All Forum Posts by: Justin Cooke

@John Mattox, yes plan on looking into that if can't find anyone in Newton.

Looking at an 18-unit apartment in Halstead, KS.  Any good property managers in/around Newton or Halstead?

@Nathan Blumanhourst

Welcome, fellow Wichitan here.  Wichita is a great place to invest and Biggerpockets is a great place to learn and network!

@Account Closed happy, just had a small problem with timely reports to start but think it was mainly a backend issue on management software they were using, they've changed software providers and everything supposed to be good now. Would hire again. Yes they are taking care of all my management.

@Account Closed Trinity is who I ended up going with, and overall have been satisfied.

@Jay Hinrichs

Exactly right.  Currently I plan to just operate the two existing buildings and not build new.  I'm just planning ahead, and think it might be worth paying civil engineer/city planning to subdivide and refi now.  That way if in 5-10 years new construction numbers work better I'll have the option to build without disturbing 30yr fixed secondary market debt on the two existing fourplexes. 

@Shane H.

Thanks, I'll look into that when the time comes.

I discussed with local engineering firm and just waiting back to get their quote on survey and water runoff plan.

I am new joint ventures and trying to get an idea of a fair split for a large apartment complex development deal that we are looking at. Basically, there are two parties: the local partners, and the out of area partners.

The local partners found the deal, arranged meetings with developer and other parties, will act as boots on the ground asset management for attaining local bank financing, all work with architect, oversee management of construction project, and asset management for eventual lease up/ongoing property management. Have a wealth of knowledge of local practices and a large network of local relationships necessary to do business. They are providing roughly 12% of the necessary cash, and providing apartment plans/blueprints.

The out of town partners are putting up 88% of the cash, experience (currently own and operate with in-house PM over a thousand multifamily units), ongoing involvement in consultant role working with local partners.

Would it reasonable for local partners to ask for a finder's fee and/or asset management fee as additional % equity in the deal?  If so, what would be a reasonable ask for this situation?

I recently purchased/repositioned two under-performing fourplexes on side-by-side lots roughly 0.5 acres each; total 1 acre.  Each lot is roughly 102 ft wide and 200 ft deep. Both are zoned MF-29, which for my county zoning code means up to 29 multifamily units per acre.  I've discussed with city planning department and due to parking and setback requirements it is probably more likely that I could add an additional 8 - 12 units if desired.

I purchased the properties with a 3-year renovation/bridge loan.  I still have a couple more secondary market mortgages available before I hit my ten limit.  I know secondary market will not allow anything above fourplex per lot/mortgage, and I can't find anything close to sub 5% fixed rate 30 year note for any in-house loan locally.  So, I'm thinking of subdividing the back half of both lots into either one or two lots where I could at some point in the future build a 10 or 12 plex, 2 or 3 more fourplexes, etc.  Then, refinance the two individual fourplexes into two secondary market mortgages.

I've never developed/subdivided anything, so I don't know what I don't know!  Is this the right way to look at this?  If so, how do you go about subdividing the lots?

@Scott Dixon what are the terms on your 401K loan?

@Jim Viens 

I just moved to Wichita, Kansas and ran into this same problem. How did you find your freelance abstracter? Do you know if they work/have colleagues in Wichita too or only KC? Thanks!