1307 kreia newsletter july 2013

Vol 13-07

President’s Letter page 1

Experts Panel page 4

5:30 Pre-Meeting Structure Property Management

Monthly Newsletter for KREIA Members

Special Message from Your President Thanks to all the Board Members and officers whom have invested many hours of their time.

The efforts of the past two years prove again how dedicated all the volunteers are to KREIA. KREIA is the best place for local investors of any experience level to come and learn how to make money in Real Estate. Making friends with just one experienced investor can literally save you tens of thousands of dollars.

page 6

Installation of Elected Officers and Board Members

Having a network of friends at KREIA can propel you to a multi-million dollar net worth, in a very short time.

This month we have a group of experts from our very own town, who will answer some of these questions:  How do you find your deals?

Member Spotlight

Mike Daniel page 9

Event Calendar page 9

Welcome New Members!

Page 9

Pre-Pay Monthly Meeting with EXPRESS PAY! page 4

Give Back To KREIA! Volunteer Today!

 What does a good deal look like?  Where do you get your money?  What’s the fastest way to sell or rent your house?  Who taught you how to build your business?

Mark your calendar for the upcoming KREIA meeting for July 25, 2013.

Don’t forget to use the pre-pay express lane to qualify for the door prize. Last month Mike Butler gave away a Free Pass to his upcoming Land Lording boot camp! Wow Free Stuff.

Your President Dennis Erhard Quote of the Month: “Everyone is Ignorant, only on different subjects.” Will Rogers

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!)

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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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Feature Speakers “KREIA’s In House Panel of Experts!”

“INVESTING & MANAGING INCOME PRODUCING PROPERTIES & HOW TO PICK THEM! KREIA’s In House Panel of Experts – Eric George is Your Moderator Dan Jones is a long time member of KREIA and currently serves on the Board of Directors. Dan has helped many KREIA members over the years including his participation in the Mentoring Program. Dan has hosted KREIA’s LOTS programs and is very active in KREIA .

Dan has purchased investment properties at the courthouse, from individuals, banks, and just about anything you could imagine. Dan will share his years of experience along with the do’s and don’ts in the new market today.

Rue McFarland is one of the founders of KREIA and still serves on the Board today.

Rue McFarland is not only the past president of KREIA, but the past president of the Greater Louisville Association of Realtors, and is a CCIM. ( similar to PhD) Rue specializes in Single Family rentals, creative financing, the ROTH 401(k), ROTH IRAs, and private lending. Rue is very active in the Fuller Center, Home of the Innocents, and is an unsung hero for KREIA members with his passionate involvement on the government affairs committee protecting property owners rights. Rue was raised in Marion County, Kentucky and worked the assembly line at GE’s Appliance Park back in the 60’s. Rue is married to Carolyn, his high school sweetheart.

Dennis Erhard is your newly elected KREIA President. Dennis has served on your board for a number years and most recently as your Vice-President. Dennis specializes in residential investment property and rehabs. Dennis is the owner/founder of RoofWorxs, the region’s largest roofing company after making a decision in 2007 to blow the doors off his competition.

Fred Butler just recently elected to KREIA’s board of directors, is the owner of Syd No Photo Available

Property Management Company. Fred got started with KREIA years ago when the monthly meetings were at Masterson’s restaurant. (3rd & Cardinal – UofL dorms are there now.) Fred has previously served as Treasurer. Fred began his investing in single family homes and continues today. Fred also wholesales properties, does buy, fix up, and sell, and has plenty of rental properties.

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 Saturday Workshop with Robyn Thompson at Wildwood CC

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ARE HOME INSPECTIONS REALLY NECESSARY FOR REAL ESTATE INVESTORS?

By Sharon Vornholt Bigger Pockets Contributor & KREIA member Maybe, maybe not. While that may not seem like a good answer, it really depends on a number of factors. Most real estate investors get pretty good at assessing the condition of properties over time. This process is a lot tougher for those folks just starting out. One thing that I have found time and time again is that investors underestimate what it is going to cost to flip a property until they gain experience. Spending a couple hundred dollars on the front end can save you thousands down the road in some instances. Home inspectors cannot give repair estimates, but they can give you a list of the defects in the home. They are trained to find problems that may not be obvious to the untrained eye, and they can also let you know the seriousness of those items found during the inspection.

What special skills are needed?

Few people have the experience needed to determine the condition of a furnace and whether or not it is safe to use. If you are planning to keep the furnace in the property you are buying, my advice is to have it checked out by a professional, whether or not you have a complete home inspection. The same is true of the electrical system. You need a high level of knowledge to know whether or not the electrical system in a house is safe, and whether or not it meets today’s electrical needs. Failing to notice that the wiring and the panel box will need to be updated is a costly mistake; and it is a mistake most likely to be made by rookie investors.

If you overlook something where the plumbing is concerned. it will probably cost you some of your profit. But more than likely, the worst thing that will happen is someone or something will get wet. That’s not true of the furnace and electrical systems. If those systems are faulty, the house could burn down or someone could even die as a result of those types of problems.

Do you know what is required in your state?

For instance, in my state it is required that a water heater be installed by a professional (unless the owner is installing it in their home) and that it be inspected by the city/county code officials and display the green inspection sticker. The water heater must pass that inspection even if the homeowner installs it.

It’s important that you are knowledgeable about these types of things, because they will ultimately be pointed out when your end buyer has a home inspection. What if you are fixing up the property to rent it out? What do you suppose will happen with something major occurs in one of your houses

and a tenant is injured or becomes ill for instance from carbon monoxide? I can tell you with absolute certainty that you will be held to a higher standard in a court of law. This will be a case of “you should have known”.

A home inspector cannot do a code complaint inspection (only a code official can do those), but he or she will certainly know the codes for your area and will be able to advise you on whether or not a particular system meets the code. In most cases, they will also be able to point out safety concerns during the home inspection.

Are there some guidelines I can follow?

Yes there are. Here are 5 tips to help you make your decision on whether to get a home inspection: 1. Save your money on a home inspection if the house is a complete rehab and all of those major systems will be replaced.

2. If the major mechanical systems in the house have all been updated you may be able to skip a home inspection if you are an experienced real estate investor. Ask yourself if you have the skills to identify the other defects in the house. Is it a risk you are comfortable taking? We’re not talking about leaky faucets here, but defects that are more serious.

3. If you are just starting out, are you certain you can catch the signs of serious structural damage? They can be subtle and very hard to spot. Be especially vigilant when you are considering a house built on a hillside or fall away lot.

4. If you find that you are uncertain about the condition of the major systems in the property, it will probably be better and cheaper in the long run to get a complete home inspection. The inspector can tell you then whether or not you are going to need to address those systems with a professional.

5. Last but not least, remember that the purpose of a home inspection is to determine the condition of the major systems, and the safety and habitability of the home. It’s not to tell you things that are obvious like cosmetic concerns.

Having a home inspector on your team is just one more tool to pull out of the toolbox when you need it.

Sharon Vornholt has been investing in real estate since 1998, and is passionate about real estate investing, and teaching others to be successful real estate investors. Sharon’s articles are regularly featured on Bigger Pockets. Sharon Vornholt is a KREIA member

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VOLUNTEERS WANTED!  Registration Table Staff  Photographers  Advertisers’ Liason  Monthly Meeting Set Up  Please See Aru Tarr  Email News@KREIA.com

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.

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Government Affairs Update Rue McFarland 502.897-6060 ruemac@bellsouth.net Reprinted with permission from GLAR July 12th, 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. The sponsor of the bill and the Mayor’s office is looking at ways to obtain better ownership information on these properties if they are causing blight in the neighborhood. GLAR and its leadership met with Bill Schreck of Louisville Metro Inspections, Permits and Licenses, Pat Mulvihill, Mayor’s General Counsel, and Councilman Rick Blackwell on Monday May 6th at 10 am in City Hall. Bill Schreck introduced the issue and explained the frustration of Louisville Metro in having to continue to maintain vacant properties where there is not good info on the owner. Various options were presented on how to obtain better information. The real issue is what would be the trigger of when a vacant property has to be registered. Mr. Schreck explained he does not have an issue with the maintained properties that are vacant which led to the discussion around making the trigger to register when a code violation has occurred. Mr. Schreck and Louisville Metro sent to GLAR sample ordinances from other cities and his thoughts on what he would like to include in Louisville Metro’s. 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 currently being scheduled.

2. Louisville Mayor Greg Fischer held his second VAPSTAT, Vacant & Abandoned Property Statistics, meeting Tuesday July 4th at the Louisville Free Public Library. At this meeting, the Mayor and his staff gave an update on the progress they have made regarding this issue. Also, the public was allowed to ask questions and relay concerns regarding vacant and abandoned properties in their neighborhoods. The public is encouraged to attend the next meeting of the VAPSTAT group on August 23rd at 5:00 PM at the Louisville Free Public Library.

Scan with Your Cell Phone Kelly 3. On Wednesday July 3rd, representatives of the GLAR Government Affairs Committee met with Councilman To Register Now!properties Downard at his request to discuss the issue of vacant and abandoned properties and the influence these are having on the property values of surrounding homes. Councilman Downard also is concerned about the refinance market and the impact these vacant homes have had on existing owners’ ability to obtain home equity lines of credit.

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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Call 502.896.2595

What Are KREIA Points?

KREIA Points is a KREIA member benefit within your website, KREIA.com.

KREIA Points can be used to purchase special items such as:  Meeting audio recording replays,  Videos of special events,  Audio Training, updates, and more  And other training and resources as they are discovered on KREIA.com.

When you joined KREIA or paid your membership dues online, you are awarded 100 points. Every time you log in at KREIA.com you are awarded 1 point. For each comment you make, you receive 10 points.

This is a new feature on KREIA.com and is a work in progress.

Striving to make KREIA.com the best REIA website in America!

Robyn Thompson training KREIA members at the Saturday Workshop at Wildwood Country Club

3 Day LIVE Landlord Training Boot Camp Oct 11-13, 2013 Louisville, KY KREIA Discount - Call 502-509-2595

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Welcome NEW Welcome NEW Members!

Members!

Mike Daniel email: mbdaniel805@insightbb.com cell: 502-418-1018 Member since: 2012

Dawn Wietfeldt Matt Mailloux Joel Shepherd Danielle Field Tirelle Stone Kim Kramer

Tom Taylor Jerilyn Gashi John Thomas Kerry Conklin Robin Willard Ryan Gnizak

Why did you join: I joined KREIA at first to learn more about the opportunities involved in real estate investing. After attending a few meetings, I am impressed by the helpful and cooperative nature of its membership.

Short Bio: I am married with a high school senior at Sacred Heart Academy planning to attend Murray State University in the fall. I was employed in higher education as both faculty and administrator. I now hope to write and volunteer about educational topics of my choosing while supporting my family through real estate. My hobby is golf.

I am proud to be of family German heritage. I am a first generation American who has lived in Louisville most of my life.

Involved in: I have rented a couple of condominiums that I've rented for approximately 20-years. While I have been studying the steps to being a real estate investor on a larger scale, I haven't yet found the nerve to get directly involved.

Grow Up To Be: I want to provide for my family, and I want to serve my community. That is not always possible as someone else's employee.

How has KREIA Helped You: KREIA seems to have a spirit of helping each other instead of competing with each other at all costs. I see the opportunity to obtain the help I need with the opportunity to share what I learn to others in the future.

Read Newsletter: YES! Newsletter Preference: Hard Copy Biggest Tip: Attend meetings. Buy someone a drink.

Most Memorable Moment: The next meeting.

Thanks, Dan Jones

GreatInvestorCruise.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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LANDLORD FACES CRIMINAL CHARGES A Paterson, New Jersey landlord was sentenced to 18 months probation this week, following an electrical fire that claimed the lives of four tenants.

According to a news report, the woman, age 63, was granted some leniency based on her age, poor health, and an apparent lack of knowledge of the extent of the risk of injury.

However, prosecutors were quick to point out that under different circumstances, the punishment for a property owner would be more severe. The landlord faced up to 40 years for manslaughter charges, but was allowed to plead guilty to a lesser offense.

The charges arouse from the claim that the landlord failed to repair faulty electrical wiring at a multifamily building she owns, according to the report. Experts determined the fatal fire was caused by an electrical overload.

Knowledge is Power!

Francis Bacon

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

While the landlord had been cited for code violations, it was not clear to what degree she understood the danger. An unexpected illness had forced her into the hospital, and delayed any repairs.

According to the report, the woman will face up to five years in prison if she violates the terms of her probation.

Call 502.805.1652 11

Advertise with KREIA New KREIA Sponsorships!

Sign Up Now! www.KREIA.com Here’s Your Opportunity to Get Your Business or Service In Front Of KREIA Members and In Front of THOUSANDS of Real Estate Investors Every Month on KREIA.com!

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KREIA One Time EVENT Sponsorships Are Available Too! You Can Select Any KREIA Event to Sponsorship Get 10 minute Opportunity to Pitch Your Product / Service at event Sign Up Online Now at KREIA Events You Can Sponsor www.KREIA.com Table provided at the event, it's up to you to staff it.  Monthly Meeting Sponsor Only $499 Still Have Questions? Please Call Dennis Erhard 502.639.7496  L.O.T.S. Program Sponsor Only $199 Duffy Ford 502.992.2941  Saturday Seminars Sponsor when Scheduled by KREIA Only $199  Annual Golf Scramble Hole Sponsors $99  Event Golf Scramble MAIN Sponsor $995 PLUS More Individual Event Sponsors for Annual Picnic, Cruises, Social Events, Dances

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SHOULD I GET MY REAL ESTATE LICENSE? New and seasoned investors routinely ask “Should I get my real estate license?” or “Should I become a real estate agent?” It’s almost immediately followed up with a comment similar to … “I was talking to… or I saw on TV and <so and so> said…… I don’t need to be a real estate agent to be a real estate investor”.

Most of the time, they’ll add, “…in fact, it makes things more difficult for you as a real estate investor.” (Look at the head this noise is coming out of… we’ll address this subject in a bit.)

Does this sound familiar? It makes me cringe when new investors who are hungry for knowledge and information to grow their business are getting this kind of advice.

I highly recommend the serious investor to go to real estate school for the education and if you want to take the test, you may become licensed in your state.

How is this going to hurt you?

Each state has their own Real Estate Commission. It’s purpose is not only to protect consumers, but also to protect sales associates and licensed brokers.

As a licensed real estate agent, you must disclose to your seller that you are purchasing this property for an investment. Is this enough of a reason to not get the education, plus access to the resources?

Keep in mind, should something get ugly and you end up in court, you are going to be treated as an “expert” when compared to the average consumer or homeowner.

Successful Investors readily admit your education never stops. Knowledge is POWER in Real Estate Investing.

Serious investors should know all of the pieces and parts to this game called “real estate.” It is not checkers, but is chess.

Mike Butler

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Center for Disease Control

10 Most Dangerous Dogs List Dogs kill 10 to 20 people in the United States every year. While national statistics show at least 30 breeds have attacked humans, 10 dog breeds are on the Center for Disease Control and Prevention's most dangerous list, meaning they tend to bite the most frequently. They are: 1. Pit bulls 2. Rottweilers 3. German Shepherds 4. Huskies 5. Alaskan Malamutes 6. Doberman Pinschers 7. Chow Chows 8. Great Danes 9. St. Bernards 10. Akitas The breeds considered most likely to kill are pit bulls and rottweilers, and the CDC says that a chained dog is more likely to bite than an unchained dog.

The CDC also says the majority of dog attacks happen at home or in a familiar place, which is why choosing the right dog for your family is crucial.

Did You Know?

Test Your Trivia! Your answers are online at www.KREIA.com/answers 1. KREIA was founded in 1978. Where were the first meetings held?

2. In the beginning, KREIA members had to be a graduate of this training.

3. Name the KREIA Member who started the LOTS Program 4. Name the Band that played for the KREIA Holiday Party Dance 5. Who is the Ed Melton Award named after?

6. Name 3 members who have been featured in Money magazine.

Good Luck! See How You Scored!

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PO Box 17592 Louisville, KY 40217 Return Service Requested

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KREIA’s Monthly Meeting! Thursday July 25th

“EXPERTS PANEL WITH Q&A” Dan Jones, Rue McFarland, Dennis Erhard, Fred Butler RESERVE Your Seat NOW! PRE-Meeting:

Online Property Management Software Structure Property Management