All Forum Posts by: Shane H.

@Account Closed - read your state regs - a lot of your answers are there - in KS is my experience - our regs can be somewhat vague - we've found it's best to mimic some of what the regs are for SNF's to be safe.  KS has had a # of SNF and AL owners expanding too quickly and letting their homes go into receivership so they've been cracking down on their survey process more recently which is actually a good thing.

IMO in 2 yrs of helping run ours - it's all people driven - have a great staff, a great reputation, keep up your marketing and most importantly TREAT people RIGHT - you can be successful.  I think like in most businesses, owners do not understand the people side.  Not saying I'm an expert by any means but I try to put everyone there before me and most importantly get out of their way and let them do their jobs.  Residents also like it when ownership interacts with them and listens to their concerns/opinions as well.  It's taken up until this point to feel better about things - had a vision for where we were going - it's just taken a while to get there as we had so many basic infrastructure things we had to fix.  Chicken or the egg argument often came up in this thought process.  

(If you're launching from scratch - your executive director will make or break you - find him/her - treat them very well and get the most qualified person on board - however if you're only doing a 12 or 16 room home plus there wont be much room to pay them well - if you had 2 up and going you could pay them close to market and give them profit sharing.  I haven't launched one from scratch yet but was close to pulling the trigger this year however did not - My hypothesis is whomever you build out your team with to launch will make or break you.  Watched an experienced owner of a larger scale facility go through the same issues from afar on a Wichita new construction build).

Yes - that's how we bought ours - (licensed for 41 beds) but our capacity in our present setup is 36.  

Those typically aren't openly advertised due to the reasons you discussed above.  Find it by networking with other owners, businesses, business brokers etc.  (We found ours through a business broker).  It's also not easy.  Not an automatic cash cow - it's a people business first and foremost and unless your company understands that and institutes that culture you will not be successful.

 We have one not far from you if you live in KC.  It's not as easy as everyone makes it out to be.

What are you looking for?

Here's another future monkey wrench in the back to the city movement - when we have legal/safe autonomous vehicles what does that do to population trends?   

Maybe, maybe not - I'd guess 20 years plus for that particular neighborhood if not more.  Wichita like Im assuming other places is really block by block - one block does make a big difference sometimes.  Too far out from the delano core - the "nicer" houses are elsewhere and sadly that particular neighborhood will stay the same for a long time.  Only thing that would change that is if the city called for river development along McLean in line with your lot but it's taken them decades to do anything with the DT river frontage we have now and the public is pretty wore out from all the backroom dealings starting with the "Waterfront" development that has been a failure and the rushed baseball stadium deal -- Glad they are doing the baseball stadium and the development around it but I'm curious if the town will support the team - as they struggled to support the Wranglers as the years wore on especially with the ticket prices they announced...  Just giving you the local perspective.   Hope it changes sooner than what I've predicted but I dont think it is likely.  

Delano had the tides of change going for it 10-15 years ago or however long ago they sold the old Honda Powersports dealership and Ace Hardware.   Things just move slower here - dont know why but it does - guess that's why we typically haven't had wild RE valuation swings like other parts of the US.   I'd really like to be eating crow 5 yrs from now where folks are doing complete tear downs and new builds there or "popping" the top etc -- however even in Riverside, Crown Heights or College hill doing such a thing is EXTREMELY rare and if it was logical to do so those would be the neighborhoods it would be done in.

@Shaun Peterson  I'd have to agree to disagree about your sentiment that most dont see the value in Delano - 

As far as where your lot is situated you may need to sit on it 20 plus years - the immediate area and surrounding blocks are run of the mill basic SMALL entry level houses.   You probably paid market or above market for it at $8k.  Maybe we'd get into a situation where those houses are valuable someday but it's a very blue collar area and the lots/houses are so teeny tiny there it would take forever before there's value in doing something in that immediate area.  I'm patient but not that patient.  Not trying to be a negative nancy - but my opinion based on knowing the area well so take that for what it's worth.  You'd probably do better spending $100k and building a Single family home or getting it zoned to build a duplex and see if you can find someone to build one for $150 or less.  Both of those are possible with the right people and a basic design.

@Ted Klein You may give cedar mills property mgmt a call - my brother rented from them for a couple years and was really happy - I stayed the night at his house as I live 2 hrs out of Wichita now - anyways back in March on a Saturday about 4-5pm there was a broken water pipe from a sprinkler system that my brother discovered - it was a freak accident on how it broke - but would have flooded the basement - we got the water shutoff.

Anyways to get to my point they had a plumber over in a couple hours to fix it.  I was pretty surprised.

I manage mainly my own (6 now at this point and 2 for others)   I do so remotely and with partnerships I have.   I'd only take on a property that is similar to what I work with - (rents above $600 and in what I term a decent area and a well maintained house)   

Also there is Granite Leasing/Property Mgmt - Kristen used to be active on here but not sure she is anymore - Im actually going to be working with her to lease my vacant property - her specialty is finding tenants and doing all the work on the front end then either managing on the back end or passing off back to the owner or someone else for the day to day.

Im my case it did - 15% down instead of 20 or higher plus money built into the loan for cash back at closing for initial operating capital which we most definitely needed.  I had others in reserve but it helped build a nice cushion to get going as this is a cash flow business.

@Michael Waite that price seems pretty high - you really need to look at her books and analyze the deal that way and make sure the books are legit - 

You're not just buying the real estate - the business is where the nuts and bolts are at and that is what you should focus on.  Also depending on your state Medicaid can be a great payer source vs private pay and will make you more money than what you're projecting above except you need to understand how it works and stay on top of the paperwork/processes - not difficult but there is a learning curve.

I think your compass may be a bit off.  

Lots of very desirable areas to live in on the West side not to mention Goddard and Maize Schools.