September 2022 KREIA Newsletter by KREIA .com

Calendar of Events 40

Vol 9 22

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Monthly Newsletter for KREIA Members

Becoming someone else starts with the belief that not only can we, we must. This is the first step in the journey. The next step is to adopt simple habits that you can commit to each day. If you start out by saying, “I’m going to the gym for 3 hours each day,” you will burn out… likely before the end of Day 1. Instead, simply commit to showing up. Each day you do so and every time you choose the healthier food option, you reaffirm the commitment to your transformation.

that diet and exercise are the ways to lose weight and get in shape. Many people (myself included) have started a variety of weight loss or fitness programs, achieved a milestone or goal, and then found themselves right back where they started a few months later. The failure isn’t because we didn’t have a Why, it isn’t because we didn’t have enough info or education, and it isn’t because we didn’t take action.

National REIA News Briefs 16 Government Affairs Links 16

Before you answer, consider I did not ask whether you sometimes do real estate investing activities. The difference in wording is subtle but Wepowerful.allknow

Instead, the reason we were not able to maintain our goals is that we did not BECOME healthy people. We did healthy things and we counted down the pounds or the days. Then we celebrated and slowly returned to our normal (less healthy) lives. Giving up ice cream for a week, month or even 75 days isn’t the same as making good food decisions for the rest of your life.

KREIA Photos 20

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

Erik Hitzelberger

DISCLAIMER:KREIA does NOT pre qualify, evaluate, endorse, guarantee or warranty particular deal, service, company, or person. The KentuckianaReal Estate Investors Associationrecommends 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. September 2022

President’s Letter 1

Mike Butler: Protect yourself from sharks! How one new investor got cheated… 6

John Mays: Quiet and broke is money off limits in your family? 8

Rent Relief: State money is still available to landlords for back rent 8

Welcome, New Members! 4

Providing Education, Resources & Networking Since 1978

Dear KREIA Members and Friends, Are you a Real Estate Investor?

Continued on Page 34

Main Meeting: Fix & Flip Panel: Ask Questions Get Answers 3

Nina Musgrave: Why isn’t the house selling? Tweak the listing 10

Ian Hooper: Home of the Inno cents’ most requested items 26

Flooding Fallout: How landlords can help displaced families 30

L.O.T.S. Recap: Angela & Duna Bolotte find a flip property and a GC– through networking 21

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).

ChristopherPresidentPastVicePresidentJaquith

Chris McCarty

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.

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:

Includes free admission to monthly meetings for one person.

ParliamenMichelleRawntarian

NalleyGreg

Includes extra promotion. There can be only one advertiser at this level. Our current Platinum Sponsor, FlippinLoan.com, holds exclusive renewal rights until 2023.

George Foree

Lauren Willoughby ManagerMedia

Secretary Jordan Pohn

Includes your business card sized ad. Admis sion at monthly meetings is $20.

Treasurer Mike Grinnan CPA

Treasurer Elect Wally Kallbreier

McFarlandRue HamptonScurlock

Advertise With KREIA

Platinum Membership

Joining KREIA is easy: Go to KREIA.com and click the "JOIN" option on the menu. Tell all your investing friends.

Your KREIA Leaders

Includes free admission to monthly meetings for two people.

Join KREIA

$499 . . . . . . . . . . . . . . $699 . . . . . . . . . . . . . . . $999 . . . . . . . . Reserved . . . . . . . . $199

KREIA's newsletter is published monthly and serves to educate you and to remind you of upcoming monthly meetings.

Questions? Catch up with KREIA Sponsor/ Advertiser Chair Dennis Erhard at the meetings. Or email support@KREIA.com.

BergeronRob

McKnightKarenMaysJohn

Gold Membership

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

Silver Membership

DISCLAIMER:KREIA does NOT pre qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The KentuckianaReal 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.

Includes free admission to monthly meetings for two people and gives you a skirted table in the vendors area.

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 check in desk at the main meetings.

President HitzelbergerErik DennisErhard

BolotteDuna

Bronze Membership

MillerFrank

Business Card Membership

Ian Hooper

Board of Directors

Click JOIN at KREIA.com to find out about all the benefits of membership for both individ uals and businesses. Too many to list here!

FentressAlexis

FRANK MILLER: Frank is a prolific whole saler and house rehabber, having done around a thousand deals since he began investing in the early 2000s. And he’s a high volume landlord too.

With Believe Investment Group he and his wife, Tommi, now mentor other investors, giving them the training to do their own wholesale deals and flips. Frank is a KREIA Past President (2015 2015) and a recipient of KREIA’s Ed Melton Award (2019).

“We take houses nobody wants... In neighborhoods very few believe in... Rehab them as if we were moving in... And sell (or rent) to folks we hope to see everyday.”

New

Black

Yellow

DISCLAIMER:KREIA does NOT pre qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The KentuckianaReal Estate Investors Associationrecommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIAis a Member of National Real Estate Investors Association.

This is a can’t miss meeting!

Get Some Clarity in This Time of Transition

Jordan Pohn of SurePoint Equity will talk about how to use hard money to fund your investment projects. Don’t have a lot of cash but want to flip a house or BRRRR into a rental? Hard money makes it possible.

Mary also wholesales, owns rental property, does short term rentals, and has served on KREIA’s board.

Illustration by Nina Musgrave

Be sure to be in your seat at Woodhaven by 7 p.m. (or online on the Zoom call) to hear from:

5:30 p.m. Early Meeting with SurePoint Equity’s Jordan Pohn

Jacob is one of the young guns putting longtime investors on notice with his hustle, having accomplished a boggling number of deals in a few short years. Jacob, only 24 years old, started investing in 2019.

5 p.m. Doors open at Woodhaven

6 p.m. Member Orientation with Jordan Pohn

Tony bought his first rental in 2014 but said he started taking investing seriously in 2017, and since then has he done around 22 flips and has 32 rental units.

7 p.m. Feature Presentation with the Fix & Flip Panel

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: = Buy and Hold Investor; = Flipper; = Real Estate Agent; = Wholesaler; = Member; = KREIA Sponsor; = Member.

Remember Your Lanyard!

Green

Find out what these four are seeing with materials in the supply chain. Ask them what they’re seeing as days on market and interest rates ratchet upward. What are the must have features retail buyers are expect ing to have in their new homes?

Orange

We’ve invited four active rehabbers to the front of the room to share their experiences and answer your questions.

TONY SILVER: Tony, the CEO of Red Door Properties Group, is focused on rebuilding communities using real estate.

5:30 p.m. Early Meeting: Hard Money

September 22nd’s Meeting Agenda

Is it still a good time to flip a house? What is the best way to succeed in fixing and flip ping right now, when the market is changing?

Blue

Red

Purple

If you attended the August 2nd L.O.T.S. event, you got to tour a house she flipped inside her Roth IRA (using a general contrac tor) for a big return.

MARY CONRAD: Mary is transitioning from a background in IT and management to investing and is racking up impressive real estate wins.

JACOB HUNTER: “Real Estate Jake” started out whole saling, and now he does the trifecta: flipping, wholesaling and buying and holding.

6:15 p.m. The buffet line opens! Also, at the mic, there will be announcements, property pitches and sponsor pitches

Board

Get your questions ready!

KREIA’s September 22 main meeting brings the focus back to flipping

Dylan Ing D'Andre ZachariahDanSiddharthJonesKatangurLauMontgomery

Jordan Pohn will give a short presentation of the bene fits of joining KREIA at every regular monthly main meet ing. We offer many educational and cost saving oppor tunities! Join him in the small conference room at 6 p.m.

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.

4Copyright MMXXII KentuckianaReal Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 www.KREIA.com

John Tino Donald EricChristianTuckerWheelerWinston

Kush KarenJohnCollinErendiraJenniferMuhammadMullerOsegueraParkerSchoeneScott

Online Presentation: You can view a recent session 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.

KREIA’s New Member Orientation

Monica AdrianneTrevorRickTravisMicheleBarteltCarranoColeFrazierGillGriten

DISCLAIMER:KREIA does NOT pre Kentuckiana

Welcome, New KREIA Members!

qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The

The

5Copyright MMXXII KentuckianaReal Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 www.KREIA.com

DISCLAIMER:KREIA does NOT pre qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. KentuckianaReal Estate Investors Associationrecommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIAis a Member of National Real Estate Investors Association.

DISCLAIMER:KREIA does NOT pre qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The KentuckianaReal Estate Investors Associationrecommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIAis a Member of National Real Estate Investors Association.

What is a Contract for Deed or Land Contract? When the seller offers to seller finance the property to you for a sales price with terms. The deed stays in the seller’s name until you pay the loan in full. This gives the seller an added tax benefit of using installment sales to reduce capital gains tax.

Excitedso.with the great news, he tried contacting the shady seller investor and left messages that his re finance loan was getting ready to close within a week or so. The shark

Then the bank lets him know his loan has been approved and he can expect a closing date to be scheduled in the next week or

Continued on Page 26 123rf.com illustration

Unfortunately, there are a few bad apples in every occupation and profession. These few bad apples cause all kinds of misery and frustration, and they cause many of their victims to go belly up financially. My object tive is to give you some simple prevention

it, and then do a cash out refinance with a long term, lower fixed interest rate.

By Mike Butler

Thefinancing.mostcommon solution is to buy with seller financing, but do you really know how to protect yourself from a bad apple? Perhaps the most popular seller financing methods offered by the bad apples are Lease/Options and Contract for Deeds (also known as Land Contracts). Both methods are legal. Your challenges are not being aware of the pros and cons along with your risks.

hooked up with what he thought was an honest veteran investor who offered to sell him a run down duplex needing over $30,000 in material cost to make it livable. This seller was a shark in disguise. He told this new investor he would give him 100% seller financing with no money down at a 9% fixed interest rate.

What is a Lease/Option? Caveman answer: This is where a seller agrees to lease a property to the investor with the exclusive right (option) to buy the property at a certain sales price for a specific period of time. Too many times, investors have spent their hard earned cash and credit doing repairs on a property they do not own.

He burned the candle at both ends, working his full time job while rehabbing this property. He worked 16 hour days, seven days a week to “knock it out fast.”

With our rapidly changing real estate market, the Feds raising rates every month with no end in sight, and lenders tightening up qualifying standards, many investors are on a mission to find affordable and reason able

Protect Yourself From Sharks! tips to help you avoid becoming a victim.

One of the riskiest aspects for you, the buyer, is that neither one of these have to be recorded to be valid.

It’s been a few years ago when a new investor in my local REIA group approached me to help him solve a huge financial mess he got himself into with a local shark. Here’s whatThishappened.newinvestor

This new investor thought he hit the jackpot because he is buying a duplex with no money down! He could fix it up, rent

Once it was “rent ready,” he put a new tenant in each unit and contacted an investor friendly bank to “re finance” his duplex. Everything is looking good at this point, and this new investor is super pumped up and excited. He is very proud of his creative financing buying strategy.

As you might expect, this new investor began using all of his expert carpentry and handyman skills to rehab this duplex. He maxed out all of his credit cards, Home Depot account, Lowe’s, paint store accounts and more. He was maxed out so bad, he had to borrow more money to make the minimum payments on these accounts until his refinance closed, or so he thought.

Most of the time, the bad apple or shark targets fairly new investors, who are not aware of their risks associated with Lease/Options and Contracts for Deed.

7Copyright MMXXII KentuckianaReal Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 www.KREIA.com DISCLAIMER:KREIA does NOT pre qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The KentuckianaReal Estate Investors Associationrecommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIAis a Member of National Real Estate Investors Association. ATTORNEYS AT LAW 920 Dupont Road, Louisville, KY 40207 bordersandborders.com • (502) 894-9200 Representing real estate investors, mortgage companies, banks, builders and buyers since the early 1970s with… ✓ Residential & Commercial Closings ✓ Title Searches ✓ 1031 Exchanges ✓ Business Formation ✓ Wills & Probate ✓ Title Insurance ✓ Contract Prep & Review ✓ Powers of Attorney ✓ Investor Guidance Practicing in Kentucky THIS IS AN ADVERTISEMENT

The HHERF program is designed to allow landlords to get substantial payments for back rent, reduce evictions cases, and streamline payment process within 7 14 days or less.

If any of you were like me when you were growing up, you had a family full of talkers and jokers who would go in on anybody and everything at any time. We knew every piece of everybody’s business, relationships, sports, top 5 rappers alive, the good the bad the gossip the juicy details the ugly details the right the wrong, the baby mama drama, your cousin’s sister’s friend’s life and everything in between.

– Notorious BIG

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.

3. Go to a different KREIA meeting or real estate meetup every week for 2 months and transparently share your unique and special financial story with a complete stranger.

DISCLAIMER:KREIA does NOT pre qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The KentuckianaReal Estate Investors Associationrecommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIAis a Member of National Real Estate Investors Association.

Renters and landlords in 119 Kentucky counties (Lexing ton has its own program) can apply at this website:

Quiet and Broke

2. Write YOUR true financial story down on paper. Good, bad and ugly. Every detail you can think of.

(123rf.com

I got to a point that I would actually lie about what was going on in my financial life to protect myself from this unknown, jealous boogeyman who was going to come and steal all my money, and I would be destitute and homeless. I found that I was my own biggest hater, and the thing holding me back from financial success was actually my poor relationship with money.

Landlords must provide documentation, agree to program terms, and forgive fees and penalties.

“Rule Number Uno, never let no one know How much dough you hold cause you know The cheddar breed jealousy…”

Now I know to break free from financial insecurity in our families we have to open ourselves up to people, be vulner able, transparent, and truly genuine so we can get help, support and advice from those who have the knowledge and resources. Here is a 3 step, 8 Week challenge to help you move past fear and accelerate your real estate journey:

What I didn’t realize until I was an adult was that I was so secretive about numbers and money that I didn’t even feel comfortable going to a bank or talking to financially successful people about money.

Download the flier: bit.ly/k22hherf

1. Stop the mental trauma of beating yourself up about the financial decisions you made in the past and all the what ifs that go with it.

The only thing that we found was off limits when we were growing up was to talk about money.

By John Mays

It was so illegal for us to talk about money in my house that we had no idea how much anything really cost, how much the bills were, how much anybody made, how much they saved, how much they spent, if they invested or how much we just didn’t talk about it.

Tenants must meet income restriction, be impacted by the pandemic, and provide documentation.

The maximum rent relief is 100% of past due rent since April 1, 2020, plus three months of future rent. The maximum past due rent payments covered: 12 months.

teamkyhherf.ky.gov

As far as I knew the path to financial security knew only one price, “We can’t afford it,” and the only investment we knew was, “Put some money in the bank for a rainy day.”

Kentucky Housing Corporation’s Healthy at Home Eviction Relief fund (HHERF) helps renters across Kentucky clear their rent debt.

Watch the video: bit.ly/k22evictionrelief

State Money Is Still Available to Landlords for Back Rent

Is money off limits in your family? stock photos)

Copyright MMXXII KentuckianaReal Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 www.KREIA.com DISCLAIMER:KREIA does NOT pre qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The KentuckianaReal 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. 9

In today’s market, I don’t know that it would be the same story. If this property had sat on the MLS longer, my holding costs would have increased, which decreases profit.

4. Create a layout plan of the property adding the floor plan and dimensions may help buyers understand if it’s what they are looking for.

1. Improve Price most of the time, if the house hasn’t sold or gotten a lot of showings, it is suggested to adjust the price. As investors, this is tricky because we need a certain sale price to hit our numbers. I usually figure a range for the ARV, and I would rather sell the property than watch holding costs add up.

3. Update and/or reorder photos professional photos over cell phone photos are a no brainer. Altering the order could help the potential buyer understand the layout better and also show off features upfront.

Nina Musgrave has been a KREIA volunteer since joining in 2016. As a past board member, she’s passionate about real estate legislation, the elimination of Repose Gray, and exploring beaches off the beaten path. Reach out via text at 502 882 0039.

Here are some things to revisit:

DISCLAIMER:KREIA does NOT pre qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The KentuckianaReal Estate Investors Associationrecommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIAis a Member of National Real Estate Investors Association.

Once all these items have been checked, reviewing any feedback can also be helpful. If the feedback can be worked into the new description or agent notes as something helpful for the new buyer, that is great, too.

By Nina Musgrave, KREIA Volunteer

Tweaking the original listing information can bring new showings and offers closed quickly. My holding costs were under the six months I typically budget for, but not by much.

Why Isn’t This House Selling?

5. Correct information alas, this is something to check again, just in case a zero is missing off the square footage or the ZIP code was entered wrong

The last property I remodeled and sold on the retail market went like this: the project took longer than I expected, the house was (finally) on the market for only three days until it went under contract with a full price offer, and it

This got me thinking now that we are in a shifting market, with increasing cumulative days on market (CDOM), we flippers need to make sure our listings stand out. Our real estate agents are on our side to help with this, but I feel responsible to review and make sure the listing is the best it can be.

2. Rewrite the description at one of our KREIA meetings a couple of years ago, speakers from REIPro had our audience rewrite copy and descriptions for listings. It was eye opening to discover how much word choice can impact the sales price, and they had the data to back it up! Zillow also keeps track of this. Zillow knows words that you can use to help your property sell and words to stay away from in listings. (You can watch the REIPro main meeting over on KREIA’s Videos 2020 web page.)

123rf.com photo We’re on Social Media! We’re all over the place @reiaky! Please follow, like, interact, share and network with us on these platforms… Join the members only Facebook Group: facebook.com/groups/kreiaky

11 PRO-TECH FLOORING Floor Refinishing Specialist Hardwood Floors Installed Floor Repairs • Poly Recoating Dry Foam Carpet Cleaning Insured Member Office Mobile Fax 966 9300 500 8775 961 5730 David Williams, Contractor FREE ESTIMATES Do You Want Your Business Card to Appear in KREIA’s Newsletter? Become a Business Card Member for only $199/year and see your ad in a year’s worth of issues! You can upgrade to a business membership at any time.

12Copyright MMXXII KentuckianaReal Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 www.KREIA.com DISCLAIMER:KREIA does NOT pre qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The KentuckianaReal Estate Investors Associationrecommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIAis a Member of National Real Estate Investors Association.

13Copyright MMXXII KentuckianaReal Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 www.KREIA.com DISCLAIMER:KREIA does NOT pre qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The KentuckianaReal Estate Investors Associationrecommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIAis a Member of National Real Estate Investors Association.

diligence & seek appropriate legal, accounting, or

14Copyright MMXXII KentuckianaReal Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 www.KREIA.com

Estate Investors Associationrecommends

endorse, guarantee or warranty any particular deal, service, company, or person. The

Investors Association.

DISCLAIMER:KREIA does NOT pre qualify, evaluate, KentuckianaReal you perform your own due other professional advice before making any investment. KREIAis a Member of National Real Estate

The first day of Fall is Septem ber 22nd. Can you believe it’s already here? That means it’s time to start thinking about lawn care for the upcoming cooler months and prepping for next Spring. This infographic from Home Depot lays out exactly what needs to be done to prepare your yard for the winter months ahead so it’s in tip top shape for the Spring.

Read the full report: bit.ly/k2209zipcodes

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

Rental information site Zumper recently released their August 2022 National Rent Report, showing double digit year over year rent hikes in more than half of U.S. cities, with several posting hikes of 30% or more.

Published annually, the FMR’s are an estimate of the amount of money that would cover gross rents (rent and utility expenses) on 40 percent of the rental housing units in an area. The 2023 FMRs will take effect on October 1, 2022.

Zumper’s National Rent Report

Lawn Fertilization

Read the full report: bit.ly/k2209census

S&P CoreLogic Case Shiller Index Shows 18% Annual Home Price Gain

Realtors Legislative Updates. Read weekly updates on bills in play in Frankfort at the Kentucky Realtors’ site: bit.ly/KYR_LEGU

Kentucky

GOVERNMENT AFFAIRS LINKS

Student Housing Edges Downward

New Single-Family Home Sales Down 12.6% in July

Zombie Foreclosures Inch Up in Q3

Continued on Page 38

Local Government Roundup

The U.S. Government is reporting that sales of new single family houses in July of 2022 were at a seasonally adjusted annual rate of 511k, which is 12.6% lower than June’s revised rate and is 29.6% lower than one year ago. The median sales price of new houses sold in September was $439,400k with an average sales price of $546,800.

KREIA’s Government Affairs Board Chair: Rue McFarland

According to the ATTOM Data’s Q3 2022 Vacant Property and Zombie Foreclosure Report, there were 1.3 million (1,277,162) residential properties in the United States sitting vacant, representing 1.3%, or one in 78 homes, across the nation. The report also reveals that 270,470 residential properties in the U.S. are in the process of foreclosure in Q3 of this year, up 4.4% from Q2, 2022 and up 25.5% from Q3 of 2021.Read the full report: bit.ly/k2209zombie

View the full size infographic: bit.ly/k2209fall

Read the HUD press release: bit.ly/k2209fairmarket

A recent report from the NAHB’s Eye on Housing says private fixed investment in student dormitories declined 4.4% to a seasonally adjusted annual rate (SAAR) of $3.2 billion in Q2,Read2021.the full report: bit.ly/k2209student

•

of local affairs (and state) by the Greater Louisville Association of Realtors (GLAR):

HUD Releases 2023 Fair Market Rents

The U.S. Department of Housing and Urban Development announced its new 2023 Fair Market Rates (FMR’s), which are used to determine payment standards for many housing assistance programs, including Housing Choice Vouchers (HCV) and Project Based Section 8 programs.

National REIA News Roundup

DISCLAIMER:KREIA does NOT pre qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The KentuckianaReal Estate Investors Associationrecommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIAis a Member of National Real Estate Investors Association.

State Government Roundup

Read the full report: bit.ly/k2209zumper

Their 10 City Composite annual increase came in at 17.4% and their 20 City Composite posted a 18.6% year over year gain.Read the full report PDF: bit.ly/k2209index

Louisville summary bit.ly/LRGAU

Metro Government: Get a

Tips for Fall

Where are this year’s hottest zip codes with the fastest selling homes? Realtor.com says affordability drives high buyer demand. To get their list, Realtor.com analyzed over 16k ZIP codes based on time on the market and searches by zip code on realtor.com. Interestingly, most of them are in the Northeast.

Realtor.com’s Hottest ZIP Codes

17Copyright MMXXII KentuckianaReal Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 www.KREIA.com DISCLAIMER:KREIA does NOT pre qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The KentuckianaReal 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.

DISCLAIMER:KREIA does NOT pre qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The KentuckianaReal Estate Investors Associationrecommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIAis a Member of National Real Estate Investors Association.

19Copyright MMXXII KentuckianaReal Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 www.KREIA.com DISCLAIMER:KREIA does NOT pre qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The KentuckianaReal Estate Investors Associationrecommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIAis a Member of National Real Estate Investors Association.

Renee Buster moderated the Aug. 25th main meeting, “Expo nential Growth Using 1031 Tax Deferred Exchanges.” Panelists were attorney Harry Borders, Realtor Joe Hampton, and CPA Eric Shadowens. KREIA Past Pres. Joe Hampton, at left, is a 1031 Exchange specialist and even uses “1031” in his phone number!

Mark Dolfini, aka “The Landlord Coach,” followed up his July main meeting with a weekend workshop in August, held at the KREE headquarters. It was a master class in clarifying our life and business visions, setting goals, and getting rid of excuses. Accompanying him was his wife, Jennifer, and their daughter, Liliana (present but not pictured, who’s scheduled to make her debut next month).

At Right: KREIA Past President John Jones and his wife, Melanie, attended too!

Above: KREIA went out to the ballgame on Friday, Aug. 19th. It was a beautiful night at Slugger Field, watching the Louisville Bats take on the Omaha Storm Chasers. Whose faces do you recognize in the stands? Thanks, Hampton Scurlock, for organizing this event!

Visit KREIA’s Public Facebook Page and Private Group to catch up with investor friends and their photos!

KREIA Photos

And how they found their GC is another example of the power of networking. After spending almost a month on the GC search, Duna again consulted Marcus Britton. Marcus recommended Julian Paul, of Paul Brothers Contracting.

Duna remembers Marcus saying he could rent this new house, which the couple offered up for our L.O.T.S. event, for $1,200 a month but Duna decided to flip it.

THE PurchaseNUMBERSCost: $55,000 Rehab Cost: $51,800 Misc. Costs: $18,395 Estimated Selling Price: $155,000 Estimated Net Profit: $29,805 Find videothefrom this L.O.T.S. event 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!

“You can’t have him until he’s done with this house,” Angela advised a L.O.T.S. crowd of eager investors, who had many, many questions for Julian.

Parkland Rehab House: A Closer Look

Getting Angela on board was the next challenge, but “Duna talked me into it,” she said, adding, “It wasn’t in that bad a shape at all. A few holes here and there. Nasty carpet ing throughout, but it wasn’t too bad.”

By Lauren Willoughby

An investor had invited Duna to inspect a house he was selling, and Duna asked his friend Marcus Britton to help him check it out. Marcus a contractor, rehabber and landlord took a look and said that at the same amount the investor was asking for this house, he could offer Duna another option. And would he like to see it?

any

“This is the first house I’ve not had to do anything on, and that is truly, truly nice,” Duna added.

What’s left to do on the house? Finishing the bathrooms, putting granite in the kitchen, painting the cabinets they decided to keep, laying LVP flooring, fixing the surprise leak behind the walls, installing windows downstairs, cleaning up the unfinished basement, and finishing the exterior. Julian estimated it’d be about three weeks of work to finish.

Angela and Duna got their rehab financing from Chris McCarty and Margaret Reed of FlippinLoan.com. “It has been a very smooth process working with them,” Duna said.

Turns out Duna liked Marcus’ house very much, and for $55k, he bought it.

How the couple found this house is a lesson in communicating and networking with fellow investors. And it all started with a completely different house.

“He’s the budget guy,” said Angela Bolotte of her husband, Duna, “and I come in and try to make everything look pretty.”

The division of labor is that Duna is the spreadsheet guy and prepares the scope of work, and Angela takes the lead on design and materials. And for their past flips and rental rehabs, Duna said they’ve both pitched in and done a lot of the work themselves “painting, cabinets, whatever.”

The house at 3017 Virginia Ave. has 3 bedrooms, 2 bathrooms and 1,400 square feet of living space. Angela and Duna purchased it in June. (Photos by Lauren Willoughby)

Angela also tackles a lot of the project management, but “This one? I was like, ‘I’m not doing it, Duna.’” So, they decided to use a GC.

21Copyright MMXX KentuckianaReal Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 www.KREIA.com

DISCLAIMER:KREIA does NOT pre qualify, evaluate, endorse, guarantee or warranty particular deal, service, company, or person. KentuckianaReal 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

Angela & Duna Bolotte find flip property – and GC – via networking

Association.

The big takeaway from the August 30th L.O.T.S. event, hosted by the husband and wife team of Duna and Angela Bolotte, was the power of networking.

“This is the first house we’ve done with a general contrac tor,” Angela said. “It’s been a great experience.”

The

DISCLAIMER:

22Copyright MMXXII KentuckianaReal Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 www.KREIA.com

KREIA does NOT pre qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The KentuckianaReal 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.

23Copyright MMXXII KentuckianaReal Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 www.KREIA.com DISCLAIMER:KREIA does NOT pre qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The KentuckianaReal 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. Denise Wisdom, denise@wsghomes.comOwner/CEO 502 264 1908

24Copyright MMXXII KentuckianaReal Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 www.KREIA.com

DISCLAIMER:

KREIA does NOT pre qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The KentuckianaReal Estate Investors Associationrecommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIAis a Member of National Real Estate Investors Association.

25Copyright MMXXII KentuckianaReal Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 www.KREIA.com DISCLAIMER:KREIA does NOT pre qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The KentuckianaReal Estate Investors Associationrecommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIAis 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!

Harry Borders is and has been my closing attorney for decades. Veterinarians and brain surgeons are both called “Doctor.” Which one would you hire to work on your noggin?

If your seller refuses and insists on an unrecorded Contract for Deed or Lease/Option, pass on the deal and move on.” As Grandma says, “There’ll be another bus coming along soon.” FYI, there are very few situations where unrecorded transactions will be beneficial to certain buyers.

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.

To Your Continued $uccess,

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

Mike Butler: Protect Yourself From Sharks!

Even if this new investor were to contact the best attorney, this investor would have to pay some big bucks up front before the great attorney would start working on his case, AND our court system is super slow on everything.

Now, not only is he not getting any of the rents, he still has to make payments on all of those accounts he maxed out to rehab this duplex.

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 https://www.homeoftheinnocents.org/helpURL: the home/donate/wish list/

investor ignored him and would not return any calls to his new investor buyer.

reality. Many self anointed experts will tell this new investor to get a good attorney and take him to court. OK, this could be Plan 27, but this does not solve the new investor’s problem right now!

Continued from Page 6

Here comes the pickle this new investor shared with me. He explained everything described above in detail and he told me about his “re finance” scheduled to close so he could pay off all of debt associated with his rehab cost.

This shark takes it a step further and shows each tenant the deed where he is the owner. Both tenants begin paying rent to the shark investor and ignore all communication with this new investor.

The shark investor tells the new investor something along the lines of, “Sorry, Charlie, you should have done your homework and, by the way, you did a great job on the renovations and selecting great tenants for me.”

If you bring any of these items to KREIA’s Sept. 22nd 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.

His full time job does not make him enough money to pay the minimums payments on all his accounts. This new investor then got behind on all of his payments, ruined his credit, and ended up filing bankruptcy because he was about to lose his home.

2. Young

By Ian Hooper

After many nights of no sleep, frustration and worry, this new investor finally made contact with the shark investor. You can imagine this new investor was madder than a mashed duck.

Well,Unbelievable!herecomes

What is the poor new investor to do in the meantime?

3. Sensitive

Ask fellow investors you know about this seller to discover their reputation. ALWAYS hire a real estate investor expert attorney to do your closing to look after your best interests. Get Owner’s Title Insurance and make sure everything is recorded properly.

P.S. Sign Up for Your FREE Investor Training Every Tuesday at 12 noon: MikeButler.com/PowerLunch

Here’s the current list of most needed items: Bluetooth speakers adult sports bras/comfortable bras skin detergent Dry erase markers

Uh oh… now it gets even worse. The shark investor visits each tenant in the professionally renovated duplex and tells them he is their landlord and they must pay their rent to him. AND he tells the tenants the fellow they rented from was not the owner but a contractor he hired to do all of the repairs on their units.

BOTTOM LINE Lesson Learned when You are the Buyer

Donate ‘Most Needed Items’ to the Home of the Innocents

Also, catch Mike’s real estate investing podcast: www.5hrRealEstateWeek.com

KREIA does NOT pre qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The KentuckianaReal Estate Investors Associationrecommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIAis a Member of National Real Estate Investors Association.

27Copyright MMXXII KentuckianaReal Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 www.KREIA.com

DISCLAIMER:

28Copyright MMXXII KentuckianaReal Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 www.KREIA.com DISCLAIMER:KREIA does NOT pre qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The KentuckianaReal Estate Investors Associationrecommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIAis a Member of National Real Estate Investors Association.

29Copyright MMXXII KentuckianaReal Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 www.KREIA.com DISCLAIMER:KREIA does NOT pre qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The KentuckianaReal 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.

30Copyright MMXXI KentuckianaReal Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 www.KREIA.com

or person. The

DISCLAIMER:KREIA does NOT pre qualify, evaluate, endorse, guarantee company, KentuckianaReal Estate perform other making KREIAis a Member of National Investors

Investors Associationrecommends you

any investment.

Real Estate

“In response to the widespread devastation in Eastern Kentucky, there is now an online website to search available units for displaced families. Kentucky Housing Corporation (KHC) has created an interactive database for those seeking permanent, secure, and safe housing. KHC is currently looking for landlords in impacted communities or nearby counties to list any vacant units they may have on their website.

Association.

“To post a vacancy, or find a place, click the barcode in the flier or visit www.kydisasters.com”

your own due diligence & seek appropriate legal, accounting, or

professional advice before

or warranty any particular deal, service,

From a news release received from Kaye McAfee, Housing Policy & Programs Administrator of Kentucky Housing Corporation…

Historic rains and flash flooding in late July led to catastrophic damage and caused the deaths of 40 people in a dozen Eastern Kentucky counties. Recovery in the affected areas is expected to cost hundreds of millions of dollars.

“Currently, the relief is available for renters and homeowners in Breathitt, Clay, Floyd, Knott, Leslie, Letcher, Magoffin, Martin, Owsley, Perry, Pike and Whitley counties, though more counties may be included later.”

If you’re a KREIA housing provider with property in those areas, please consider participating. Or if you know of fellow investors in those areas, please make them aware

KHC is looking for landlords to house families displaced by floods

How You Can Help Eastern Kentucky Families

31Copyright MMXXII KentuckianaReal Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 www.KREIA.com DISCLAIMER:KREIA does NOT pre qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The KentuckianaReal 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.

32Copyright MMXXII KentuckianaReal Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 www.KREIA.com DISCLAIMER:KREIA does NOT pre qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The KentuckianaReal Estate Investors Associationrecommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIAis a Member of National Real Estate Investors Association.

DISCLAIMER:KREIA does NOT pre qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The KentuckianaReal Estate Investors Associationrecommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIAis a Member of National Real Estate Investors Association.

33Copyright MMXXII KentuckianaReal Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 www.KREIA.com

If so or if you are on the path to becoming one, keep showing up and keep doing the little things to reaffirm your beliefs. You will look back in a few years and be amazed at the results those small actions delivered.

When you do these things more often than not, you actu ally become the person you set out to be. The really good news is that, as a healthy person, you can still decide to have ice cream now and again!

This process is just as valid whether you are looking for physical or fiscal fitness. As real estate investors, we believe financial freedom occurs when our passive income exceeds our expenses and that the best way to achieve this is through owning rental property. We reaffirm our beliefs through simple activities like studying the market, analyzing deals, networking with other investors, and providing good homes to the residents who provide the income we want.

You cannot overtake 15 cars in sunny weather… but you can when it’s raining

To your investing success and to an abundant life!

Erik Hitzelberger: President’s

If you are new, if you have never been through a volatile market, or if you are simply unsure of what the right things to do are, I encourage you to attend KREIA. Surrounding yourself with abundance minded experts who are more than willing to provide guidance will keep you moving forward on the journey. This month’s main meeting will feature a panel of experts (Frank Miller, Mary Conrad, Tony Silver and Jacob Hunter) who are going to share all the little things they do on a regular basis to make sure their rehab projects go well. Make sure to show up and take notes!

I’ll close with the same question I started with. Are you a real estate investor?

Letter

Erik KREIAHitzelbergerPresident

Continued from Page

Here’s why this matters. The market has been very favorable and very forgiving for the last several years. Even people who dabbled in real estate were able to be success ful more often than not. We are at an inflection point now, though. Market volatility is driving change rapidly. There will be people who react to this in much the same way they act at the end of a diet. They will stop investing and slowly return to their old ways. Foregoing (perhaps forever) the chance to achieve the financial freedom. On the other hand, real estate investors are staying busy doing the things that need to be done to prepare themselves for whatever new market conditions arise. We also know that this vola tility will create opportunities.

-Ayrton Senna

36Copyright MMXXI KentuckianaReal Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 www.KREIA.com DISCLAIMER:KREIA does NOT pre qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The KentuckianaReal Estate Investors Associationrecommends you perform your own due diligence & seek appropriate legal, accounting, or other professional advice before making any investment. KREIAis a Member of National Real Estate Investors Association.

•

www.KREIA.com

A recent report on HousingWire says a combination of rising home values and the fact that nearly two thirds of borrowers with at least some home equity have mortgage rates below 4% (with no benefit from a refinance) is helping to propel a resurgent market for home equity lines of credit (aka HELOCs).

National REIA News Briefs Continued from Page 16

’22 Investment Property Stats & Tips

In mid August Airbnb announced that they introducing new “anti party tools” in the US and Canada to help identify potentially high risk reservations and prevent those users from taking advantage of their platform.

Read the full report: bit.ly/k2209cash

About Metaverse Real Estate

Airbnb Launches New Anti-Party Technology

Read the full report: bit.ly/k2209heloc

A recent poll from Gallup reveals that more Americans are using cash less often, with a majority believing the U.S. will be a cashless society in their lifetimes. Gallup says greater use of online shopping, especially during the coronavirus pandemic, is one major factor leading to changes in cash usage. In addition they say lower income Americans more commonly use cash for purchases than do middle and upper income Americans.

Read the full report: bit.ly/k2209party

Read the full report: bit.ly/k2209meta

HELOCs are ‘Raging Back’

A recent article on Bankrate points out that Census data shows about 70% of rental properties are owned byindi vidual investors, according to Census estimates.

Americans Using Cash Less Often

A recent article on Redfin reminds us that everything is becoming virtual nowadays from artwork, to concerts, to marketing, to meetups, virtual tools have entered most people’s daily routine. However, it goes without saying that real estate, too, has entered this digital world in the form of something called the “metaverse.” Redfin attempts to unravel what this thing is all about and explain what’s behind all of the hype and mystique.

Read the full report: bit.ly/k2209statistics

39Copyright MMXXII KentuckianaReal Estate Investors Association • P.O. Box 91225 • Louisville, KY• 40291 www.KREIA.com DISCLAIMER:KREIA does NOT pre qualify, evaluate, endorse, guarantee or warranty any particular deal, service, company, or person. The KentuckianaReal 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.

November (date TBA): KREIA Holiday Party

❖

❖ Oct. 20th – 5:30 p.m. – 8 p.m. KREIA Game Night. Join fellow investors at Martin’s Bar B Que for a competitive, educational game of CASHFLOW 101.

U.S. Postage Paid Louisville, Ky Permit No.1402

October 27th: Economic Update

❖ Sept. 24th 9 a.m. 4 p.m. Online Workshop: How to Earn 6 Figures in 6 Months in Short Sales. Foreclosures are back, and that means opportunities to help homeowners get out from under their problems. This RMG Zoom based workshop will be led by short sale expert Dwan Bent Twyford.

❖

Sept. 22nd, 5:30 p.m. 9 p.m. ► 5:30 p.m. Early Meeting: Jordan Pohn of SurePoint Equity talks about how to use hard money to fund your investment projects.

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)

Return Service Requested

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

❖ Sept. 27th Noon 1 p.m. L.O.T.S. event. Tour Brett Grigsby’s future Airbnb in the Merriwether neighborhood.

What is working for Kentuckiana rehabbers during this changing market? What isn’t? We've invited four active flippers to answer your questions: Frank Miller, Mary Conrad, Tony Silver and Jacob Hunter. Join us and get your questions in!

❖ Sept. 29th 5 p.m. - 7 p.m. Bonus KREIA Happy Hour at Joe’s Palm Room. There’s a 5th Thursday this month!

FirstPresortedClassMail

UPCOMING EVENTS

PO Box Louisville,91225KY40291

Fix & Flip Panel: Q & A

❖ Oct. 5th Noon - 1:30 p.m. Lunch & Learn. Duna Bolotte hosts October’s guest speaker. Members only. Oct. 11th Noon 1 p.m. Tool Tip Tuesday With Tamara West. Investor/broker demonstrates investor resources. Oct. 13th – 5 p.m. 7 p.m. KREIA Happy Hour. Networking at Woodhaven. Everyone is invited. Bring a friend!

Main Meeting Preview