1306 kreia newsletter june 2013

Vol 13-06

President’s Letter page 1

Rehab Queen Robyn Thompson page 3,5,6

Wealth Blue Print page 3

Saturday Seminar June 29th 9am-4pm Wildwood Country Club Page 6

VOTE! VOTE! page 7

Member Spotlight Hank Schildknecht page 9

Event Calendar page 9

Welcome New Members!

Page 9

Pre-Pay Monthly Meeting with EXPRESS PAY! page 4

Monthly Newsletter for KREIA Members Special Message from Your President This is my last president’s letter, I would like to take this opportunity to review how much has been accomplished in KREIA in the past 2 years . I feel very privileged to have been a part of this era of our club’s evolvement into such a self-sustaining, well oiled machine. The wonderful and hard working board members and officers have made my job as president a breeze.

I’m not sure how much the general members of Kreia realize how much work had to go into getting the organization back in order after taking the reins back from the management company we had running things. There was much work involved in getting the financial books straightened out and also the roster of all members. Dennis worked many hours doing this. Aru Tarr was also a major contributor to getting things so organized it is mind boggling. The books are now up to date and financial statements current because of the talents of your Treasurer and CPA Mike Grinnan.

After we got all that straightened out, Mike Butler was ready to present the brand new web site he designed and implemented. What a website it is! He has also streamlined the process of everything that requires the exchange of money. We can do everything online now from paying for the monthly meeting or signing up for an upcoming seminar, to getting important notifications.

Eric George has volunteered for everything that comes up and has been making our presence on Facebook known. He has monitored that and reports back to the board.

Jean Hall has taken the ball and run with coordinating all the LOTS and social happenings, and has implemented some new social functions as well.

Dan Jones has made some behind the scenes contributions too with our new member spotlight article in the newsletter and spent many hours on our new comprehensive guideline of all the board positions.

Rue McFarland as usual keeps up with all the government issues that could affect us and coordinates with our lobbyist who coordinates with the local representatives who attend LOTS to see what Kreia is doing for our community.

Hank Schildknecht keeps us in line from a legal stance, making sure the club runs true to Robert’s Rules of order. He also makes sure the elections happen every year.

Chris McCarty makes sure the minutes are recorded and keeps us informed.

He offers important opinions at every meeting and will step up for volunteering where needed.

Frank and Duffy Ford make sure everything in the room at the monthly meeting is set up with the latest implementations the board has voted on and they coordinate the 50/50 raffle.

George Foree takes care of the new members and is always there to work a seminar.

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 Connie Horsey

Vice President Dennis Erhard

Secretary Treasurer Treasurer Elect Chris McCarty Mike Grinnan CPA Aru Tarr

Board of Directors

Mike Butler

George Foree

Linda Brun

Duffy Ford

Eric George

Dan Jones

Jean Hall

Jay Long

Mark Hass

Rue McFarland

Frank Miller

Dick Vreeland

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

Immediate Past President Mark Schaffer

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.

2

The Wealth Blue Print to Running Your Real Estate Business Like a Business Featured Speaker – “Rehab Queen” Robyn Thompson Do you have doubts about being a real estate investor? Are you scared to make offers because you are afraid of making a mistake that could cost you tens of thousands of dollars? Are you having a hard time finding the time to grow your real estate business? If you answered yes to any of these questions then take the time to read this news article carefully.

My name is Robyn Thompson and I have been investing in properties for over 15 years. I have bought, renovated and sold 339 houses. I started my real estate business with $500 and I had to learn how to run a business like a business not a hobby.

I learned a long time ago that successful real estate investors do things -->> Continued from Page 1 differently than the amateurs. I am going to give seven habits that all Mark Hass, Dick Vreeland, and Jay Long are 7 figure real estate investors possess:

always there to offer help where needed and offer their expertise in all matters that come up.

So as you can see there is a lot of work that goes into this club and these people sure make me look good as president. It has been my privilege to call myself president of this association. and this group of people. I have held just about every other position in the club and I am proud to now soon be an ex-president.

The real estate industry itself has gone through many changes since I started investing in 1999. We all have weathered the ups and downs of it and as the club has improved, so has the economy. We have no where to go but up. The sky is the limit on what you can accomplish as a real estate investing club and in helping our members succeed.

The event of the year that you absolutely cannot miss is the next meeting and all day Saturday seminar with Robyn Thompson, the rehab queen. Get on line right now and reserve your spot for this national speaker who is both entertaining and extremely knowledgeable with her proven program of finding deals and fixing up for profit. See you there!!

Happy and successful investing!

Connie Horsey, President P.S. Please take photos with your cell phone, email to News@KREIA.com Pre-Pay to safeguard your seat at your next KREIA meeting

1) All serious business owners who make over 7 figures focus on marketing WEEKLY. We take marketing as serious as a heart attack because wealthy business owner know that marketing = revenue. No marketing means No profits. All you need to do to raise your income is make an appointment with yourself and put it on your calendar for one hour a week to focus on marketing to attract desperate sellers.

One measly hour a week without interruptions is all it takes to up your income by massive amounts. During the hour, you call realtors, order “We Buy Houses for Cash” signs for your car, execute direct mail campaign to out of state owners, landlords in the middle of evictions or attorneys who have desperate clients who need to sell and put an ad in the newspaper in the real estate wanted section.

2) The second step is to execute the marketing. The signs must be put on the car, the direct mail list of out of state owners must be bought and you must write a simple one page letter telling the desperate seller that you want to buy their house. The envelopes must be stuffed, addressed and mailed. The ads for the newspaper need to be placed.

You must call the top producing realtors and tell them you want to buy several properties.

3) All serious business owners know that you must quickly handle the incoming calls. Answer them LIVE! No answering machine.

Approximately 60% of the desperate sellers will hang up if they do not get a live person on the phone. When you realize that any one of the hang ups could be a $25,000 check or more you will pick up the phone and not let it go to voice mail. Better yet, get someone else to answer it 24 hours a day. I use www.patlive.com to answer the calls and take down all the critical information about the home. They email me all the important facts within minutes and then my secretary eliminates all the bad deals and no deals.

Continued on Page 5 ----->>>>

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.

3

KREIA Meeting Coupons

You Can “Pre-Pay” for Monthly Meetings!

Your Benefits when you “Pre-Pay” online:

Paid receipt auto-emailed to you for your records

NO Waiting in Line at the Door!

Use EXPRESS Lane and say your name

Your Name Tag Ready and waiting for you

Special Door Prize limited to only those who “PrePaid” their meeting registration.

FAST, Simple, and Easy!

Pre-Pay Now at KREIA.com

KREIA Needs Your Help!

Helpers Needed!

Registration Table Staff Photographers Advertisers’ Liason Monthly Meeting Set Up Please See Dennis Erhard or Connie

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!

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.

4

June Speaker with Saturday Workshop, June 29 – Register Now!

“Queen of Rehab”

Robyn Thompson

The Wealth Blue Print ----- > Continued from page 3 She will eliminate all the tiny houses under 1000 square feet, as well as the rough neighborhoods with high crime. I also don’t like busy streets, train tracks or power lines directly behind the house, or functionally obsolete floor plans.

4) Get 4 rock solid sold comparables so you know exactly what the home will be worth when you get it renovated.

All successful real estate investors do their homework thoroughly before they construct an offer to buy. Look at your exit before you enter. Make sure you are buying houses that 85% of the buyers want to call home. The home must appeal to the majority not the minority.

You will need 4 very similar sold properties to determine an accurate price for your new property. The sold comparables must be in close proximity, same style of house, no more than +-10% in the square footage, and the same number of bedrooms as the house you’re looking to buy.

If I can’t find 4 sold properties in the past 180 days or less then I walk away from the house. Yes that is right. Walk away! Do not gamble with your hard earned money!!!! All serious business owners know when to walk away. Never get emotional about any deal. There are millions to buy and tons of desperate sellers.

5) Compile a detailed list of repairs before you close and make sure your budget includes $7000 - $10,000 for WOW, sexy sizzle features that will make your house drop dead gorgeous. Your reputation is your most valuable asset you have in business. You always want your house to be in the top 1-2% of the houses for sale. If your home beats all the competitors hands down then it will sell in days not weeks or months.

Carrying cost can eat a business alive by eroding profits quickly. A successful real estate investor prepares a detailed scope of work that lists all brands and sku #’s of the materials you demand. This list is provided to the contractors several weeks before closing. All contractors should quickly prepare their estimates and proposals so you

can make your final selections before closing. All contractors should be ready to start the renovation process the minute you close.

6) A serious business owner is always watching the construction process closely because there are three factors that will make your project a complete success or a total failure. They are time, quality, and price. Great contractors will renovate the house quickly for the fixed price that was agreed and never sacrifice quality of their workmanship. Many beginning investors cut corners and only worry about price. They end up with a construction project that takes months to finish and quality is mediocre at best. They lose thousands of dollars on carrying costs and end up with a house that won’t sell so they are stuck renting it.

Writing big checks to buy and fix and getting little rent checks in return will put you out of business quick.

7) Last but not least all serious real estate investors who make 7 figures never take their eyes off the selling machine. We know to hire the best and pay them well. You never step over the dollars to get to the dimes. I hire the top producing selling realtors to sell my homes and I pay them 4.5% for commission not 3%. Most top producing selling realtors have 5+ approved buyers that they are showing houses to at all times.

If you have a house that the majority of buyers want to live in and you made it drop dead gorgeous so it is the best house for the price, the top selling realtors will get the house sold fast. They are extremely motivated to sell it when the commission is 150% higher than all the other properties in the MLS. In closing, I look forward to seeing you Thursday night and your Saturday Full Day Seminar on June 29th at the Wildwood Country Club on Bardstown Rd.

Robyn Thompson Register Now 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.

5

Saturday Workshop, June 29 – Register Now!

Saturday Workshop!

June 29th, 2013 with “Rehab Queen” Robyn Thompson

Learn How to Turn Foreclosures, Estate Sales and Ugly Houses into Fast Cash!

Robyn is the nation’s leading expert on buying properties at deep discounts, renovating them at lightning speed and selling them quickly for huge chunks of cash. Robyn has shared her knowledge with thousands of real estate investors. She is coming to KREIA to teach cutting edge strategies that will produce huge profits for you in today’s market.

Robyn has rehabbed 303 properties in her 13 years of investing and the majority of her profits were made on properties that were in a depressed market. She will instruct you on, Her Buying Machine Where to Find Properties to Rehab for Huge Profit The 9 Types of Houses to Never Buy The Rehab Process Locating and Hiring the Best Contractors to Get the Job Done Prescreening & Controlling The 8 Contractors on A Dream Team The Magic Buying Formula to Ensure Huge Profits The 3 Critical Steps to Selling Houses in a Down Market The 21 Critical “WOW” Factors to Make the Home Sell 8 Marketing Strategies to Attract “A” Credit Buyers How to Prescreen Buyers in 4 Minutes to Make Sure They Qualify for a Loan As you can see this will be a knowledge packed day full of excitement and education. This is one of the “You Can NOT Miss Saturday Seminars of the Year!” We look forward to seeing you at this great event.

Register Now BEFORE It’s SOLD OUT! Includes HOT Buffet Style Lunch!

LOCATION: Wildwood Country Club – NOT Woodhaven!

Scan with Your Cell Phone To Register Now!

5000 Bardstown Rd. Louisville, KY 40291

TIME: Doors Open: 8:30am – Class 9am-4pm

Register Online DISCOUNT: Active Members Only $49 or 2 for $79 Guest: Only $99 Click Here - > http://kreiarobyn.eventbrite.com

Register Pay by Check: Active Members Only $59 or 2 for $89 Guests $99 WARNING: This Saturday Workshop will Sell Out! Room Size is LIMITED to 70 Attendees

Robyn consistently packs the house with over 100 students in her Saturday Workshops.

Register Now to Reserve Your Seat…. Snooze You Lose!

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.

6

Election Update Please see below a sample ballot for the KREIA 2013 elections, which will take place at the June 27th meeting. Voting will take place between 5:30 and 7:00pm, close to the front registration desk.

Your newly elected officers will be sworn in at the July 25th meeting.

ABSENTEE BALLOTS: The Board will accept absentee ballots for 2013: A member of KREIA whose dues are current and who cannot make the June meeting may vote by absentee ballot. You may do so by contacting Henry Schildknecht at the address below, and requesting in writing a ballot. A ballot will be forwarded to you, which must be returned to his office by 4:00 pm on Thursday, 27th, 2013. Absentee ballots will be counted along with the rest of the ballots after the polls close at 7:00 pm.

A listing of those that requested an absentee ballot will be maintained, but all ballots will be held in strict confidence Henry Schildknecht, Chairman of the Election Committee, (502) 893-4494, (502) 893-4495 Fax, hankatty@gmail.com

SAMPLE BALLOT

Rick Wardlow, Joe Gribbins, Allee Harmon, Bill Dollinger, Frank Miller

Call 502-489-5515 http://wardlowauc.com

7

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 Treas

How are vacation homesCall taxed?

502.896.2595

By J. Michael Grinnan CPA Vacation homes offer owners many tax breaks similar to those for primary residences. Vacation homes also offer owners the opportunity to earn tax-advantaged and even tax-free income from a certain level of rental income. The value of vacation homes are also on the rise again, offering an investment side to ownership that can ultimately be realized at a beneficial long-term capital gains rate.

Homeowners can deduct mortgage interest they pay on up to $1 million of "acquisition indebtedness" incurred to buy their primary residence and one additional residence. If their total mortgage indebtedness exceeds $1 million, they can still deduct the interest they pay on their first $1 million. If one mortgage carries a substantially higher rate than the second, it makes sense to deduct the higher interest first to maximize deductions.

Vacation homeowners don't need to buy an actual house (or even a condominium) to take advantage of secondhome mortgage interest deductions. They can deduct interest they pay on a loan secured by a timeshare, yacht, or motor home so long as it includes sleeping, cooking, and toilet facilities.

Capital gain on vacation properties. Gains from selling a vacation home are generally taxed as long-term capital gains on Schedule D. As with a primary residence, basis includes the property's contract price (including any mortgage assumed or taken "subject to"), nondeductible closing costs (title insurance and fees, surveys and recording fees, transfer taxes, etc.), and improvements.

"Adjusted proceeds" include the property's sale price, minus expenses of sale (real estate commissions, title fees, etc.). The maximum tax on capital gain is now 20 percent, with an additional 3.8 percent net investment tax depending upon income level. There's no separate exclusion that applies when selling a vacation home as there is up to $500,000 for a primary residence.

Vacation home rentals. Many vacation home owners rent those homes to draw income and help finance the cost of owning the home. These rentals are taxed under one of three sets of rules depending on how long the homeowner rents the property.

1.Income from rentals totaling not more than 14 days per year is nontaxable.

2.Income from rentals totaling more than 14 days per year is taxable and is generally reported on Schedule E of Form 1040. Homeowners who rent their properties for more than 14 days can deduct a portion of their mortgage interest, property taxes, maintenance, utilities, and other expenses to offset that income. That deduction depends on how many days they use the residence personally versus how many days they rent it.

3.Owners who use their home personally for less than 14 days and less than 10% of the total rental days can treat the property as true "rental" property, which entitled them to a greater number of deductions.

8

Welcome NEW Members!

Welcome

NEW Members!

Hank Schildknecht email: <Hankatty@gmail.com> cell: 502-893-4494 referred by: Ed Melton Member since: 1988

Gene F. Braun Thomas Maher Josh Plummer

Jae Svoboda John Hines

Why did you join: Hank joined Kreia to connect with real estate investors, learn more about real estate investing and provide legal aid and leadership to the club.

Short Bio: Hank has been a member of Kreia for over 25 years, and has served on the board of directors for 19 of those years, currently serving as parliamentarian. He is an attorney at law, specializing in real estate. He has helped many Kreia members with their real estate transactions, evictions, foreclosures, closings, and any other real estate problems they have had. As president, he created the committee structure which Kreia still uses today by which the board efficiently runs our club. He also advises the club on legal matters. Hank has been the standing chairman of the Election Committee for many years. A past recipient of the Ed Melton Award, he organizes the annual gathering of former honorees to select that year's recipient.

Involved in: Hank has a lifetime experience in real estate, both as an investor and a legal advisor. He and his wife, Martha, own single family rental homes in St. Matthews and Crescent Hill. Hank has also taught real estate law for paralegals at the University of Louisville, conducted seminars for Kreia events, and was one of the instructors of the Kreia Mentor Program. He keeps Kreia members current on new developments in real estate law by writing articles for the newsletter and presenting pre-meetings on pertinent topics. The recent court opinion concerning landlord liability when a tenant's dog bites someone was the most recent topic.

Grow Up To Be: Hank and Martha have two grown children and four grandchildren whom they get to spend time with every week. Hank also enjoys tennis, baseball, Kentucky history and political history, and was a voting member of the Electoral College of the United States for the 1980 Presidential election, proudly casting his vote for Ronald Reagan.

Read Newsletter: YES! Newsletter Preference: Hard Copy Thanks, Dan Jones

Habitat ReStore sells items that have been donated by homeowners, professional remodelers, building supply firms, retailers, manufacturers, and commercial and residential builders. Our goal is to create a sustainable income stream for Habitat for Humanity of Metro Louisville while making a positive environmental impact by diverting these otherwise useful items from the landfill. http://www.louisvillerestore.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.

9

10

KREIA Members In Action!

11

PO Box 17592 Louisville, KY 40217 Return Service Requested

.com

KREIA’s Monthly Meeting! Thursday June 27th

“Rehab Queen” – Robyn Thompson National Speaker and Trainer + SATURDAY WORKSHOP! Only 70 Seats Available for Saturday – RESERVE Your Seat NOW! PRE-Meeting:

HUD Homes – How to Make Offers Properly Mark Hass and Debbie Richardson