All Forum Posts by: Shane H.

I met a guy here in Wichita Tyler Nepote I believe may be a member of this group - was thinking by his FB posts he was at the Vegas event.  

Without giving too much away until the deal closes - my wife and I hopefully will be the new owners of a business in a month to month and a half once we get to closing.  A lot to do between now and then.

Existing owner I think isn't around much and has owned it for 3 years but has lots of experience in the industry - industry is something that is talked about a lot on here.  I'll be glad to expand more once we get our feet wet as I'm sure some could benefit from what we are learning through all of this.  It hasn't sunk in all the way though I'm extremely excited.

I've never had direct reports, though I've had tenants for 11 years and have managed contractors  - I know it's not the same but hopefully I can pull from that.  There is an existing manager in place and close to 20 employees.

Is there anyone here who has purchased an existing business and how did you handle it?   I guess what I'm most afraid of having been an employee myself is simply reassuring the existing employees.  Wasn't quite sure how to handle that.

If the closing takes place on a Friday I think I'll have been able to meet the existing key employee at least a week before and was hoping to show up that day and start to meet the others.  Was thinking I should be there part of the day both weekend days and every day there after to meet them and some of the tenants?  (Place is open 24/7 365)

Any first hand experience or advice is appreciated.  I was hoping to avoid an all hands on deck meeting and just meet people one on one and establish a relationship that way.  From that point then just dive in and know the business front to back.  Keep things the same initially and determine if there are any opportunities or things that can be changed for the benefit of the business.

Congrats @Jonathan R.

I think you could do far worse than 13th/Hydraulic - that area isn't horrible - at least in my experience being in the neighborhood/driving around in it and meeting customers for my dayjob.  I have no rental experience there but what I've seen of the properties it probably all boils down to your tenant and if you will maintain the house correctly.

It should be in some sort of community improvement district - Wouldnt be surprised if the city has some incentives such as free permits, low interest loans, free paint etc.  Would be worth possibly checking out if you want to buy there again.

My latest major project is a block or two out of one of those districts as luck would have it...ha.  Gutting that one down to the studs and completely rebuilding it - new drywall, windows, insulation and all - first time I've completed something so major - about at the halfway point and excited to see it when it's done - near Central and oliver.

Hello - I'm posting this as a favor to a friend.  I'm connected with the majority owner of an 11 story office bldg (Appx 5500 Sq Ft per floor that is leasable if I recall) - ad here http://www.loopnet.com/Listing/20353100/105-S-Broa...   Figure about 9-10 a sq foot gross lease when running #'s - I think it can be a blended avg and get a bit higher as our office market is improving - just needs stable ownership and the elevators.

(disclaimer to get this out of the way early .... It is listed with a broker - the majority owner nor I am trying to market it - he just has the inside power and knowledge that if you are serious buyer he can make it happen for you or if you want, call the listing broker directly yourself - he's a nice guy...I haven't gotten face time with him but my dealings with him over the phone have all been positive.)

Ask price is 1.6 million.  In the heart of downtown Wichita.  I know most of you scoff at Wichita as a Flyover state but having lived here most of my life I've never seen the energy and civic pride any higher than it has been.

This would be a value ad property.  I just received an email from the majority owner today that they have an offer on it from an investor but they're not sure if she'll close the deal so I think they want someone more serious.

Here's the cliff's notes version of this building - I know a lot of it's history - I almost became a part owner a few years back (you can probably find a post of two I put on here in that regard in the past) however didn't have deep enough pockets to see it through.  This building was Condo'd out - that was the crux of it's problems - all owners could not be united to pay for the upgrades (it needs 2 Elevators) - however my friend (the majority owner) has finally got them united to collectively list the property - so when it sells, the Condo association goes away and the new owners can put the new elevators in and make money.

I've got a bit of information and backstory on this place and can personally connect you with the majority owner - if you are not a tire kicker - please connect with me.  Look at the ad, if you dont have the money, or connections to get a loan or prior experience please do not waste my time.  I'm very busy with other projects now.

If you'd like me in the picture to help I'd love to do so - I do not have personally the finances to take this down alone or I would love to try, but I do know lots of local bankers, which banks would have appetites for the deal which brokers to call to lease, who to call at the city for various things, who to target, a general marketing plan and the knowledge of the city - so I'm worth a lot in that regard.  So if you'd like a partner I'd love to help - if not I'll introduce you to my friend and you can see if you can work out  a deal.  

Id love to chat and give you all the info I have on the place and our city - but again - please DONT waste my time - this place would fill up with the right owners and most importantly with new elevators ( a # of floors were full recently until the elevators got really bad) - there are Historic tax credits available that will help with the majority of the cost - present majority owner has his own business that makes him more money so he's not willing to take the effort to see it through.

Look forward to talking - if you message me please tell me why you are qualified to buy this place before I take the time to make the introduction or help you if you want a direct connection to the majority owner to make something happen.

Google Chung Report and Wichita, KS for more info on our city - lots of recent information - we just passed a bond issue to put a new baseball stadium on the River and tear down our old one - we have a state of the art airport a year old and and entrepreneurial fire I haven't seen in our city in my lifetime - We are the birthplace of Pizza Hut, Rent A Center, Coleman, Boeing, Lear Jet, Cessna the loved or hated Koch Industries (Charles Koch) etc etc so we have lots going for us and an ability to make money if you dont have a negative perception of KS.

Thanks!

If you plan on catering to the female athletes - rebuild your closets to make them more functional, enlarge them if you can, deck out the bathrooms and kitchens and you'll have no problem filling them.  Metro Appliance is a good place for appliances in Wichita - they'll match any prices or beat them at all the big box stores and have a way better selection/flexible on delivery etc.  I've bought stuff over the phone multiple times - makes it easy.

I just use a joint/several lease - so far have not had co-signers and have just had the girls sign on their own - 2 going on 3 years and good luck so far.  I include lawn mowing which is important to me and I think would be to a group of college students.

Just like anything else - if you can get the first group in there and treat them right they'll let others know about you.

Reminds me I need to buy a new appliance for the girls house and will try to get that done this weekend.

@Travis Tannahill  not knocking Hillsboro but I'd plan for zero appreciation over time.  Wichita is a top 100 MSA and there is barely any appreciation here - I guess the upside is we don't (Hillsboro shouldnt) have a massive downswing in value.

What do other houses renting to college kids rent for?  Ive got a set of students on a sports team I've rented to for the past 2 going on 3 years (the girls have changed) but I get consistent leads from them and I've had good luck renting to them.  They are scholarship athletes so I'm more comfortable with that.  I need 3-4 more houses and I could fill them with other students.  They've helped pass my name around and I try to treat them well.

@Jonathan Brobst

Will shoot you a PM - I'm about 1st base in this deal and creeping past that point next week.  All my feedback to date is good so it's just putting puzzle pieces together at this point unless something kills the deal.

I know my best bet at securing lending on a primary residence is while I'm still employed

Ive found a couple Topeka threads and figured Id reply.... I may be moving there in the next 2-4 mos if an opportunity I am pursuing can pan out.  Anyone have any suggestions on a lender that will lend on the deal not the amount of cash I have in the deal (IE take a somewhat hard money approach -- if I will spend $XK on repairs doing X, X and X to repair the property up - they will conduct an appraisal and use the after repair value as the basis for what you will be loaned --- so if the house is fixed up and it will be worth 100k - the bank would lend me 80k regardless of what I bought it for - so if I bought it for 50 that basically would give me 30 k in draws to work with on repairs.

There is a lender here locally that will lend on deals like that -- hoping to find one there so i can find a house and fix it up for my wife/family to live in.

This post still active?  I may be moving there due to an opportunity in the next 2-4 mos.  

1st thing on my agenda besides the other myriad of things i need to do is find a place to live and a lender - preferably a dump of a house I can completely have remodeled and rebuilt to my specs.  Dont care if it's a fire, basement walls caving in etc.  From my brief looking - it appears the Topeka housing is more pricey than what I can get in Wichita.

Anyone have a tip on a lender in the Topeka area that will lend based on the deal and not cash in the deal?  I may be self employed as I make this transition so will need a lender like that - my cash flow from the house I'd be leaving would make most of my mortgage payment if I stay in my budget.

@Adam Widder @Rajesh Trivedi @Daniel Snyder @Jonathan Schneider @Matt Pritchard @Kevin Pfeiffer @David O. @Account Closed  we still need to chat on the phone - sorry I have not been able to contact you yet.  On my to do list Lee.

@Teresa Hunt

The bank will be out there that will lend to you, you'll just have to blow up the phone of every small bank in SE Ks and over the line in OK if there are any banks doing lending across state lines.

As you know most banks around here are pretty conservative but I'm sure there are some who can work with you.  With all the older people in the rural communities, Im sure there are some ranchers or farmers sitting on a nice pile of cash (After reading your profile why not the dr's you worked for) why not network and see if you can go the private lending route....if you've lived in Coffeyville your whole life may not be a challenge for you if you know enough people and they trust you.

(Also after reading your profile - you stated you had your home paid off - get a HELOC on it) use it to finance your deals, get them rehabbed and stabilized with a tenant then pull perm financing on the property once a tenant is in place. If you have the property stabilized with a tenant in place and rehabbed I'd think a bank would be more apt to lend to you. Honestly with Amazon pulling out and what little I know about Coffeyville I can see the local lenders hesitation to lend without a track record. Probably going to have to get pretty creative.