Bob Giniecki, S.E.C., CCIM, shares his “key for results” when pricing property; Rod M. Stewart, S.E.C., shares his wisdom about “marketing property in troubled times”; and Hunter Quistgard, S.E.C., explains why “no more cash = motivation.” All of the articles contain timely and valuable information that will help you create and close transactions.

William Stonaker, S.E.C., CCIM, 2008 S.E.C. Education Foundation President, pays tribute to Jack Hunt, S.E.C., CCIM, whose vision and dedication led to the concept for the S.E.C. Education Foundation. Kenny Johnson, a charter member of the Society who credited his success to the formulas and methods he learned in the early days, and Jack Hunt, are “In the Spotlight – In Memoriam” in this issue.

The History Files once again illustrate that the more things change, the more they remain the same. C. Charles Chatham, S.E.C., cautions readers that “what you don’t know can injure your client,” Cliff Weaver, S.E.C., defines “leverage” and its consequences, and Jim Misko describes how you can tell a “pro” from a novice.

Enjoy this issue, and as always, we welcome your comments, suggestions, and articles to be considered for publication. Please contact the S.E.C. office via email sec@secounselors.com.

Jackie Hellingson
S.E.C. Observer Editor

Those words describe two longtime members of the Society of Exchange Counselors who have recently passed from this life: Kenny Johnson and Jack Hunt. Both men not only served their country during WWII then came home and transformed it, but they also transformed all of us who knew them. They took time to help us, mentor us and teach us.

I was only around Kenny a few times but from the stories I heard from those who knew him well and from reading his S.E.C. Biography, I missed getting to know a great man. He served our country in the U.S. Navy and had I known that I would not have missed the opportunity to get to know him better because my own father served in the Navy during WWII. I would have had a lot of questions about that part of his life, questions I never got to ask my Dad before he died. Kenny was successful in our industry and credited formulas along with personal relationships as his key to success.

I did have the opportunity of knowing Jack. He too served our country during WWII and then returned to serve his greater community. It was a moving experience at Jack’s wake to see such a cross section of people — from brick layers to bankers, from secretaries to business partners — all saying the same thing about Jack: “He was the most honorable man I’ve ever known”; “His door was always open to me and he wanted to help with any problem I had”; “He always tried to have a win/win outcome”; or, “He was such a kind and gentle man” and many other such comments. I had one of those moments all of us have probably had at one time or another at a memorial service and that is thinking about what our own legacy will be.

At a recent invitational marketing meeting of the Society of Exchange Counselors, I was talking to a guest from Wichita, Kansas, about Jack. He told me about going to see Jack in the hospital to thank him for being his mentor. After seeing Jack, he made a decision that instead of just focusing on his own real estate investments and closing his brokerage company as he had been planning to do, he would continue being the broker to his associates because he felt the call to make sure that the knowledge and creativity in real estate that had been given to him was passed on to the generation following him. What a great attitude to have and what a great way to honor Jack. What a challenge to all of us.

My hope is that my generation will not leave a legacy that is referred to as “baby boomer” but will be remembered for passing the ideals that were given us on to the next generation.

So, to Kenny and Jack and to all the men and women of the “Greatest Generation,” those still with us and teaching us and those whose lives may have passed but their ideals have not, from all of us, we say “Thank you.”

Editor’s Note: Many people have expressed an interest in supporting the S.E.C. Ed Foundation. Should you wish to make a tax deductible donation in honor of Jack Hunt and Kenny Johnson, please make your check payable to the S.E.C. Education Foundation and mail it to: Society of Exchange Counselors, 5580 La Jolla Boulevard, #110, La Jolla, CA, 92037.

In Part I of this article, “Pricing Real Estate The Key For Results,” the term “Cap Rate” to structure an income property value was noted as well as the ability to utilize “creative formulas” to structure a property; acquisition should there be a question as to the price/value of the property. First an overview as to what is the “makeup of a Cap Rate” will be presented, and will then be followed by a sample illustration of two “creative formulas” that I personally had the ability to apply to a successful transaction.

“Cap Rate” A Tool For Valuation:

Most practitioners know that income property value can be determined by the application of the “Cap Rate,” which is “Income” divided by “Rate” equals “Value.” However, where does Cap Rate come from? Is it “PFA” (plucked from air)? And, some may look at what Cap Rates properties have been selling for historically. But, there is no such thing as a consistent historical Cap Rate that can be applied on a regular basis. Why? Because the Cap Rate is “subject to change.” Change in the Cap Rate typically occurs as interest rates on loans change, up or down; and also, based on the risk for a particular property class or property location. Thus, the calculation as to the mechanics of “developing a Cap Rate” is illustrated below:

First, one needs to know what the mortgage constant is likely to be. The mortgage constant is the “annual debt service” divided by the amount of the original loan. For example, if an investor plans to have a loan amounting to 75% of the value of a property and if the loan dollar amount is $750,000 at a 7.5% interest rate for an amortization term of 25 years, the annual loan payment will be $66,096

Calculation of the loan constant:

Take$66,096 annual debt service divided by the principal amount of the loan of $750,000 = 0.0881 constant. To proof it, if you take the loan of $750,000 X the 0.0881 constant = $66,906 the annual debt service, thus, the mortgage constant is the “level of payment” to satisfy the mortgage over the mortgage term.

Development of the Cap Rate: Calculation:

Therefore, as illustrated, the required/desired Cap Rate will change as the interest rate changes. In the case noted above, if the property is in a “good” location and of “good quality,” one could consider the Cap Rate to be 8.11 % based on the noted loan terms, but if there is a risk factor to be considered, the “Cap Rate” could be increased to 10.1%, etc. if there may be some potential risk with the property. The risk factor can be at “any rate” the potential purchaser deems to be applicable (if any).

Thus, one needs to realize that the Cap Rate is not fixed or static, but will change depending on the terms of financing and one’s perception of any pending risk. The “debt service” factor is that percent of NOI that is needed to satisfy the debt service, and the equity factor can be higher or lower, depending on what the investor considers to be applicable. Thereby, the higher the mortgage constant due to interest rates and mortgage term, the higher the Cap Rate must be to satisfy the loan and investors return on and of investment. Ideally the Cap Rate should be at least 0.5% above the interest rate for positive leverage and cash flow.

Seller’s Price vs. Buyer’s Terms: This illustration is taken from and “actual” transaction based on a transaction I completed for a buying partnership using two creative formulas that I learned from Barney Zick (deceased), CCIM and former S.E.C. The illustration deals with “a high down payment” as requested by the seller and the formula known as the “No double down payment,” and also a “performance mortgage” relating to structuring the mortgage payments to allow for a situation where the rents may be low, and the NOI will not justify the owner’s value; however, the seller will not accept a price offset due to the lesser income due to the lower rental rates.

This illustration represents the actual transaction data for a 40-unit apartment property; the owner was willing to carry back the purchase money loan:

“No Double Down Payment Formula:”
Owner’s Value: $800,000
Buyer’s Value: $600,000 based on the NOI
Owner Down Payment Request $200,000
Buyer’s Down Payment: $120,000 proposal

The reason for the lower down payment was that the partnership stated that there was some deferred maintenance in the property and, if we gave the seller the requested down payment and then put in dollars to cure the deferred maintenance, we in fact would be putting in a double down payment. We advised the seller that we would set aside the difference of $60,000 from what the seller requested as a down payment and we would place the $60,000 in a reserve account that we could draw upon to cure the deferred maintenance as tenants turned over the units. The Seller had agreed.

“Transaction Negotiation and Financing:”

The seller was offered our $600,000 purchase offer so as to be in line with the NOI; the owner had rejected that offer. We countered the owner stating that we would be willing to go into contract and accept his sale price providing that he would raise the rents, and upon reaching our target NOI, we would close on the property — the seller declined that proposal. We did a market study, and also retained a property manager to complete a “rental survey” to confirm that the rents in fact were below market, and that was the case. Then we countered to the seller as follows (and the seller had accepted this proposal):

Mortgage Structure: Two mortgages were structured; the First Mortgage of $480,000 was based on what the partnership considered to be a fair price of $600,000 for the property, and a Second Mortgage of $200,000 was structured as a “performance mortgage” based on the difference between the $800,000 seller’s value and the $600,000 buyer’s value.

We offered to structure the transaction with “two mortgages” (a first and a second) as illustrated:
OFFER TO SELLER:
Purchase Price: $800,000
Down Payment: $120,000
First Mortgage: $480,000 (standard mortgage terms at 10% interest)
Second Mortgage: $200,000 (performance mortgage 20 year term at 10%)

Performance Mortgage Formula: Structured terms of the Second Mortgage of $200,000:
*(a) No payment to be made until we could bring the rental level up to reflect the “market rents” (however, the unit rental rates would be subject to “annual adjustments” to take into account an increase in real estate, taxes, insurance, utility rate increases and cost of living adjustments); this would allow the partnership the benefit of maintaining the constant value of dollar buying power.

At such time as the unit rental would achieve the level that would provide for an effective NOI, payments would begin on the second mortgage; however, regardless of where the rent level was, monthly payments would commence at the end of the 7* year of the mortgage term, and any remaining unsatisfied principal would be satisfied as a “balloon” payment at the end of the mortgage term, and interest “was not to accrue.” (NOTE: We had advised the seller that this mortgage formula could impact his tax status and should be reviewed with his accountant.

Net Result of the Transaction: By applying the terms of the purchase agreement, and by the application of the I.R.R. “Return on Investment” calculation, the partnership “in reality” had acquired the property at the partnerships’ market value of $600,000; and on paper, the owner had a “face value” contract of $800,000.

Although the Cap Rates at that time (in 1980s) were being quoted up to around 14% , conventional interest rates were quoted around 12%; our negotiated mortgage interest rate with the seller was 10% with negotiated terms, and we actually purchased the property at a face value of a “7% Cap Rate.” The partnership held the property for 5 years, never made a payment on the second mortgage, and sold the property at an 8% Cap Rate with a value of $1,400,000 ($600,000 above the original contract price and $800,000 above the I.R.R. original purchase value), and yet left room in the transaction for the new purchaser.

THEREFORE: Although it was earlier stated that one must consider the “effective Cap Rate” at the time of purchase, the opening remarks of this article also stated that one could consider a seller’s offering price if the seller would be willing to accept the purchaser’s terms (the partnership could have decided to forgo the initial transaction but, seeing the potential value along with the application of “terms,” made the acquisition.

The key issue to keep in mind is that it is important to know the “principles of client counseling” and to not only have an understanding of the “basic investment financial understanding” e.g. APOD (Annual Property Operating Data) analysis and Cap Rate calculations, but also to acquire the knowledge of “creative formulas.” The Society of Exchange Counselors offers a series of counseling and formulas educational courses; refer to the S.E.C. Education website for course information.

A good example of this phenomenon is the current contrived commercial finance crisis affecting Kansas lenders, which was brought about by the good intentions of banking regulators who are causing Kansas lenders to draw tight their lending purse strings. This is in spite of the fact that Kansas is one of the leading economies in the United States right now, and our commercial real estate community never participated in the practices that so injured markets on the west coast, Florida and Arizona.

In order to successfully market commercial property in troubled times, brokers need to expand the pool of investors or commercial property users rather than watch the pool shrink and the deals become increasingly fewer.

Traditional commercial real estate brokers respond to troubled times or a down market by continuing to lower the price of real assets until the pain threshold is reached and a property finally sells. This is what is beginning to happen today. The result is fewer deals, fewer loan requests, a shrinking number of active participants in the market, shrinking equities, lower prices and higher cap rates.

The response of the brokerage community should be to realize that value is in the eye of the beholder and that there are many benefits in real property ownership, only one of which is cash. Usually, if the broker will explore his client’s situation, he will come to an understanding of the client’s “wants” versus his actual “needs.” This is called client counseling, and it is increasingly necessary in troubled economic times.

Questions that must be asked include: what are the benefits the property offers; what are the client’s capabilities to aid a transaction; what is the client’s motivation and what potential solutions will meet the client’s actual needs; and what can be done to enhance the benefits the property offers a potential buyer? The goal is to understand the situation so well that the broker is able to expand the pool of interested parties in any transaction.

If a broker is able to get all the facts of a given situation on the table, a solution will usually come about. Put differently, often there is more than one way to make a transaction happen or to meet the true needs of a seller or user than just cash to the loan.

Examples of creative transactions abound. The discounted for cash sale with option to buy back is a popular transaction in the Wichita area. A sale/lease back is often a good way to raise cash and preserve a preferred location. Owner-provided financing has expanded the marketplace for many investors and has the potential to create an entirely new market for the new mortgages traded at face value or even at a discount on other property. Equity marketing is another potential way to expand the pool of potential buyers for a given property.

Another way to expand the marketplace is to participate in local, regional or national marketing sessions where a property or a client’s situation is offered to other brokers for potential transactions and where creativity abounds. Again, client counseling is of paramount importance in order to present people and properties in such a way so as to optimize client solutions. It is expensive to transact business in other geographic areas, thus due diligence needs to be performed on your listings so there are no surprises after you have carefully crafted a transaction and the prospect arrives for the inspection.

Marketing properties in troubled times requires more from the broker. It also requires more education, more thought, more questions, more research, and more client counseling that was necessary in the previous marketplace. The rewards can be quite advantageous by allowing the creation of better transactions in a marketplace filled with uncertainty.

Upon completion of the exchange, the institution granted to me and my partner a credit line for use in purchasing other properties from the lender as they became available. The Chairman of the Board, and President of the institution, asked me if we were interested in a vacant lot in the City of Dickinson, North Dakota. The Price was $2,200. I responded yes.

On my next trip to Dickinson, I asked for directions to the lot. The Chairman of The Board said, “I will meet you there. Let’s have lunch and I will show it to you.”

I said, “OK.”

He took me to the lot; however, we could not find a vacant lot at the address given — there was a house at that address. He contacted his people in Bismarck, and they apologized that the house had not been demolished yet. The house looked pretty good to me and I could not understand why it would be demolished. So I told him we would take it “As Is” and we would demolish it if needed. He said, “OK” and a deed was sent and recorded.

We later found that they had foreclosed on a $34,000 mortgage and the house had been appraised for $50,000. However, the institution had just put a new F/A heating system in the house at a cost of $2,200 and they wanted to recoup the expenditure. They said the market was flat and the house not salable so rather than to maintain it, it would be demolished.

We cleaned the house up and rented it for $175/month and another $25/month for the garage. We then went to an NCE meeting and heard a presentation in which a fine art dealer wanted to exchange some of his excess inventory for real estate. We offered the house for Art at 50% of wholesale value. The offer was accepted. We then traveled to Beverly Hills to pick out the art, and we found that he had a large inventory of art by modern-day masters, including Picasso, Miro, Chagall, and Dali. We left with a car full of art. We asked, “Who do we make the deed to?”

The art dealer responded, “Just hold off on the deed, I will tell you.” A month or two went by, and we again inquired about the deed, and he gave us the same answer. Three or four more months went by and again we got the same answer. Then a year went by with the same response from the art dealer. Finally, we could not find the art dealer at all and were getting really concerned. What to do?

Well, my partner having his J.D. “Law Degree” decided to put out a demand stating that if he did not accept the deed we would retain title to the house as “liquidated damages,” and he never responded.

A year went by and we were still receiving rent and placing it in trust for him. Another demand letter went out stating that we were enforcing our rights as Liquidated Damages and intended to sell the house.

Again there was no response, and at the time the news was reporting art fraud with a lot of copies in the market that were not real. So I decided to contact the appraiser who was mentioned in the news as the authority who could authenticate or determine if the art was a copy. My partner did not think that was a good idea. The appraiser came to my home, and it turned out that in his opinion the pieces were real and two were originals: a Picasso and a Miro.

The market in Dickinson became active and we sold the house. A few years later the art dealer contacted me and apologized, with no explanation for his actions or lack thereof, and he said he liked doing business with us and wanted me to represent him.

End of story — I did not represent him, never knew why it happened, and still have the artwork!

The big boys are syndicating the purchase of GIANT amounts of discounted notes that the banks can’t keep, and the developer’s inventory that has no market. As usual (remember RTC), the major transfer of wealth from the bad thrifts and banks insured by you and I went to the big guys who could muster cash to cut us off at the knees.

For true EXCHANGE COUNSELORS, the opportunity is legion to use “other than cash” exchange formulas to solve the objectives of properly counseled clients who become more willing for alternatives to “gitt-er done.”

If you don’t know how to use the old standard exchange formulas such as:

CREATION OF WEALTH
DE-FINANCE
BACKSIDE BENEFITS
OVERTRADE
BLUGEON THE LENDER
DISCOUNT SALE/BUYBACK
SYNDICATE THE EAT
PARTNER IN THE CASH
KEEP ONLY THE FUTURE
GIVE AWAY THE FUTURE

(and 742 other alternative ways to MAKE IT HAPPEN) then you better get to the courses presented by S.E.C. Education Foundation and get the expertise to do the counseling, use the formulas, and collect commissions (which might be equity).

If you have not represented a client in an exchange transaction (without a cash out on one end) for a commission in the last year or so, you are RUSTY on creative thinking, and you should either sharpen your skills as an exchange counselor or recruit some lusty young broker in S.E.C. to take your seat at the exchange.

RE-PREPARE CLIENT BEFORE OFFER PRESENTATION

Most exchange brokers whine and cry loudly that their colleagues haven’t properly COUNSELED their client before bringing their package to the marketplace. When I used to teach brokers how to exchange, I would explain that commissions are “pooled and shared equally” as a norm. There usually was then an extended conversation about one side doing all the work while the other side was un-counseled, did not put effort toward a deal, let the other side do all the work and they still got half the fee. If you have seen the movie of the ladies baseball league during WWII with Hank as the coach, you know that “THERE IS NO WHINING IN R.E.”

Regardless of how well counseled or “ready” a client is for what the market will likely do to his package, it is REQUIRED to RE-PREPARE a client before an offer presentation to increase the odds of performing the desired result, and to have the receiving mind open, flexible and creative toward solution, rather than niggling detail of minor issues = negotiation/defensive/conflict.

Exchangors of old developed a checklist to be sure they had best prepared before presenting “the prenuptial contract” as “romantically” as possible. It is a good habit to include a copy of the checklist along with your exchange offer document to other brokers:

EXCHANGE PRESENTATION CHECKLIST

(From “Modern Exchanger” 1977)

Before you present offer(s) (maybe days before), re-prepare your client for flexibility:

a. Re-identify his problem.
b. Re-confirm his objective.
c. Re-establish that all his objectives might not be solved in one transaction.
d. Get him involved in “solution” rather than negotiations.*

1st choice: Presentation of offer

a. Let him read and react without your comment.
b. Make sure he understands what benefits are offered. How much of his stated objective is being solved?
c. Go over each part of the offer to see how each part contributes to the end result.
d. Go for acceptance subject to validating the presumed benefits.

2nd choice: Counteroffer

a. Any taker of his situation should be dealt with seriously.
b. How can we accept most of the offer with a small change?
c. Sign what he will do — don’t dwell on “won’ts.”
d. Signed offer deserves signed response.

Last choice: “In lieu of” = (Recruit help and keep taker)

Accept offer “subject to finding something satisfactory in lieu of” part of what is offered.

Get commitment! “What set of circumstances (set of benefits) do we need to replace the unwanted part?”

This gives the offering broker a chance to re-cast his offer to comply, or

The offering broker and you can jointly go looking for the third leg to satisfy the objective by use of the unwanted portion offered.

Review with the client the additional assets, money, talent and credit he may be willing to add to the “mixture” to assist solution.

* Many folks find it easier to say no, especially to new concepts, out of lack of understanding or fear. If one could set up the client’s decision-making process to filter proposed solutions based on progress out of current situation into better circumstances, he will have confidence in his decisions.

As a pilot who almost made a “gear up landing” and a golfer who has suffered for lack of consistent pre-shot routine, I now rely on checklists to keep from creeping Quistheimers.

Jack Hunt, S.E.C., CCIM
1921 – 2008

Go Get’Um, Jack

The Education Foundation is saddened to lose Jack Hunt, the man who single handedly took it upon himself to re-institute the Society of Exchange Counselor’s education programs. In 2000, Jack decided that S.E.C. education must rise like the phoenix from ashes and be started again. It was Jack’s vision — and determination — that formed the base for what the S.E.C. education program is today.

Jack, being a very private man, would say that we should not write this article, nor do anything to honor him. He would tell us to focus on the future, not the past, and honor those who are in the trenches today and working towards the future But the fact is that had it not been for Jack’s vision, his tenacity, and his initial funding of EDF, the EDF would not be alive today.

Larry Browning said that one day at a S.E.C. Invitational Meeting, Jack came up to Larry and said, “Larry, here is what we need to do and you are going to take a lead in this process. We have to get our creative education courses back out and revise them to fit the times. You and a handful of other former Presidents of S.E.C. are going to do this and I am going to help fund the initial effort.” As Larry says it, no one tells Jack no. So he agreed.

Then later that day, Larry was walking down the hall and saw Ted Blank. Larry went up to Ted and said, “You won’t believe what Jack just told me.” Ted told Larry that he sure would; Jack had just hit him up the same way. After Larry and Ted, Jack put his wonderful powers of persuasion on Phil Corso and Mark Johnson. And the Education Foundation was born.

From Jack’s efforts at that S.E.C. meeting, a committee was formed: the 501(c) (3) entity was established and the real work started. Corso, Blank, and Johnson all agreed to serve as the first Board of Directors — they certainly were not going to tell Jack no. Bylaws were written and the basic governing documents were created.

Soon Society members were recruited to be instructors. Former instructors were contacted and their courses were donated to the EDF and rewritten to update them. Courses were scheduled. An Education Committee was put into the S.E.C. Bylaws to help promote the courses, both at S.E.C. events and under the banners of other commercial real estate groups like local CCIM chapters, CID events, etc. And funds were raised to assist the EDF in getting these courses to these events.

Phil Corso said that Jack was the ultimate in “go get’um,” a guy who thought deeply about what he was going to do, and then did it. That is certainly what happened with the EDF. Jack was the vision for the S.E.C. Education Foundation. Like so many other things he touched, Jack Hunt made a profound difference here too. He will be profoundly missed, both at S.E.C. and EDF.

Editor’s Note: Many people have expressed an interest in supporting the S.E.C. Ed Foundation. Should you wish make a tax deductible donation in honor of Jack Hunt, please make your check payable to the S.E.C. Education Foundation and mail it to: Society of Exchange Counselors, 5580 La Jolla Boulevard, #110, La Jolla, CA, 92037.

The S.E.C. National Invitational Marketing Session will be held in San Francisco, California, at the Marines’ Memorial Club, 609 Sutter Street, San Francisco, CA, 94102.

The special single/double room rate for meeting attendees is $155 for a standard room, $170 for a deluxe room, and suites range from $199 to $349. The room rate includes a full American breakfast, entrance to the fitness center, evening cocktails, and high speed Internet access in all guest rooms. Call for reservations (800) 562-7463. The local number is (415) 673-6672, and the fax number is (415) 441-3649. Make your hotel reservations early; we have a limited number of rooms available. The cutoff day for reservations is October 27, 2008.

Visit www.marineclub.com to learn about the hotel, and visit www.onlyinsanfrancisco.com to learn about the area. If you need a rental car, call AVIS, (800) 331-1600 and give our AWD# D833386 for special rates.

Visit www.secounselors.com and click on the Society Marketing Meetings menu tab for more information. Please contact the S.E.C. office at sec@secounselors.com if you have any questions about the Hartford meeting. The cutoff day for meeting registration is November 6, 2008.

Bob has personally taught over 100 seminars on the subject of real estate exchanging, and related fields, throughout the United States and many other countries, for a seminar company that he owned. He has written books and educated in this field for over 40 years and firmly believes that “with a knowledgeable and counseled client any problem can be resolved.” He has authored many books including the classic: 100 Ways to Make Real Estate Deals without Using Cash.

Introduction - As creatures of habit, we do what is comfortable for us to do and leave the stretching to others. Attendees of this course will learn what some of the personal rewards might be for giving thought to doing things other than that to which they are accustomed, and by getting “outside the box.”

Mark your calendars now! This is an opportunity to attend an exceptional course. Please visit the S.E.C. Observer www.secobserver.com and click on Upcoming Events to access the calendar of events to view a brochure for the course, which includes more details.

Wichita has lost one of her outstanding citizens with the passing of Jack R. Hunt on Tuesday, July 22, 2008. Jack was born October 13, 1921, and was placed into an orphanage soon thereafter. As a youngster, Jack existed without a last name until attending school required that he have one. He selected the name Hunt from a local fireman, Dick Hunt, who had befriended him in his youth.

Prior to World War II, Jack worked at several jobs just to survive, and he developed the work ethic that has been so prominent in his life. One of his favorite jobs was to exercise the polo ponies at Hartmoor Farm at East 13th Street and Rock Road and run errands for the oil men at Lambsdale Construction. These associations would come to play a significant part in Jack’s future business startup following World War II. Jack graduated from Derby High School. As Jack matured, the great Depression held sway over our nation, and Jack joined the Civilian Conservation Corp. (CCC). An interest in developing and building things began to take root in Jack through this experience, which he nurtured throughout his life.

From the CCC to the U.S. Army during World War II was a short step for Jack. He served in the European Theatre of Operations in logistics as an enlisted soldier. He later received a commission as an officer, earned a Purple Heart in combat and separated from the Army as a Captain.

The post-war housing boom in Wichita attracted Jack to the construction and real estate industries. With the knowledge he had gained from his work with the CCC, his skill at handling men in the Army and his natural energy, incisive mind and competitive spirit, Jack was soon working for others building houses and learning the business. Jack was soon on his own working for himself and making a profit.

Jack’s career in real estate development has included building over 500 homes in South Wichita and Haysville, developing and building Sweetbriar and Seneca Square Shopping Centers, Lincoln Meadows Apartments, Huntington Place Apartments and other properties from Nevada to Texas as well as numerous residential subdivisions, several mobile home parks, nursing homes and a multitude of real estate interests all over the United States from farms and ranches to Wal-Marts. Jack earned an early CCIM designation Pin and became a Counselor Member of the Society of Exchange Counselors (S.E.C.) as well as past president and winner of the Society’s Most Creative Transaction Award. Other honors awarded to Jack have included Counselor of the Year, Realtor of the Year, Most Valuable Citizen and, most recently, Jack received the Lifetime Achievement Award from the Kansas CCIM Chapter and the Center for Real Estate at Wichita State University.

Jack’s life was a passionate one. He loved flying and was a pilot with over 10,000 hours in the air. At one point in his recent life, Jack owned an F-51 Mustang Fighter Plane replica and flew it to several air shows around the country. Jack loved hunting, fishing and all kinds of outdoor activities. His hunting trips resulted in trophy animals and once being mauled by a grizzly bear. From the Gulf of Mexico to the Alaskan Mountains, Jack lived life to its fullest possible extent. He was an avid golfer and loved wood carving and snow skiing. Jack was a voracious reader and loved the history of the Western United States. He and his wife Vicki also found time to be regulars at several western dance clubs on Friday nights.

Not everything Jack tried was successful, but he was fiercely competitive in all of his endeavors. At the age of 87, Jack was involved in significant negotiations to build a Bass Pro Shop, remodel a shopping center, buy another apartment complex and take time out on the big island of Hawaii.

Jack was never someone who sought the public light, but he mentored generations of younger real estate brokers. He was always ready to support conservative politicians and was 110% committed to the future growth and development of Wichita. His passion for the city, real estate business, his hobbies, friends and family could only be extinguished by his passing.

Jack’s love of life, his search for win/win solutions, his dedication to honest business practices and his open office door endeared him to most people who knew him. His impact on Wichita and her citizens will continue for many years to come, and our city is much better as a result of his having lived and worked here.