All Forum Posts by: John Mattox

@Nathan Blumanhourst welcome to BP!

I am new to the game as well and interested in Wichita and Central KS generally.  I have found BP to be an amazing resource, both the content and the helpful members.  

Be sure to check out the Wichita sub forum (its new, not much there yet): http://www.biggerpockets.com/forums/678-wichita-re...

- John

@Dawn Vought

Here is the planned development:

I would view most developments of this scale with a skeptical eye.  Planning a 4.5 billion development is easier than making it happen.  That said, Cerner is the real deal.  I worked there before going to law school.  They have the vision, drive and money to do it.  As an example, in my group at Cerner we signed 1-2 new contracts every month.  The last one we signed before I left was a $300 million deal.

- John

@Rob Scarborough good question. I bet someone with MLS access could answer that for you with a simple search.

Here is an article describing how developing the Village West (Legends) shopping area impacted KCK: http://www.post-gazette.com/news/nation/2006/12/22....

I guess my point is that Cerner at the racetrack was additive and the hope and possibility, I'd say likelihood, is that in the long term Cerner at Bannister will be transformative for the area in the way Village West was for KCK.

- John

@Rob Scarborough

The two areas are very different.  Cerner going into the Bannister area is more analogous to when they built the racetrack and legends shopping area up in the northwest.  Cerner by the racetrack was a late addition to a huge amount of investment in the area.  Cerner will be the first and possibly only major investment in the Bannister area for a very long time.

I do not know what the effect will be but the areas are quite different.

John

Matt,

I am just getting started but would love to talk shop sometime later this month.

John

Any update on this? I am in a similar situation with similar questions.

I understand the basic calculation of cap rate and COC. I am wondering if certain expenses should be factored into these calculations.

Specifically If I plan to put aside cash reserves at the purchase of a property (6x monthly carry costs) should I include that in my cap rate calculation? My COC calculation? Certainly the funds are not available for other investments but also they are of course not actually spent either.

I have essentially the same question about my due diligence costs. Included in my CR calculation? my COC calculation?

My inclination is neither should be included in my assessment of CR and they should be included in COC as they would reduce year 1 COC but not subsequent years COC. Is that the way to approach it?

Thank you!

@Patrick H.

Thank you for sharing your growing success story.  It sounds like you got quite a deal on that one.

@Shane

I am currently at KU Law and will be moving to Lindsborg in the summer of 2016. I am working at a firm in Salina this summer.

I am looking for properties from Salina to Wichita. I am interested in properties from 2-20 units, ideally 5-20 units. 

The pickings are slim in Salina, Lindsborg, McPherson, and Newton so I am looking into Wichita more.  The issue is I do not know the city or the neighborhoods.  I can analyze the numbers but otherwise have a hard time assessing the location of properties due to my lack of area knowledge.

Thanks, John

I am looking for recommendations for an area agent (Wichita, KS) with knowledge and understanding of the multi-family market.  Any recommendations?

Thanks,

John