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 02-20 February 2020 President’s Letter
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Paid Advertising Rates
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Tax Update: CPA Mike Grinnan gets us ready to file
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Welcome, New Members
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Leap Day Retreat: Lakeside day of networking/learning is sold out!
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Mike Butler: Top 3 fatal mistakes 6 of real estate investors
Legal Corner: Michelle Rawn addresses proposed ordinance
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KREIA Directory: Pick up your 2020 edition at the meeting
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National REIA News Roundup
14
KREIA Photos
18
L.O.T.S. Recap: Barrett Goff rebuilds for Airbnb in Wyandotte
20
Member Spotlight: Becky Duncan
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YouTube Channel: Yes! We’ve got one. Please subscribe
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KREIA’s Amendments to 32 Restated Bylaws & Constitution Calendar of Events
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KREIA Members, By now, hopefully you have your new year’s plan and goals in place and are working toward maximizing opportunities in your chosen real estate investing endeavor. 2020 seems poised to be a repeat of the past few years with very limited inventory and upward price pressure on every segment of the housing market. I continue to ask myself, “Can this price appreciation continue, and if so, for how much longer?”
Chris McCarty
When I think of Louisville’s market economic conditions compared to other hot-spot cities with higher real estate prices and appreciation, I am often just left to conclude that what is happening in our market now is the same as in others, but that Louisville may have been just a little behind. For now, though, our market is on a tear to catch up, and I do not see any storm clouds for the next couple of years to cause any concern. In talking with fellow investors, I hear frustrating comments on the difficulty of finding good purchase opportunities – particularly from the many new members who are joining KREIA and trying to find their first deals. For them it’s a crazy market. A great many of the real estate stories on TV and in seminars seem focused on fantastic deals and overembellished results; it makes financial success in real estate seem so simple, with such easy profits. While easy profits are often the case, this is daunting to new or beginning investors wading through the facts and fiction of what to do, how to start and just how to find success. At the January main meeting presentation, Mike Fallot displayed a bar graph showing the massive shortage of inventory not just for Louisville, but nationally, in the 1,400-squarefoot homes price point. To me this provided clear direction and a simple approach for anyone investing on where to focus one’s efforts. This is the sweet spot, and the very housing that will continue to be demanded for retail purchase or rental by the public – and likely to be much less risk-averse than other investing options. Pay close attention to the developing patterns in the market. Where is the overflow from the present hot retail and rental neighborhoods likely to strike next, before the crowd discovers it and drives up prices? What do the existing patterns and demographic trends tell you about the next five years of change in Louisville’s housing market? If you are finding deal opportunities difficult to locate and purchase, Continued on Page 4
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.