All Forum Posts by: Rich Weese

If there are NO Dallas investors or agents, how about Houston, Austin or ANYWHERE in TX.

Thanks.

Rich

 YES!!!!!

Thanks Jon.

Rich

Sorry J. I knew that but just had a brain freeze. It happens to old farts sometimes. Again, congrats.

Rich

I don't know how to find the original thread on this subject. If someone can find it, please move this post to that thread.

The dominoes are FINALLY falling. Brad Russell was sentenced to 10 years in prison and a $10,700,000 fine. Kristofer Lange received 5 years probation and $780,000 in fines. The big one that everyone is waiting for is Bill Lange and his sentence. I wish it could be for life.

Rich

Thanks David. I really applaud James for getting it done. EXTREMELY difficult. I remember my wifey and I helping Josh stuff gift bags the night before the Denver Summit. He was stressed. This would be way to much work for me. If there is another, I promise James I'll speak or join a panel if he still wants me.

Hi James

Congrats!!! It looks like you got it done. I'm sorry I couldn't make my  schedule match yours. Maybe the next time. I do check your thread often but not post much. Good job.

Rich

Curious about commissions in your area. What should a seller pay for Listing commission on 5-10 million dollar project? What should a Buyer pay for the selling commission on same priced project. Thanks.

Rich Weese

The last time I posted in this thread was in April of this year. In prior posts, I mentioned the lack of off setting depreciation for some of the cash flow was a negative for me. When my storage facility was purchased in 09, the occupancy was 55%. Location was fantastic, owners were at each other's throats, they weren't maintaining the appearance, etc. I realized it needed a facelift and some updating but 78,000 cars passed by every day. Once the overdue maintenance was completed, occupancy would rise but ongoing expenses would remain the same (same staff, utilities, yard care, security system, etc) and a much larger cash flow would occur.

We are now 87-88% range and more can be done by  someone more motivated. I have been an absentee owner that just looks at monthly reports!

The listing agent from my acquisition approached me with a buyer, but his price was unacceptable. He brought another interested party a week ago and we finalized a contract yesterday at approximately a 30% increase in price. 

After studying the return from ownership, I determined I can 1031 into approximately 10 million in apts, generate the same cash flow and return a great amount of offsetting depreciation. Using cost segregation up front, I should be able to generate enogh write off to cover all the net income PLUS cover some additional cash flow from other properties I own.

For me, it was a no brainer. More cash left in my pocket after paying taxes, as well as 3 times the asset value that hopefully would increase in value by the same appreciation %. The current property is free and clear and the new one would have  a loan. That is what makes the #'s so attractive.

This was my first entrance into Storage facilities and it has turned out well.

This is NOT a completed sale but looks strong and walk through is tomorrow.

Rich

I had a couple of mentions from Karen and Jon that I didn't reply to. Sorry. I don't use the site much any more. It has become very "techie" for folks like me. I did look up my start date and it was Sept. 2008.  (just that took me a few minutes!!) think I perused for awhile before that. Congrats to Josh for the milestone and running the site just the way he wanted.

Rich Weese

I would hope so.