15 03 march kreia newsletter

Vol 15-02 Feb 2015

President’s Letter

Monthly Newsletter for KREIA Members

President’s Message

page 1

Welcome New Members! page 6 Steve Lloyd – March 26th Featured Speaker page 3

Jeffrey Taylor – Apr 23rd MR. LANDLORD Page 6

Elections Update!

Page 10

L.O.T.S. Program Page 7

Saturday Seminar RON LEGRAND is coming louisville! page 9 Get Ready for Thunder Over Louisville!

Thanks to all who volunteered and participates at February’s main event. Thanks to our main speaker Robert Kirchdorfer for educating us about many of the everyday issues we experience as we manage our Day to Day operations.

Dennis Erhard This month please welcome Steve Lloyd. He has a very unique area of expertise which should interest new and experienced investors. Steve will teach you how to get private lenders to fund your deals and double digit returns on cash sitting in your IRAs. Steve also has 20+ years’ experience in the entrepreneurial real estate arena. He is recognized as CAMA Plan’s #1 Instructor and has extensive knowledge of Real Estate transactions using your Self Directed Roth IRAs. This will be one of the best educational meetings of the year! Don’t miss the boat and KREIA welcomes Steve to Louisville!

The President’s lunch and learn talked about Goal Setting and getting rid of debt. Thanks to all members who participated and see you next month!

KREIA’s L.O.T.S. program causes traffic jam in St Matthews! Wow, what a turn out! Thanks for another great educational event. KREIA has been recognized by multiple Government agencies as being one of the leading experts in the Louisville area and has been complimented on the great job you are doing getting vacant homes back into service. Keep up the Great Work!!!

For Government Affairs update or issues please see Rue McFarland. Thanks Rue for the great job you do!

Finally it’s here!!! Due to technical difficulties and multiple headaches (Dennis’ head is still hurting.) Your KREIA Online Mentor Program is up and running. Sign up at KREIA.com for 10 -12 hours of LOCAL training with access 24-7 and even holidays, ALL for Only $99 for member. Thanks Mike Butler for all the hours and effort getting this one done!

Then the Oaks!

Then DERBY DAY!

Your President, Dennis Erhard Quote of the Month: “Don’t be distracted by criticism. The only taste of success some people have is when they take a bite out of you.” - Zig Ziglar

Copyright MMXV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.com DISCLAIMER: KREIA does NOT pre-qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The Kentuckiana Real Estate Investors Association recommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIA is a Member of National Real Estate Investors Association.

Your KREIA Leaders

President Dennis Erhard

Vice President Frank Miller

Secretary Treasurer Treasurer Elect Davie Coffey Mike Grinnan CPA Wally Kallbreir

Board of Directors

Mike Butler

Tamara West

George Foree

Duffy Ford

Eric George

Dan Jones

Erik Jamie Greenwell Hitzelberger

Fred Helm

Rue McFarland

Fred Butler

Demetrius Dowdle

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 Half Page Business Membership Ad + Table + Pre-Meeting Speaker Only $499

Business Card Membership: Ad Only $199

Event Sponsor: Meeting, LOTS, 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.

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

Reach out and tell them they are doing a great job! (It makes them do more for KREIA!) Copyright MMXV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.com DISCLAIMER: KREIA does NOT pre-qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The Kentuckiana Real Estate Investors Association recommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIA is a Member of National Real Estate Investors Association.

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March Main Speaker –

Carl Fischer – CEO & Founder

“Steve Lloyd is CamaPlan’s #1 Instructor to show you how to maximize return and profit in your IRAs.” Private Lending Frequently Asked Questions Why is Private Lending a good strategy for an investor?

The traditional lending middlemen (banks, credit unions, finance companies, investment managers) are eliminated in a Private Lending scenario. Private Lenders receive the full proceeds of their investments (collateralized by real property) without sacrificing (often significant) portions of their returns to other institutions and organizations. This enables the traditional risk / return results to better favor the investor.

Additionally, the Private Lender is relieved from day-to-day involvement in the construction, rehabilitation or management of real estate, thus freeing their time and energy while maximizing their investment return with one or more passive income streams.

Why is Private Lending a good strategy for a borrower?

Generally speaking, the borrower is attracted to the speed and ease of funding offered in a private lending scenario. The demand for non-traditional loans arises in those gaps that exist between traditional institutional lenders and a given real-estate marketplace such as the need for speedy property acquisition (foreclosed, estate settlement, liquidation, auction) or when the characteristics of the purchase do not allow for traditional lending.

How is the Private Lender secured?

A Private Lender is secured by mortgage and note on the property which is serving as the foundation for the transaction. The emphasis in non-traditional lending is on the collateral, therefore measures are taken to protect the interests of the lender in a given property or project.

What are the components of Private Lending transaction?

A private lending transaction should generally include the following elements: Promissory Note – defines the terms and conditions under which the private lender is willing to lend money and under which the borrower agrees to repay.

Mortgage - conveys an interest in specified property as security for the repayment of the money borrowed.

Deed in Lieu of Foreclosure - enables the Private Lender to expedite possession of collateral real estate by pre-arranged voluntary agreement.

Title Insurance – protects an owner’s and/or a lender’s financial interests in real estate against loss due to title defect, liens or other challenges Hazard Insurance – safeguards the interests of the Private Lender.

What sources of funds should one consider for Private Lending?

Traditionally, lenders use savings, lower-interest lines of credit, and self-directed Individual Retirement Accounts (IRA’s). Many lenders have found it advantageous to divest of non-performing and/or low-performing assets as they seek to maximize their investment returns.

What is the standard loan term?

There is no standard loan term, but most average 12-18 months. The term of a loan is often determined by a number of variables including scope, complexity, market conditions and planned exit strategies.

What is the standard loan amount?

Again, there is no standard loan amount. Typically, a Private Lender will need $100,000 to begin investing, but the amount varies greatly and is primarily dependent upon the scale of the property or project offering.

What types of investors are best suited for Private Lending activities?

Surveying a room of Private Investors, one would find both professionals and non-professionals, both wealthy and those of modest means, both aggressive and conservative investors, both highly educated and self-taught. Most Private Lenders, however, begin their participation with a desire to maximize results and minimize effort, most understand the importance and value of their own time and most realize that an alternative to retail / traditional investment deserves their attention.

Copyright MMXV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.com DISCLAIMER: KREIA does NOT pre-qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The Kentuckiana Real Estate Investors Association recommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIA is a Member of National Real Estate Investors Association.

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Welcome New KREIA Members!

John Hines

Andrew Estes

Reba Pascoe

Cara Sajko

Bill Clark

Tony Hall

Rachel Richards

Kurt Gutting

David Neal

Julia King

Darren Collins

Jeff Gladin

No Member Spotlights were submitted Please submit yourself or a fellow member

http://kreia.com/submit-member-spotlight

KREIA’s Brand New Online 24-7 access

MENTOR PROGRAM 12 sessions Full Access for 90 Days!

Members

Only $99

Non-members Only $149 Register Online Now www.KREIA.com

J.R. Hutto www.ntnonline.com 502.895.6811 email: NTN-Kentucky@ntnonline.com Copyright MMXV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.com DISCLAIMER: KREIA does NOT pre-qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The Kentuckiana Real Estate Investors Association recommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIA is a Member of National Real Estate Investors Association.

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About Steve Lloyd has over twenty years of diverse entrepreneurial experience which began at age 20 when he purchased, managed and ultimately sold a restaurant in Parkside, Pennsylvania. Since then, his career has revolved around real estate.

Steve is well-known for his abilities to identify real estate market opportunities, and he is recognized as an expert in raising and investing private capital. Steve knows the value of using leverage and creating passive residual income, which he builds primarily through purchasing distressed real estate funded through private capital.

At the end of 2012, Steve’s portfolio was valued at about $21 million in real estate assets.

Mr. Lloyd is a Founder and Managing Partner of several real estate development companies. He is responsible for investor relations, specifically securing capital from private sources for placement into acquisition, rehab, and development activities. Steve directs corporate accounting systems and represents these companies at local and regional real estate events.

Background In 2003, Steve created Aurora Marketing, a firm that specialized in mortgage industry advertising and sales.

While with Aurora, Steve discovered his passion for educating potential real estate investors and began a series of public speaking engagements. In 2004, he co-founded the Real Estate Networking Group (“RING”). He spoke monthly at the Montgomery County Investment Group (“MCIG”) which he co-founded in 2005. In addition to RING and MCIG, he is a member of the South Jersey Investment Group (“SJI”) and the Diversified Investment Group (“DIG”). Currently he can be found speaking in various venues on the topic of raising private money, and he often speaks at CAMA Plan, a self-directed IRA company.

In 2006, Steve was a co-founder of Partners for Payment Relief LLC (PPR), a non-performing note company. This

company specializes in buying non-performing second position mortgages throughout the United States. PPR buys distressed mortgages in bulk and then works them back to re-performing or performing status by working closely with the homeowner in a respectful, compassionate way. Their business philosophy is simple: Work with the homeowner to develop a strategy that enables them to keep their home while satisfying their obligations.

Also, in 2006, Steve founded and became the managing partner of an integrated real estate development company engaged in the strategic acquisition and development of residential properties. Their company has multiple capabilities, including general contracting, real estate sourcing, financing, development, leasing, and disposition. Steve and his partners have created an organization dedicated to adding quality and value to student housing in the communities surrounding Temple University. They create equity through innovative rehabilitation and management practices, while delivering superior consistent results to its clients and investors.

Vision Steve continues to build and develop real estate through a growing network of private investors. He regularly shares his real estate and private lending experiences. He enjoys teaching others how to recognize and achieve their dreams through building a passive residual life.

Copyright MMXV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.com DISCLAIMER: KREIA does NOT pre-qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The Kentuckiana Real Estate Investors Association recommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIA is a Member of National Real Estate Investors Association.

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From: Gordon Brown Home of the Innocents To: Rue McFarland KREIA Rue, Alan Johnson’s father

Copyright MMXV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.com DISCLAIMER: KREIA does NOT pre-qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The Kentuckiana Real Estate Investors Association recommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIA is a Member of National Real Estate Investors Association.

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April 23rd KREIA Meeting Jeffrey Taylor

MR. LANDLORD

How to Get Your Tenants to Stay For at Least Three Years Many of you are familiar with my 3-Star Program as an excellent way to encourage residents to stay with you a minimum of 3 years. As a brief reminder, you enroll residents in a 3-Star Program at no charge to the resident. At one store I’m a “Gold Club” member. At the other I am a “MVP” member. Why did these stores encourage me to enroll in their free programs? To create customer loyalty.

Guess what, it works! When I go buy groceries, without thinking I shop at the two stores that give me a few perks (small discounts) because I see myself as a MVP or Gold Club member.

I’ve enrolled residents in my 3-Star Program for the same reason. To create customer loyalty. And it works.

Create Customer Loyalty By giving residents a perk (minor property upgrades) on each rental anniversary as part of the 3-Star Program, residents see themselves as three-year residents. Of course, the residents can legally terminate the rental agreement at any time (with proper advance notice) and move to another rental, just like I can start shopping at a different store.

But I voluntarily keep shopping where I’ve been often reminded that I am a valued customer and receive perks. The store doesn’t ask me each year if I want to renew my membership in the program or whether I want to keep shopping there. They simply send me a letter on occasion (along with perks-store discounts) thanking me for continuing to be a valued customer in their program and telling me what I can look forward to.

This is the same way the 3-Star Program works. I share this analogy, because a few people question whether some of my “innovative” rental ideas work. YES, they work because I just adapt strategies that are working well for other industries and utilize them in the rental business. And the 3-Star Program, like the Gold club or MVP program, creates customer loyalty.

Residents continue to stay year after year without annual discussions about whether they want to stay in the program.

I do feel it is important and to your advantage to talk with your resident once a year near the anniversary date. I recommend you send an “Anniversary Agenda Checklist” along with a Thank You letter for participating in the FIRST year of their 3-Star Program. The Agenda Checklist informs residents that they have an opportunity to discuss any concerns and new options available during the nest year of their 3-Star Program.

The Agenda Checklist asks residents to select the topics from

Real Estate Closing

Donated by Harry Borders

the agenda of what they would like to talk about. Each topic a resident selects gives you, the landlord, the opportunity to meet the changing needs of your resident. Equally important, as you offer options to meet the resident’s needs and concerns, each topic on the agenda will also give you the opportunity to increase your cash flow plus increase the customer satisfaction level of the resident. Remember, let your residents pick the topics for the discussion and use the agenda to truly have a profitable discussion.

Anniversary Agenda Checklist We like to meet residents at least once each year to help insure that we continue to meet your housing needs and make sure you are aware of all the housing options that are available to you. We want YOU to select the agenda for the meeting. Tell us what you would like to talk about. We can discuss just one of the following topics, or we can discuss as many of the topics as you select. Or, if you prefer not to meet at this time, just let us know.

The meeting will take place at your residence on one of the following two dates. Please let us know which date and time is most convenient for you to meet with us. Return this checklist to us within the next 3 days so we can schedule the meeting.

Mail or deliver it to the following address: (Your Company) Which meeting date and time is best for you? __________________ or ___________________ Select which topics you would like to discuss at the meeting. __Different rent payment plans available. Some residents prefer to pay every two weeks instead of monthly. It is possible to change the payment terms in your rental agreement. __Any concerns about your current rental home? __Receive 10% annual refund of your security deposit for passing semiannual inspections. __New upgrades and service options available for the next year of your 3-Star Program. __Transfer location options if you want to consider moving to another size rental home. __Prices and rental policies of other homes in the area. __Negotiate new rental amount for the upcoming year. __Tell-A-Friend Referral Fee program for 3-Star residents.

(How to get free rent or cash) __Your evaluation or comments about our maintenance guarantee program. __Special benefits of our “VIP” Resident Programs. __Other topic_________________________________ __ I prefer not to meet at this time. Everything is satisfactory.

No topics I need to discuss.

Copyright MMXV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.com DISCLAIMER: KREIA does NOT pre-qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The Kentuckiana Real Estate Investors Association recommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIA is a Member of National Real Estate Investors Association.

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Copyright MMXIV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.com DISCLAIMER: KREIA does NOT pre-qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The Kentuckiana Real Estate Investors Association recommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIA is a Member of National Real Estate Investors Association.

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MARK YOUR CALENDAR NOW! Saturday Workshop June 13th

Doors Open 8:30am - 4:30pm at WILDWOOD Country Club, 5000 Bardstown Rd. 40291

Ron Legrand is coming to KREIA! Ron is one of America’s Leading Trainers on investing in real estate. Take a look at your fellow KREIA members who have invested in Ron’s training, boot camps, and home study courses.

Mark Lechner Chris Dischinger Jay Long Mike Butler David Thomas Dave Coffey Duffy Ford George Foree Chris McCarty Dennis Erhard Jamie Greenwell Cliff Hayden Brian Haeseley Rod Owens… and many more!

Early Bird Registration Discount expires midnight May 31st

KREIA Members

Only $99

Non-Members

Only $149

If There Are Any Seats Available After May 31st – Registration is $149 and $199

BONUS from Ron!

first 50 Early Bird Registrations will get dinner ticket with Ron Legrand on 6pm on Friday, June 12th at Wildwood Country Club

You Can Register Online

KREIA.com

www.

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GET INVOLVED Your President has selected this year’s nomination and election committee, and we would like to inform you of KREIA’s election procedure, which is as follows.

KREIA is run by a Board of Directors consisting of five officers, twelve at-large Board members, the immediate past president, and the parliamentarian. The five officers, President, Vice President, Secretary, Treasurer and TreasurerElect- are filled each year for one-year terms. The twelve at-large Board members are elected for two-year terms, with six new members being elected each year. There are no term limits, and all incumbents may run for re-election if they so desire.

Nominations will be taken from the floor at the April and May meetings for the five officer and six at-large Board positions. As in previous years, nominations will be closed after the May meeting.

The election will be held at the June regular meeting, and those elected will take office in July.

If you would like to nominate someone to serve, or would like to run yourself, please contact me or be prepared to make a nomination from the floor at the April or May meeting. Only serious applicants need apply. The Board sponsors many activities on an ongoing basis, and it is the diligent effort of all the Board members that bring these programs to life. The Board runs primarily through the committee system. Most Board members serve on more than one committee, and many chair a committee. It is simply not possible for someone to serve on the Board without being an active participant.

If you have any questions about the governing process of KREIA, please feel free to give me a call.

Hank Schildknecht Chairman of the Election Committee (502) 893-4494 hankatty@gmail.com Copyright MMXIII Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.com DISCLAIMER: KREIA does NOT pre-qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The Kentuckiana Real Estate Investors Association recommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIA is a Member of National Real Estate Investors Association.

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Copyright MMXIV Kentuckiana Real Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 (502) 509-2216 www.KREIA.com DISCLAIMER: KREIA does NOT pre-qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The Kentuckiana Real Estate Investors Association recommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIA is a Member of National Real Estate Investors Association.

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PO Box 91225 Louisville, KY 40291 Return Service Requested

.com

KREIA’s Monthly Meeting! Thursday

March 26th

5:30 EARLY MEETING - MEMBER BENEFITS – TAMARA WEST

MAIN MEETING DEMAND MORE FROM YOUR MONEY! With Steve Lloyd

PRE-Pay Now at KREIA.com to Get Qualified for Big Door Prize Drawing!