A Well Counseled Client Who Performs
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I have a general contractor client, who developed and built several apartment complexes many years ago for his own portfolio, two of which he still owns in Wichita. He sold one in Nebraska a couple of years back, and we did a 1031 into a Best Buy NNN lease in Texas. He brought his 3 sons up in both the construction and apartment business, one of them still manages the Wichita complexes (approx. 600 units).
He decided late last year that a short-term opportunity exists (with ownership, vacancies, and interest rates currently), in which to acquire facilities and turn them around both physically and economically. Their goal is 8 to 10 complexes in the next 6-18 months (max); create the value added with his construction and management expertise (family), with a 2 to 4 year hold, and duplicate the sale-1031 package we did earlier (and then maybe he will retire).
Their main interest was within 5 hours of Wichita. Actually, we have expanded that to Colorado (Denver or other larger communities), Oklahoma, and he is now very interested in Texas and we have not ruled out Nebraska. They prefer 100 units or more (or several smaller projects if in a common-management-feasible area), with 200-300 & up more attractive. They are not afraid of the amount of effort if it is line with the upside potential, but he does not want to be the pioneer of urban redevelopment.
He has started his own family search program, targeting some areas in Oklahoma City, and western Colorado (not many people there) and has as trip planned for the Denver area next week. Basically they have been tracking demographic areas and county search records for foreclosures, etc., although that has not produced much to date. I have also counseled about contacting lenders regarding potential foreclosures, with the ability to purchase the paper from them.
Now with all that said, I am not an apartment kind of guy, so I need your assistance. I don’t know if everyone else in the country is looking for the same thing, but my guys can close and perform. Let me know if you have any properties, clients, lenders, etc. so we can make some $$$$$.
