandchildren, and traveling and vacationing his new bride, Mary Lou. (Peggy passed a few years ago from cancer). To prove to you Tom’s sincere and dedication to REIAs, Tom and his Mary Lou were married in San Juan, Puerto Rico on the annual National REIA Cruise earlier this year.

Who Should Listen to Tom Hennigan? New investors, intermediate, and the seasoned old pro should ALL join us Thursday evening for an evening of learning with Tom Hennigan.

MARK YOUR CALENDAR Right Now for Saturday, Oct 26th for KREIA’s Saturday Seminar on How to Use Your ROTH IRA to invest in real estate and notes. In-house, low key fly below the radar, IRA expert KREIA members will share real deals and more with you. Plus, during the last session of the workshop, you will have the opportunity to actually fill out a form or two and open your very own ROTH IRA. This means you can start doing deals in your ROTH IRA within 14 days giving you tax free profit and income for life!

Register Now to Reserve Your Seat for KREIA’s Saturday Workshop at Wildwood Country Club.

Doors Open 8:30am, Class 9am – 4pm Includes HOT Lunch Buffet!

Members ONLY $49 or 2 for $79 Guests are only $99 Register Online at http://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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New Rules For HUD Home Buyers Please take a moment to make sure you were aware of some new rules regarding homes owned by the Secretary of Housing an Urban Development (HUD).

Effective October 1, 2013, HUD is now allowing the Buyer's Agent to select the Closing Attorney to handle the closing for both the Buyer and the Seller (HUD).

As the Buyer's Agent, you must identify your Selected Closing Agent on line 9 of the HUD-9548 Sales Contract as well as complete the Buyer Select Closing Agent Addendum.

The Closing Agent will need to complete and execute their portion of the Buyer Select Closing Agent Addendum and execute this addendum.

When choosing Borders and Borders Attorneys as your Selected Closing Agent, please forward your Addendum to our Office Manager, Tonya Sivori tsivori@bordersandborders.com.

Tonya will complete, execute, and then forward back to you via email so you can submit with your contract.

Each of the Asset Managers for Kentucky (Ofori & Associates, HomeTeleos & Pemco, Limited) have their own policies and procedures to follow and they will advise you of these upon the acceptance of your bid.

They will also forward to Borders and Borders Attorneys (your Selected Closing Agent) the policies and procedures they are to follow.

If you have any questions, please feel free to call our office at 502.894.9200 and we will be happy to help guide you in the right direction.

We look forward to working with you on your HUD closings and hope you choose Borders & Borders, Attorneys as YOUR Select Closing Agent.

How To Claim Bonus Depreciation in 2013 Bonus depreciation will expire for most taxpayers at the end of 2013 unless Congress extends the provision. A 50-percent bonus depreciation deduction (the "special first-year depreciation allowance") is allowed for the first year that qualifying property is placed in service. Bonus depreciation is available for property acquired after December 31, 2007 and acquired and placed in service only before January 1, 2014 (the "applicable period").

The 50-percent rate is also available for property acquired pursuant to a binding written contract entered into during the applicable period. Self-constructed property for the taxpayer's own use qualifies for bonus depreciation if the taxpayer begins manufacturing, constructing or producing the property during the applicable period. In addition, the 50-percent rate is extended one year, to property acquired and placed in service before January 1, 2015, for property with a longer production period and for aircraft. Unlike the Code Sec. 179 expensing allowance, there is no limit on the overall amount of bonus depreciation that may be claimed.

The bonus depreciation rate was 100 percent for qualified property acquired after September 8, 2010 and before January 1, 2012, and placed in service before January 1, 2012. A special election is available under Rev. Proc. 2011-26 for taxpayers that want to claim 50-percent bonus depreciation instead of the 100percent rate available in the latter part of 2010 and in 2011.

Qualifying property is property depreciable under MACRS (the Modified Accelerated Cost Recovery System) that has a recovery period of 20 years or less, or is MACRS water utility property, computer software depreciable over three years, or qualified leasehold improvement property. The property must be new property, and its original use must start with the taxpayer during the applicable period. Property is acquired when the taxpayer takes possession or control of the property and has the risk of loss. Property is placed in service when it is in a condition or state of readiness and availability for a specifically assigned function in a trade or business, or for the production of income.

Election Out: A taxpayer must claim bonus depreciation unless the taxpayer elects not to take any additional first year depreciation. This "election out" applies to all property in the class or classes for which the election is made, and that is placed in service for the tax year of the election. The election out may be revoked only with the IRS's consent.

The election must be made by the due date (including extensions) of the tax return for the year in which the property is placed in service. Form 4562 provides instructions for making the election.

The taxpayer must attach a statement to the return that indicates the property class for which the election is being made.

Harry Borders Borders & Borders Attorneys 502.894.9200 P.S. This month’s meeting on How To Use Your Self Directed ROTH IRA to invest in real estate and notes is a must attend learning event for ALL investors. You should have a self directed ROTH IRA for yourself, spouse, and every child. Join us at the Saturday Seminar at the Wildwood Country Club where I will show you how simple it is to buy real estate with your self directed Roth IRA.

If and only to the extent that this publication contains contributions from tax professionals who are subject to the rules of professional conduct set forth in Circular 230, as promulgated by the United States Department of the Treasury, the publisher, on behalf of those contributors, hereby states that any U.S. federal tax advice that is contained in such contributions was not intended or written to be used by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer by the Internal Revenue Service, and it cannot be used by any taxpayer for such purpose.

J. Michael Grinnan CPA

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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Saturday Workshop!

HOW TO USE

YOUR SELF DIRECTED ROTH IRA TO INVEST IN REAL ESTATE & NOTES TAX FREE PROFIT AND INCOME FOR LIFE! DOORS OPEN 8:30AM CLASS 9AM-4PM

SATURDAY, OCT 26TH WILDWOOD COUNTRY CLUB, 5000 BARDSTOWN RD. LOUISVILLE, KY 40291

INSTRUCTORS:      

INCLUDES HOT LUNCH BUFFET!

RUE MCFARLAND ATTORNEY HARRY BORDERS CHRIS MCCARTY ROD OWENS MIKE BUTLER CARL FISCHER OF CAMAPLAN

MEMBERS

Here’s What You Will See and Learn:  KREIA Members in Action Doing Deals  54 year old with no IRA, puts a Million Dollar Deal in His ROTH IRA  How to Write Your Offer for IRA Deal  What to Expect at the Closing  You will get to open your very own Self Directed ROTH IRA in the last session

ONLY $49 2/$79

GUEST ONLY $99

https://rothiraworkshop.eventbrite.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

By Rue McFarland From Greater Louisville Association or Realtors October 11th, 2013

Louisville Metro Government

NO MEETING

In November Happy Thanksgiving!

1. 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 by the Metro Council. The second set of proposed revisions is still being finalized by the full committee and will continue throughout the fall. GLAR continues to actively participate an d follow these revisions. This process will continue throughout the year. Currently, the Fair and Affordable Housing committee is presenting its recommendations.

2. As mentioned in previous reports, Louisville Metro Mayor Greg Fischer contracted with a consultant, RKG Associates, to review the issue of vacant and abandoned properties (VAP) in Louisville Metro. At the last Louisville Metro Council Ad Hoc Committee on Vacant Properties on October 10th, RKG Associates, Inc. presented their findings from their study of Louisville's vacant and abandoned properties. This presentation included short and long term recommendations to support neighborhood revitalization and eliminate the VAP problem. In summary, the report suggested to work on “transitional areas” for redevelopment in order to stop those areas from tip ping into negative. Potential priority transitional areas included all parts of Louisville Metro, urban and suburban. One of the key aspects of the recommendations is to leverage public funds to encourage private investments in these areas. The full report has not been released on the Metro Council website, but will be included in next week’s update.

3. Councilman James Peden on Thursday night introduced an ordinance that would require the Planning Commission and staff to review the appropriate zoning for several types of commercial uses. These commercial land uses include pawn shops, plasma centers, package liquor stores, check cashing businesses, and others. This review by the Planning Commission is to look at whether under the current code these types of commercial businesses are being located in proper zoning districts. To review the ordinance, please see the following link: http://agendas.louisvilleky.gov/SIREPub/cache/2/x34lujczvp2fpka05e020ztn/8116131014201308273085.PDF

NO MEETING

In November Happy Thanksgiving!

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 to KREIA’s New Members!

Shana Dean Ronalda Rettinger Kenneth Yates Nancy Kennedy Aarica Ovide Melvin Weathers

Mya Neubauer Steve Basham Dominic Popowski Anita Commodore Kirk Bratton

NO MEETING

In November Happy Thanksgiving!

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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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 • PO 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.

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PO Box 17592 Louisville, KY 40217 Return Service Requested

.com

KREIA’s Monthly Meeting!

Thursday Oct 24th

HOW TO USE YOUR SELF DIRECTED ROTH IRA TO INVEST IN REAL ESTATE FOR TAX FREE PROFIT & INCOME Tom Hennigan – Superstart IRA Investor Expert Pre-Pay Online with Express Pay PRE-Meeting: First National Bank of Carrolton

Investor Loans with Doug Miles