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 6-22 June 2022 President’s Letter
1
Main Meeting: Turbo-Charge Your Business With Short-Term Rentals
3
Welcome, New Members!
4
Mike Butler: How to conquer rising interest rates
6
RMG Workshops: 2022’s Third- 10 Quarter lineup National REIA News Briefs
16
Government Affairs Links
16
KREIA Photos
20
L.O.T.S. Recap: Todd Jones and 21 Frank Miller rehab in Prospect John Mays: Summer reading
26
Dear KREIA Members and Friends, My name is Erik, and I am a nerd. There, I said it. For those of you who don’t routinely skip this section in favor of the more interesting parts of the newsletter, this is the most-obvious statement I have made during the last 11 months. Erik Hitzelberger
Not just any nerd, either. I’m passionate about personal financial freedom, which means I enjoy studying economics, monetary policy and real estate investing. As such I’m particularly interested in the opportunities and risks that the current market provides. A little perspective is also in order. A balanced real estate market is one where there is roughly 6 months of inventory. A property sits 80-90 days on market, and principal and interest payments equate to 26% of gross income (per NAR). The last time Louisville had this set of circumstances for a prolonged period of time was 1996 to 2005. Many of you have never seen this as investors. As you can see below, we still have a ways to go before we get there, but we are trending in that direction. Mortgage Rates Inventory (Actual) Inventory (Months) Days on Market (DOM) Med Price Appreciation
1996-2005 6-8% 6,000-7,500 5-7 70-90 2-4%
2008-2011 5-6% 10-11,000 10-12 80-100 0%
2021 3% 1,800 1.1 19 10%+
Current 5-6% 1,900 1-3 19 15% YOY
*Source: Greater Louisville Association of Realtors - FlexMLS
Jay Bowman: Ways investors can respond to inflation
30
Election Preview + Ballot
33
Board Candidate Bios
34 to 38
Rob Bergeron Duna Bolotte George Foree Phillip Frazier
Stacy Harris John Mays Karen McKnight
Nina Musgrave: Best places to invest in vacation rentals
38
Calendar of Events
40
The important point is that people (including current members of KREIA) were able to wholesale, to flip and to acquire buy-and-hold properties during that market cycle. In fact, investors have been able to do it in every market cycle since, as well, and we will be able to do so moving forward. Don’t let fear and market uncertainty hold you back. Continued on Page 4
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.