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Kentuckiana Real Estate Investors Association monthly newsletter for members http://kreia.com
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President’s Letterpage 1
AUCTIONS!From A to Z
page 4, 6, and 8
KREIA’s NewExpress Lane!
Page 3
KREIA Election
Nominations Nowpage 8
Member Spotlight
David Wadepage 9
Event Calendarpage 7
Welcome New Members!Page 9
Govt Affairs Updatepage 10
LIVE Training QuickBooks WorkshopHow To Buy Without Money, Banks, Credit..
page 10
Copyright MMXIII Kentuckiana Real Estate Investors Association • P.O. Box 17592 • Louisville, KY• (502) 509-2216 www.KREIA.comDISCLAIMER: 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.
Congrats Cards!
It appears spring has finally sprung!! Things are "springing " forward in the real
estate market too. According to all the media outlets and relevant real estate
sources such as GLAR, home sales are improving and so are values. Another
good sign is foreclosures are starting to decline. All of these are very good
indications our real estate economy is on the upswing and there has never been
a better time to invest in real estate.
KREIA is also beginning to experience the same rebirth. The deals are out there
and if you are new to investing there is no better place to be than your monthly
KREIA Meeting and the many social outings you have throughout the month like
LOTS, networking lunch, and the upcoming Day at the Downs. Introduce
yourself or join in a conversation at one of these events and get to know some
of the great and knowledgeable people in KREIA.
Another way to find real estate deals that is sometimes overlooked is at
auctions. This month you will get a local panel of experts in the auction
business discussing how this process works. Your KREIA board of directors is
always striving to provide a variety of topics for your monthly meetings so if you
have a suggestion let us know.
And speaking of your KREIA board of directors, elections are coming up for
officers and six expiring director positions. This is a wonderful way to give back
and share your energy and talents with the club. I highly encourage anyone
interested to contact Hank Schildknecht at [email protected].
Don't forget to check out your KREIA.com website for all you need to know
about what is going on and when, and to pre pay for the next meeting. The less
time you have to spend standing in line the more time you will have to network
and learn.
See you at the next meeting on April 25.
Happy and successful investing. Your President,
Connie Horsey
P.S. Please take photos with your cell phone, email to [email protected]
Pre-Pay to safeguard your seat at your next KREIA meeting
Vol 13-04 Monthly Newsletter for KREIA Members
2Copyright MMXIII Kentuckiana Real Estate Investors Association•PO17592 • Louisville, KY• (502) 509-2216 www.KREIA.comDISCLAIMER: 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
PresidentConnie Horsey
Vice PresidentDennis Erhard
SecretaryChris McCarty
TreasurerMike Grinnan CPA
Treasurer ElectAru Tarr
Board of Directors
Mike Butler
GeorgeForee
Eric George
JeanHall
MarkHass
Frank Miller
LindaBrun
DuffyFord
Dan Jones
JayLong
RueMcFarland
DickVreeland
ParliamentarianHank Schildknecht
Immediate Past PresidentMark Schaffer
Your KREIA Leaders are involved and chair several committees to make KREIA happen every month for you and your fellow KREIA Members.
Get involved with KREIA. You can help with the monthly meetings, L.O.T.S. Program, this newsletter, Saturday Workshops, Government Affairs, Social, Annual Picnic, Marketing, the new KREIA website and more PLUS You Get EXTRA KREIA Points for everything you do!
Get phone and emails of all KREIA members with the new KREIA Online Member Directory.
Reach out and tell them they are doing a great job! (It makes them do more for KREIA!)
KREIA Newsletterpublished monthly and serves both as a newsletter and a reminder notice of your upcoming monthly meeting.
KREIA is a member only association focused on education, networking, and resources for today’s investor. o educate real estate investors from the basics to the complex. We are an excellent choice for all levels of investors. 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.
To Subscribe to the KREIA Newsletter is simple and easy. Go to KREIA.com and join the Kentuckiana Real Estate Investors Association.
Group Discounts are available.
To Advertise in the KREIA Newsletter
To Advertise on KREIA.com
To Sponsor A Monthly Meeting
To Sponsor A LOTS Program
Please contact [email protected]
KREIA SponsorshipsDiamond: Full Page Ad + Table + Pre-Meeting Speaker Only $995 or $99 mo.
Gold: Half Page Ad + Table + Pre-Meeting Speaker Only $499
Silver: ¼ Page Ad Only $299
Business Card : Ad Only $149
Event Sponsor: Meeting, LOTS, Saturday Seminars, and more!
-----------------------------------------------------
Place Your Ad Now at KREIA.com---------------------------------------------
”KREIA Advertising is by far, hands down, the absolute best advertising dollar ever spent for Borders & Borders!” Harry Borders, B&B Attorneys
3Copyright MMXIII Kentuckiana Real Estate Investors Association•PO17592 • Louisville, KY• (502) 509-2216 www.KREIA.comDISCLAIMER: 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.
KREIA Meeting Coupons
Brand New “Invite A Friend To KREIA Program”allows YOU to attend your next meeting for FREE!How It Works:
1. At your next KREIA Meeting, go to the membership table and ask for 10 KREIA Business Cards.
2. You must sign the sheet showing how many KREIA Cards have been signed out by You. Most members will sign out 10 cards at a time; however, if you have an office or you expect to run into many investors in your line of work, you may request to get 25 cards (max) to display in your lobby, on your desk, etc.
3. IMMEDIATELY, while at the Membership Table, legibly PRINT Your Name on the backside of each card in the “Referred By:” field.
4. Now you can begin using the KREIA Business Card Program to get your next meeting for free.
5. Simply hand out your KREIA Cards (with your name already pre-printed on the backside) to folks who you feel would or could benefit from joining KREIA. The KREIA Card you give them allows real true “guests,” not former members who let their membership lapse, to attend a meeting for Only $10 – thanks to you. They will submit their $10 Meeting Coupon at the door and their card already has your name on the back.
6. When your guest turns in your card, joins KREIA and becomes a member, you will get your next meeting absolutely Free. This is not ANY meeting, or meeting of your choice, but the next monthly meeting following the month your guest joins KREIA.
What Are You Waiting For? Get Going Now! Sign Out at least 10 KREIA Business Cards on Thursday and let’s get KREIA to be THE MEETING of the Month for all local real estate investors!
You Can “Pre-Pay” for Monthly Meetings!
Your Benefits when you “Pre-Pay” online:
� Paid receipt auto-emailed to you for your records
� NO Waiting in Line at the Door!
� Use EXPRESS Lane and say your name
� Your Name Tag Ready and waiting for you
� Special Door Prize limited to only those who “Pre-
Paid” their meeting registration.
FAST, Simple, and Easy!
Pre-Pay Now at KREIA.com
KREIA Needs Your Help!
Helpers Needed!
� Registration Table Staff
� Photographers
� Advertisers’ Liason
� Monthly Meeting Set Up
� Please See Dennis Erhard or Connie
About Wardlow Auctions
Rick Wardlow and his team have volunteered their professional services for years for KREIA’s Annual Benefit
Auction for the Home of the Innocents. KREIA has raised over $150,000 for Home of the Innocents to help medically
and disadvantaged children in the Louisville area. There is a wing in their facility named after KREIA.
These outstanding numbers for KREIA could not have been achieved without the stealth “behind the scenes”
countless of hours of volunteer work by Wardlow Auctions. Your April meeting featured speakers below will show
you exactly how an auction works from the perspective if you are a seller, a buyer, or real estate and will include
foreclosure auction details.
You MUST Attend This Training Workshop – from Newbies to the Veteran Old Pro will LEARN!
4
April Meeting
Rick Wardlow, CAI, BAS, Principal Auctioneer
● 1974 Graduate of the University of Missouri – BS in Agricultural Economics
● 18 years experience in conducting auctions of real estate, estate settlement, business
equipment, and bankruptcy auctions
● 14 years experience as a Federal bank examiner for the Farm Credit Administration
● 2 years experience in Farm Credit agricultural real estate lending
● Member of the Kentucky and National Auctioneers Association
● Member of the Board of Directors of the Kentucky Auctioneers Association
● Champion of the 2005 KY Auctioneers Association bid calling competition
●· National Auctioneers Association Certifications
(c) 502-593-3888, (h) 502-241-5429, (email) [email protected]
Frank Miller, apprentice auctioneer, Real Estate Agent
• Real estate agent at Real Estate 3000
• Currently serves on KREIA Board of Directors and is an active KREIA member
• donated a house to the Fuller Center
• Very involved with Wardlow Auctions in Benefit Auctions in Metro Louisville
• Specializes in foreclosure auctions
Joe GribbinsBAS, Principal Auctioneer, Principal Broker
● Serves on Kentucky Board of Auctioneers
• 1976 Graduate of Western KY University - BS in Business Admin.
● Third generation auctioneer with over 40 years in the auction industry
● Licensed Real Estate Broker
● Experienced in all auctions including real estate, estate settlement, commercial and industrial
● Experienced auction instructor and special projects consultant for the KY Board of Auctioneers
● Compiled KY Sales Use Tax Guide for Auctioneers and other auction related papers
● Member of the Kentucky, Indiana, and National Auctioneers Association
● Past President of the Kentucky Auctioneers Association
● Member of the Kentucky Auctioneers Association Hall of Fame
● Member of the National and Kentucky Association of Realtors
● National Auctioneers Association Certifications:Benefit Auctioneer Specialist (BAS) CAI: Certified Auctioneers Institute BAS: Benefit Auctioneer Specialist
(c) 502-550-7045, (email) [email protected]
Wardlow Auctions Inc. is a full time auction company engaged in the marketing and sale of real
estate and personal property by auction. The auctioneers with Wardlow Auctions are licensed to do
business in the States of Kentucky, Indiana and Florida. Their clients include numerous individuals,
attorneys, banks, municipal agencies and the U.S. Bankruptcy Court. The four principle auctioneers
in the company have a combined 90 years of experience in the auction business.
Copyright MMXIII Kentuckiana Real Estate Investors Association•PO17592 • Louisville, KY• (502) 509-2216 www.KREIA.comDISCLAIMER: 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.
5
Selling Real Estate at AuctionSimply put, the auction method is an alternative method for marketing and selling property. Based on the amount of property sold via the conventional listing route versus the auction route, the auction method is certainly not a competitor to the conventional listing method. The auction method gives both, realtors and sellers, another option to consider when trying to select the marketing and sales method that is best suited to meeting the Seller’s objectives.
Selling real estate at auction has always been a common method of selling property in rural areas. In recent years however, the auction method in selling real estate has become increasingly popular in metropolitan areas. We attribute this to 4 primary factors: 1) as more real estate is being sold at auction, the public is becoming more comfortable with the auction method and accepting of it as a viable option of selling and buying real estate, 2) there is a greater awareness among sellers today of the time value of money, 3) we have become an “instant gratification” society which expects desired results in a much shorter time frame, and 4) the auction method offers some advantages that many sellers find appealing.
Selling Personal Property at Auction
The majority of our personal property auctions are for clients who are settling estates, downsizing, relocating, or liquidating their businesses. We do not have an auction house. All of our auctions are conducted at an onsite location. While some auctions have just a single seller, we have also conducted auctions involving multiple sellers with items consigned to a single auction.
At our auctions we offer computerized clerking whereby all sellers are provided a detailed report of items sold and the sale price of individual items sold. To enhance the buyers’ ability to buy, we also accept major credit cards. At settlement we provide the seller with a detailed Auction Report Summary. This is a report of Auctioneer accountability, in that it provides the seller with a detailed accounting of all sales income, expenses incurred, and marketing activities implemented by the Auctioneer.
Perception vs. Reality
From our training sessions and meeting with prospective clients, we have found that many people believe auctions are used primarily as a sale method of last resort and property sold at auction brings a fraction of its true value. Conversely, many of our clients have chosen the auction method as their method of first resort and realized prices that met or exceeded their expectations. Much of the success of an auction depends on the characteristics and desirability of the property and its appeal to the buying public, how the auction is structured, and how the property is marketed.
Types of Auctions – Absolute and Reserve.
An Absolute Auction is one in which the property is sold to the highest bidder regardless of price. The advantage of an Absolute auction is that bidders know the property is going to sell without reservation of price. Thus it tends to generate more interest among potential buyers. In an Absolute auction the Seller cannot bid on the property nor can anyone
bid on the Seller’s behalf. If an auction is not advertised as Absolute, you should presume that it is a Reserve auction.
A Reserve Auction is one in which the Seller can put a minimum, or reserve price, on the property. The advantage of the Reserve auction is that if the property doesn’t bring what the Seller needs, it does not have to be sold. The disadvantage of a Reserve auction is that it is usually not as effective in generating interest and attendance among potential buyers. In a Reserve auction the Seller may: 1) set the minimum amount, 2) have the sale price subject to confirmation, 3) accept or reject the final bid, or 4) designate someone to bid on the Seller’s behalf, with proper disclosure.
What is a Buyer’s Premium?
A buyer’s premium is a percentage added to the bid to determine the final selling price of the property. For example, if there is a 10% buyer’s premium and the final bid is $100,000, the final selling price is $110,000. The buyer’s premium is paid to the seller and is in turn used to assist the seller in paying the costs of the auction. These costs usually include, but are not limited to, advertising, commissions, and other costs that may be incurred to bring the property to auction.
Most of our real estate auctions include a buyer’s premium. However, most of our personal property auctions do not. When we use a buyer’s premium it is disclosed in the advertising and in the discussion of terms and conditions prior to the auction. Inspection of Property
Real Estate: For nearly all real estate auctions there are one or two prescheduled “open houses” several days prior to the auction. If you are not able to attend the “open house” we will try to arrange a separate time for you to view the property.
In nearly all real estate auctions, the property is sold “as is” with no condition or contingency. That includes inspections such as home, termites, radon, lead-based paint, etc. We want potential buyers to be as knowledgeable about the property as they care to be. Thus, potential buyers are welcome to get any kind of inspection they want but it should be done prior to the auction. The inspection cannot be used as a negotiating item with the Seller, and the potential buyer must pay for the inspection.
Personal Property: The public is welcome to inspect the personal property prior to the auction. The inspection times scheduled vary depending on the type and amount of property being auctioned. In most cases the inspection time is indicated in the advertising. If not, feel free to call the Auctioneer to determine when the pre-auction inspection is scheduled.
Advantages of the Auction Method
1) The Seller determines the sale date. Whether desiring to minimize carrying costs (insurance, taxes, utilities, mortgage payments), buy another property, or pursue a more efficient use of the funds from the asset, the Seller can set the time frame that will best accomplish the desired objectives.
-- continued on page 8
6
Call 502.896.2595
7
Your President has selected this year’s nominations and
elections committee, and we would like to inform you of
KREIA’s election procedure, which is as follows.
KREIA is run by a Board of Directors consisting of five
officers, twelve at-large Board members, the immediate
past president, and the parliamentarian. The five officer
positions—President, Vice President, Secretary,
Treasurer and Treasurer-Elect—are filled each year for
one-year terms. The twelve at-large Board members are
elected for two-year terms, with six new members being
elected each year. There are no term limits and all
incumbents may run for re-election if they so desire. (As
a two-term president, Connie Horsey has chosen not to
seek re-election.)
Nominations will be taken from the floor at the April
and May meetings for the five officer and six at-large
Board positions. As in previous years, nominations will
be closed after the May meeting. The election will be
held at the June regular meeting, and those elected will
take office in July.
If you would like to nominate someone to run, or
would like to run yourself, please contact a me or be
prepared to make a nomination from the floor at the
April or May meeting. Only serious applicants need
apply. The Board sponsors many activities on an ongoing
basis, and it is the diligent effort of all the Board
members that brings these activities to life. The Board
runs primarily through the committee system. Most
Board members serve on more than one committee, and
many chair a committee. It is simply not possible for
someone to serve on the Board without being an active
member.
If you have any questions about the governing process of
KREIA please feel free to give me a call.
Hank Schildknecht
Chairman of the Election Committee
(502) 893-4494 [email protected]
-� continued from page 6
2) The Seller sets the sale terms and conditions. All potential buyers must bid in accordance with the terms set forth by the Seller.
3) Sales with no conditions, no contingencies. At auction, properties are usually sold “as is” with no conditions or contingencies to the contract, such as an inspection, appraisal, financing, the sale of another property, etc. While potential buyers are welcome to get any inspection(s) they desire prior to the auction, they are not a matter of contract negotiation.
4) Greater assurance that the sale will close. The terms of most auctions require the successful bidder to make a down payment of 10% to 15% of the sale price with the stipulation that if they do not close, the bidder will forfeit their down payment. This condition helps to generate the serious bidders and discourages buyers from defaulting on the contract.
5) Aggressive and intense marketing period. Most properties are aggressively marketed 2-3 weeks prior to the auction. This puts the property at the forefront of other properties on the market and generates a sense of urgency and excitement among potential buyers.
6) Increased price potential. The competitive bidding process will not only produce the highest price among all potential buyers on the day of the sale, but for a good, high demand property, it can often yield a sales price above what would normally be expected.
What is the Process if I Want to Auction My Property?
Contact one of the auctioneers to discuss your objectives and the basics of how the auction method works.
If it is a viable candidate for auction, the Auctioneer will suggest setting up a time to inspect the property.
If determined to be a good candidate for auction, the Auctioneer will prepare a marketing program, proposed contract, and verbal or written proposal.
The Auctioneer will go over the marketing program prior to signing any contract to explain the program and make any adjustments at that time. We have found it beneficial to present to the sellers a detailed advertising program prior to signing the contract. This enables the Seller to have a complete understanding of how the property is going to be marketed.
Rick Wardlow
8
Copyright MMXIII Kentuckiana Real Estate Investors Association•PO17592 • Louisville, KY• (502) 509-2216 www.KREIA.comDISCLAIMER: 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.
9
KREIA Member: David Wadeemail: [email protected]: 502-553-4545
Referred by: Training Course I was Studying
Member since: 2010
Why did you join: To become familiar with real estate investing in the Louisville area
Short Bio: I grew up in Ft. Mitchell, KY and attended Beechwood School and Harvard. After graduation I moved to High Point, NC to start on management training for Pittsburgh Plate Glass Co. There I met my wife Barbara and in the next seven years we expanded our family to include 3 daughters, Lauren, Diana, and Jill. We also moved six times to … get full story on KREIA.comMy hobby and passion is my work ethic and my love of sports includes following the Cards and the Reds.
Involved in: As an investor I have been most involved in trying to complete subject-to deals. I did close one of these last summer. I have been working on lines of funding for deals so that I might be active in more diverse opportunities. It looks like these plans are starting to mature. I hope my KREIA association will help me fulfill these goals
Grow Up To Be: When I am 90 years old I want to have the same passion and vigor that I do today at 75. I want to be doing a lot of real estate deals and making enough money to be charitable in our community.
How has KREIA Helped You: The programs are very informative and I have learned from some of the Saturday classes taught by Mike Butler and others.Read Newsletter: YES!
Newsletter Preference: Hard Copy snailed mailed to me
Biggest Tip: Keep the welcome mat out for "newbies" and share your experience with them.
Most Memorable Moment: I learned a lot from Harry Borders program last fall.
Welcome NEW Members!WelcomeNEW Members!
Jan Scholtz Ian Lowe
Cliff Hayden Ben Isanogle
Thomas Disbro Monica Dunlap
AJ Davis William Murphy
Simone Mancuso Mike McKnight
Tamara Gillenwaters David Owens
Raymond Rough George Baumler
Paul Corcoran Mike Brangers
Ashley Stover Dave Fralick
Jocelyn Bredhold
May 17-19, 2013Courtyard by Marriott – Louisville Airport
819 Phillips Lane, Louisville, KY 40209Doors Open: 8am Class: 8:30am – 5pm
This is NOT a Parade of Speakers Selling Stuff!
100% All Content! All Meat & Potatoes!Reg. $1,997
Register Now!
Class Size is Limited!
Promo Code: KREIA Call 502.896.2595
Register Online http://kreia.com/may17
& Harry Borders
Alumni Discount: Only $49710
11
Government Affairs
Government Affairs Update April 5, 2013 from the
Greater Louisville Association of Realtors
Louisville Metro Government
1.An ordinance that was introduced in 2010 dealing
with maximum permitted density in C-1 zoning districts
has resurfaced in the Metro Council. Representatives of
the Greater Louisville Association of Realtors® will
provide testimony if given the opportunity at the next
meeting which is scheduled for this Monday, April 8th,
at 3 pm. . Additionally, GLAR has been coordinating
with the Home Builders Association of Louisville and
the Louisville Apartment Association. GLAR will provide
updates as this progresses.
2. The Louisville Metro Council continues to review the
Land Development Code revisions brought to them by
the Land Development Code Taskforce. GLAR and its
members are active participants in the various
subcommittees dealing with design review process, fair
and affordable housing and others. The first set of
proposed revisions is currently going through the Metro
Council for review and approval. Additionally, the
various subcommittees will be finalizing their reports
and presenting to the full committee starting now and
continuing throughout the summer. This process will
continue throughout the year.
3. The Louisville Metro Council, as mentioned in a
previous report, introduced an ordinance in the fall of
2012 dealing with registration requirements for vacant
and abandoned properties. This issue has stemmed
from Mayor Fischer’s wanting to reduce abandoned
and vacant properties over the next several years. The
current ordinance, sponsored by Councilman Rick
Blackwell, would require lending institutions to register
properties with current owner information if known to
be vacant or abandoned.
.com
PO Box 17592Louisville, KY 40217Return Service Requested
KREIA’s Monthly Meeting! Thursday April 25th
AUCTIONS! From A to ZHow Do They Work for Sellers, Buyers, Online and Ballroom
Rick Wardlow Auctions, Joe Gribbins, and Frank Miller
PRE-Meeting:
Tax Liens with Attorney Hank Schildknecht
