May 2022 KREIA Newsletter by KREIA .com

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 5-22 May 2022 President’s Letter

Main Meeting: Property Management and Applicant Scorecard

Welcome, New Members!

John Mays: 15 questions to ask yourself in uncertain economic times

In the most-viewed TED Talk of all time, Tony Robbins sums up centuries of psychological study with the following assessment. Humans have six basic needs. These are: 1. Security – generally financial 2. Variability 3. Significance 4. Love and Connection 5. Growth 6. Contribution

Erik Hitzelberger

He goes on to point out that the last two are needs of the soul. Mike Butler: ‘NOW Is the Time to 6 Take Action!’ Michelle Rawn: KREIA’s Election 10 Schedule Government Affairs Links

KREIA Photos

L.O.T.S. Recap: Josh Hardy flips 19 in Barbourmeade National REIA News Briefs

Ian Hooper: Requested donations 28 for the Home of the Innocents Calendar of Events

This last part is important, because there are two ways to make money in real estate (or anything else). The first is through Creation. As investors you have the opportunity to solve problems for sellers, to create win-win scenarios for other investors, to provide good homes to good people, and to generally elevate others. The second way is through Destruction. You can choose to manipulate distressed sellers, to mislead or disparage other investors, and to take advantage of residents. Both ways can create security and significance. After all, money is money, and holding a gun to someone’s head does make you significant. HOWEVER, you cannot achieve those two great needs of the soul via the Destructive process. I say all of this because fear, volatility and uncertainty are rampant right now. Inflation is up, the S&P 500 is down, Crytpo is down, interest rates are climbing quickly, and talk of recession is more and more frequent. In February, I wrote of four possible outcomes to the issues facing the financial markets and the resultant Fed actions. Today, we are somewhere between the “Yikes” and “Holy S***!” scenarios and are headed in the wrong direction. Continued on Page 28

Copyright MMXXII 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 Erik Hitzelberger

Vice President Stacey Duvall

Advertise With KREIA

Secretary Jordan Pohn

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

Frank Miller

Greg Nalley

Hampton Scurlock

Rob Bergeron

Christopher Jaquith

Alexis Fentress

Ian Hooper

Mary Conrad

John Mays

Karen McKnight

Michelle Rawn Parliamentarian

Chris McCarty Past President

Lauren Willoughby Media Manager

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 alongside active investors! Ask for someone to direct you at the checkin desk at the main 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!

How Do You Score Prospective Tenants?

3 property managers share their criteria and management tips at May 26th meeting Housing supply is failing to keep up with demand – not only here in Louisville, but all over the country. If you’re a landlord, you know that competition is fierce among potential residents to move into your property. How do you decide among them? How do you score applicants? What is fair? And very, very important, what is legal? This month KREIA has invited a panel of three experienced landlords / property managers to discuss this very aspect of property management. Marcus Britton, Debbie Vornholt and Joy Mays will share their processes, offer management tips, and answer your questions. If you are currently a buy-and-hold investor or a property manager – or you aspire to be – this is a can’t-miss meeting for you! Meet our speakers…

Marcus Britton Marcus is a rehabber, a contractor, a mentor, and a landlord who knows a lot about how to work with Section 8. He owns the company Red Door Investments. If you attended April’s Lunch and Learn event, when Marcus was our featured speaker, you’ve already learned a lot from him! (Watch for that video replay to be posted to KREIA’s website soon.) You’ll learn even more at our main meeting.

Debbie Vornholt Debbie has been a property manager since 2010 and currently manages a mix of residential SFRs, apartments and commercial properties. She loves the challenges that come with managing such a large variety of properties. She also blogs on property management topics at her website, CommonSenseLandlording.com.

Joy Mays Joy is a licensed and insured general contractor and a rental property

Illustration by Nina Musgrave

manager. Joy has worked full time in real estate since 2019 and focuses her energy on revitalizing and rehabilitating vacant and depressed houses in West Louisville. Providing quality housing to those who have historically been underserved is her passion.

May 26th Meeting Agenda 5 p.m. - Doors open at Woodhaven 5:30 p.m. - Early Meeting begins in the conference room 6 p.m. – Member Orientation with Jordan Pohn 6:15 p.m. - The buffet line opens! Also, at the microphone, there will be announcements, property pitches and sponsor pitches 7 p.m. – Marcus, Debbie and Joy take the floor for our feature presentation

Remember Your Lanyard! If you’ve been to an “in-person” KREIA main meeting lately, you’ve probably picked up one or more color-coded lanyards that identify what kind of investor you are. Please remember to bring your lanyards with you to our main meetings! Color Key: Blue = Buy-and-Hold Investor; Orange = Flipper; Yellow = Real Estate Agent; Red = Wholesaler; Green = New Member; Purple = KREIA Sponsor; Black = Board Member.

5:30 p.m. Early Meeting: Becky Duncan Need a dumpster? Call Becky Duncan, owner of Louisville’s redbox+, the company that delivers those distinctive red dumpsters with the built-in porta potties. Becky plans to “talk trash” with us!

Welcome, New KREIA Members! Chris Atchley Joe Campbell Ian Copeland Brett Grigsby Rose Hall Stacy Harris Mary Henry Ron Kirby Shawn Krupp

Philip Millay Ekundayo Olomo Philip Owens Yulanda Owens Mike Stuber Adam Volz Roger Watkins Denise Wisdom Marci Zahnd

KREIA’s New Member Orientation Jordan Pohn will give a short presentation of the benefits of joining KREIA at every regular monthly main meeting. We offer many educational and cost-saving opportunities! Join him in the small conference room at 6 p.m. Online Presentation: You can view a recent session with Jordan and Stacey Duvall 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.

15 Questions to Ask Yourself in Uncertain Economic Times By John Mays “No system of government, no economic system, no currency, and no empire lasts forever, yet almost everyone is surprised and ruined when they fail.” — Ray Dalio, “Principles for Dealing With the Changing World Order” Joy (my beautiful bride of 15 years) and I often get questions about our thoughts on inflation, the market, prices increase, labor shortages, supply chain, macroeconomics, GDP, affordable housing, and everything in between. Instead of sharing what we believe, we are now gifting people with the questions we asked to help us form our opinion. I know that if you answer these 15 questions, you’ll not only have an opinion but will also be able to become confident in your strategy to prosper through these uncertain times. I hope that, as you write down the answers to these 15 questions, your real estate journey be blessed like it has for Joy and me. 1. If the stock market tanked, what are the top 5 places where people would put their money? 2. How much money do you need so that you don’t have to worry about money when making daily life choices and decision? 3. If you had everything you need financially secured, what would you do with the rest of the money? 4. What is the lowest standard of living that you would be good with in the event of unforeseen challenges? Continued on Page 32

‘NOW Is the Time to Take Action!’ By Mike Butler Our real estate market along with pert’ near everything in our economy is already smack dab in the middle of an extraordinary inflation crisis. You already know why this is happening, and everyone has their own version of how to fix it. But the bottom line involves You, the investor, Your real estate business, and Your Life! YOU Must Take Action Now and make major changes immediately to your new ground rules. RULE 1: No More Buy, Fix Up, and Retail – STOP IT NOW! – also referred to as “Flips.” This was great this time last year and you got to pocket big chunks of cash. You might cringe by reminiscing about the “old days” of last year, but times have already and are continuing to change. You do not want to get caught with your pants down. This rapidly changing market reminds me of homebuilders from the last real estate bubble that popped. Builders are in the same boat as the buy, fix up, and retail folks. The market crashed and many builders and investors went belly-up and filed bankruptcy because they became upside-down. They spent their profits before they got them and, without any income, could not pay their bills. Needless to say, there were many properties sold at fire-sale prices. You can avoid this upcoming nightmare right now. Simply change your “Exit Strategies.” When you’re buying and you find a deal that would have been a great buy, fix up and retail, now make it a deal to “wholesale” to another investor or cash buyer. Doing this greatly reduces your risks of things described above. Your next exit strategy could be “Buy and Hold”; but carefully Run Your Numbers for Rental to make sure you get to pay yourself first, verifying the deal is an income-producing property for your portfolio. Many investors get started buying “fixer uppers” because their Dad taught them how to do things to “Save Money.” I grew up in this culture, and I began by buying fixer-uppers. My Dad grew up poor, and his parents brain-washed him with this same mindset. It reminds me of the book “Rich Dad Poor Dad.” If you have not read it, get it today, and read it now. It’s a game changer for your life and business mindset. I was always a buy-and-hold investor, and my original goal was to buy 3 small 2-bedroom houses on my old paper route and get them paid for before I retired from the Louisville Police Dept. My numbers showed me that these 3 little houses, paid for, would double my police pension. At the time, police officers could retire with 20 years of service. So, here’s what you should carefully review. If you want to get 20 nice rentals paid for in 3 to 5 years… and do it

ALREADY HERE

safely… even with your job, you must learn how to find deals and learn how to buy them without using banks! Try this on for size, at least for the next 12 to 18 months or so, until our inflationary economy settles down. Here is your New Qualifying Criteria for Buy-and-Hold Properties: 1. It must be structurally sound – no busted foundations, caved-in roofs, etc. Just a good, solid, well-built house that will be easy to maintain. In our town, 3-bedroom brick ranch-style homes built after 1978 are awesome for buy-and-hold. 2. Mechanicals – think of your licensed trades. HVAC technicians, electricians and plumbers can replace systems that are old and worn out. These are okay, but you have to factor these costs before you make your offer. 3. Your new definition of “Rehab” is limited to cosmetics. Think adding new floor coverings or refinishing the hardwoods, painting, updating kitchens and bathrooms, changing light fixtures, removing the Vietnam jungle covering fence rows and filling gutters – and giving the place a good bath and cleaning. 4. You MUST Run Your Numbers for Rentals to ensure it will be a good rental. If you find yourself cipherin’ your numbers and exit strategies on a prospective deal, and this house does not fit your new qualifying criteria for buy-and-hold, then you have only one exit strategy – Wholesale It and pick up a few coins. Remember, Pigs Get Fat, Hogs Get Slaughtered! Now, on top of all of this, you must stay tuned to loan products for both homebuyers and investors. Right now, it seems most homebuyers are being quoted 5.5% or more for a 30-year fixed rate loan. Continued on Page 10

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2022 KREIA Election

Mike Butler: NOW Is the Time to Take Action! Continued from Page 6

By Michelle R. Rawn It’s that time of year again – KREIA elections. 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), 12 atlarge board members, the immediate Past President and the Parliamentarian. The officers 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 two-year 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 re-election if he/she Stock photo / 123rf.com so desires. This year you will be able to choose to vote in person at the June 23rd meeting, online at the KREIA website, or by requesting a ballot prior to June 21st by emailing Michelle R. Rawn at Michelle@rawnlawfirm.com. In-person and online voting will end promptly at 7 p.m. (EST) on June 23rd. Absentee voting ends at 11:59 p.m. (EST) on June 21st. Those elected at the June meeting are strongly recommended to attend the July board meeting and will be sworn in take office at the July regular meeting. All board members are required to actively participate in 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. If you are interested in running for the KREIA Board, please email Michelle at Michelle@rawnlawfirm.com. If you have any questions about the election or governing process of KREIA, please feel free to contact me.

As a rule of thumb, based on history, if an investor can find a lender offering 30-year fixed rate loans, the investor interest rate is usually 2% or more higher than an owneroccupant loan. On top of this, the economists are predicting the Feds to raise the prime by another half point in June AND they forecast raising the prime rate up to six more times THIS YEAR! Using your cell phone, go to Google Play and get the app called Financial Calculator. This does a lot more than the old HP12c. You can use it to cipher loan payments and rates, and it is really awesome for buying discounted notes and mortgages. Always remember to put your best deals of the year, both wholesale and buy-and-hold, into your Self-Directed Roth IRA at CamaPlan.com for “Tax-Free Profit & Income for Life”! With interest rates rising and inflation, foreclosures will be on the rise. Now is the time to take action so you can stay several steps ahead of these trends. So, buckle up, put on your helmet, and pull your trigger now to learn how you can find great deals in any market. I am so looking forward to your feedback and your success! To your continued $uccess,

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

P.S. Sign Up for Your FREE Investor Training Every Tuesday at 12 noon: MikeButler.com/PowerLunch Also, catch Mike’s real estate investing podcast: www.5hrRealEstateWeek.com 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 bestselling real estate book “Landlording on Autopilot,” now available in its 2nd edition.

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 KREIA’s Government Affairs Board Chair: Rue McFarland

5236 Dixie Hwy Copyright MMXXII 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.

SomeMMXXII of KREIA’s national sponsors via National REIA.•For list,•and info on visit nationalreia.org/benefits Copyright Kentuckiana Real Estate Investors Association P.O.the Boxfull 91225 Louisville, KY•discounts, 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.

At Left: Board member Karen McKnight checks in with Mike Butler (KREIA Past President 2003-2005) at our April main meeting. (Photo courtesy of Karen McKnight)

What better way could stylish investors spend well-earned downtime on a beautiful May morning than a day at Churchill Downs? Top Photo, left to right: Current KREIA President Erik Hitzelberger and wife, Brandi; Christina and Eric George (KREIA Past President 2017-2019); and Jacqueline and Jay Bowman. Inset Photo: Tamara West (KREIA Past Vice President 2017-2019) takes a selfie with Frank Miller (KREIA Past President 2015-2017) and Eric George. (Photos courtesy of Eric George)

KREIA

Photos

Visit KREIA’s Public Facebook Page and Private Group to catch up with investor friends and their photos! Attorneys Michelle Rawn and John Benz broke down “Eviction Do’s & Don’ts” in front of a room of attentive landlords last month. We had so many questions fired from the audience that Erik Hitzelberger had to jump in to call a halt. Otherwise, the meeting might still be going on now! (Photo courtesy of Karen McKnight)

Barbourmeade Rehab House: A Closer Look Josh Hardy gets way over ask on East End flip By Lauren Willoughby Sourcing houses to flip has become challenging lately in this crazy competitive market! Help the deals come to you by letting everyone know that you buy houses, and word of mouth will bring some your way. Josh Hardy said he found this house in Barbourmeade, the focus of our May 3rd L.O.T.S. event, through a friend at church. “He needed a quick sale, so I worked out a deal with him.” As with everything on the rise lately (gas prices, interest rates, etc.), the rehab budget on this house took a hike – the original $60,000 budget got bumped The house at 7921 Barbour Manor Drive inspired a bidding war with a list price of $350k (“which we knew was a little light… but we wanted to create a kind of frenzy”) and 43 up by $20,000, Josh said. And he was bookings. (Photo by Lauren Willoughby) affected by supply chain slowdowns as well, with windows taking 18 weeks from order to arrival. But the house, which Josh has been working on since (And some windows arrived at the wrong size.) December, turned out beautifully. The buyer behind the accepted offer must have thought so too – he offered Josh $35,000 over his $350,000 ask within 24 hours! Josh said there’s an appraisal gap of $20,000, adding that repairs will be waived if the inspection total comes in at or under $10,000. “It was a pretty strong offer that I took.” What did Josh do in rehabbing this house? He took out a wall between the dining room and the kitchen, opening up the space. He installed cabinets from Pegasus Wholesale (a KREIA sponsor). And among other things, he installed 56 LED lights to brighten up the house. But something Josh didn’t do was mess with the cool wood features left in the house. He said the previous owner had been a woodworker, so he left the feature wall in the master bedroom intact, along with some of the doors. “We’re like, this is beautiful. Why tear this out?” All the tile came from Louisville Tile, where Josh worked for 26 years, before quitting in 2020 to become a full-time real estate investor. Awesome house, Josh! Thanks for sharing it with us.

L.O.T.S. host Josh Hardy is flanked by Kentucky Representative Ken Fleming (District 48), KREIA Past President Eric George, and longtime board member and L.O.T.S. coordinator George Foree. (Photo by Alexis Fentress)

THE NUMBERS Purchase: $230,000 Rehab Cost: $80,000 Holding Costs: $16,000 Sales Price: $385,000 Appraisal Gap: $20,000 Projected Gross Profit: $40,000

Find the video from this L.O.T.S. event to be available soon on our Videos page. Take a tour of the house with Karen McKnight!

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.

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 MMXXII 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.

National REIA News Roundup National REIA, of which KREIA is a chapter, reports on issues affecting real estate investors and also links to stories of interest from other organizations. Here is a sampling of recent news and resources that Brad Beckett, NREIA’s Director of Education & Outreach, has compiled. For more news, visit RealEstateInvestingToday.com

Foreclosure Starts Up in All 50 States According to ATTOM Data’s latest U.S. Foreclosure Market Report, properties with a foreclosure filing during Q1 2022 were up 39% from the previous quarter and up 132% from a year ago. Read more: bit.ly/k2205foreclosures

20 Fastest-Growing Dog-Friendly Cities in America A new report from Zillow & Rover says dogs are driving consumers housing decisions. They say that more than 60% of dog owners consider their dog’s happiness and well-being for inspiring them to move. In fact, 3/4 of U.S. dog owners reported they’d consider moving to a home that better suits their dog’s needs. Read more: bit.ly/k2205dog

Apartment List’s National Rent Report May ’22

CNBC’s Diana Olick says recent mortgage rate volatility has caused monthly mortgages to spike $1,800 from prepandemic levels. Watch at CNBC: cnb.cx/3sH3wU8

Apartment List says rents are growing more slowly than they did in 2021, but faster than the growth they observed in the years immediately preceding the pandemic. For the month of April, their national index was up by 0.9% with year-over-year rent growth currently up16.3%. However, over the first 4 months of 2022, rents have only increased by a total of just 2.5%. Read more: bit.ly/k2205apartment

Cities Where Home Prices Are Most Down

HOAs Work to Stop Investors from Buying Houses to Rent

With interest rates going up and record high home prices, the folks over at Realtor.com took a look at the 100 largest metropolitan areas and found where home prices are doing what recently seemed unthinkable – they’re falling. Read more: bit.ly/k2205falling

The Wall Street Journal has an interesting piece about how small groups of neighborhood volunteers (HOA’s, etc.) are blocking companies from buying single-family homes. They say this is rewriting the proverbial homeownership rulebook in an effort to stop investor purchases of homes in suburban neighborhoods. Read for free at Realtor.com: bit.ly/k2205hoa

Student Housing Market Recovering

How Much Space Does $1,500/ month Get You Across the Country?

High Mortgage Rates Cause Average Payments to Spike by $1,800

A recent report from the NAHB’s Eye on Housing says private investment in student housing is on the road to recovery, as the economy reopens and the number of vaccinated people rises. Citing data from the Bureau of Economic Analysis, they say student housing investment in Q4 2021 was 2.9% higher than the third quarter. Read more: bit.ly/k2205student

CoreLogic Says Home Prices Up 3.3% in March According to the latest CoreLogic Home Price Insights (HPI) report, home prices nationwide, including distressed sales, increased 20.9% year-over-year in March. On a month-overmonth basis, home prices increased by 3.3% in March. Read more: bit.ly/k2205home

With inflation now rearing its ugly head, consumers are becoming more price conscious as they see their cost of living being impacted all around them. In that vein, a recent graphic from Statista takes a look at the nationwide rental market and asks how much living space does $1,500 get you across the country. View the infographic: bit.ly/k2205space

Land Market Has Its Best Year in Almost a Decade Land sales riose 6% in 2021, outperforming the pace of acquisitions of other commercial real estate types. Read more: bit.ly/k2205land

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.

Erik Hitzelberger: President’s Letter Continued from Page 1 Unfortunately, the step from Fear to Destruction is an easy one to make because both exist Below the Line. The more time you spend there, the more likely you are to give up on your dreams or to cause harm to the dreams of others. If once you start down the dark path, forever will it dominate your destiny. Consume you it will. — Yoda (the original one)

Donate ‘Most Needed Items’ to the Home of the Innocents By Ian Hooper In addition to KREIA’s raffles and cash donations to the Home of the Innocents, let’s donate in other ways – by helping them source their “Most Needed Items.” You can find an updated list of the Home of the Innocents’ requests by following this menu path at their website – Help the Home / Donate / Wish List. Or you can go there directly using this URL: https://www.homeoftheinnocents.org/help-thehome/donate/wish-list/ Here’s the current list of most-needed items: 1. Hairbrushes 2. Women’s electric razor 3. Facial tissue 4. Pillows and pillowcases If you bring any of these items to KREIA’s April 28th main meeting, I will deliver them to the Home of the Innocents. Look for a box on your way in at Woodhaven. Another way to help is to buy requested items through HOI’s Amazon Wishlists at the same website link above.

The good news is that, while we cannot control any of the issues facing us, we can control how we handle them. By simply making the choice to take responsibility for our financial futures, we move above the line. Abundanceminded people observe what is happening and take ownership of finding a solution. They ask simple questions like the ones that follow and then follow through on the answers. Most of all, they avoid scarcity-minded thinking at all costs. 1. How do I continue to achieve my goals in this new environment? 2. What do I need to learn to navigate this successfully? 3. Who do I need to add to my network? 4. What actions do I need to take? Your Board at KREIA works tirelessly to make sure this is an abundant organization. We strive to provide education in as many ways as possible for those who understand that knowledge is a powerful weapon when it is time to step through the fear and become the person you are destined to be.

We seek to elevate you at Main Meetings, Pre-Meetings, L.O.T.S. events, Tool Tip Tuesdays, Game Nights and Lunch and Learns. We have partnerships with National REIA and the REIA Mastermind Group to provide additional resources and content, including online Saturday Sessions that can be recorded and watched later if you have a conflict. There are also subgroups and local experts providing real estate and financial IQ mentorship. (Shout-out to Believe Investment Group’s Sixth Class of graduates!) To that end, selecting the right residents to live in your homes is one of the most important aspects of your wealth-building journey. Join us this month as we host a panel of experts including Marcus Britton, Debbie Vornholt and Joy Mays, who will share their resident evaluation knowledge with you. Join us live or via Zoom. Until then, stay above the line and live an abundant life! To your Investing Success… Erik Hitzelberger KREIA President

John Mays: 15 Questions to Ask Yourself Continued from Page 4 5. What are the top two things you want to be remembered for when it’s your time to exit the earth? 6. On a scale of 1 to 10, how much enjoyment do you get from Real Estate Investing? 7. Would you still invest in real estate if you knew you personally would never receive the financial benefit? Why or why not? 8. When are the last 3 times that the residential real estate market values declined more than 5% in a year? How much did it drop, and how long did it take to recover?

9. What are the top 3 safest real estate investments in history? 10. How are the top 5 economic funds and strategists in the nation allocating their resources and portfolios? 11. How much liquidity will I need in the short term to feel confident and secure with my standard of living? 12. If the value of a dollar became significantly lower, what assets would you want to have available that would always have significant value for exchange?

13. If you knew you were going to die next week, who are the top 5 people you would desire to spend your time with? 14. If you knew you were going to die next week, who are the 5 people you interact with now that you would NOT spend time with? 15. If you had 25 million dollars and knew you had exactly 3 years to live, how would you spend your time and resources? (**Do this NOW!!! Don’t wait.) John Mays is an investor and current KREIA board member. John and his wife, Joy, are passionately in love with each other and unapologetically obsessed with Real Estate investing. They enjoy supporting and coaching other couples on their journeys to build generational wealth while putting love and family first.

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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

Who will be living in your houses? Competition is fierce among potential residents to move into your property. How do you decide among them? We invited 3 local property managers – Marcus Britton, Debbie Vornholt, and Joy Mays – to share their criteria and systems and answer your questions. May 26th, 5:30 p.m. - 9 p.m. ► 5:30 p.m. Early Meeting: Becky Duncan, who owns Louisville’s redbox+ construction dumpster rental company, will be on hand to “talk trash.” ❖ May 31st – Noon – 1 p.m. L.O.T.S. event. Frank Miller and Todd Jones teamed up to rehab a house in Prospect, and KREIA members are invited to take a tour of their project. Platinum Sponsor Flippin Loan provides a free lunch!

❖ June 8th – Noon – 1:30 p.m. Lunch & Learn. Duna Bolotte hosts real estate attorney Harry Borders at this educational event. Members only. ❖ June 9th – 5 p.m. – 7 p.m. KREIA Happy Hour. Networking at Woodhaven. Everyone is invited. Bring a friend! ❖ June 11th – Online Workshop: “Using Lease/Options to Buy and Sell Houses,” with Taylor Takacs and Dave Cors. (A KREIA/ RMG teamup) ❖ June 14th – Noon – 1 p.m. Tool Tip Tuesday With Tamara West. Investor/broker demonstrates investor resources online on this Zoom call. ❖ June 16th – KREIA Game Night. Join us at Martin’s Bar-BQue for a competitive, educational game of CASHFLOW. ❖ June 23rd – KREIA’s Next Main Meeting: Topic TBA. ❖ June 25th Online Workshop: “How to Start and Scale an Airbnb Business (without much money),” with MeiLani Hock. (A KREIA/RMG teamup)

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