January 2019 KREIA Newsletter

Providing Education, Resources & Networking Since 1978 Kentucky’s premier investment club for landlords, rehabbers and wholesalers Meeting the 4th Thursday of every month (except November & December) KREIA.COM • facebook.com/groups/kreiaky • twitter.com/reiaky

Monthly Newsletter for KREIA Members

Vol 01-19 January 2019 President’s Letter

1

Paid Advertising Rates

2

Lifeonaire: The 4 Stages of Financial Prosperity

3

Welcome, New Members!

4

Airbnb Ruling: Moratorium is defeated

4

Mike Butler: How to go 100% paperless on tax prep

6

Ed Melton Award: The 2018 winner is revealed

10

KREIA Photos

14

2018 L.O.T.S. Revisited: Nina Musgrave follows up on sales prices of L.O.T.S. houses

15

John Archer: Tips on using secure passwords

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3-Day Get-A-Life Getaway: 24 Details on Lifeonaire’s workshop coming up in February Government Affairs Report

KREIA Members!

I hope you’re ready to kick off 2019 with a BANG and set some serious new goals for growth and achievement, because that’s exactly what Jason Wojo from Lifeonaire is coming to help you do this month at KREIA! I’m not just talking about growing your business and making more money, because who cares if you have a Eric George bunch of money if your personal life is a wreck and you’re not truly enjoying life? Lifeonaire helps you put your whole life into focus and reassess what you’re doing so that you can have more free time with less stress, improve your physical and mental health, while making more money in the process!

As a member and student of Lifeonaire myself for the past two years, I can attest to how much they have helped my wife and I change our lives since joining. My wife, Christina, had been working at G.E. Appliances for 15 years as an engineer when we decided to join Lifeonaire, and within nine months we had restructured our lives enough that she was able to quit G.E. for good! We now get to work together daily, spending less time overall doing so, have more flexibility to do fun things we enjoy, and we actually have about the same income with less debt than before!

Lifeonaire is all about changing your mindset and focusing on the things you truly enjoy doing, while eliminating the things that don’t bring value in your life and don’t advance your “vision.” If you haven’t developed your own vision yet or haven’t written down your goals for the next one, two, or five years, you MUST attend this month’s meeting, then sign up for the 3-day Life Builder workshop February 21st23rd! You will not regret it!

See you at the meeting!

Eric George KREIA President

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Copyright MMXIX 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 Eric George

Vice President Tamara West

Advertise With KREIA

Secretary Erik Hitzelberger

Treasurer Mike Treasurer-Elect Grinnan CPA Wally Kallbreier

Board of Directors

Put your message in front of the most active rehabbers, landlords and wholesalers in the state! KREIA offers five membership levels for businesses. Go to KREIA.com and join at one of these annual advertising levels to get your ad in every issue of KREIA's newsletter and be invited to make ad pitches at meetings:

Business Card Membership . . . . . . . . $199 Includes your business-card-sized ad. Admission at monthly meetings remains $20.

Premium Levels: These four advertising levels include your ½-page ad in each issue!

Rue McFarland

George Foree

Dennis Erhard

John Jones

Lauren Willoughby

Darin O'Neil

Mike Fallot

Hampton Scurlock

Mike Butler

Chris McCarty

Greg Nalley

Clay Smith

Parliamen- Past Pres. tarian Michelle Frank Rawn Miller

Get involved with KREIA. You can help with the monthly meetings, L.O.T.S. program, this newsletter, Saturday workshops, Government Affairs roundups, marketing, the KREIA website & more. Work shoulderto-shoulder with active investors! Ask for someone to direct you as you check in at the front desk at monthly meetings.

KREIA's newsletter is published monthly and serves to educate you and to remind you of upcoming monthly meetings.

About KREIA: The Kentuckiana Real Estate Investors Association is a nonprofit organization focused on education, networking and resources for today's investor. 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.

Group discounts are available.

Contact us at News@KREIA.com if you want to: Advertise on KREIA.com • Sponsor a monthly meeting Sponsor a L.O.T.S. program • Sponsor Saturday Workshops

Bronze Membership . . . . . . . . . . . . . $499 Includes free admission to monthly meetings for one person.

Silver Membership . . . . . . . . . . . . . . $699 Includes free admission to monthly meetings for two people.

Gold Membership . . . . . . . . . . . . . . . $999 Includes free admission to monthly meetings for two people and gives you a skirted table in the vendors area.

Platinum Membership . . . . . . . . . . $3,500 Includes everything the Gold level offers, plus extra promotion from KREIA. You'll be our designated events sponsor, and we will promote you accordingly!

New ½-page advertising levels and pricing are in effect for new member signups and upon renewal for current advertisers.

Questions? Catch up with KREIA Sponsor/ Advertiser Chair Dennis Erhard at the meetings. Or email support@KREIA.com.

Join KREIA Joining KREIA is easy: Go to KREIA.com and click the "JOIN" option on the menu.

The cost to join as an individual member remains at $125 per year, with a charge of $20 at the door for monthly meetings.

Click JOIN at KREIA.com to find out about all the benefits of membership for both individuals and businesses. Too many to list here!

Copyright MMXIX 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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Are You Ready to Live Your Best Life?

Lifeonaire’s Jason Wojo will show us how to create our unique success blueprint Think back for a moment. Do you remember why you first became interested in real estate investing? Maybe you were sick of working for “The Man” and letting someone else control your schedule and paycheck.

Maybe you were tired of office politics or glass ceilings. Or maybe real estate just sounded more exciting and rewarding.

The list could be a country mile long, but underlying all those reasons was likely the belief that being your own boss would give you freedom, financial security, and control of your time and schedule. Ring a bell? It should.

That’s the thought most investors have when they decide to make the jump and go out on their own. Unfortunately, reality looks very different for the vast majority once they get into the business. Instead of quitting the 9-to-5, 40hour work week and cutting back on work, most find themselves working longer and harder than they ever did when they had an employer.

Business and work now consumes their thoughts, time, and attention, and the very thing that was supposed to provide freedom now enslaves them.

And it kinda makes sense. This thing is our baby. It’s on us if it sinks or swims. No one cares about our business or success like us. But here’s the tragedy – there are consequences to our actions, obsession with work, and tunnel vision. We argue more with our spouse. We miss our kids’ dance recitals and soccer games. We haven’t been to the gym in 4 months. We stop at the drive-thru every day because we don’t have time to prepare food. God knows the last time we hung out with our friends ... if we even have any left.

And to top it off, we feel guilty about all of it, so we spend money and buy things

to make ourselves (and those we hurt along the way) feel better, and so financial stress is added to the mix. This is the reality for a lot of people.

But it doesn’t have to be that way – not by a long shot, says Jason Wojo, CEO of Lifeonaire, who will be our special guest speaker for our meeting on Thursday, January 24.

If you’ve never heard of Lifeonaire, it’s a company dedicated to helping people create and live abundant, prosperous lives. But in this case prosperity isn’t just defined by top line revenue – it’s a combination of many overlapping factors that Wojo will discuss at the meeting. “You can have both a life and business you love,” he says. “You don’t have to choose just one. That’s a lie. You just need to know how to do it, and it’s a lot simpler than you think.”

Continued on Page 24

The Lifeonaire folks will be back in February for a 3-day event! Details on Page 24

5:30 p.m. Early Meeting: Kevin Knight Special Door Prize for Pre-Paid Registrations!

Active Members: $20 • Guests: $30 • Former Members: $30 Register now at kreia.com. Receipt emailed for your records.

PRE-PAY NOW!

Kevin Knight from Joe Jr.’s Flooring talks about options in hardwoods, vinyl and carpeting for your flips and rentals.

Copyright MMXIX 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!

‘AirBnb Moratorium’ Defeated

Donnie Adkins Michael Andriakos Toya Ballenger Marty Cabral Carlos Castillo Amanda Caudill Anne Cook Jason Coomer Scott Foster

By Eric George Last month a few Louisville Metro Council members tried to impose a 90-day moratorium on any new applications for “Conditional Use Permits” (CUPs) that are required when an investor wants to buy a house to rent out for less than 30 days, otherwise known as “Non-Owner-Occupied Short-Term Rentals”(NOOSTR). It was generically referred to as the AirBnb Moratorium, although it applied to any NOOSTR on any online platform.

Effectively what this would have done is stopped any new NOOSTR CUP applications from being accepted by the City of Louisville, and any CUP applications that were already in progress would’ve been halted as well until Metro Council could re-write the existing ordinance. They claimed they could do it in 90 days, but it more likely would have been six months or longer.

Councilmen Bill Hollander and Brandon Coen were the main drivers of this bill and they claimed that residents in their districts were experiencing loud parties at night and parking issues from neighboring NOOSTRs that were “destroying the fabric of their communities.”

Most of the arguments the proponents of the moratorium made were based on fear and misunderstanding, not facts. The two Photo by Eric George councilmen provided little evidence to back up their claims, and during the discussion among council members the night of the vote it became clear that only a handful of actual complaints have been filed in these districts, most of which came from the same people every month.

The other thing that became crystal clear during the debate was that the real underlying issues are a complete lack of enforcement of the rules that are already in place, including registering with the city for tax collection and obtaining the CUP necessary to operate legally. Several Continued on Page 18

Jared Free Ben Gilmour Tylar Johnson Morton "Brady“ Kellams Jessie Killebrew Pam Merritt Alex Muncy Jeff Preston

Lindsay Ratterman Anthony Reddington Charlaine Reynolds Joe Stennis Angie Toerner Kristyn Williams

Copyright MMXIX 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 MMXIX 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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Simple Guide to Go 100% Paperless on Tax Prep How to organize all your important tax documents

By Mike Butler Welcome to January and the start of your annual task of getting your financial affairs in order for tax time. Depending on the size of your business and real estate investments, you probably have already begun receiving your “Important Tax Documents” via snail mail and/or email. Everything from 1098s from lenders reporting how much interest you paid last year to 1099s and statements from banks reporting how much interest you earned.

Before all of this incredible free technology available for us today, I used to grab a manila file folder and write this on the tab with a Sharpie: “Last Year Tax Stuff.” As all of these important tax documents began arriving, I simply put all of them into this folder. This Cave Man system worked and perhaps you are still using it today. It does work. Ultimately, when you are ready to file your tax returns, your CPA is presented with this manila file folder along with your reports to file taxes properly.

However, with so much free technology available today, you can very easily get rid of those manila folders and graduate to a 100% paperless system with less work and time on your part. The beauty of this new simple system is that you can access all of your documents in a few seconds from anywhere in the world! (Yeah, you must have Internet access to do this.) Here is your guide to go 100% paperless.

Step 1: Your Tools You’ll need a smartphone. Android for Businesses is great and yes, this even works with those Eye Phones. Go to Google Play or the iOS App Store and install these apps on your phone: • Adobe Scan turns your cell phone camera into a scanner to create PDFs as you click the button like you are taking a photo. Special thanks to Keith O’Loane, who turned me on to this one. Use this app to take a photo/PDF and email it to yourself.

• Microsoft Office Lens does the same as Adobe Scan but gives you more choices on how you want to save the picture you just took – PDF/JPG, etc. Use this app to take a photo or PDF and then email it to yourself.

• The Scanner on Your Printer: Odds are, you already have some kind of printer in your office. Even the cheapest inkjet printers have scanners built in. I recommend getting the cheapest printer with a top-loading scanner, allowing you to place 10 or 20 pages on top and have it scan all of them just like the $5,000 copiers.

Step 2: Storage Location You must decide where you are going to store all of your important tax documents for fast, easy access in the future.

Some folks use • DropBox.com (create folder and share with your CPA) • Google Drive (create folder and share with your CPA) • And many others “in the cloud” Those are okay, but the Cat Daddy, Big Ka-Hoona, best place ever to store your important tax documents was born back in 2013. I can’t tell you how many times I have reached out to QuickBooks® since the early 1990s, requesting to add the ability to attach files to all of the accounts inside QuickBooks®. They finally did it in 2013!

Now you can “add attachments” to any account in QuickBooks Pro 2013® and newer!

Odds are, you are already using QuickBooks Pro® for your real estate business. Now you can use your QuickBooks Pro® to store all of your important tax documents for this year and every year in the future! It is amazingly simple, fast, and easy.

Step 3: How to Do It and Go 100% Paperless!

I highly recommend you use your QuickBooks Pro® to store all of your important files. Therefore, I will not waste your time digging in to those other, not-the-best, storage items.

1. Open Your QuickBooks company file 2. Click on VENDORS and Create a NEW VENDOR and name it properly a. Name the New Vendor something like this: i. “My CPA 2018 Tax Stuff - Personal” ii. “My CPA 2018 Tax Stuff – S-Corp” iii. “My CPA 2018 Tax Stuff – C-Corp” 3. Double click on the “Attachment” column and a window appears allowing you to go grab and upload your files – those “Important Tax Documents” you just scanned.

4. Then, when you are ready to file tax returns, simply email your QuickBooks backup file to your CPA. But, Mike, what about next year?

No worries, I got you covered on this one too. Just repeat Continued on Page 22

Copyright MMXIX 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 MMXIX 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 MMXIX 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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Do You Want Your Business Card to Appear Here? Join as a Business Card Member for only $199/year, and see your ad in a year's worth of KREIA newsletter issues!

Copyright MMXIX 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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Ken Harrison is 2018’s Ed Melton Award Recipient Longtime KREIA member recognized for service, education and dedication

By Henry Schildknecht Congratulations to Ken Harrison, the 2018 recipient of the Ed Melton Award, the recognition given annually at our holiday meeting to a club member who has contributed to the growth and success of the Kentuckiana Real Estate Investors Association.

Ken was the 21st person to receive this prestigious award, which was established in 1998, to honor Ed Melton for his devotion to KREIA and its members.

Every year, prior recipients gather for their annual dinner meeting. This year we met on Oct. 17, and 12 past honorees were in attendance for our reunion. We discussed those members of KREIA who have given their time and effort to our organization, and we selected this year’s recipient.

Four important attributes are taken Ed Melton into account when arriving at our award recipient: contribution to membership education, development of fellowship, active recruitment of members, and active participation in the real estate industry.

We found Ken Harrison to be very deserving of the award for many reasons.

Ken is a longtime KREIA member who extols the benefits of membership to old and new investors alike, encouraging the growth of our club. He attends virtually every KREIA event, including regular meetings, L.O.T.S. programs, seminars and lunches. He’s also a fixture at the Commissioner’s Sales. He is active in the real estate industry, buying and selling, holding and flipping. He is known as one of our local experts on rehabbing and wholesaling, many times giving his own seminars on the subject. He served several terms on KREIA’s board of directors and led many committees.

photo by bruce w. hinson www.obedientcamera.com Ken Harrison, left, received the Ed Melton Award from Hank Schildknecht, right, during the Holiday Party in November.

How has KREIA helped you as an investor?

Like anything else, when you’re able to surround yourself with and talk to people who have the same problems that you have, you can learn together. You can learn from their mistakes or use them as a sounding board: “This happened to me – has it ever happened to you? What did you do?” For a long time there, we were wholesalers and we sold a lot of houses to KREIA members.

What’s your niche now: landlording, rehabbing, wholesaling, or all of the above?

Q&A with Ken Harrison Mainly we’re just landlords now … we’re kind of semiWhen did you start investing? retired. We do two or three retail deals a year and take care Late ’80s. of our rentals.

Who were your mentors?

If someone were to bring you a good deal, an irresistible KREIA member Wade Ramey helped me in real estate. deal, what would that look like?

And then my attorney, Murray Greenwald – he has since I’d like to have a house in Okolona or Shively that I could passed. My friend and partner George Foree had a lot to do buy for $60,000 or $70,000 and put $15,000 or $20,000 in with it. So, I guess those three. and sell it for $120,000. A three-bedroom, two-bath brick Did you jump into KREIA immediately when you started ranch with either a garage or a basement. That would be the investing? ideal little house in that price range. That’s where I would I was already investing when I met George and we feel comfortable. became friends, and he suggested that I join KREIA. He was Ed Melton was known for his win-win deals. What’s a working at GE at the time and he couldn’t come, because he win-win deal to you? worked second shift. That’s when I joined.

Continued on Page 18 Copyright MMXIX 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 MMXIX 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 MMXIX 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 MMXIX 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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photo by bruce w. hinson www.obedientcamera.com Ideisha Bellamy, left, comes forward to claim her prize from KREIA’s favorite game show host, Frank Miller, at November’s Holiday Party.

KREIA

Photos

At left: Hors d’oeuvre stations replaced the buffet line during the Holiday Party.

photo by bruce w. hinson www.obedientcamera.com

photo by bruce w. hinson www.obedientcamera.com Magician/mentalist Ronn Winter headlined the entertainment.

Below: The coveted plunger is awarded to a lucky winner during the prize giveaway.

photo by bruce w. hinson www.obedientcamera.com See more photos in KREIA's private Facebook group.

Copyright MMXIX 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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photo by bruce w. hinson www.obedientcamera.com Past recipients of the Ed Melton Award stand ready to greet the newest winner as Hank Schildknecht makes the announcement.

photos by bruce w. hinson www.obedientcamera.com Current KREIA President Eric George, above, hosted the 40th Anniversary Salute portion of the photo by bruce w. hinson evening. Past President Gene www.obedientcamera.com Dyson, left, who served from 1983 to 1985, represented KREIA’s KREIA Past President Chris Dischinger, who served from 1993 to founders.

1994, represented the ’90s during the 40th Anniversary Salute, along with his LDG Development business partner Mark Lechner.

Copyright MMXIX 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 MMXIX 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 MMXIX 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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2018 L.O.T.S. Revisited Throughout my KREIA membership, I have attended several L.O.T.S. events. I leave with ample insider tips, as well as thoughts along the lines of, “Will that property really sell for that price? Like, will he really make that much money?? Must be the gray paint.”

I asked around and found that I am not the only member who ponders such things. For my fellow inquisitive real estate investors, here is a post-game recap with data on the 2018 L.O.T.S. properties.

If you are a new KREIA member, attending L.O.T.S. events is one of the best ways to spend the first Tuesdays that follow the monthly meetings. L.O.T.S. events, which start at noon, are a wonderful way to network! You get to see projects up close, including material, craftsmanship, investment, financial breakdowns and estimates. The address of the event is sent via email, so make sure you are subscribed. Without further ado…

— Nina Musgrave

Where are they now?

Address 7500 Yorktown Rd 3325 Furman Blvd 1410 Winter Ave 1029 E. St. Catherine 5919 Six Mile Lane 719 Hillview Blvd 8507 Thompson Ln 8511 Thompson Ln 1317 Hull St. 2810 Whitlock 4021 Cheviot

Zip Projected Price $ List Price $ 40214 169,900 169,900 40220 199,900 219,900 40204 325,000* 325,000 40204 188,500 196,999 40218 184,900 179,900 40229 134,000 130,000 40258 159,900 179,900 40258 150,000-155,000 155,000 40204 389,000 419,900 40213 126,900 124,900 40216 Rental n/a

Sale Price $ Event Date Host 169,900 1/30 Eric George active 1/11/19 2/27 Christopher Jacquith 297,150 3/27 Madeline Hicks 200,000 5/1 Jay Leisten 184,900 5/29 Frank Miller 130,500 7/3 C. Spaniol & P. Forrest 165,000 7/31 Frank Miller 147,000 7/31 Frank Miller 395,000 8/28 David Rathke active 1/11/19 10/2 Frank Miller n/a 10/30 Chris McCarty

*Dr. Hicks’ original projected sales price, at the time of the L.O.T.S. event and before reappraisal, was $298,977.

Ed Melton Award Winner Continued from Page 10

Airbnb Moratorium Continued from Page 4

That’s when both sides get something out of the deal.

It’s good for them. It’s valuable to them. They might not get as much as they want, but as long as everybody comes out of it and doesn’t feel bad, that’s win-win.

What advice would you give to investors who think we might be on the brink of a market downturn?

The market has fallen, and it will rise, and it will continue to do that. But I think if your business model is a sound one – many of them are not – they will go through the downturn.

They won’t make as much money and they’re going to be slower, but they won’t go under. A lot of these guys will go under. It happened a lot in 2008 and it’s going to happen again the next time it turns. You don’t know when that’s going to be, so just have a sound business plan and take it slow – don’t get overextended.

What would you like to tell new investors?

That real estate is not for everyone. But for those who can make it in real estate, it can make them a lot of money over time.

councilmembers pointed this out and noted that a new funding source would be needed to be able to hire new city employees or an outside firm to enforce any rules going forward.

Over a dozen KREIA members, including myself, attended the council meeting to protest the moratorium until 1 a.m. when the vote was called, and it was ultimately defeated!

City Council President David James was originally a cosponsor of the bill, but he changed his mind during the debate and voted against it!

I want to thank everyone who helped us defeat the moratorium, as it was truly a strong group effort that got it done! Stay tuned…

Copyright MMXIX 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 MMXIX 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 MMXIX 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 MMXIX 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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TECH CORNER

Why You Should Always Use Secure Passwords

By John Archer This month, I ask you: How confident are you that your password is complex enough to thwart a hacker, former employee, business partner, or persistent opportunist?

Poor password choices are consistently named by cyber security experts as one of the main reasons for data breaches, identity theft, and a host of other problems.

The use of weak or duplicate passwords makes it easy for cyber-criminals to hijack personal accounts, steal data and bank fund accounts.

A strong password should address the following items: • Passwords should ideally be eight or more characters long, and contain a mixture of numbers, letters, and symbols.

• “12345678,” “qwerty,” or the name of your dog are easily guessed. These are the weak passwords that are so widely used.

• Default passwords and PINs issued with new hardware or freshly registered accounts should be changed immediately before starting your online activity.

• Using the same password for multiple accounts is a definite no-no. This also applies to using slight variants of the same password.

• Keep your passwords private and don’t share them with anyone. Even if you trust a person with your credentials, there’s no guarantee that the information won’t be discovered covertly through some unforeseen way. Writing them down is another common mistake I see very often.

Sometimes people actually tape them on their monitor!

• You should make a point of changing your passwords on a periodic basis. Most businesses change passwords regularly and when an employee leaves the business.

Illustrations courtesy of pixabay.com

• Use a password manager such as LastPass. If you’re like most people, you’ll have several different accounts and multiple passwords to juggle and remember. Password managers can be super important as we all get more integrated with online services. Password managers can be downloaded as an app and are very important in the overall security scheme. You can download a free version of LastPass here: https://www.lastpass.com/ Do you need tech support or consultation? I have been an active IT service provider and consultant for over 35 years.

Call me on my cell phone at (502) 648-1417 or send me email at john@premiumpcs.com.

Mike Butler: Go 100% Paperless Continued from Page 6 the steps above creating a new vendor for next year. As next year rolls around, you do not need to have easy access to those “My CPA 2018” vendors. Right-click on each of the above vendors and select “Make Inactive.” Now these inactive vendors are parked on the shelf behind the scenes and will not be displayed when you click on “Vendors” to see your list of active vendors.

What’s beautiful about this system is if you need to go back and take a look at your previous years’ documents, you simply click on “View Inactive Vendors” and you get immediate access to everything again.

If you have any questions or want more details on how to do it properly, please check out a short 48-minute video I created to show you exactly how to do this from A to Z. Here is the link to view on my YouTube channel: https://youtu.be/8cOE4STdUI0 Or you can view it on QuickBooksForInvestors.com Enjoy!

To Your Continued $uccess!

FREE Investor Training Webinars every Tuesday at 12 noon www.MikeButler.com Copyright MMXIX 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 MMXIX 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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Lifeonaire: 4 Stages of Prosperity Continued from Page 3

Here are just some of the things Wojo is going to cover at our January 24 meeting: • The one mistake that people make in setting up their businesses that almost guarantees they’ll eventually become slaves to it.

• The 4 Stages of Financial Prosperity you absolutely must follow if you want to avoid the mistakes and traps that so many people fall into and never get out. Do these steps out of order (or not at all) and you’re destined for failure.

• How to create a simple, actionable, and realistic roadmap to get you from where you are now to where you want to be – as quickly and easily as possible.

• How to discover what you really want for your life and how to get it (many of us have no clue and are just living the lives that others want for us).

• How...and when...to leave your 9-5 job behind and feel 100% secure in your decision, knowing you can’t fail.

• Why the whole “good debt, bad debt” theory is a complete and bold-faced lie and what you can do to avoid spending a single dollar on interest ever again.

• Strategies and real-life tactics to become debt-free in record time.

• How to finally escape the “rat race” FOR GOOD and say adios to the Joneses in your rearview mirror.

• Why working more than 4-5 hours per day will actually produce LESS income for you this year.

In summary, if life and/or business aren’t what you thought they should or could be by now, we can’t encourage you enough to come to this meeting. This one is a gamechanger and will make all the difference in the world to you achieving an abundant, prosperous life. See you there.

Lifeonaire 3-Day Get-A-Life Getaway A 3-day, all-day seminar/workshop to get you in tune with what you really want out of life – and how to make a blueprint to live your vision.

WHEN: February 21-23, 9 a.m. -5p.m.

WHERE: Ramada Triple Crown Pavilion, 1776 Plantside Drive, Louisville, Ky. (Jtown) COST: $297 for one person to attend or $397 for two people to attend Lifeonaire CEO Jason Wojo returns to headline the 3day workshop, and he’ll be bringing friends!

Go to kreia.com to register now!

GOVERNMENT AFFAIRS REPORT The Kentucky General Assembly is back in session and among other things is working on pension reform and changes to the 2018 Tax Reform Bill to “correct some unintended consequences.”

Bills of possible interest to real estate investors include…

• HB119: regarding seller disclosures • HB49: the levy of property taxes • SB21: common interest communities Follow the links below for more information.  State Government: Read weekly updates on bills in play in Frankfort at the Kentucky Realtors’ site: bit.ly/kyr_lu  Louisville Metro Government: Get a summary of local affairs (and state) by the Greater Louisville Association of Realtors (GLAR): bit.ly/LRGAU — Coordinated by Rue McFarland

Lifeonaire Testimonials “I’ve been in Lifeonaire for about a year and a half.

Jonathan and Aricka Brazer, Chuck Bauman, Wojo and all the coaches I’ve come in contact with are amazing. The network of fellow Lifeonaire members are great and are so very helpful! I’ve met some tremendous people who I now consider great friends. With all their guidance and help I’m extremely close to living the lifestyle I thought was just a dream a few years ago.”

— Duffy Ford (KREIA member)

“We have enjoyed our time with the Lifeonaire program.

We have built some lasting relationships with a lot of likeminded people who deal with the same struggles that we deal with on a daily basis. When you’re in a group with people who deal with the same struggles, you tend to have better luck coming up with answers to the Daily problems.

The people inside of Lifeonaire have really helped us on reevaluating our business plan, which has freed Erica and I to be able to spend more time together and with our son, and overall have a much better experience in life in general. We have been members for almost two years now. I would recommend it to people who feel like they’re just caught up in the rat race of life.”

— William & Erica Loyall (KREIA members) “Warning: Lifeonaire can produce focus, determination, energy, passion and purpose in your life...enter at your own risk! Truly incomparable...one of a kind!”

— Justin Patterson, Bryant, AR

Copyright MMXIX 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 MMXIX 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 MMXIX 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 MMXIX 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

First Class Mail U.S. Postage Paid Louisville, Ky Permit No.1498

THE Local Resource for Landlords, Rehabbers & Wholesalers Meeting the 4th Thursday of every month (except November & December) at Woodhaven Country Club, 7200 Woodhaven Road, Louisville, KY 40291 KREIA.COM • twitter.com/reiaky • instagram.com/reiaky • youtube.com/KreiaDotCom facebook.com/reiaky (public) • facebook.com/groups/kreiaky (private)

UPCOMING EVENTS  February 13 — 11:45 a.m.-1:30 p.m. KREIA Indiana SubGroup Luncheon Meeting. Financial advisor Bill Green speaks Wouldn’t you like to make more money, yet also on retirement and investments. At Tucker’s Restaurant in New have more free time for the things you enjoy?

Albany (State Street and I-265). You buy your own lunch.

Jason Wojo shows how to make it happen.  February 21 — 6 p.m.-7:30 p.m. KREIA Game Night: Thursday, Jan. 24, 5:30 p.m.

CashFlow. Want to get out of the Rat Race? Play CashFlow  Early Meeting: Kevin Knight of Joe Jr.’s Flooring with other investors pursuing financial freedom. talks options in hardwoods, vinyl and carpeting.  February 21-23. Lifeonaire 3-Day Get-A-Life Getaway.  January 29— noon-1 p.m. L.O.T.S. event. Tour a Highlands Jason Wojo headlines a workshop to help you design your Airbnb! Attorney Harry Borders is the host. Check your email for unique plan to improve your financial and personal wellbeing. the location. Members only. Lunch is provided.

Main Meeting Calendar  February 5 — Noon-1:30 p.m. Lunch & Learn. Greg Nalley Here’s our tentative lineup of topics for the next few months: will speak on insurance needs for rental property. Check your email for the location. Members only. You buy your own lunch. • February 28: Tax tips with Mike Grinnan  February 7 — 5 p.m.-7 p.m. KREIA Happy Hour. Networking • March 28: Lease options with Joe Earls • April 25: ‘7 Houses in 5 Years’ with Andrew Holmes at a local restaurant. Check your email. Members only.

Lifeonaire: Stages of Financial Prosperity

PRE-Pay Now at KREIA.com to Qualify for a Big Door Prize Drawing!