All Forum Posts by: Shane H.

@Victor N. @Marilee Haney

I've never really looked into tax foreclosures - Victor seems to be 100% right - seems to be a risky proposition to do anything to a tax foreclosed property until 1 year has passed.

Guessing the workaround would be to give the owners/heirs some money to transfer deed/ownership to you in some way so there'd be no worries about them having any arguments up to a year after the tax sale happens.

I've only dealt with redeeming a bank foreclosed property - there you can buy the redemption rights and have them signed over to you.

(Scroll down to the bottom - last section discusses what has been talked about here)

https://www.bucoks.com/502/Tax-Foreclosure-Sale-In...

Marilee - if you're worried about the heir redeeming the property look up the heir yourself and go buy their redemption rights then you have nothing to worry about.  Redemption rights are transferable.

@Richard Sherman normally I would want to gravitate to something like that - but most of our staff survive paycheck to paycheck and even though I'd love to help them with retirement etc cash now in their pockets will help them more.  I think.  

I dunno - in the future I would like to add a retirement component - I have my goals of what I want and once I get there anything extra can be put to use or spread amongst others.  Hopeful the Good Lord will allow me to get there.

@Teri Feeney Styers -- good idea - I'll have to pencil that out on paper and see how that works - my thought process was that turnover is EXTREMELY high with the support staff - so it'd create a paperwork nightmare to divy up equally with them.  And they are very important to our business, but truly what drives our business and who I want to feel like owners are our nurse and exec director.  I wanted them to feel more in the drivers seat as far as what they can make with my help and feel more appreciated.  

Paying a profit sharing of some sort I have seen seems a bit unheard of - I've spoken to others that work in this industry (my wife did for a long time) and support staff would be lucky to get $25 or a $50 gift card at Christmas and that's it.  Even the higher ups getting little to nothing.   I'm just afraid of not keeping enough in the company and how to wing that - figuring it out as I go but I know for a fact if we make a profit I want to share it as without the staff we wouldnt be making one.

@Russell Brazil   Assisted Living Facility

Not sure if this is the right forum for this or not.  

Our ALF business will end 2018 doing better than i expected.  I'm owed a lot of cash at this point - didnt blow it out of the water I'm sure by some folks standards but on paper it's better than I've ever done in my life.  Still pay myself what I consider a modest salary and my couple splurges this year was an economical family vacation to Colorado for a week (done on a tight budget like I always do - first vacay in 2-3 years) and a maybe once in a lifetime antelope hunt I was offered) and then a used vehicle so I actually have room to have staff with me and not have to ask them to drive.  I'll continue to do that next year with our only goal of updating the small house we live in now and adding a storage shed.

I went into this not quite knowing how I'd do things but in the back of my mind I always had the intentions of when I owned a business be it a full fledged RE investment only business or this ALF business I'd give some of the profits to the staff/team members.

I have no idea how to structure it and how much to give to staff/keep in the business -  my idea was to try to pay out 10% profits to the staff - 3.5% to our exec director, 1.5% to our nurse and either 3% or 5% split up and paid to our hourly staff.  If we hit our #'s for next year it will be a big bump (imo) to our exec directors salary (it would equal 20% of her pay with the ability to go higher if she helps me get our revenues higher yet.)

When I sell the company at some point in the future I'd like to give some back to staff to - not sure how to do that either but hopefully I have some time to figure that out.

Anyways - curious if others have thought about working up a similar thing or worked in a company that did that.  I feel it's the right thing to do - I only took this path to gain my freedom and my sanity - so far I've done so - and without our team I wouldnt have that and I feel they should reap some of the rewards.  

Hoping to grow this business and add 1-2 more buildings in 2019 then start investing in residential or commercial Re with extra cash and grow that part of my business to the scale I've always wanted and then start a sharing program there.

If anyone can help me find the article or a long shot knows the guy - I remember a few newspaper articles about a guy on the east coast (I think) that owned a # of grocery stores and when he retired he transferred ownership of the company to the employees.  i'd love to pick that guys brain and buy him coffee.

TIA

@Faiz Khan - Hi Faiz - how many beds do you have and how many per facility?  -- We have a 36 bed (licensed for 41 though) - bought an existing business and have been operating it since oct 1 2017.  Been a good ride - learned  a LOT.

What other programs do you have in mind besides Frail Elderly?

@Fred Sams get an SBA loan - uses ROBS to fund the downpayment - (Roll over business startup) - the guys from My Solo 401k here on BP helped me navigate the ROBS process.  They were great and easy to work with.

@Anthony Janke - I moved to Topeka 13 mos ago from Wichita - Id investigate heavily into something you could airbnb - Topeka IMO is way overpriced for what you get.  Taxes are higher etc.  You may have a different perspective -unsure how long you've lived here.  Anyways I had met a few people that were doing quite well with AirBnB (due to a lack of quality rentals here) and the general transient nature of Topeka's population - seems a lot of people dont stay here long and I can see why.  My goal for next year is to try and get involved in the chamber or at least put my .02 on development etc - whomever the city and county planners for the past 2-3 decades have been should be crucified and never allowed to work in those roles again.  Topeka has a lot of great things and potential but none of it has been used or it's been misused.  My guess being the capitol is that a lot of money gets put in peoples pockets.   Garden City, KS and Dodge CIty KS have better development plans and are cleaner towns than here.  Saying that about Dodge takes a lot - they've come a ways since the casino was put in.

Anyways I went on a tangent - but do your homework and check out the short term rental market - maybe buy a duplex and use the other half as a short term rental or a small apt complex if you can afford it near the university.  That or just buy in Lawrence where more people want to be.

If you look on available Airbnb's for Topeka there's a gal named Elizabeth Taylor (yes that's her name) - her's are the ones near Huntoon and Filmore and a guy named Larry - cant remember his last name but his wife advertises a ton of them on there - Larry and Elizabeth would be good folks to connect with.  Larry's into horses or horse showing or something like that - Elizabeth is a cool older eclectic gal - (our family lived in one of her furnished rentals for a month and a half when we came here)

@Jamie Beltran Good luck with your venture.  There will be a steep learning curve.  I still have lots of room for improvement - staff appreciation is key and your staff knowing that you as the owner place primary emphasis on resident care as #1 will also be key (and frankly resident care should be the top priority as thats the only reason the business is in existence) and second most important thing is making the staff feel a part of the family and appreciated.

Watch your cash flows - it will eat you alive.  I'd be curious why the census is so low (sounded like you only had 5 residents if I read your post right) but can hold 15.

Just need to find your niche.  I've learned a lot in the year I've been at our business and wouldn't trade it for anything.  But it certainly is not easy and not a responsibility to take lightly.  If you get down to spending 10 hrs a week I'd love to catch up with you and learn what  you are doing.  I've done it a time or two but it's rare  - we still have lots of work to do for me to get there.