June 2021 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 6-21 June 2021 President’s Letter

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National & Local Trends in Real 3 Estate: We take stock Saturday Workshop

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Welcome, New Members!

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Mike Butler: Investor Pledge nets 6 you more ‘Killer Deals’ Michelle Rawn: Courts Update

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Government Affairs Links

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Hampton Scurlock: Why do sellers sell at a discount?

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Jordan Pohn & Stacey Duvall: KREIA Ambassadors Program

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KREIA Photos

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L.O.T.S. Recap: FPG rehabs 12-plex in Pleasure Ridge Park

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Nina Musgrave: Impact of AI

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National REIA News Briefs

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Election Preview + Ballot

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Board Candidate Bios:

32 to 38

Mary Conrad Eric Feller Alexis Fentress Ian Hooper John Mays Rue McFarland Karen McKnight

Frank Miller Greg Nalley Hampton Scurlock Steven Staub Erin Wegrzyn Komeneci ‘Neech’ Yates

Dear Members and Friends, “The future depends on what you do today.”

– Mahatma Gandhi As they say, nothing worthwhile is easy, and certainly this age-old truth applies to creating wealth through real estate investing. Real Chris McCarty estate is not a get-rich-quick game. And if your goal is accumulating wealth through real estate investing but are still finding your way, as this quote says, you have to find a way to begin today and plant the seeds for financial rewards that change the future for you and your family.

Countless times throughout my years of participating in the KREIA organization, I have witnessed new members coming in knowing little but taking the lessons taught at our monthly meetings and networking events and transforming them into real, life-changing financial results. New members coming to a meeting for the first time are often awestruck or intimidated by the success in the room, but at the same time they realize that just maybe they can find a way to fit in and find their own path to investing success.

KREIA adds 15 to 20 new members each month and, unfortunately, we also lose a few. Perhaps the ones we lose were not meant to be or did not learn the message in time. To the new members and also the ones who have not figured out their next move, if your desire is to prosper in real estate investing, please know this: It really is as simple as finding a way to get started with your first deal and then, with diligence and patience, you’ll find the deals get easier each time.

Real estate investing information, education and networking is what KREIA does, and every successful member’s story begins with spending time at the meetings, Continued on Page 4

Copyright MMXXI 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 Chris McCarty

Advertise With KREIA

Secretary Erik Hitzelberger

Vice President John Jones

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 is $20.

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

Rue McFarland

George Foree

Dennis Erhard

Frank Miller

Lauren Willoughby

Greg Nalley

Hampton Scurlock

Rob Bergeron

Christopher Jaquith

Jordan Pohn

Stacey Duvall

Alexis Fentress

ParliamenPast tarian Michelle President Rawn Eric George

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 shoulder-to-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 support@KREIA.com if you: Want to advertise on KREIA.com • Need help • Have a question

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 . . . . . . . . Reserved Includes extra promotion. There can be only one advertiser at this level. Our current Platinum Sponsor, MM Lending, holds exclusive renewal rights until 2021.

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. Tell all your investing friends.

The cost to join as an individual member is $125 per year, with a door fee of $20 at our monthly meetings (which covers the buffet meal and rent on the hall).

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 MMXXI 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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Where Is the Kentuckiana Market Going?

We analyze the present and forecast the future at the June 24th main meeting What is going on in our market – really?

We know demand is high and inventory low here in Kentuckiana, and that building materials are becoming ever more expensive. But what are the trends with real estate on a national level, compared with what we’re seeing here locally? And based on what we’re seeing in other markets, what can we expect to see heading our way?

This month at KREIA we’re looking at the present and strategizing for the future. KREIA member Mary Conrad has compiled pertinent information that would benefit investors. We’ve also included two members of Louisville’s Economic Development group, Jeff O’Brien and Rebecca Fleischaker, to speak with us about what they know about Illustration by Nina Musgrave Louisville’s economy – businesses moving in and out, and the trends they are seeing.

Jeff has led several major strategic and We’ll be looking at: long-range initiatives for Louisville including Vision Louisville, Move Louisville and Plan • Home sales on the national and local level 2040.

• Supply and demand He holds two degrees – a Bachelor’s • Local economy and population Degree in Geography and a Master’s • And more in Urban and Regional Planning – from the University of Iowa. He is a member of the American Planning Bring your questions, bring your observations, and Association, the American Institute of Certified Planners and together let’s make sense of this post-COVID market and the Urban Land Institute. where it’s heading for real estate investing.

Meet Mary Conrad Meet Rebecca Fleischaker Mary has been in Information TechnoRebecca is the Director and Co-Chief of logy Project and Program Management for the Department of Economic Develop20 years. She is the former President and ment, Louisville Forward, with Louisville VP of Programs for the Kentuckiana Project Metro Government.

Management Institute, serving over 700 She began her career in public service members in Kentucky and Southern Indiana. She has a B.A. in in Washington, D.C., working as a staff psychology from the University of Kentucky. assistant for the U.S. Senate Select Committee on Ethics.

Mary is an active real estate investor, having acquired Rebecca has been with Louisville Forward since it was long-term buy-and-hold rental properties along with shortformed in 2014, and she has managed several successful term rentals. economic development projects, including the landing of Agenda for KREIA’s June 24th Main Meeting Computershare’s regional headquarters in Louisville with a subsequent expansion, ISCO’s expansion to a downtown • 5:30 p.m. – Early Meeting: Insulation with Gavin Shook location, and the expansion of Heine Bros Coffee and FMS • 6 p.m. – Orientation with Jordan Pohn & Stacey Duvall headquarters, which moved to west Louisville.

• 6:15 – Announcements, property pitches, sponsor pitches, She earned her B.A. in Psychology from Miami University & Michelle Rawn’s Legislative Update. Buffet line opens!

(OH), and her Masters in Public Policy and Administration • 7 p.m. – National & Local Trends in Real Estate from the University of Kentucky’s Martin School.

Meet Jeff O’Brien Jeff is the Co-Chief of Louisville Forward and Director of Develop Louisville. He has nearly 20 years of experience with local planning agencies in Kentucky and Illinois.

5:30 p.m. Early Meeting: Insulation Looking to save on energy costs? Want to know about your options with spray foam, fiberglass and cellulose insulation? Check out this month’s early meeting with Gavin Shook of Louisville Insulation.

Copyright MMXXI 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!

Jonecia Bell Maurice Blakemore Joe Cox Kelsi Dahlia Ross Deatrick Tami Hartley Angela Howlett

Ryan Ingwersen Terrance May Laura Meyer Brooke Newby Katherine Renfro James Sheehan David Snardon

KREIA’s New Member Orientation Jordan Pohn and Stacey Duvall will give a short presentation of the benefits of joining KREIA at every regular monthly main meeting. Please join them in the small conference room at 6 p.m.

Online Presentation: You can view a recent session with Jordan and Stacey by visiting the Intro to KREIA page at kreia.com (About/Intro to KREIA on the menu).

On the Member Benefits page (Join/Member Benefits), you’ll learn how to secure your discounts and bonuses.

Workshop: Beginning Investors KREIA is teaming up with Master Builders Academy and NAREB (National Association of Real Estate Brokers) to deliver a workshop designed to teach beginning investors how to become landlords and house rehabbers.

George Foree, Frank Miller and other experts will be on hand to talk about their experiences in using real estate to actively create chunks of cash, through wholesaling and flipping, and in tapping the power of passive income – from rental properties – to become financially free.

If you are interested in learning more about real estate investing and would like to get inside info on landlording, wholesaling and house flipping, you are invited to attend this event, absorb this wealth of information, and ask questions.

There is no charge to attend. ► When: Saturday, June 26th, 10 a.m. – 1 p.m. ► Where: Spirit of Love Church, 4107 W. Market St, Louisville, KY 40212 ► Cost: Free

Chris McCarty: President’s Letter Continued from Page 1 networking and learning from others they wish to emulate.

The KREIA leadershipand membership work each month to provide education and opportunities for networking.

Together we will always meet any member halfway to assist with investing goals. Your half is showing up, stepping up, committing and beginning today with a plan to put your first (or next) deal together.

We will be meeting at full capacity again this month on Thursday, June 24th, and also simulcasting the meetings for the remainder of the year for anyone more comfortable watching from home. Either way, please join us, and together let’s change some lives.

Chris McCarty KREIA President Copyright MMXXI 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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Some of KREIA’s national sponsors via National REIA. For the full list, and info on discounts, visit nationalreia.org/benefits

Copyright MMXXI 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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Want more ‘Killer Deals’? Take Mike’s Investor Pledge

By Mike Butler This one item is perhaps the best tool I use to get most of my Killer Deals each year.

It’s simple, easy and will save you boatloads of your precious and valuable time.

Question: How many times have you labored away on your computer or smart phone doing your research on a lead, made an appointment, traveled to the property for sale, walked through it, scribbled down more notes on some paper, only to end up saying, “No Deal Here! Money Pit” or worse?

You end up walking away because you have convinced yourself there is no deal here.

Well, this is going to stop right now, if you want it to.

I went through the very same growing pains years ago, especially when I was working my full-time job. My time was super precious and valuable, and so is yours.

NEVER again will you walk away from a property thinking, “No Deal Here.”

From this point forward, here is how you can get killer deals when you least expect it.

BEFORE you travel to any property to view it, handicap it, and create your offers, you must do your due diligence using your computer. Research the property history, owners, comparable properties and tax assessments – and use Google Maps and Google Street View to “drive down the street” while sitting at your desk. All of this is FREE, and you can do it from home.

AND you must make sure you are dealing with a truly motivated seller and that their asking price is reasonably close to your ballpark price for buying.

Only after you have completed all of the above, and your investor gut feeling tells you that this one is worth your time to go take a look and maybe make an offer – that it might be a deal – do you proceed.

Only at this point will you make an appointment to go view the property. YOUR TIME is too precious and valuable to run all over town like a crazy chicken trying to view properties: That battle plan is not effective or efficient.

This might sound corny, but please raise your right hand and read the paragraph below OUT LOUD to yourself:

“I promise to myself and my family…

From this moment forward, To make an offer, even if ridiculous… on every property I take time out of my precious day to view.”

Once you have made this promise to yourself, you will have a whole different mindset before you jump in your car or truck to go take a look at a property.

When you decide to take action and go visit the property, you have PROMISED yourself to make an offer, even if ridiculous. This will get you very used to getting rejections; however, every once a while your seller will say “OK” and accept your offer.

You might be thinking you are limited in making these kind of offers. If you are thinking real estate agents will kill your offer, you are dead wrong. In fact, the majority of my successful ridiculous offers were on properties listed with an agent where I never communicated at all with the seller(s).

On all of those deals purchased using my Investor Pledge, every single agent threw a ka-niptchin fit telling me if they would’ve known that, they would have bought it.

Sorry, Charlie, but if you never make an offer, you will never get a deal.

One more thing, if the property you view is so ugly – either financially distressed or physically distressed – a ridiculous offer just might be too much to offer your seller.

In this situation, you can make the ultimate ridiculous offer: “The Seller Has to Pay Me $________ for Me To Buy This Property!”

Believe it or not, I have purchased a few properties where the seller had to pay me to buy their property.

Remember, LIFE does NOT have a PAUSE or REWIND button!

It’s up to you to make it happen.

To Your Continued $uccess!

P.S. Sign Up for Your FREE Investor Training Every Tuesday at 12 noon: MikeButler.com/PowerLunch Mike Butler is a KREIA Past President, a recipient of the Ed Melton Award, a property manager, a high-volume landlord, a principal in Tenant Finder Service, a retired Louisville undercover police detective, and the author of the best-selling real estate book “Landlording on Autopilot,” now available in its 2nd edition.

Copyright MMXXI 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 MMXXI 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 MMXXI 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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Attorney Provides an Update on the Courts

By Michelle Rawn As I’m sure you are aware, the City of Louisville has been given a few more millions to help with rental assistance. The process is very slow, but it has helped several landlords receive their rental income for more than a year.

Currently the eviction moratorium for non-payment of rent pursuant to the CDC will expire on June 30, 2021. As this deadline has been extended numerous times, I believe it will be extended again unless the original order shooting down the moratorium is upheld on appeal. The CDC moratorium is nationwide, but only applies to evictions for non-payment of rent where all adults of the leased premises have submitted a signed CDC Renter’s Declaration.

Evictions for non-rental lease violations (unauthorized occupants, disturbing the quiet use and enjoyment of the neighbors, etc.) and non-renewals/lease terminations are not affected by the CDC eviction moratorium and currently can move forward as usual. The moratorium did not cancel or suspend rental payments, but basically guarantees that a tenant cannot be evicted for non-payment of rent.

While this moratorium is in place, if your tenants reach out to you to accept payment from a rental assistance program or want to try and work out a payment arrangement, you will want to think strongly about this before saying no.

These rental assistance programs might be your only chance to receive payment for at least part of the rent owed while the moratorium is in place. Some of the assistance programs can pay as much as 12 months of past rent, plus 3 months of future rent. Please be sure to review all of the requirements of the rental assistance programs as most of them require the landlord to not evict the tenant for nonpayment of rent or lease termination/non-renewal for a set time period and some also require you to provide a 30-day notice going forward for non-payment of rent instead of the standard 7-day notice.

Please note: if your property or your tenant fell under the protections of the CARES Act, you must give a 30-day notice for non-payment of rent before you are able to file an eviction. Obtaining an eviction judgment has become more difficult in all situations. Per Order of the Supreme Court of Kentucky, the courts are slowly starting to open up and return to normal. Most counties, outside of Jefferson, are now requiring everyone to show up in person just like preCOVID times. Hopefully things will be able to return to preCOVID normal someday soon. As all of us know, things are still changing rapidly. Please feel free to reach out to me or John Benz in my office to see if there have been any more

Jefferson County District Court, at 600 W. Jefferson St., is where eviction hearings are held in Louisville. (Google Maps image)

developments or updates. I hope you and your families are staying safe and healthy.

Michelle R. Rawn Rawn Law Firm, PLLC Tel: (502) 639-9396 Fax: (502) 276-0607 Email: Michelle@rawnlawfirm.com

How Your Tenants Can Claim Assistance Landlords, you cannot directly tap into the millions sent to Louisville for rental assistance – but your tenants can. If you have any residents who are behind in rent and that you have filed eviction on, please direct them to this website: StopMyEviction.org The site offers a form they can fill out and instructions on how to proceed.

GOVERNMENT AFFAIRS LINKS 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

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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

Copyright MMXXI 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 MMXXI 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 MMXXI 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 MMXXI 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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Why Do Sellers Sell at a Discount?

By Hampton Scurlock Often I am asked by fellow investors, “Why would a seller sell a house to you at a discount?”

There are numerous reasons that may motivate a seller to do that. Often the seller has a problem (or multiple problems) and needs a quick sale. The most common reasons for needing a quick sale are: • Divorce • Death/health issues • Deported, detained (jail), drug problem, detoxing • Deferred maintenance • Delinquent on taxes and/or mortgage payments

The owners of a house that looks like this are likely motivated and hoping for someone to solve their problems. (Photo: pixabay.com)

There are also various other reasons I have run into over they don’t have to fix anything (or even clean it), they get the years such as: peace of mind knowing that they: • Job transfer (or job loss) • Downsizing (or upsizing if the family is growing) • Age-related reason (inability to climb steps or keep up with maintenance on a house, and wanting to move to be near – or far away from – family or current neighborhood) • Or just the desire to sell the house in “as-is condition” quickly without inspections/appraisals/realtor commissions, etc.

• Will get money in their pocket quickly • Do not have to pay realtor commissions or closing costs • Do not have to make any repairs • Do not have to wait on inspections or appraisals that can jeopardize the sale or cause losses

Sellers get the benefit of a quick and simple sale and they do NOT have to deal with uncertainty, delays, repairs, commissions, appraisals and inspections. They just get to If I can craft a solution that solves sellers’ real estate move on with their lives. problems and they are motivated – they need to sell, not I can also be flexible with sellers on a closing date, take just want to sell – they will typically sell the house to me over their mortgage payments, allow them to remain in the below retail value. property after closing, help them with moving/expenses, As you can guess, almost all investors must buy a house provide a dumpster for them, buy that old car that is in their well below retail to “make the numbers work” or to make it driveway, clean the items out of the house once they get the worth the risk, expense time and money to buy and fix up a items they want to keep, buy their next house for them and house. rent it to them, or give them rent credit if they want to rent Often sellers do not want to go through the process or from us as part of the deal. Or I can offer other incentives to expense of listing their house with a Realtor who often tells solve their real estate problems, incentives that are agreethem to clean up, move out, or make repairs to the house able to both parties. so they can hope to sell it – and that they will need to be So, sellers may sell their house at a discount because they out of the home before it closes. are motivated and because you are solving their problems or Some people have had bad experiences selling a house providing something of value – and it’s a beneficial transacbefore and dealing with inspections, delays, appraisals, tion for all involved. repair requests, closing costs, renegotiations/lowering of price, and other things that cost them time and money, so Hampton Scurlock is on KREIA’s Board of Directors and has they would like a quicker and often better alternate been buying houses and helping people solve their real estate solution to the traditional home sale. problems for over 20 years. If he can help you or anyone you That is where creative and helpful investors can be of know with their real estate problems, call/text 502-694-BEST assistance.

(2378) or send email to financialwhiz1@gmail.com or visit Because I am offering to buy sellers’ houses quickly and www.694best.com Copyright MMXXI 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 MMXXI 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 MMXXI 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 MMXXI 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’s Ambassador Program Launches in June

This new initiative is ‘Networking on Steroids!’

By Jordan Pohn & Stacey Duvall Stacey Duvall and Jordan Pohn will lead a team of Ambassadors to help new members assimilate with KREIA, while also enhancing the networking of all members. We ask that everyone be patient as this will affect every KREIA member, new and old alike.

Here is the way it will work. Any new member (and experienced if they want a refresher) can join the New Member Orientation session presented by Jordan and Stacey at 6 p.m. prior to the main meeting. The Ambassadors will also be present at the New Member Orientation. It provides members the opportunity to meet Jordan and Stacey, who provide a short presentation of the history and benefits of KREIA. The new members have really benefitted as they feel part of something before they go to the main floor.

In addition, they get to meet the other new members.

Now comes the second part, which should be beneficial for ALL members.

When you enter the building for the next main meeting, you will see a chalkboard at the check-in desk with a color code. Each color will represent a different type of investor. For example: Orange = flipper, Blue = buy-and-hold, etc. Pick the color(s) that best represents the investment activity that you either actively participate in, or would like to learn more about. You will find matching colored lanyards. If you do more than one type of investing, you are welcome to take multiple lanyards. You will then place your name tag on the lanyard. At this point, everyone in the room will quickly know what type of investor you are (and vice versa) and you will be able to network with those you feel are most appropriate. The new members will have a green lanyard. This enables current members the opportunity to meet the new crowd and make them feel at home with a handshake or by sharing any wisdom or knowledge they feel appropriate.

This is not just for the new members. Stacey, Jordan and the Ambassadors (some of us have been members for more than five years) have noticed that we don’t know a lot of the members when we go to the meetings. These lanyards will hopefully provide more introductions and networking opportunities for all of us.

For example, Stacey, a buy-and-hold investor, has already mentioned that she would like to learn more about the

wholesalers (red lanyard). She can now easily recognize those who are engaged in that activity (via the lanyard color code). This program will hopefully make networking easier and more beneficial to all.

There may be some members who do not want to participate in this program for one reason or another. No one is going to be forced to wear a lanyard. The lanyard represents that you are open to speaking and networking with both experienced and new members. If this does not interest you, or you are a vendor who does not invest, please do not feel any pressure to participate. I do feel that the greater the participation, the greater the benefit for everyone (including KREIA as an organization).

We have all said the following at one point or another – KREIA was born to educate and provide networking opportunities for those who are either involved in real estate or those who seek to be involved in real estate. This program will hopefully accomplish both of these goals.

There are only a couple of hours at each main meeting that are designated for networking. Please be respectful of everyone’s time. Monopolizing someone’s KREIA experience is not the goal of this program.

For further networking activities, you can attend one of many other activities that KREIA sponsors during the month. Feel free to wear your lanyard to these events as well.

One last thing. We do want to engage with the new members. I think we can all remember back to our first meeting. It is intimidating to walk into a room full of strangers who all seem to know each other. If you are a long-time member and you see someone with a green lanyard who looks a little lost, please go introduce yourself.

Remember back to your first meeting and realize how impressed (and relieved) you would have been if someone had done this for you.

Jordan Pohn is a board member and Ambassador. He is also an owner of Surepoint Equity, a hard money lender. Please feel free to contact him at jordanpohn@surepointequity.com

Stacey Duvall is also a board member and an Ambassador.

In addition, she is a real estate broker and a buy-and-hold investor. Please feel free to contact her at stacey@staceyduvall.com.

Copyright MMXXI 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 MMXXI 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 The KREIA crowd was engaged and taking lots of notes during the May 27th main meeting, “Legacy Wealth Building 101.”

KREIA

Photos

Visit KREIA’s Private Facebook Group to see more of Bruce Hinson’s photos from last month’s meeting – in color!

At Left: It’s OK, Rob. We’re allowed to go maskless at the bar now.

Below: Erik Hitzelberger was wired for sound as he headlined May’s meeting.

photo by bruce w. hinson www.obedientcamera.com

photo by bruce w. hinson www.obedientcamera.com

At Left: Who’s a good girl? You are, Abby. Yes, you are!

Below: The moment when Tonya Allen and Mimi Guarnieri noticed that photographer Bruce Hinson had them in his sights.

Below Right: During Q&A, VP John Jones delivered the mic to new KREIA member Jason Crask.

photo by bruce w. hinson www.obedientcamera.com

photo by bruce w. hinson www.obedientcamera.com

photo by bruce w. hinson www.obedientcamera.com

Copyright MMXXI 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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Pleasure Ridge Park 12-Plex: A Closer Look Team from Freedom Property Group rehabs a multifamily to flip

By Lauren Willoughby Our typical Learn On The Site event features a distressed house that a rehabber has picked up at a discount, renovated, and plans to flip for a profit. Or sometimes it’s a house that an investor is turning into a rental.

For the first time in a long time, the focus of our most recent L.O.T.S. event was not a singlefamily residence but instead a multifamily building – a 12-plex in PRP – that investor Erik Hitzelberger’s company, Freedom Property Group, picked up and is renovating.

Freedom Property Group’s specialty is turnkey rentals: acquiring properties, rehabbing 12 bathrooms, 12 kitchens and 24 bedrooms needed work at 6500 Hackel Drive: That’s a lot of fixing and flipping! (Photo courtesy of Erik Hitzelberger) them, then selling them to hands-off investors, while staying on as the property manager. ($15,000 for LVP from Home Depot). The crews have also So the plan is to whip this 12-unit building back into shape put in five sets of cabinets, repainted cabinets where they and sell it rent-ready to a multifamily investor. could, replaced appliances, replaced windows, resurfaced Erik was out of town on June 1st, the day of the L.O.T.S. the parking lot, refinished tubs, changed out all the light event, but two FPG team members were on hand to take us fixtures and plugs, and replaced vanities and toilets. on a tour of the property and share the numbers.

FPG team memFPG Project Manager Jacqueline Smith and Office bers have their work Manager Sheri Cannon described the work that had been cut out for them done and reported on its cost. It’s been Jacqueline’s job to with this building, hire the contractors working on the site. which is over 10,000 The building was acquired at the end of January, and work sq. ft., spread across began in early March as FPG brought in four contractor three floors and 12 photo by bruce w. hinson crews to start demo and repairs. Nine units are now vacant apartment units! www.obedientcamera.com and being worked on, but FPG plans to rehab all of them.

One of the KREIA Two of the biggest expenditures so far have been for members at the site KREIA members who attended L.O.T.S. live painting ($31,500 for interior and exterior) and flooring asked what the dif- enjoyed a free box lunch. Sorry, Zoom attendees, no free lunch for you! ference is between renovating multifamily vs. residential. “There’s a lot more organization,” Jacqueline said. “Mainly just treat each unit like a single-family house.”

The finishes look awesome, guys! Thanks for hosting us.

photo by bruce w. hinson www.obedientcamera.com KREIA board member Alexis Fentress, left, frames up the shot for the live video feed going out over Zoom. Freedom Property Group’s Sheri Cannon and Jacqueline Smith, at right, prepare to give the presentation on their rehab project.

THE NUMBERS Purchase: $605,000 Carrying Costs: $48,300 Fix-Up Costs: $150,130 Closing Costs total: $7,730 All-in Cost: $811,130 Rental Income: $12,420 Expected Sales Price: $965,000 Expected Profit: $166,290

Look for the video from this L.O.T.S. event to be posted soon to our Videos page.

Visit bit.ly/k2106lots to see the numbers breakdown posted to our Private Facebook Group

by Alexis Fentress.

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

Copyright MMXX 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 MMXXI 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 MMXXI 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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Artificial Intelligence Allows Data-Driven Decisions

Machine Learning offers precision, but it depends on size of the data set

By Nina Musgrave, KREIA Volunteer Artificial Intelligence (AI), also known as machine learning, is a complex and complicated subject. As a whole, real estate may be one of the last industries to adopt AI, although Wall Street real estate companies have been using machine learning for a while.

Zillow uses AI to construct its infamous “Zestimate.”

Zillow, like Redfin and others, has access to hundreds of millions of photos that can be scanned by machines to run any kind of analysis imaginable. One tangible example: By running thousands of data points across millions of exterior photos, Zillow knows that houses with a yellow exterior take longer to sell.

An organization that has access to a large data pool can predict and evaluate information that increase success for investment decisions. Zillow most likely won’t paint one of their houses yellow. Not because they don’t like yellow, but because it isn’t an optimal color for investment performance.

This could be compared to thinking, “I will only buy properties with more than one bathroom,” or “I will not buy houses with less than 1,000 sq ft.” Based on experience,

research and training, maybe you’ve concluded these types of properties take longer to sell or aren’t as desirable for your portfolio. The so-called Mom-and-Pop investors make decisions, just like Zillow and other iBuyers, based on datasets we’ve analyzed.

Today, there is more data than ever before. We have access to portals; we can code; we can download and develop systems with constructs to analyze. While we may not have access to everything that Zillow or OpenDoor does, we have enough at our fingertips to start digging deeper.

Using data to locate profitable deal routes is going to become more essential in our current, competitive real estate market.

To do better and be different, we will need to look at the data through a new lens. We know the Wall Street companies are up to the challenge. Undoubtably, they will continue to grow the already enormous data pools they have. I am excited to continue thinking of ways to use all of the data, ways to consider investments perhaps I didn’t before!

Nina Musgrave is a past KREIA board member. She is passionate about real estate, technology, and potato chips.

Most platforms: @onlyonenina

Copyright MMXX 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 KREIA as a Business Card Advertiser for only $199/year and see your ad in a year's worth of KREIA newsletter issues!

Copyright MMXXI 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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National REIA Real Estate News Roundup ???

Zombie Foreclosures Increase

National REIA, of which KREIA is a chapter, reports on issues affecting real estate investors and also links to stories of According to ATTOM Data’s latest Vacant Property and interest from other organizations. Here is a sampling of recent Zombie Foreclosure Report, zombie foreclosures represent news and resources that Brad Beckett, NREIA’s Director of only one of every 12,256 homes in Q2. The report also says Education & Outreach, has compiled. For more news, visit the number of zombie homes sitting empty was up RealEstateInvestingToday.com quarterly by 21%, and annually by 5.6%.

Read the report: bit.ly/k2106zombie

Renter Incomes at a Record High

Realpage.com says that while there is lots of talk about inflation, there is some good news – the incomes of apartment renters are rising. They report that median household incomes for market-rate renters signing new leases is up 5.5% from two years ago and that median household incomes for market-rate renters signing new leases jumped to a record high of $64,656 in April 2021.

Read the report: bit.ly/k2106renters

Big Cities Seek Ban on Natural Gas Going to Homes The Wall Street Journal (reposted on realtor.com) says several big cities are pursuing legislation to phase out natural gas for home cooking & heating, citing concerns over globalwarming and climate change. Major cities including San Francisco, Seattle, Denver and New York have either enacted or proposed measures to ban or discourage the use of the fossil fuel in new homes and buildings.

Read the article: bit.ly/k2106gas

Cash Sales Are Rising Sharply Recent data from the NAR’s Economist Outlook say that the share of all-cash sales to existing-home sales surged to 25% in April, 2021, as non-first-time buyers are paying all cash to increase the competitiveness of their offers, edging out first-time buyers.

Read the report: bit.ly/k2106cash

AHS Profile of Owners and Renters What kind of homes are owners and renters living in?

Using data from the latest American Housing Survey, this infographic from the Census Bureau illustrates the different kinds of housing types and sizes that owners & renters occupy.

View the full infographic: bit.ly/k2106profile

Half of Homes Are Now Selling Above List Price Redfin says that a record high of 50% of homes sold for more than their listing price, up 23 percentage points from the same period one year earlier.

Read the report: bit.ly/k2106list

Own a Schitt’s Creek in Real Life: California Desert Town for Sale If you enjoyed watching the hit Netflix show Schitt’s Creek, here is the listing for you. According to the Wall Street Journal, the 80-acre town of Nipton, California, is up for sale. The town, located on the on the California side of the Mojave Desert, is about an hour away from Las Vegas and is on the market for $2.75 million. bit.ly/k2106schitts

New Home Sales Take Hit From Higher Building Costs The NAHB says higher building costs, longer delivery times, and unpredictability in the residential construction supply chain are now having measurable impacts on prices.

It has estimated that higher lumber costs alone have been increasing the price of new homes by tens of thousands of dollars. Sales of new single-family houses are down 5.9%.

Read the report: bit.ly/k2106newhomes

Rentable Says June Rents Up Rentable says that the median nationwide rent price for 1-bedroom units in June was $1,146 (up 1.34%) with 2bedroom units coming in at $1,404 (up 1.23%).

Read the report: bit.ly/k2106rentprices Continued on Page 28

Copyright MMXX 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 MMXXI 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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National REIA News Briefs Continued from Page 26

Paycheck Protection Program Closed to New Applicants

How Media Consumption Has Changed in the Last 10 Years

As of May 31, the SBA’s Paycheck Protection Program (PPP) was closed to new applicants. But the SBA says existing borrowers may be eligible for PPP loan forgiveness.

Visit the SBA’s PPP page: bit.ly/k2106ppp

The Visual Capitalist says data shows we consume more media than at any point in time over the last decade. This infographic reminds us that the way in which we consume media has dramatically shifted toward the online world, versus TV and radio, which are trending downward.

View the full infographic: bit.ly/k2106media

House Prices Rise 12.6% over 2020 According to the latest Federal Housing Finance Agency’s (FHFA) House Price Index (HPI) report, U.S. house prices were up 12.6% from Q1 of 2020 to Q1 of 2021.

Read/download the PDF file: bit.ly/k2106hpi

Arbor’s Single-Family Rental Investment Trends Report According to Arbor’s Q1 2021 Single-Family Rental Investment Trends Report, if there were three real estate headlines to come out of the pandemic, they would focus on work-from-home trends, online retailing and singlefamily rentals (SFRs).

Read the report: bit.ly/k2106sfr

Copyright MMXX 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 MMXXI 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 MMXXI 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 2021 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 exceptions are when an at-large board member chooses to run for an officer position before his/her twoyear term has expired or has to resign prior to the end of his/her two-year term. There are no term limits, and all incumbents may run for reelection if he/she so desires.

This year you will be able to choose to vote in person at the June 24th meeting, online at the KREIA website or by requesting a ballot prior to June 22nd by emailing Michelle R. Rawn at Michelle@rawnlawfirm.com. In person and online voting will end promptly at 7 p.m. (EST) on June 24th. Absentee voting ends at 11:59 p.m. (EST) on June 23rd. Those elected at the June meeting are strongly recommended to attend the July board meeting and will be sworn in to take office at the July regular 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 a committee chair. In order for KREIA to be successful, all board members are required to be an active member helping at all KREIA events.

Please see the sample ballot for those individuals who will be running for officers and board members.

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

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

KREIA 2021 ELECTION PREVIEW BALLOT

Please see below a preview ballot for the KREIA 2021 election, which will take place both virtually and in person. You will be able to choose to vote in person at the June 24th meeting, online at the KREIA website or by requesting a ballot prior to June 22nd by emailing Michelle R. Rawn at Michelle@rawnlawfirm.com. Inperson and online voting will end promptly at 7 p.m. (EST) on June 24th.

Absentee voting ends at 11:59 p.m. (EST) on June 23rd.

Officers (to serve a one-year term) Vote for one person for each position President Vice-President Secretary Treasurer Treasurer-Elect

□ Erik Hitzelberger □ Stacey Duvall □ Jordan Pohn □ Mike Grinnan □ Wally Kallbreier

Write-in □ _______________ □ _______________ □ _______________ □ _______________ □ _______________

Board at Large (to serve a two-year term) Vote for six people □ Mary Conrad □ Ian Hooper □ Karen McKnight □ Hampton Scurlock □ Komeneci ‘Neech’ Yates

□ Eric Feller □ John Mays □ Frank Miller □ Steven Staub

□ Alexis Fentress □ Rue McFarland □ Greg Nalley □ Erin Wegrzyn

I approve the 1st amendment to the KREIA Constitution: □ Yes □ No I approve the 1st amendment to the KREIA By-Laws: □ Yes □ No

Meet the Candidates…

Thirteen people are running for six open board seats. These are the people who will help decide the future of KREIA. We invited all candidates to write an article introducing themselves, describing their

backgrounds and what they’d like to do for KREIA. Turn the page to read the bios of those who took us up on our offer.

Their articles appear in the order we received them, except where space dictated.

How to Cast Your Vote Online To vote online, you will need to find and write down your unique KREIA Member ID number. To find it, sign in at kreia.com, then click or tap the link to “My Dashboard.” On your Dashboard, scroll down until you see the section called “My Profile Information” – your Member ID will be right below. Then go to KREIA’s homepage and click or tap on the prominent link that takes you to our voting instructions page, which in turn leads you to the online ballot. It’s easy! Watch this 1-minute video for a quick walkthrough: bit.ly/kreiavoting

Copyright MMXXI 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 CANDIDATE BIOS

Rue O. McFarland After studying at Eastern Kentucky University and the University of Louisville, and graduating from a four-year training program at General Electric Company, Rue entered the real estate profession in 1969.

He has worked many facets of the real estate business, both residential and commercial, including buying, selling, managing, leasing, exchanging, financing, building and renovating. He has built or renovated more than 100 single-family houses, and he currently manages more than 100 single-family houses. He now specializes in investment properties and mortgages.

Rue has earned the prestigious CCIM (Certified Commercial Investment Member) designation and the CPM

(Certified Property Manager) designation. He has taken more than 100 courses and seminars on real estate and real estate financing, and he has taught for Jefferson Community and Technical College and various real estate organizations.

Rue has served as President of the Greater Louisville Association of Realtors, President of the Kentucky Real Estate Exchangors and President of the Kentuckiana Real Estate Investors Association, which he co-founded, and as Chairman of The Fuller Center for Housing of Louisville, Kentucky.

Rue has been recognized as “Realtor of the Year,” “Exchangor of the Year,” and Realtor Emeritus. He has also earned these awards: “The President’s Award,” “Wall of Honor Award,” “Ed Melton Memorial Award,” “Millard Fuller Legacy Society Award,” “Lifetime Achievement Award.”

John Mays Real Estate investing has changed my life, and I am sure it has or will change yours as well. If you are like me, you may not be a natural entrepreneur or investor, and probably don’t have many wealthy people in your family.

Matter of fact, 5 years ago I would have never told you that I was even interested in buying a house for any other purpose than living in it. That all changed after a friend invited me to a couple KREIA meetings and I was exposed to the possibility of living a lifestyle with financial freedom I had not thought was achievable for an everyday person like me.

My name is John Mays, and I am here to tell you that Real

Estate investing is the absolute quickest, safest, funnest, and most rewarding route to financial freedom. In under 4 years of Real Estate investing, my wife and I have gone from $1,000 in a savings account to Financial Independence from buying, rehabbing, renting, refinancing and repeating (BRRRR), all while having a great quality of life with 3 active kids, a full-time job and serving on multiple non-profits and ministries.

I would love to serve with the KREIA board to share the unlimited potential that exists with Real Estate investing, especially to underrepresented communities like mine, where creating access to opportunity would change lives and families for generations to come. I appreciate your support and look forward to supporting your real estate journey.

Greg Nalley I’ve enjoyed serving on the board the very well-connected in Louisville, so don’t be afraid to ask last three years, and I’m willing to continue my opinion or advice. to give my time to make our organization even better. After flipping a distressed historical home downtown, I’ve gained a lot of respect for our members who have been doing it for years, perfecting their system.

I’ve insured thousands of properties in the last 17 years since I have been in the insurance business. I have seen and heard so many different, challenging scenarios with properties, and I love helping folks with their situation by connecting them with the right person to help.

I’m a Louisville native and joined the Air Force in 1983 and was gone for 22 years. When I retired in 2005, I moved back to Louisville and it has been like I haven’t missed a beat. I’m Copyright MMXXI 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 MMXXI 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 CANDIDATE BIOS

Frank Miller Dear Fellow KREIA Members, Hello my name is Frank Miller, and I am running for the KREIA Board. I have been in this organization now for over 16 years, and if it was not for this organization I would not be where I am today. So that is why I love giving back and volunteering.

In the Past I have served as: Board Member, Vice President, President, and currently hold the position as “Party Planner.” I am a licensed real estate agent and licensed

auctioneer. I also Fix N Flip, Wholesale, Buy & Hold, and am an Expert BRRRRR Guy! I also run the successful Mentoring & Training Program called Believe Investment Group, which has brought several alumni one step closer to financial freedom. I would appreciate your vote for this position because I want to give back and help others get closer to financial freedom, like I have achieved by investing in real estate.

Frank Miller, 502-262-6706 Believeinvestmentgroup@gmail.com

Neech Yates Hello, KREIA members, my name is Neech Yates. I have been a member of KREIA since 2016 under Frank Miller’s administration. Since joining KREIA, I have learned a wealth of information about real estate investing.

Being a part of KREIA has allowed my real estate career to grow exponentially. I have met many mentors and friends during my time at KREIA. I look forward to sharing my knowledge with the board.

I currently rent and flip houses in the Louisville Metro area and surrounding counties. I believe I can bring my experience

of being a newer investor to KREIA’s board. I’ve completed real estate rehabs from the studs to minor reconstruction on properties. I have experience dealing with city inspectors. I have experience in buying property from multiple avenues. I have purchased property from the city, online, wholesalers, MLS and many off-market deals.

I believe I can bring fresh ideas to the board from a diverse and inclusive perspective. Having this unique outlook gives me a different insight in the world of real estate investing. I look forward to sharing my past, present and future experiences with the board and body of KREIA. I humbly ask for your vote as a member of the board-at-large.

Hampton Scurlock My name is Hampton Scurlock, and I would like your vote for KREIA Board Member. I have enjoyed being on the KREIA Board for the past several years and hope to continue my service to you.

I am an investor who is very active in real estate and networking. I host the

KREIA Happy Hour and Game Night events. My passion for real estate started in college after purchasing my first house with my father.

I pride myself on helping others and hope to continue to serve you on the KREIA Board.

Alexis Fentress Heya! If we haven’t met yet, my name is Alexis Fentress. I’ve been an investor for several years now, and found KREIA a couple of years ago. I prefer to invest in long-term, single-family rentals. I only intended to pick up 1 more rental this year and have surpassed that by 2.

On top of being a real estate investor, I am also a Real Estate Agent with RE/MAX Premier Properties. I have enjoyed

being able to help first-time investors and first-time home buyers in general.

I’ve had the honor of serving on the board for the past year. I’ve been a part of several different committees, but my favorite has been hosting Game Night and Happy Hour with Hampton. I hope to be re-elected for a board position this year so that I may continue to serve. If I am lucky enough to be re-elected my goal is to continue to build more of a social presence for our local REIA.

Copyright MMXXI 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 MMXXI 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 CANDIDATE BIOS

Eric Feller Upon graduating from Northwestern University, I began my professional life in L.A. in the entertainment industry, fittingly working on the hit show Home Improvement. After a few years in TV/film, I launched a successful sports-focused production company that allowed me to blend my creativity and interest in sports/fitness with a love of business. In 2002, I relocated to Louisville and grew the business into a thriving media company that still operates today.

My foray into real estate started with a flip in 2016 – a small St. Matthews home that netted a whopping $2,500 profit... but hey, I got paid to learn! And even more importantly, I was hooked. The next day I formed JR Homes LLC and shifted careers to full-time REI. Since then, I have com-

pleted several highly profitable flips, new construction projects and wholesale deals, accumulated a multimillion dollar portfolio of long- and short-term rental properties, created a successful STR property management company (BNB Louisville LLC), and formed numerous relationships/partnerships with investors and builders that drive the growth of this city.

As a business owner, I’ve worn all hats... from sales and marketing to production and distribution. I continue to gain knowledge through hands-on experience, networking and constant study... applying all I have learned in nearly 25 years of entrepreneurship to each new venture. As a board member, I will bring fresh perspectives, real-world experience and creative ideas that will help guide a new generation of real estate investors.

Karen McKnight Hello, my name is Karen McKnight.

I welcome the opportunity to be a member of the KREIA Board of Directors.

As an African American female new to real estate investing, I will bring a new perspective and voice to the board. Along with the eager mind of a new investor, I earned my Bachelors in Entrepreneurship from Simmons College of Kentucky in November 2020.

I am concerned with becoming more educated so that I can mentor other like-minded individuals in order to generate a legacy of generational wealth by renting good, healthy homes This includes my own son, who is afraid to claim his inheritance due to unpaid student loans. His savings account was already seized by the government – is this also the fate of his grandmother’s house if it’s in his name? Many questions and situations such as this exist in my community, and I am determined to help others by being of service to the KREIA Board of Directors.

Society has been shaken to its roots over the disparity of wealth in our country. The real estate industry has been used to that end. Many friends in KREIA have reached out to encourage me to follow my dreams in fostering the healing of disparity that has begun with the KREIA Ambassadors program.

As alluded to before, at 58 years of age I am early in my REI career. I have acquired two 4-plexes in 3 years, have completed Frank Miller’s Believe Investment renovation course, Mike Butler’s Landlording on Autopilot course, attended as many main meetings, L.O.T.S events, and Lunch n’ Learns as

humanly possible while also proudly (25 years now!) building trucks for Ford Motor Company and building my yoga business, ALI Yoga Wellness, in order to hold it all together.

I have learned much with KREIA and am interested in learning even more so that I may serve by teaching others and to also increase the KREIA membership by adding to the rolls. I respectfully ask for your vote.

Blessings upon Blessings to you!

Follow us, like us, join us

@reiaky

Copyright MMXXI 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 MMXXI 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 CANDIDATE BIOS

Ian Hooper Hello, friends and fellow KREIA members. For those whom I haven’t met, I’m Ian Hooper. Professionally, I’m a licensed real estate agent with RE/MAX Premier Properties in Louisville. In my brokerage business I represent both retail and wholesale buyers and sellers in transacttions in all areas of town. My investment business focuses mainly on residential real estate in Louisville, and I have experience in rentals, flips, wholesale deals, and even more creative financing and acquisition scenarios.

I have a passion for service to those affected by drug and alcohol addiction, and I spend a fair amount of my spare time in service to individuals in need of help. I currently hold a position on the board of directors of The Healing Place Louisville, where I serve as the chair of that board’s nominating committee.

My partner, Nina, and I have been members of KREIA since 2016 and are grateful for the relationships that we have built as a result of our membership. Every deal we have done has been influenced by a lesson learned from, a referral given by, or a service performed by another KREIA member. My gratitude for KREIA leads me to want to serve on the board and to ensure that the experiences that Nina and I have continue to be available to investors in our community.

With the uncertainty of the long-range economic effects of COVID-19, an affordable housing shortage, and increased participation of institutional investors in our local housing market, I’d like to help KREIA be a leader throughout the community. Questions have been raised about the diversity of the content, membership, and leadership of this organization. I believe those concerns are valid, and I will be a voice for those issues from within the board.

I love KREIA, and I greatly appreciate your vote.

Erin Wegrzyn It was my brother’s spontaneity that started my real estate journey. I took on the role of a silent investor back in 2016. I pursued my full-time career as a pediatric occupational therapist during that time.

My brother bought and managed our properties. In 2017 upon my brother’s was given the option to dive death, I further into investing or to get out completely.

After numerous hours of listening to BiggerPockets, attending monthly meetups, and surrounding myself with like-minded people, I committed to furthering my real estate career. I have dabbled in BRRRR, flips, and commercial. I currently have a portfolio of around 10 that spreads from Owensboro to Bowling Green and finishes here in the heart of Louisville.

I still consider myself a novice. My willingness to admit my lack of knowledge is a benefit for those around me. I do not mind asking the dumb questions. I have no fear of discussing real estate with some of the “top dogs.” My willingness to discuss real estate with anyone allows for me as well as those around me to grow. And for that I will always be a novice real estate investor…. In 5 years, 10 years, 20 years my title will remain the same.

It is my goal to join the KREIA board in order to be a support for those just getting started. I remember what it is like to walk into a meeting and not know a soul. I remember the butterflies that come with making your first offer. I remember the excitement that builds inside as you wait to hear if your offer was accepted. A new investor needs people that understand them.

Mary Conrad Mary Conrad has held investment property since 1995, with one rental, until picking back up with acquisitions in 2018. In 2015 Mary started with Airbnb. In 2018 she purchased additional properties as Airbnbs. She has purchased properties as buy-and-holds and flips.

Mary does a variety of real estate investing including wholesaling, short-term rentals, long-term rentals and flips, and is interested in investing in storage facilities. She invests

both inside and outside her IRA. Mary has been in Information Technology Project and Program Management for 20 years and works full-time as a contractor while investing as her side hustle. Mary is the former President and VP of Programs for the Kentuckiana Project Management Institute, serving over 700 members in Kentucky and Southern Indiana. Mary is interested in serving on the KREIA board and is especially passionate about providing education to new and seasoned investors alike.

Copyright MMXXI 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 MMXXI 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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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/reiaky facebook.com/reiaky (public) • facebook.com/groups/kreiaky (private)

UPCOMING EVENTS

National & Local Trends in Real Estate

❖ July 6th — Noon-1:30 p.m. Lunch & Learn. Meet up for education & networking. Members only. Ed Gibson hosts.

We know demand is high and inventory low here in Kentuckiana. ❖ July 8th — 5 p.m.-7 p.m. KREIA Happy Hour. Networking at Woodhaven Country (new venue). Everyone invited.

But what are the trends with real estate on a national level, com❖ July 13th — Noon-1 p.m. Tool Tip Tuesday. Tamara West hosts a virtual Zoom call where she demonstrates software pared with what we’re seeing here locally? KREIA’s own Mary and resources helpful to investors. Members only.

Conrad, along with Jeff O’Brien and Rebecca Fleischaker, from Louisville Forward, will be analyzing the present and forecasting ❖ July 15th — 5:30 p.m.-8 p.m. KREIA Game Night: CashFlow. the economic future for investors. June 24th, 5:30 p.m. - 9 p.m. Want to get out of the Rat Race? Play CashFlow with us. We’re ► 5:30 p.m. Early Meeting: Gavin Shook of Louisville Insulation setting up the kids’ board too, so bring the kids this month!

Everyone invited. Hampton Scurlock and Alexis Fentress host. discusses options in insulating our flips and rentals. ❖ June 26th — 10 a.m-1 p.m. Beginning Investors Workshop.

KREIA teams up with Master Builder Academy and NAREB for a free seminar on how to get started in real estate investing. ❖ June 29th — noon-1 p.m. L.O.T.S. event. We visit Frank Miller’s latest rehab project. Members only. Lunch provided!

Main Meeting Preview Here’s what’s coming in the months ahead: July 22nd: BRRRR and House Hacking August 26th: Buy-and-Hold Landlording

We’re Back at Woodhaven, Baby! PRE-Register Now at KREIA.com