All Forum Posts by: Shane H.

Lucas sounds like he has the correct answer, though like he stated, probably wise to speak with an attorney to be sure on such matters.  The small cost would be worth it to be certain, I'd also make sure a title history is completed so you are darn sure you get a clear title and fed tax liens etc are not missed as Lucas alluded too.

As he stated as well the redemption period varies per the statue depending on how much principal was paid on the original note if a bank forecloses.  Sounds like it's a bit different on the tax side, though appears in line with properties I have researched that have been bought at the tax auction.

If you are wanting to bid in the Wichita area - a couple local real estate attorneys whom I'm sure could help are Toomey-Pilgreen and Frank Ojile -- they both focus heavily on Residential RE law and know their stuff.  Not sure if Toomey ventures into commercial or not, however I'm sure either could refer on in that area if they are not well versed.

Best of luck.

Hello all,

I've got a ways to go before I could make the leap to REI full time and support my family so was looking to transition into a job more closely RE related in the mean time.

A company I've heard about for years and seems to get high marks on Glassdoor.com and in other publications as far as employee feedback is Toll Brothers Construction.

If anyone here has ever worked here as a Project Manager, or on the development side, would love your feedback, or if you know anyone presently working there who would not mind perhaps conversing with me on the phone or via email I would be more than grateful for the introduction or insite.

Relo for me would not be out of the question to CO, TX, AZ, NM or NV.  I do not believe they are in the KC market.

Thanks in advance

@John Mattox

I've dealt with Royce Jantz (he's from your area -- Hesston I believe) however works the Wichita area, mainly on the commercial side.  Has advised me he has connections in Oklahoma for multi family as well.   I was working with him a couple years ago as I almost bought a floor in the Orpheum and Broadway Plaza buildings downtown -- never did pull the trigger.  He's a very nice guy, knowledgeable and been in the business for a while.

Kristing Stang with JP Weigand -- she's from the area and is on the commercial side - she's wanting to focus on Multi Family/Residential investments

Might give you a starting point.

Welcome John.  Are you presently in the Wichita area?  

What type of Multi Family are you looking for?  (IE how many units - duplexes, tri's, larger multis etc?)

Just a thought -- any roofing supply/wholesale companies you could visit or call?  (ABC Supply is one we have here locally in Wichita) -- not sure if you have any close to where you live, however would think there'd be a few to call in Denver which doesn't appear too far east of you.  Maybe pick their brains?

http://www.abcsupply.com/branch/482

I googled Uniflex and quite a bit of info popped up - didnt drill down too far, however nothing stood out on cost.  I'd think a place like ABC or another supplier could shed some light on the product cost if that's what you're looking for.

I've looked at places with flat roofs, however have always been fairly leery...are you just having normal maintenance performed, replacement, repairs?  Much experience with flat roofs? Interested to hear your experiences.  I have friends in the roofing business, however typical residential roofs are their specialty.

Great Post! - looking forward to any additional input.

You look like you might be in a rural area?  Much development going on there?  My folks presently live in Blue Springs, so I'm more familiar with that part of the KC Metroplex besides the KS Side.

Would you county/local or state govt have any sort of municipal funds or incentives to offer?  Any sort of tax credits or historical credits the building might qualify for?  

Looks like you're close to several lakes/parks and close enough to the KC Metroplex -- RV or Boat storage?  

I know as you mentioned classic cars are a big thing in our part of the country -- could  you start some sort of Guys/Car hangout - use the front office as a clubhouse - lots of old auto memorabilia there and in the warehouse (plus you'd have the fun of shopping for it), maybe install an automotive lift or two, great lighting - fire suppression system (would definitely make your insurance cheaper)?  Theres an old warehouse like that in DT Wichita - charges $100-200 or so a month (cant remember how much exactly) and almost always has a waiting list.  Last time I checked they had 1 opening and probably should have taken it for my Trans Am.  They never advertise and it's known through word of mouth/local grapevine.  I'm sure if you made the place affordable and a cool place to hang out you'd have no shortage of customers from KC wanting to get away from their wives on the weekends and tinker with their expensive old cars or store an old Shelby Cobra or Plymouth Superbird.  Probably wouldn't cost a lot to set up - would take some time to advertise and network amongst the car clubs/shows though, once you filled up, could probably set the place on autopilot.

Sounds like you have a fun project on your hands.

Interesting, however doesnt appear the guy is speaking of anything groundbreaking.  I love a good conspiracy like the next guy/gal, however common sense tells you our currency isn't worth the paper it's printed on.  

If there would be some sort of large collapse, not much any of us could do, secondly I'd be curious how the crazy eye'd guy in the video plans to profit from the subcribers he gets to sign up for his email list.

Looking for some guidance.

I presently own a duplex, purchased in 2006 (was my first RE investment) - when I purchased rents were $725, I've now got the rents to $895 per unit, so $1790 per mo
Vacancy is low, however when a tenant moves out, I typically will have it vacant a month or two performing updgrades and maintenance, (have overhauled/lightly updated the bathrooms, paint, exterior doors etc)  Typically when I start advertising the vacancy I have it filled in a month with a good tenant.

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Rundown of duplex
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Ea unit 3/2/1 car garage, applianced out, garage door openers etc. Building constructed in 1980

Present loan value appx $77k on a 15 yr note with 3.375% interest

P&I pmt is appx $602

NOI 2014 was $11489
NOI 2013 was $5142      (spent around $4k on updates/remodeling)

Appx $27k by my calculations of capital improvements needed in the next 5-10 years to increase the value of the property, properly maintain it, and keep it functionally up to date in order to attract higher quality tenants (located in a b grade area) (I'd rather have more invested to have higher quality tenants - have my own reasons for this line of thinking - willing to sacrifice a bit of profit to have good people)

- Redo Kitchens
- replace doors and all base trim/casing (more for my taste and would help the place rent out even quicker)
- 2 escape windows installed for basement bedrooms
- Concrete work needed on patios and near front of the house -- need to be done in the next year

Property based on comps in the immediate area and a tight supply of decent duplexes here is $175-210k or so.  I know thats a wide spread, however value is whatever someone is willing to pay on any given day.  I'd be comfortable selling for $195, but due to the cash flow am having a hard time wrapping my mind around selling. 

Option 1 -- Idea for this property - complete $5k worth of concrete work (necessary in the next year) then place on the market for sale - take equity and invest in other properties - more than likely will receive appx $100k cash after realtor commission and before capital gains tax if sold for $190K

Option 2 - which I am pursuing and believe I can make happen - is open up a commercial Line of Credit for $75-85k (depends on appraisals by bank I'm working with)

Also open up a line of credit for $25-30k (depends on appraisals) on my personal residence giving me appx $100k to work with as well

Use Lines of credit to either purchase properties below that require below $100k invested then refinance etc, or use lines of credit in conjunction with Portfolio lender I've used to purchase a project up to $300k or so (multi family, commercial etc)

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I also am 1/3 partner on another single family house that we redeemed last year, have just below $100k in with $58k owed on it, P&I pmt of $485 rents of $1495/mo

For the most part completely reno'd this house so maintenance/upkeep costs should be very low - HVAC, H20 heater, less than 5 years old, fixed drainage issues etc.  Only capital improvements left are about $5k or less in the kitchen before we sell, and about $8k worth of concrete work outside -- In 2-3 years after those 2 items are completed house should sell for $160s.  Now I'd value it at $140k -- plan on selling this house when present tenants (college students) move out in 2-3 years

Game plan is to keep it for 2-5 years depending on the market, timing etc then sell when we think we can get $160k or so.  Thinking I'm going to refinance next month into more permanent financing and cash out -- wanting to borrow $100k, then everyone would get most of their capital back (around $10k or so) 

Any thoughts or advice?  I figure I need to work on the money side before I look at working on more acquisitions, cash reserves are not very high right now due to having some of them tied up in refurbs on the duplex presently and capital required for the single family home last year.  However would like to figure out my capital situation and want to purchase another property before the end of Calendar 2015.  I would prefer to not use private money since I believe presently I can use my own assets.  Still looking for the right business partner, however have met with a few prospects, however not sure if anyone is interested yet.  So as of now, planning on moving forward alone.

I presently work a 9-5 job which occupies most of my daytime hours.

Would appreciate any thoughts or advice anyone has to extend -- sorry for being windy - if you feel I could shorten anything up or provide less info or more in a particular area please let me know or if you have a recommendation for a different section of the forum to place this topic in.

Thanks in advance - reading here the past 2-3 months and listening to the present and old podcasts during the week has led me to rethink the path I was on and set some clear and concise goals for myself.  Glad a friend reintroduced me to this site. :)

I work in the insurance industry presently.  Do you have one of the major companies for your auto/home/life? -- (IE State Farm, American Family, USAA, Farmers etc?)

If you have one of the larger carriers who write their own property insurance such as American Family, Farmers, State Farm - they should be able to write you a policy.  Just be up front with the agent about how long the unit will be vacant etc.  Most times if you have a small multi unit property like that - as long as you are renting or trying to rent the other units, then the underwriters will be OK with one being vacant.  (Now after re-reading your post and seeing you will be living in one of the units I think all of the major carriers would be fine with it after it hits their underwriting dept.

Now if the whole building was stripped down to the studs that would be a different story - you'd need to have them underwrite a different sort of policy that could be converted to a non owner occupy later on, once renovations are completed.

You could try a handful of the large independent agents in the area - I'm sure they would have a company they can write with.