April 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 04-19 April 2019 President’s Letter

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KREIA Members!

Paid Advertising Rates

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Cash Flow for Life: Chicago REIA’s Andrew Holmes shows us how to pay off rentals in 7 years

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Welcome, New Members!

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We had a great presentation last month about buying and selling with lease options by KREIA member Joe Earls, and I hope you took advantage of his Saturday workshop too, because it was full of golden nuggets! Continuously educating yourself is so important to your real estate investing success, and that’s exactly what KREIA Eric George helps you do year-round, so this month we’re bringing in Andrew Holmes from the Chicago REIA to teach you his “2-5-7 Cash Flow for Life” system!

Mike Butler: How to protect your vacants from local scam artists

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Sharon Vornholt: 10 most-asked 10 questions about probate deals Saturday Workshop: More investing training from Andrew Holmes (KREIA members save $100!)

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KREIA Photos

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L.O.T.S. Recap: Chiquita Lindsay 15 goes high end in the West End Michelle Rawn: Preview of KREIA’s 2019 Elections

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Government Affairs Report

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Sherry Henry: Storm season is here – are your rentals insured properly?

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Andrew will teach you how he has been able to accumulate over 200 houses in just the last nine years, while paying off 40 of them in the process! Even if you have no desire to own hundreds of houses, how about just five or ten houses completely free and clear? How much would those assets and their cash flow change your current financial situation? Make sure you get to KREIA early and grab a seat up front to learn how Andrew does it!

Lastly, elections are coming up again here in June, and we need new volunteers to fill open board positions and help our committees, so if you appreciate what KREIA provides and would like to give back, please contact Michelle Rawn to get your name placed on the voting ballot as soon as you can!

See you at the meeting!

Eric George KREIA President

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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Building Cash Flow for Life

Chicago REIA founder Andrew Holmes visits Louisville to teach financial freedom

If you are like most of us who invest in real estate, you were attracted to it because you read a book or picked up on the idea that investing in real estate can be a great way of building wealth. Yet the reality is that fewer than 1% of all investors or wannabe investors end up financially free because of their real estate investing. Have you ever wondered why? It’s certainly not a lack of information.

Today it’s the exact opposite – too much information. Or I should say too much misinformation. A lot of us were raised to believe it’s about hard work, patience, positive attitude or attracting success. All of the aforementioned attributes are important, yet none of them will create financial freedom through real estate.

So what does it take to create enough cash flow from real estate to allow you to be truly free, or to retire? To not have to pinch pennies all the time? Is it possible to have the time and the money to do what you want?

I have been pondering this from the age of 18. When I began investing I had the typical questions: You need money to start? I had none. How do you take the first steps? What am I supposed to do? What if it all goes wrong? Where do I get the money? How do I find deals?

I looked at the people who were doing flips and rentals, yet they were achieving marginal success at best. This is not to knock anyone – it was just my perspective. I always wanted true freedom through cash flow.

In real estate there are two basic forms of investing – earned income (flips and wholesales) or passive/cashflow income (rental income from paidoff properties).

Initially I started with flips with the idea to do a lot of them, save money, and over time build a big enough bankroll to reach my goal of true freedom.

The problem was that after doing over 100 flips I had very little to show for it, because it was money that was earned and spent to live on.

I’d thought I was investing, but the reality was that I was on the flipping treadmill. How is that any different from being a plumber, doctor, engineer, or anyone with a job or who is self-employed? I was not investing – I was trading my time, stress and headache for a flip profit.

My goal with real estate had always been to build cash flow wealth. What I wanted was income I could depend on. Not the ups and downs that came from doing flips.

I know you are wondering what I consider truly being free, or having “Cash Flow for Life.” Here it is by my standards: Let’s say the cost of operating your household is $6,000 per month or $72,000 per year.

If you had a minimum of $6,000 coming in each month without fail, you have reached cash flow for life. So, how do you get there?

Monthly Expense: $6,000 * 1.2 (extra just In case) = $7,200 $ 7,200/$800 (paid-off rental net per house) = 9 to 10 rentals I know the idea of accumulating 9 to 10 paid-off rental properties sounds like a daunting task to most people when they first hear about it. It’s not, I assure you. It can be done within a 7- to 10-year period starting from scratch.

Not only have I done it personally, I have literally hundreds of examples of investors who have already gone way past this in the last 4.5 years.

I call it the “2-5-7 Cash Flow For Life” formula. That’s 2 years, 5 houses, all paid off in 7 years. For some people 5 houses is not enough – they want 10, 15 or 20. The formula still works.

Starting with zero properties at the end of 2010 to this point in 2019, I have accumulated over 208 houses – with 40 completely paid off.

For most people, 10 paid-off houses will set them up for life.

Continued on the next page SATURDAY WORKSHOP WITH ANDREW HOLMES! April 27, 9 a.m. – 3 p.m. More info on Page 14

5:30 p.m. Early Meeting: Rehab Loans 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!

Jordan Pohn of SurePoint Equity will talk about how investors can get non-owner occupied renovation loans.

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!

Ryan Band Ollie Batten Richard Blinkhorn Allie Bloyd JoJo Bush Matt Farra Jason Godwin Rob Godwin

Pamela Godwin Travis Hammer Rob Jenkins John McCain Freida Mee Lori Parrish DeOndrea Robinson

Raynard Shuman Brian Stephens Tennyson Thomas Devante Urbina

Continued from the previous page Many investors will still want to make money from flips and wholesales. I can relate to that. I had the same issue and built a strategy involving flipping. Today our business has grown to a point where we do very few flips. We do 50+ wholesales a year for an average profit of $15,000/property, and we continue to accumulate rental property.

I am excited to share how you can jump-start your real estate business from scratch. Or if you are a seasoned investor looking to take it to the next level, we have ideas for you too. We will cover three different strategies: 1. Wholesale Like Mad, Grow Like Crazy; 2. Flipping for a Living; and 3.

Cash Flow for Life. – Andrew Holmes

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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Protect Your Vacants From Local Scam Artists!

By Mike Butler (I have a Free Gift for you at the end of this article.)

As a real estate investor, you’ll find that vacant properties do happen with running your real estate business. Many folks assume “vacant properties” are associated with rental properties. NOT TRUE – your new definition of “vacant property” is any property you own, control, or manage that is pert’ near “Move-In Condition.”

Not only vacant rental properties, but any property – houses for sale, AirBnB, VRBO, and more.

FIRST up, here is the old scam. Scam artists search the internet for houses for rent. They find YOUR good-quality rental. Next they use all of your info, description, photos and videos to create their own ad on Craigslist and anywhere else they can post your vacant for free.

After the scam artists steal and paste your vacant info, they use their own email for contact info. They also have a B.S. story about being out of town or out of the country and they need to get it rented.

Let’s say for example your ad shows rent for $1,195. The scam artist will advertise a super-discounted rent – perhaps $799 – and explain that the discounted rent is because the prospective tenant is dealing directly with the “owner” (scam artist) and that the higher-priced rent is from the property management company.

Once prospects are hooked, the scam artist emails them a lease to sign and send back. Money, both rent and security deposit, is requested by the scam artist to be sent in any number of ways over the Internet (including PayPal).

Once scam artists get what should be your money, they give the new tenant/victim the access code to your lockbox or the location of the key hidden on your property.

Surprise! Surprise! The next thing you know, you stop by your vacant and discover someone has moved in. The folks living there show you a signed lease and tell you they dealt directly with the out-of-town owner.

Now, what does the poor real estate investor do? You could call the police, but guess what happens? The phantom tenants show their signed lease and maybe receipts for rent and security deposit. Will the police officer throw them out?

Absolutely not! The police will tell you to pursue it in court.

What a major headache and an expensive school-of-hardknocks lesson.

Lesson learned – you can prevent this from happening by using two simple tools.

Unfortunately, many investors use an onsite lockbox with the key(s) inside. Local scam artists call the number on your yard sign to see the inside of your vacant. To be efficient, you give them the access code to your lockbox.

Now the local scam artists have full access to your vacant and they begin marketing it as if they own it. Oh yes, the rent is super discounted.

Yup, you already guessed the rest of the story. The local scam artists simply repeat everything in the first scam above, except that they meet with the new tenants in person at the house, sign leases and collect your cash – both rent and security deposit.

Last month this happened to one of my old police detective partners who has rental property here too. The local scam artist called himself “Jamal.”

But wait, there is more!

The situation actually got “worser” for this investor. Not only did Jamal rent it to the first household, but he repeated the same process with two additional households.

Unfortunately, I do not have your solution on how to clean up this mess. All of that happens in court, unless you can use your smooth personal people skills when talking to your squatters.

Here is your solution to prevent this from happening to you. FYI, after implementing my almost-free, simple, AntiScam system, we have never experienced any scams. Here is how you can protect yourself from all scammers.

STEP 1: Anti-Scam Poster • DOWNLOAD your FREE fill-in-the-blanks Anti-Scam Poster at https://MikeButler.com/scam • Using BRIGHT YELLOW paper, print two or more posters.

• With a BIG SHARPIE, fill in the blanks on your bright yellow posters.

• Tape them inside several windows facing the street, driveway, and rear of home.

STEP 2: Use Lockboxes Properly • Lockboxes are OK to use for your vendors – contractors, etc.

NEW Local Scam Going on in Your Town Do NOT use lockbox access This new local scam artist targets your good-quality VACANT properties – rentals, houses for sale, AirBnB, VRBO, codes to allow folks to see the inside of your rental.

Home Away, etc. – that use a lockbox with an “access code.”

Continued on Page 20 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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Probate Investing: 10 Questions I’m Asked Most

By Sharon Vornholt People have a lot of questions about probates. In fact, I am asked the same questions all the time. Today I decided to take the 10 most commonly asked questions and answer them. So, let’s get started.

1. Why is there so much less competition in the probate niche?

There is less competition for several reasons.

• A lot of investors are uncomfortable working this niche.

• Some investors just don’t know the process and how they fit into it.

• One of the biggest reasons is that most investors aren’t willing to do the work to get the leads.

If you want to jump into this very profitable niche, take the time to learn about the actual probate process, the terminalogy used in probate, and about probate investing in general.

You are going to find that these folks are some of the most motivated sellers on the planet.

2. Why is it so hard to get probate leads? Can’t I just buy leads?

The reason it’s so hard to get the information is because the process is different everywhere. There are over 3,300 counties in the United States, and each one of those counties has a different process for getting probate leads once probate is opened. It’s not always easy to get the information, but this is also the reason there is less competition in the probate niche.

When it comes to buying leads, I’m not a fan in most cases.

They are very expensive, and they’re not always great leads.

In many cases they don’t have all of the information you need. I’ve found that some companies are actually working obituaries (rather than probate filings), which you don’t ever want to do.

3. Investors don’t have the correct mindset.

They say things like this: • “I feel bad profiting off of dead people” • Or, “Isn’t it weird talking about someone that has died”?

I hear this all the time. But I have to tell you, sellers are all pretty much the same. It just so happens that folks in probate are there because someone died. They are also there because they have a problem. They have a house they need to sell in order to settle the estate, and that’s why they need us. We are there to help them solve a problem. It really is that simple. Once you understand this one thing, everything changes and you can be successful in this niche.

4. Why can’t I just call the family instead of sending of sending direct mail?

The answer is, because it’s insensitive. My initial contact is never by phone. I always send a letter to the executor or

administrator, which is most often a family member. Think about this for a minute. How would you feel if someone called you out of the blue wanting to buy the property when your loved one has just passed away? You wouldn’t like it.

For that reason, my direct mail campaigns are designed to be a very nurturing series of letters. I let them know that I will be there when they are ready to sell the property. Some families will open the estate in the first few months. Other people may wait many months or even a year. Generally speaking, when they open the estate, that’s a signal that they are ready to move forward with the sale of the property.

That’s your cue.

5. Can you wholesale probate deals?

Absolutely!

Generally speaking, any real property such as real estate must be sold before the estate can be closed. In most states you just put the property under contract and move forward.

Be aware that some states like California have a very different procedure. Learn how the probate process works in your state. That information is easy to find online.

6. Don’t most folks in probate want retail for the house?

Not all of them. These sellers are no different from any other sellers. Houses that are in great shape will generally be listed on the MLS. (Realtors, this niche is wide open for you.)

Properties that need repairs and updates are the likely candidates to be sold to an investor.

7. Can you use creative financing strategies for probates?

Generally speaking, you cannot. Remember that in almost every case the executor needs to sell the property. Once that happens, the creditors are paid and the heirs get what’s left (their inheritance). That’s the main reason they are so motivated. They just want the cash.

8. What can I say when the family is embarrassed about the poor condition of the house?

Truthfully, this happens all the time. As a member of the family walks through the house with me they are apologizing because there is so much “stuff.” It’s pretty easy to put the seller at ease just by telling them this is typical, especially when the deceased was elderly. You just need to be sincere.

It’s not unusual to see stacks of butter tubs, receipts from decades past and just a lot of junk. You may also run into some hoarders. Remember to always offer to clean out the house for them. That’s often the one thing that will seal the deal when you make your offer. Make it easy for the seller to say yes to your offer.

9. What if the deceased’s relatives living in the house won’t move?

The short answer is, let an attorney handle this problem.

Just get the house under contract and let an attorney worry about that.

(Continued on Page 20)

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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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

photo by bruce w. hinson www.obedientcamera.com

Brad Lammi walked us through buying tax bills at the early meeting.

Local investor Joe Earls headlined the March meeting to teach us about lease options and to run the numbers on a few of his deals.

Networking near the bar at Woodhaven is a KREIA tradition!

photo by bruce w. hinson www.obedientcamera.com

KREIA

Photos

See more photos in KREIA's private Facebook group.

Saturday Workshop: Building Cash Flow With Andrew Holmes We know you’re going to love what you learn Thursday night from Andrew Holmes, so we’ve invited him to teach us more about his systems for wholesaling, house flipping and building rental portfolios!

When: April 27, 9 a.m. – 3 p.m.

Where: Aloft Louisville East, 10700 Westport Rd, Louisville, KY 40241 Cost: $98 for KREIA members, $198 for non-members

photo by bruce w. hinson www.obedientcamera.com

REGISTER NOW AT KREIA.COM!

See? More networking by the bar! Lots of deals get done at KREIA meetings.

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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Chickasaw L.O.T.S. Home: A Closer Look Chiquita Lindsay, daughter and son-in-law rehab house

KREIA member Chiquita Lindsay, her daughter Kisha Lindsay and son-in-law Richard Wadlington have a message for other real estate investors: The West End is coming back.

At the last L.O.T.S. event, Team Lindsay/Wadlington turned a modest house on 44th Street into a stunning home. Well, it looks modest from the street, but don’t be fooled – it packs over 2,600 square feet of living space.

In 4½ months they completely renovated it, polished it, staged it (spectacularly) and received a full-price offer the The 4-bedroom/2-bath house at 750 S. 44th St. underwent a complete renovation. The third day on market. For $179,000. roof is new, and so is that concrete-surfaced driveway. (Photos by Lauren Willoughby) There were multiple offers – likely because of the multiple wow factors, courtesy of Kisha. soaker tub with a profile like an ocean liner, a double-sinked “She buys everything at a discount,” Chiquita said of her vanity, a tiled floor, skylights, and a glass-paneled shower daughter, who was the designer. (Kisha also helps other with rainfall shower head. It’s truly a bathroom of the gods. house flippers put a shine on their projects: Kisha's There’s more “wow” to go around, but we’re running out Consulting & Interior Design, 502-417-2455.) of room to describe it! The house is amazing.

“I never pay full price,” Kisha confirmed. She admits to a Kisha gave a shoutout to FlippinLoan.com for funding the lot of online shopping – ebay, Houzz, Amazon – but also hits flip. “Without Chris and Margaret, it wouldn’t be possible.” up the local T.J. Maxx and Burlington’s. Taking a tour of the This is the seventh – and ninth – flip for the family. Kisha house, you’d never guess she went bargain-hunting. got into real estate first, which inspired her mother to join in.

Nearly every room features a unique and jaw-dropping “I saw how great she was doing in real estate, and I metal-and-glass light fixture. originally bought my first properties to supplement my Exterior doors are inset with beveled glass. Intricate income,” Chiquita said. “When I realized it was going to save woodwork frames the bay window fronting the dining room. me, I said that I needed to do this full-time and be in control The paint job has clean, razor-edge lines. of my income and my freedom.”

The kitchen gleams with stainless appliances, a farmSoon after, Chiquita ventured into rehabbing as well. house sink, and backsplash tile that runs to the ceiling.

“Flipping is exciting, just to see the finished product and The main bath on the first floor is accented in elegant people’s faces,” she said. “And being able to help the West gray tile. The luxurious master bath, about the size of the End community come back to its glory.” first-floor bath and kitchen combined, is home to a deep Richard pointed out that the house is close to the parks, to Southern Indiana, and to I-64 and I-65. “A lot of people are coming back to this area,” he said.

“A lot of people are moving back from the East End to the West,” Chiquita agreed. “So we are actually improving property values here, which is great for other people who want to sell and rehab properties.”

THE NUMBERS Purchase Price: $35,000 Renovation Cost: $78,898 Sale Price: $179,000 Richard Wadlington, left, Kisha Lindsay and Chiquita Lindsay.

Financing Cost: $5,500 Selling Costs: $10,966 Estimated Profit: $46,039

Why do we call it “L.O.T.S.”? Because we Learn On The Site!

Copyright MMXVIII 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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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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KREIA 2019 Elections

By Michelle R. Rawn It’s that time of year again for the KREIA election. The Election Committee would like to inform you of the election procedure.

KREIA is run by a board of directors consisting of five officers (President, Vice President, Secretary, Treasurer and Treasurer Elect), twelve at-large board members, the immediate Past-President and the Parliamentarian.

The officer positions serve for a one-year term, while the at-large board members serve for a two-year term, with six new members being elected each year. The only exception is when an at-large board member chooses to run for an officer position before his/her two-year term has expired.

There are no term limits, and all incumbents may run for reelection if he/she so desires.

Nominations will be taken from the floor at the April and May meetings for the five officers and seven at-large board positions this year. Nominations will be closed after the May meeting, and the election will be held at the June regular meeting. Those elected at the June meeting will be sworn in and take office at the July regular meeting.

If you would like to nominate someone or if you would like to run yourself, please contact me or announce the nomination from the floor at the April or May meeting.

All board members are required to participate on at least one committee. Several members are actively involved with more than one committee and several are committee chairs.

In order for KREIA to be successful, all board members are required to be an active member helping at all KREIA events.

If you have any questions about the election or governing process of KREIA, please feel free to contact me.

Michelle R. Rawn Chairman of the Election Committee Tel: (502) 639-9396 Fax: (502) 276-0607 Email: Michelle@rawnlawfirm.com

GOVERNMENT AFFAIRS REPORT State Government Roundup Kentucky Realtors Legislative Updates. Read weekly updates on bills in play in Frankfort at the Kentucky Realtors’ site: bit.ly/KYR_LEGU

Local Government Roundup Louisville Metro Government: Get a summary of local affairs (and state) by the Greater Louisville Association of Realtors (GLAR): bit.ly/LRGAU Probate Investing: 10 Most-Asked Questions Continued from Page 10 10. What can I do when the heirs don’t agree on how to move forward?

I have found that most of the time things go smoothly and the closing is uneventful. It’s like any other deal that you close. However, there are times when you feel like you are the peacemaker, a counselor or a teacher. There will be times when people will need to be educated about the probate process. You may also need to initiate problemsolving conversations with the family and help soothe hurt feelings. After years of working in this niche, I have found that you usually just need to be a good listener.

Well, there you have it. The 10 questions I am asked the most frequently. Feel free to contact me or stop by the Louisville Gals Real Estate Blog for more information on how to be successful in one of the most lucrative niches on the planet: probate investing.

To learn how you can become the probate expert in your area, check out my course, Probate Investing Simplified: https://probateinvestingsimplified.com Mike Butler: Protect Your Vacants From Scam Artists Continued from Page 6 • I highly recommend you use my custom lock system, where prospective tenants must go to your office or other office where they can sign a simple one-page form, make a copy of their valid photo ID, and give you a $20 key deposit.

• Only after the above is completed will you or your staff give them a key to view the interior of the vacant unit.

• Yes, there’s a little more to this system, but I think you get the gist of it.

To Your Continued $uccess!

P.S. Sign up for your FREE Investor Training every Tuesday at 12 noon at https://MIkeButler.com/PowerLunch 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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Storm Season Is Here: Are You Insured Properly?

When do you file a claim?

When you have determined that your cost to repair or replace makes sense to you. What is your claim history like?

How much is your deductible? Be cautious when selecting a roofer to survey your damage. There are many reputable and insured roofing companies that you can trust. But as you can imagine, there are also those that come to town just when there is a storm.

Roofers should be established, licensed and bonded. Roofers should carry certificates of insurance to provide to you, which protects for liability issues and workers compensation.

What should the roof repair estimate include?

• Quantity of materials needed • Labor charges • Work specifications • Approximate start and completion dates • Payment procedures • Building permits if necessary • Warranty details Use caution and ask questions when bids are substantially lower than other repair/replace estimates. Google for reviews and complaint activity with that roofing company.

When to call your agent or file a claim?

If you call your insurance agent just to inquire about the process because you are unsure if you have substantial damage, make sure that you indicate you are not sure if you are turning in the claim or not. The agent can code this inquiry correctly so that it does not have impact on your rating. Many companies will input this as a claim when you may not actually turn it in, and yet it ends up on your claim history record.

For example: Mrs. Smith calls her agent and reports windstorm damage to her home’s storm door and roof. A loss reserve is not established. When the claim representative contacts Mrs. Smith, she reports that the damage was minor and has been repaired by Mr. Smith. She requests that the claim be withdrawn. Since a loss reserve was not established, the loss would be closed as “record only” (RO). Please remember that a claim is required to establish a loss reserve within 48 hours of the loss.

Storm Season Is Upon Us! I hope this information has been helpful. If you need any Roof damage is usually your biggest issue with storms.

Hail storm damage can lessen the life of your roof and cause information or guidance, please don’t hesitate to call my office. Having 31 years’ experience with State Farm both in leaks that impact the interiors of your homes and rentals.

Hail is not the only concern – you could suffer wind damage. Leadership and as an Agent, I may have some insight for you.

Also, please keep me in mind with our “Quotes for Good” High winds can cause the shingles to blow off/lift up or program. For every auto, home, rental, life or disability quote, suffer other damage. High winds cause your roofs to be vulnerable along with gutters and other exterior structures. we will be donating $10 to our local Blessings in a Backpack There is a difference between normal wear and aging versus charity to help feed children on the weekends and during damage caused by a storm. Common characteristics of hail summer breaks. About 64,000 children have need for this damage include: Random damage (not throughout), impact help in Jefferson County. $100 feeds one child for a full year.

Call us: 502-231-4382. marks and, if it is a wood roof, splits with sharp edges.

By Sherry Henry As a rental property owner myself, I find it very important to make sure that not only are my properties adequately covered but also that the income I receive from those properties is protected in the event of a fire or tornado-type event. You may not live there, but the rental property you own is a big investment – hence the term “investment properties.”

Your Rental Dwelling insurance policy should include the following coverage: • Dwelling – This coverage will pay for the covered cost of repairs or reconstruction of the home.

• Personal Property Coverage – Do you supply items such as a refrigerator, dishwasher, stove, or washer and dryer? If so, do you need them covered as well?

• Liability Coverage – To protect you, the landlord, in costly liability lawsuits.

• Umbrella Policy – Do you carry an umbrella policy that protects over and above the base liability of each home or rental dwelling policy? Usually between $1,000,000 to $5,000,000 depending on the amount of assets you have to protect. (Check with your real estate attorney for guidance on structuring the entity that owns the property. I use Harry Borders at Borders & Borders for this type of guidance.

Harry is a client for his short-term rentals, regular rentals and his personal insurance if you need a reference.)

• Loss of Income – To me this is one of the absolutely most important coverages. It makes sure that your current policy protects you in the event of loss of rents. This coverage is to reimburse you for rental income lost if the rental is damaged by a covered loss and cannot be rented.

We use a copy of your lease to determine how much the renter pays you per month. While the home is being reconstructed, we pay you that exact amount for loss of rent for up to 12 months or until the time the property can be made habitable and rented again.

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

PO Box 91225 Louisville, KY 40291 Return Service Requested

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

Cash Flow for Life With Andrew Holmes How many paid-off rentals do you need to be set for life? And would you like to learn how to get them all purchased, rehabbed and paid for in only 7 years? Chicago REIA founder Andrew Holmes shows us how. Thursday, April 25, 5:30 p.m.  Early Meeting: Jordan Pohn of SurePoint Equity  April 27 — Saturday Workshop With Andrew Holmes  April 30 — noon-1 p.m. L.O.T.S. event. We tour Adam Wilson’s rehab in St. Matthews. Members only. Lunch is provided by Platinum Sponsor MM Lending.  May 2 — 5 p.m.-7 p.m. KREIA Happy Hour. Networking at a local restaurant. Check your email. Jeff OBryan hosts.  May 7 — Noon-1:30 p.m. Lunch & Learn. Frank Miller talks about wholesaling and rehabbing. Check your email for the location. Members only. You buy your own lunch. Ed Gibson chairs.

 May 8 — 11:45 a.m.-1:30 p.m. KREIA Indiana Sub-Group Luncheon Meeting. Meet up with Hoosier investors – everyone welcome, even Kentuckians. At Tucker’s Restaurant in New Albany (State Street and I-265). You buy your own lunch. Brian Haeseley chairs.  May 16— 6 p.m.-7:30 p.m. KREIA Game Night: CashFlow.

Want to get out of the Rat Race? Play CashFlow with other investors pursuing financial freedom. Hampton Scurlock hosts.

Main Meeting Calendar Here’s our tentative lineup of topics: • May 23: Wholesaling with Frank Miller (workshop planned) • June 27: To be announced • July 25: Wholesaling Flips and Flops • August 22: Landlord Tenant Act with attorney Michelle Rawn • September 26: Single-family vs. Multi-family

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