November 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 Vol 11-22 November 2022 President’s Letter

HOLIDAY PARTY: Great food, 3 fun, open bar and entertainment – and it’s FREE for KREIA members Welcome, New Members!

Mike Butler: Failing to plan is planning to fail So, get planning!

Jay Bowman: A guide for when 8 you have to leave your family and investments behind National REIA News Briefs

Government Affairs Links

Nina Musgrave: A credit card 16 designed for tenants to pay rent? KREIA Photos

L.O.T.S. Recap: Joe and Kim 21 Worth turn ‘tiny house’ into Airbnb Ian Hooper: Home of the Innocents’ most-requested items

John Mays: Why you should shop 30 for real estate during holidays Sharon Vornholt: Don’t stop marketing when it gets tough

Ed Melton Award Preview

Monthly Newsletter for KREIA Members Dear KREIA Members and Friends, With only one page left to turn on the calendar, it’s clear we’ve entered the time of the year most associated with food, fellowship, and, let’s be honest, pure chaos. As soon as we finished kicking trick-or-treaters off the grass, it was time to start planning for Erik Hitzelberger Thanksgiving meals, coordinating social calendars, and rekindling relationships with the Amazon drivers who frequent our doorsteps daily. Through it all, the most successful among you will make the time to do four things over the next few weeks. 1) Focus on the Wildly Important. We still have 15% of the year left, and no one wins by showing up only for 85% of the game. Who do you need to talk to and what do you need to do to close out the year in epic fashion? What will you regret the most if you don’t make the time to accomplish it? Find the 1 to 2 things that will really move the needle personally and professionally and get them done. 2) Plan for a hot start. It’s time to set goals for 2023. What will you accomplish that will make next year the best year ever? In November 2023, what will you be most proud of? What relationships and experiences do you want to look back upon and be thankful for? Almost any destination is possible, but none of it will occur unless you take the time to identify where you want to be and how you are going to get there. 3) Reflect and be thankful. I challenge each of you to dedicate an hour without interruption to write down the following: 1) your personal, business, and financial successes this year; 2) the things you’ve learned; 3) the relationships you’ve created or grown; and 4) the experiences you’ve had. Look back through your Continued on Page 4

Home Depot Rewards Program 36 Calendar of Events

Copyright MMXXII Kentuckiana Real 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 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

Advertise With KREIA

Vice President President Erik Secretary Hitzelberger Christopher Jaquith 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

Dennis Erhard

Frank Miller

Greg Nalley

Rob Bergeron

Ian Hooper

Alexis Fentress

John Mays

Karen McKnight

Michelle Rawn Parliamentarian

Chris McCarty Past President

Lauren Willoughby Media Manager

Hampton Scurlock

Duna Bolotte

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, FlippinLoan.com, holds exclusive renewal rights until 2023. 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!

Comedian, Live Band, Prizes, Food, Friends … All FREE for You!

Please Thank These Party Sponsors! It takes a village to throw a party as big as this one! So, we appealed to KREIA’s generous advertisers for six $1,000 donations to help keep the party FREE and FUN for you. Please give shoutouts to these folks at the party when you see them.… ► Michelle Rawn, Rawn Law Firm (sponsoring Open Bar Wine & Beer)

► Greg Nalley, Nelson Insurance (sponsoring Open Bar Wine & Beer) ► Mike Fallot, MM Lending (sponsoring the Cheese & Fruit Trays) ► Alex Robertson, Fund That Flip (sponsoring the Cheese & Fruit Trays) ► Harry Borders, Borders & Borders (sponsoring Prizes & Raffles) ► Jordan Pohn, Surepoint Equity (sponsoring Prizes & Raffles)

Help Us Help the Home of the Innocents This year we’re trying to raise $50,000 for the Home of the Innocents. Please help us reach this goal so that we can write a big check to the Home at our Holiday Party! How to do that? One way is buy lots of raffle tickets at the Holiday Party. The proceeds go to the Home, and you can win some awesome prizes! Will there be largescreen Smart TVs, vacation packages and gift cards available to win? Only Frank Miller knows. (But based on prizes from years past, we think yes!)

You can also donate directly to the Home via KREIA’s HOI fundraiser link: bit.ly/kdonatehoi Why do we give to HOI? Because they go above and beyond in caring for abused and medically fragile children. (Can you help shop for them on your way in? Please see Page 26.) MORE INFO ● Watch the “Heroes for the Home” video: bit.ly/k21hoivideo ● Read the article from KREIA’s 2017 visit: bit.ly/k21hoiarticle

Join us Thursday, Nov. 10, at Woodhaven for KREIA’s Holiday Party. It’ll be our last “main meeting” of the year, and we’re going to close out 2022 with some awesome entertainment! Party planner extraordinaire Frank Miller has booked Donnie Baker, a comedian you might have heard on “The Bob & Tom Show,” or seen at The Baker Comedy Caravan or on TV. Get a preview of his humor at his website, donniebaker.com And there will also be a live band, Louisville’s Sound Stage, taking requests. Rock, pop, country … you ask, they’ll play. Bring your appetite! There will be tables around the room overflowing with hors d’oeuvres. And an open bar for wine & beer during the early part of the night! If you’ve got friends you've been trying to recruit into KREIA, bring them to the party! If they join on the way in, their door fee is waived. (Non-members are charged the usual $30.) But for you, KREIA member – there is no door fee. This party is free for you as KREIA’s way of giving back. Even though you’re getting in free, please do pre-register at kreia.com so that we can give Woodhaven’s chefs an estimate of attendance. Keep food flowing! Besides the entertainment, there will be raffles, the presentation of the Ed Melton Award, and KREIA’s gift to the Home of the Innocents. Who: You! What: KREIA’s Holiday Party Where: Woodhaven Country Club When: Thursday, Nov. 10, 5 p.m. to 9 p.m. Why: Because KREIA loves giving back to our members! How Much: Free for members, and only $30 for nonmembers

Welcome, New KREIA Members! Syed Ali Larry Carpenter III Jon-Paul Dowdell Devin Dvorshak Steven Goldberg Hank Harris Andy Hildenbrand

Kristin Jackson Jametres Maddox Dayron Rodriguez Joshua Thompson Alicia Tinelli Christine Wooten

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 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.

Erik Hitzelberger: President’s Letter Continued from Page 1 calendar or at your 2022 goals if you need, but other than that just write as much as you can. When you are done, reread the list and allow yourself to be filled. Spread the love by calling those who helped you accomplish the things on your list and thanking them.

4) Enjoy the moments. No matter how introverted (I feel ya) or how driven you are, those social events and family gatherings matter. Aren’t these people part of your Why? Be present. Create memories. Allow yourself to be recharged. KREIA is very proud to present you with one of those moments to enjoy on Thursday, November 10th. Party-Planner-for-Life Frank Miller has another fantastic evening lined up, featuring comedian Donnie Baker as well as the band Sound Stage. Come and join your friends and fellow investors as we kick off the holiday season. KREIA and our sponsors will be providing food, drinks, and gifts. As always, the event is FREE to all members, and guests are welcome for only $30. I hope to see you there!! To your investing success and to an abundant life! Erik Hitzelberger KREIA President

Failing to Plan Is Planning to Fail! Set aside time to plan and to review your goals – and get your CPA involved By Mike Butler Now more than ever is the perfect time for you to carefully review and revise your planning in both business and life! It does not matter if you are greener than a gourd or a seasoned veteran who’s been investing for over 60 years. I can promise you, one common trait among the super-successful investors is that they schedule appointments for planning. Last year, this year, next year, every year. Here’s a little investor quiz or test for you. Simply check the box on items you believe you should do now, before the end of the year. [ ] Carefully review this year’s goals compared to real results – identify why. [ ] Today’s high-inflation market has affected everything, including real estate. Should you make major changes in your goals for next year? Even this year? [ ] Schedule a meeting with your CPA before the end of November. Make sure you are properly prepared with duplicate reports for your meeting. One copy for you and the duplicate for your CPA. Schedule this now just in case you need to make some major adjustments before it’s too late. BEFORE arriving at your meeting with your CPA, schedule some alone time with yourself, spouse, partner, and create a bulleted list of questions you want to ask. This is the best time because your CPA is giving you their 100% undivided attention. Make it count. ✓ If I have a job, how can I maximize my tax strategies with my real estate? ✓ For income tax purposes, do I need to make more money or make less? (More income equals a higher rate of income tax.) ✓ What about tax entities, structures, self-directed Roth IRAs and more? ✓ How can I increase my depreciation benefits on investment properties? ✓ Are there any federal, state or local programs to benefit me in my tax strategies? Many areas have geographic, income, minority-owned and many more programs. FYI, Louisville Metro Council voted last week to give $3.5 million to a co-op to build a grocery store in Smoketown by U of L’s hospital. Having spent my high school years as a bag boy and seeing Kroger close their store at 2nd and Breckinridge, I’m wondering if Metro Council’s vote is fair to Kroger.

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✓ Federal government announced last week that it is giving a $30 million grant to 200 families in lowincome neighborhoods to buy homes. Each family will get $50,000 to buy a home. How can you participate as a housing provider in this program? Some investors are going to – might as well be you! [ ] Is the Buy, Fix-Up, Retail method still a good, solid investing strategy? Up until now, new investors could pay more than top dollar, get next-to-zero loans for rehab, and had a huge safety net as the market values always went up while doing a rehab. Those days are drying up. Take a look at these numbers now compared to 12 months ago. You buy a fixer-upper to sell at retail price. You sell it for $400k. Your buyer puts 20% down and borrows $320k on a 30-year, fixed-rate loan at 2.9%. Last year their loan payment was $1,331.94. Twelve months later, the rate is 8%! Their monthly payment is now $2,348.05. That’s over $1,000 more per month for the same house! Ask yourself, do you really still want to buy, fix up and sell? [ ] BRRRR method: Should you make some major adjustments? In my opinion, buy-and-hold is the true secret recipe to building your wealth. If you did several “buy, fix up and retail” deals in the last few years, put your pencil to paper and imagine where you might be now if you had held onto them as buy-and-holds. I still believe in buy-and-hold, but now you have some big changes in the variables to factor in for what, when, and how you buy and hold. [ ] Short-Term Rentals are being promoted as giving the best ROI. Do you really know all of the ins and outs? What is Continued on Page 26

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Guide for Loved Ones ‘If I’m Gone’ Plans for when you have to leave your family and investments behind By Jay Bowman, Investor A couple years ago I wrote a Google doc for my wife titled “If I’m Gone.” After my father died, we realized my mother didn’t know a lot about how he handled finances or other household issues. If she did know, it was a bit disorganized. My sister and I were able to organize my mother’s affairs prior to her death, but it was still a lot of work. I didn’t want to leave a mess for my wife to clean up after my death, so I tried to simplify everything for her, having been through it twice. I hope my lessons can simplify your life and smooth over other unexpected circumstances. Inside my Google doc are specific instructions on how to handle everything that I do for the family. These things include: 1. A link to the rent roll. The rent roll contains all properties and the numbers associated with them (rents, taxes, insurance, dates of mortgage changes, etc.). 2. Passwords to all devices 3. Property managers, partners, lenders and other important people’s names, phone numbers and their duties and what they are paid. 4. Investment accounts and the links to their websites 5. Links to our life insurance websites 6. Important household reminders Since starting this list I’ve worked to automate as much of our life as possible: 1. 2. 3. 4.

All mortgage payments All insurance payments All utility payments Income from business accounts deposited to personal account 5. Deposits into investment accounts and automated investments into ETFs 6. School payments and 529 plans 7. Transfer to savings for other expenses (vacations, summer camp, weekly expenses)

I’ve been unable to automate property tax payments and medical bills, so if anyone has a suggestion I’d love to hear it. I joke that I want to walk into the jungle somewhere, come back 5 years later and see that everything will be running like clockwork. I take a look at this Google document every 6 months or so just to see if there are any changes that are needed. I always find an alteration. The goal is to offload all financial responsibility and never look back. If I’m not here tomorrow I don’t want my family to miss a beat.

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Please let me know if you have any questions. I’m always happy to help! Jay is the co-founder of Beyond Storage. He leads the finance, acquisition & marketing departments. Jay has been an active real estate investor since 2001. He is married to Jacquelyn and has two children – Nash and Penelope. Jay has been a real estate broker in multiple states, has extensive knowledge in the evaluation and purchase of real estate investments, and personally holds a portfolio of long-term, short-term rental and commercial properties. Jay wrote this article as a Facebook post and graciously allowed us to publish it. To read his other posts, which he frequently devotes to real estate topics, follow him at facebook.com/jaybowmanREI

Before Hank Schildknecht, attorney and longtime KREIA parliamentarian, passed away, he’d left his wife similar documentation in the form of a binder. See our September 2020 newsletter to read Martha’s account: Kreia.com / Members Only / Newsletters & Archive

Copyright MMXXI Kentuckiana Real 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 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

Home-Seller Profits Drop Across America

National REIA, of which KREIA is a chapter, reports on issues According to ATTOM Data’s Q3 2022 U.S. Home Sales affecting real estate investors and also links to stories of Report, profit margins on U.S. median-priced single-family interest from other organizations. Here is a sampling of recent home and condo sales decreased 54.6% as prices declined news and resources that Brad Beckett, NREIA’s Director of for the first time in nearly three years. Education & Outreach, has compiled. For more news, visit Read the full report: bit.ly/k2211attom RealEstateInvestingToday.com

Existing Home Sales Drop 1.5% in September

Over 100 ZIP Codes Switch From Homeowner to Renter Majority

The National Association of Realtors is reporting that existing home sales were down 1.5% in September to a seasonally-adjusted annual rate of 4.71 million (down 23.8% year over year). Total housing inventory at the end of September was 1,250,000 units, down 2.3% from August and down 0.8% from one year ago. Unsold inventory sits at a 3.2month supply at the current sales rate. Read the full report: bit.ly/k2211existing

A recent report from Rentcafe says renting is at the highest level in half a century, with 43.7 million households currently living in rentals. In addition, the report says that over the past decade, over 100 ZIP codes have switched from homeowner to renter majority. Read the full report: bit.ly/k2211renter

Housing Starts Down 8.1% in September

Mobile Home Values Rising Nearly As Fast As Single-Family Homes

The U.S. government is reporting that privately‐owned housing starts in September were at a seasonally adjusted annual rate of 1,439,000, which is 8.1% lower than August’s revised number and 7.7% lower than one year ago. Read the Census PDF: bit.ly/k2211starts

A new report form LendingTree found that while mobile homes are generally far less expensive than their singlefamily counterparts, their values appreciated just as quickly. Read the full report: bit.ly/k2211mobile

Heating Costs Expected to Tick up This Winter The prognosticators of weather say the U.S. will have a colder-than-average winter. Combine that with recent domestic energy policy changes that have contributed to higher energy prices (not to mention recent world events) and you have a recipe for higher heating costs. View the full-size infographic: bit.ly/k2211heating

Square Footage Is Now Worth Slightly More in the Suburbs Than in Cities Redfin says space in suburban homes was worth more than space in urban areas for the first time since they started tracking this data in 2018. According to their report, a typical home in suburban neighborhoods nationwide was worth $206 per square foot at the end of September versus $205 in urban neighborhoods. Read the full report: bit.ly/k2211footage

Recent Inflation Causes IRS to Raise Tax Brackets & Standard Deduction The Wall Street Journal is reporting that due to rising inflation the IRS has adjusted the Tax Brackets & Standard Deduction for tax year 2023. According to the WSJ, the 37% top marginal tax rate will apply to individual income above $578,125 and married couples’ income above $693,750 next year, as those thresholds go up 7% . Read the IRS report: bit.ly/k2211taxinflation Continued on Page 30

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

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5236 Dixie Hwy Copyright MMXXII Kentuckiana Real 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 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.

A Credit Card Designed for Tenants to Pay Rent? Bilt Mastercard® helps tenants boost credit score, earn points & rewards By Nina Musgrave, KREIA Volunteer, Investor In 2021, Fintech company Kairos stepped into the rewards program space with the launch of a credit card and loyalty program that offers points on rent payments. The program has no fees (or sign-on bonus). Tenants have the option to redeem points for travel, fitness and even a down payment on a home. Renters are able to pay their rent with the Bilt Mastercard at any property in the United States that accepts electronic payment, including ACH. There is no processing fee or transaction fee because Bilt sends payment to the property owner via check or ACH transfer. The Bilt Rewards app is an option if the property is in the Bilt Rewards Alliance, currently serving 2+ million units. If you are interested in joining the Bilt Rewards Alliance as an investment property owner, visit https://biltrewards.tfaforms.net/f/alliance Even if properties are not in Bilt’s Rewards portfolio, the Bilt Mastercard is a brilliant option for tenants who are on a homeownership path. New Federal Housing Finance Agency

(FHFA) scoring models have been recently approved. These models incorporate utility, rent, and telecom payments into credit scores. FHFA may take a few years to get their models built and working properly, though. Because Bilt Mastercard reports to the main credit bureaus, on-time payments will boost the user’s credit score much faster. Tenants generally get no reporting for on-time (or late) rent payments, unless the property owner has set that up with a qualifying company. I remember being dismayed that my credit score would not include my rent payments on the first lease I signed! I would have been eager to get approved for a card like this. There are stipulations to earning rewards, but once the cardholder understands the terms, points can be used toward future rents or a vacation. Credit scores can be hurt if usage ratios become too high; however, a “BiltProtect feature” lets card holders set an amount to ensure rent is paid and to monitor the usage ratio for other charges. I think this card is a unique way to for renters to improve their credit. I have researched a few companies that report rent payments to credit bureaus. At this time, I would prefer to offer the tenant an option they are responsible for.

Mayoral candidates Craig Greenberg (D) and Bill Dieruf (R) addressed the crowd at KREIA’s Oct. 27th main meeting. We asked them to talk about issues important to real estate investors, and that’s what they did. If you missed them at Woodhaven, please check out their speeches on KREIA’s YouTube channel. Some quotes: Greenberg: “We need to make it easier for you all to make that investment to create jobs, to improve neighborhoods. That is the responsibility of government.” Dieruf: “We have to take the code [liens] off the houses so you all can remodel them.... That’s what we do in J-town.”

Craig Greenberg

Attendance at this meeting was the highest we’ve had all year! (See the crowd below.)

Bill Dieruf

KREIA

Photos

(Photo by Alexis Fentress)

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

Above: In October’s feature presentation, Jay Bowman (left), John Mays and Erik Hitzelberger gave us their economic forecasts and investing plans for 2023. At Left: KREIA board members Dennis Erhard, Wally Kallbreier and Rue McFarland posed for a photo with Bill Dieruf.

Irish Hill Rehab House: A Closer Look Joe and Kim Worth turn a ‘tiny house’ into an Airbnb rental By Lauren Willoughby Is buying a 400-square-foot shack for $77,000 a good investment? It depends on the location and the purpose it’ll be put to. In this case, the shack is in Irish Hill, not far from Baxter and Broadway. And its destiny is that of an Airbnb short-term rental (STR) that is sure to pique the interest of adventurous 20-somethings: folk who want to be within walking distance of the Highlands, NuLu, downtown, and Louisville’s waterfront – and lots of bars, breweries, restaurants, and quirky shops. The husband-and-wife investing team of Joe and Kim Worth purchased the property last year from wholesaler Craig DiSanto. The Worths say this little rental at 418 Pine St. is going to bring them a cash-on-cash Despite the house’s modest size, the return of 38.37%. (And they left $30k in the deal.) Thanks for inviting us into your Worths have spent a chunk of change property and hosting the last L.O.T.S. event of 2022! (Photos by Lauren Willoughby) rehabbing it to suit their purpose. OR-2 (Office/Residential), a commercial designation that But their expenses would have been $25k more if the means they can ignore Louisville’s 600-foot rule for STRs. neighbors hadn’t allowed them to tie into their water! Imagine a studio apartment set inside a tiny house – Another piece of good luck is that the property is zoned which was built as a carriage house long before “tiny houses” became a thing. The only room set off to itself is the tiled bathroom. Every other part of the house is open, including the bedroom, which is overhead in a loft and accessible via ladder. Yet the house has a functional kitchen, living room (with sofa and TV), and even a stacked washer and dryer set. All the comforts of home in miniature. And a cool sense of style, Wholesaler Craig DiSanto courtesy of Kim, who was the and his awesome T-shirt. designer.

Kim and Joe Worth, along with baby Julian, project an annual income of $25,000 (at 61% occupancy), with a monthly PITI payment of $832.21 (6.5% at 25-year amortization) and annual utility expenses of $3,500 (LG&E, water & Internet). Julian did the math.

THE NUMBERS Find the video from this L.O.T.S. Purchase Cost: $77,000 event available soon on Total Rehab Cost: $30,336 our Videos page. Take a Furnishings: $4,408 tour of the house with Closing, Interest, Misc.: $18,064 Karen McKnight! Total Investment: $129,808 Estimated Net Cash Flow per Year: $11,513.51 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 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 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.

Mike Butler: Failing to Plan Is Planning to Fail! Continued from Page 6 your Plan B or Plan C if it dries up? FYI, the City of San Diego has outlawed STRs. Atlanta’s city council is considering doing the same. Hotels are doing whatever they can to shut down Airbnb, VRBO and other STRs. If this happens in your town, will your STR support itself as a long-term rental? You should factor this in for every property before you make an offer on it if you expect to make it a great STR cash cow. [ ] Education: do you budget for education every year just like you do for property taxes, insurance, utilities, etc.? You should. During one of your planning sessions, ask yourself what you need to learn more about, especially in our rapidly changing real estate market and our economy with outrageous inflation. To Your Continued $uccess,

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

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. Bluetooth speakers 2. Young adult sports bras/comfortable bras 3. Sensitive skin detergent 4. Dry erase markers If you bring any of these items to KREIA’s Oct. 27th 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. And to help KREIA reach its goal of donating at least $50,000 to the Home this year, please consider donating at this link on the Home of the Innocent’s website (secure credit card payment accepted): https://www.homeoftheinnocents.org/kreiafundraiser/

If you have had a good year investing, and if KREIA has helped you achieve your goals, please give generously to help the children.

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 Louis123rf.com illustration ville undercover police detective, and the author of the bestselling real estate book “Landlording on Autopilot,” now available in its 2nd edition. Copyright MMXXII Kentuckiana Real 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 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.

(502) 500-4007

Christmas Shopping for Real Estate By John Mays For many of us, the holiday season is a long-awaited chance to take our foot off the gas, unwind with friends and family, and consume our body weight in roasted meat and soul-satisfying desserts. Many will also be spending to purchase the best and finest gifts for kids, parents, co-workers, and even some people you don’t like. Did you know according to one economic study, they are projecting that in 2022 U.S. holiday retail sales are expected to reach $1.3 trillion? With all that eating and spending, remember to buy some real estate. Hear this: Winter is usually the cheapest time of year to purchase properties. Sellers are often motivated, which automatically translates into an advantage to you. People want to be out, and some investors want to sell and reap some tax advantages. The moral of this very short article being: don’t take your eye off the ball, do keep looking for great deals (there will be plenty), and make the last moves of the year be your best moves of the year.

National REIA News Briefs Continued from Page 10

Zumper’s National Rent Report for October ’22 Rental information site Zumper recently released their latest monthly National Rent Report showing that their median national rent for 1-bedroom apartments in October 2022 was $1,491 (down 0.8% from September) and the median two-bedroom rent was $1,832 (up 0.7% from September). Be sure to check out their list of the top 100 metro areas. Read the full report at Zumper: bit.ly/k2211zumper

Yardi Says Multifamily Rents Stand Still in September Yardi says while the cooling economy is beginning to show its effect on multifamily, the key fundamentals remain strong. Read the full report: bit.ly/k2211multi

Enjoy a phenomenal Holiday season to each of you. Remember to give the ones you love the most the gift of assets like real estate over liabilities. 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.

FHA Proposes Increases in Loan Limits for Title I Manufactured Home Loans In Mid-October, the U.S. Department of Housing and Urban Development announced that the FHA is proposing a new rule to increase and index the loan limits for its Title I Manufactured Home Loan Program which insures loans used to finance manufactured homes titled as personal property. According to their release, loan limits for the program were last updated in 2008. Read the full report: bit.ly/k2211homeloan

Pending Home Sales Drop 10.2% in September The NAR’s Pending Home Sales Index (a forward-looking indicator based on contract signings) dipped to 79.5. The NAR says persistent inflation and higher mortgage rates continue to harm the market Read the full report: bit.ly/k2211pending

Don’t Stop Marketing When the Going Gets Tough By Sharon Vornholt Editor’s Note: This article was published originally on Sharon Vornholt’s website: LouisvilleGalsRealEstateBlog.com Sharon has allowed us to publish it here. Be sure to visit her site for more resources! If there is one piece of advice I could give every struggling investor who is trying to stay afloat in today’s challenging market, it would be don’t stop marketing even when that seems like the one thing you should cut back on. I know that’s what most people do. But it’s during these times you need to actually step up your marketing. You can’t stay in the game if you don’t play. Let’s put it another way. When you can’t seem to get a deal no matter what, most investors stop marketing to conserve cash. But I can tell you that your business will die a quick and painful death if you do this. You may have to change the way you’re marketing, but whatever you do, don’t stop marketing.

What Can You Do If Your Business Is Starved for Cash? There are a lot of things you can do, but here are some suggestions: ● Networking is free (or almost free). Get out every day and talk to people. Be sure you have business cards and pass them out. ● What can you cut out to have money for marketing over the next couple of months for direct mail and other things that have a cost associated with them? Do as much marketing as you possibly can. ● Can you partner with someone? Offer to go look at houses and make offers for someone that has cash for marketing, but maybe has small children and little time. ● What about spending the day in eviction court? You’re sure to find some tired landlords there. ● Get a list and call prospects. You’re already paying for your phone, so why not put it to good use? ● Go driving for dollars. Do some door-knocking. ● There are a lot of marketing strategies that cost nothing more than your time. I can tell you this for sure: it’s these times when “average” closes up shop. Just keep plugging away; don’t stop marketing and you will come out way ahead on the other side.

Spend Your Cash Wisely when Money is Tight This is a time when you need to be smart with your money and your resources. Here are some more tips for you to accomplish that:

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● Make sure your lists are laser-focused. Don’t get too broad. You want to make each mail piece count since they are costing you money. ● Don’t forget about follow-up. Go back through all your leads in the past 12 months. Look at all those who said no. Maybe they are ready to say yes now at the end of the year. ● Get to work on that stack of direct mail. Do you know someone who has TLO or another similar people-finding service that might split the cost for one month to check all of those returned mail pieces? Don’t Stop Marketing During the Holidays This is probably the biggest mistake investors make. They stop marketing during the holidays. Look for opportunities where other investors dropped the ball. Are there niches where you can take advantage of these opportunities? It’s great to do a marketing brain dump every now and then. Maybe there is something you used to do that you stopped doing. Do whatever it takes to stay in the game. Get creative and see what you can come up with. I would love to hear your ideas. Sharon Vornholt is a local marketing expert with a national presence. Visit her website, LouisvilleGalsRealEstateBlog.com, to find years and years of articles with tips on wholesaling, marketing, branding, probate, and other real estate topics. On her podcast, Sharon interviews well-known investors from all over the country.

Announcing the 2022 Ed Melton Award This year’s recipient will be named at the Holiday Party By Hank Schildknecht [Editor’s Note: Hank passed in August of 2020, and we will always miss him. For years Hank helmed the Ed Melton Award selection process, and he explained it best. It seemed right to have him do it one more time. This is Hank’s article from 2019.] Many longtime members of KREIA had the privilege of knowing Ed Melton, Sr. Ed was, without a doubt, the greatest recruiter in the history of KREIA. Every person Ed came in contact with regarding a real estate matter was told of the merits of the Kentuckiana Real Estate Investors Association and encouraged to join. Ed was an active KREIA board member for many years. He was a dedicated mentor to novice investors and enjoyed passing on his experience and wisdom. I had the privilege to serve as Ed’s attorney for many years. It was a unique learning experience for me to close Ed’s purchases and observe firsthand his methods of ensuring a true win-win situation for all parties involved in each transaction. After his death in 1998, KREIA’s Board of Directors established an award to be given in his name. The board set the following criteria for selecting the recipient: 1. Contribution to membership education; 2. Development of fellowship; 3. Active recruitment of KREIA members; and 4. Active participation in the real estate industry. The following have previously received this award: 1998 - Mark Lechner 1999 - Rue McFarland 2000 - Chris McCarty 2001 - Hank Schildknecht 2002 - Chris Dischinger 2003 - Rosetta Melton 2004 - Joe Hampton 2005 - Mike Butler 2006 - Jim Gardner 2007 - George Foree 2008 - Alan Johnson 2009 - Dick Vreeland

2010 - Connie Horsey 2011 - Noble Roberts 2012 - Jay Long 2013 - Gene Dyson 2014 - Mark Hass 2015 - Dan Jones 2016 - Dennis Erhard 2017 - Katie Crotzer 2018 - Ken Harrison 2019 - Frank Miller 2020 - Harry Borders 2021 – Eric George

As you can see from reviewing the above-named recipients of the award, each has been very active in KREIA and has greatly contributed to its success.

Home Depot Rewards Program Benefits KREIA Members Who doesn’t like cash back? As a KREIA member, you can get cash back from Home Depot on your purchases of rehab materials and tools. If you spend more than $5,000 semiannually at Home Depot, you'll get a 2% annual rebate. And that’s not counting all the other discounts you get there as a KREIA member. Through our affiliation with National REIA, we get access to Home Depot’s Pro XTRA plan. As a KREIA member signed up for Pro XTRA, here's some of what you can look forward to: • 20% off paint products (interior paint, exterior, primer) • Volume pricing if your order is $1,500 or more. (Average savings through volume pricing is more than 10%, depending on products and quantity. Visit your local Pro Desk for more details on volume pricing.) • Access to an exclusive appliance and cabinet program! • Up to an 11% rebate price match program for competitors’ pricing. Are you getting everything out of your KREIA membership that you are entitled to? Think of all the money you pour into rehabs. Wouldn't you like more of it to flow back to you? If you sign up for the Home Depot Pro XTRA program, it will. Your savings from Home Depot each year could pay back the cost of your annual KREIA membership several times over, and then some! But first you need to register: Call 866-333-3551 or visit homedepot.com/ProLoyalty During registration you can associate the forms of payment you use – credit cards, debit cards, checking accounts – so that the payments you make at checkout will apply to your savings and rebates.

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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: You! Laughing with comedian Donnie Baker and grooving to live Louisville band Sound Station What: Holiday Party! Where: Woodhaven Country Club When: Thursday, Nov. 10, 5 p.m. to 9 p.m. Why: Because KREIA loves giving back! How Much: Free for members, only $30 for nonmembers

❖ Nov. 9th – Noon - 1:30 p.m. Lunch & Learn. Duna Bolotte hosts November’s guest speaker, real estate attorney Michelle Rawn. ❖ Nov. 12th – 9 a.m. - 3 p.m. Online Workshop: “How to Partner Your Way to Wealth in the Downturn.” Led by investor Dave Corsi. ❖ Nov. 15th – Noon - 1 p.m. Tool Tip Tuesday With Tamara West. Investor/broker shares mustknow resources. ❖ Dec. 8th – 5 p.m. - 7 p.m. KREIA Happy Hour. Networking at Woodhaven. Everyone is invited.

Main Meeting Preview January 26th 2023: Topic TBA February 23rd: Tax Update with Mike Grinnan (We take December off)

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