All Forum Posts by: Tony Whitaker

Update: so the small town I live is dying according to the mayor, who doesn't live here. Of course this is 3rd, 4th 5th hand information. 

Family moved in Sunday and we visited the school on Monday. I am amazed at how good the school. Principal and Superintendent are working miracles. Campus is 5 years old, school went from 70th or so in school rankings for its size and is now number 8. 

Most residence work railroad or wind energy. Many people live a town over either way because there are nicer homes. Our town has many empty lots, dilapidated homes, and yards that need to be cleaned. 

I may be wrong but getting a mayor in that lives in the community and wants to make it better would be a good step. Also, getting someone to invest in the real estate, renovate and/or build would help.

You won't get rich here but you could do a lot for a community and make a little money to invest in other areas to build wealth.

Well those are my thoughts, I am trying to see if I can at least be the leader in making the town better through real estate. Mayor part I have no idea.

What do you all think?

Hope everyone is having a stellar evening. Ok, this isn't real estate investing entirely but there is abiut $2M worth of real estate invloved. 

I am plant operations manager in the oil production/manufacturing sector. I essentially run an oil giant service company. It is my goal to buy and purchase manufacturing companies that are distressed, retiring owner etc...flip and hold, rinse repeat. I have spoken to 10+ business owners over the past few years but recently had a good one come through. I have been talking to investors but no traction, and then I get a call today from the broker. Another person is interested and has the money but the owner and broker want me to have the company because I am young and extremely enthusiastic(their words).  Anyway, broker asked if I would be willing to partner with other potential buyer. I have a conference call tomorrow with them. As professionals what should I bring to the table during our first meeting? 

@Angel Sosa

Welcome brother! Interesting to see someone close to me, I just moved to Loraine, TX . I too work for an oil company Endeavor Energy and I am a Plant Operations Manager for one of the service companies owned by EER. I am also a newb to real estate, we actually moved here to save money instead of paying $2,000 rent in Midland. If you ever want to get coffee or something, that would be awesome! I have no idea if there are coffee places around here but I am sure you will know.

Basit Siddiqi

I have but I have been to one meeting and I want to learn who is trustworthy, just as they would with me.

I work for a service company within a big oil company in Midland. Comment, about the 1099 is more towards the contractors but the majority of the workers are full-time employees. 

Honestly, you would be surprised to hear that most of the oil companies are still going to drill and produce unless it hits a low mark say $30 per barrel.  Current oil prices are $50 +/- per barrel. Right now Midland/Odessa is busy but not because of a boom. 

Also, major frac sand mines are coming online that are going to be delivering 35M tons of sand, starting 2018.

I plan to get started in investing here, but I also have my ear to the oil industry. We grow as our parent company does and we are growing at an astonishing speed.

Thanks Anthony. I actually work for one of the oil companies. So I know for sure what you mean.

Copied verbatim from the investment group. I know sh**.

So, I am new but consistently trying to find deals. I joined a group in the Permian Basin, and they throw properties every so often. 

Last week I got an email for a home and here are the numbers.

Sale Price $115k

1564 Sq ft 3 bed 2.5 bath

Built in 2003

MidCad Assessed Value- $162,570

Zestimate- $215,599

Rent Estimate: $2400 (rent prices in Midland are high)

House down the street sold for $199k

Needs minor roof repair,  siding repair or replace stucco, new floors,  new doors,  replace windows,  deck repairs,  minor electrical repairs,  HVAC repair or replacement, Re-do Master bedroom,  water heater repair, new appliances

Buyer pays closing. bring best offer

I want to get into buy and hold, and this looks promising especially with Midland prices. Also, I am in high enough level position in an energy company to know things are happening. 

Thoughts?

Maybe a "Full Leveraged Buyout". If you haven't seen or heard of it, please go read about it. Creative financing at its finest.

Recently, a business was shown to me from a family member. It is a manufacturing company that builds equipment for oil field trucking. 2018, is supposed to be a big year for hauling companies in my area. Currently waiting for the numbers to come in from the broker but I already know I can't personally fund the deal. Seller financing is offered with a significant down payment, and approved credit. Below are some of the basic numbers. Company has done 5.5M-6.M average over the past 6 years but has had some issues (easy fix).

Listing Price: $2.7M

Gross Income: $3.5M

Cash Flow: $615K

Real Estate: $2M (Not Included in Asking Price)

What do you guys think? Is it possible to do this deal like a real estate deal? I know how it works normally with M&A but curious what you all thought?