Can I Sign Kansas Banking PDF

Can i industry sign banking kansas pdf myself

this is richard c wilson at the family office club and today we're doing an investor mandate interview with john welcome john thank you thank you sure and uh where are you based out of we're a small community bank based out of kansas city southern suburb and overland park johnson county okay and what type of investors investment firms you know business professionals do you guys typically work with and what what types of you know either debt or other activity are you usually helping them with well being a small community bank we're 300 million in size so we can loan up to 10 million but our sweet spot is really about three or four million we're primarily a commercial real estate lender multi-family a little bit of retail office a fair amount of flex space office warehouse space and some uh uh storage facilities as well okay great what's one of the base criteria that you're looking for if somebody is going out there and looking for a loan from a you know bank like yourself on like a self storage or a multi-family what type of you know ratios or key metrics do you really look for to make sure it's a healthy enough deal for you guys to get comfortable with sure and we're a commercial bank so it's traditional underwriting so a lot of your clients are probably familiar with that but generally 20 down a 1 debt service coverage ratio good cash flow coverage and then usually we get guarantees because our deals are pretty small but something we've been doing quite a bit lately is it seems like there's a lot of investment money coming in from out of town because our returns are pretty good our cost of property maintenance is lower and the cap rates are better performing for investors so what a lot of developers will do is they'll put some of their own seed money in so they've got the investment uh equity that they get to retain they'll manage the property but then they'll they'll bring in some outside capital sources and what they do is they may renault a property renovate a property get it up to occupancy and then they'll they'll refinance it and get the equity back out and get the return for the investor so it's kind of interesting not necessarily how do my owners have to have all the cash in but sometimes you're out of town investors which has been a different kind of flavor for us lately yeah sure i know some people in the family office club are building their sponsor model like that and they might be at a point where the banks are being more conservative they might be afraid that they're right at that edge of having you know too many assets on their balance sheet for the health of whatever their balance sheet looks like does knowing the ceo chairman like yourself make a difference when can that make a difference i mean it doesn't have to be something with your bank but if they're working with another bank do you have any advice on when they're near that edge of getting something approved or not does it does it help to build a relationship with the head of the bank or any tips or strategies for those listening to make progress there well all my loan officers have ownership in the bank because of the community bank nature where you are so they all speak for ownership and they they they they want a competitive return as well but uh yeah i think it's good lenders tend to hop around from bank to bank to advance their careers so if you can get a good lender you can follow them from bank to bank but and sometimes that spreads out your loans with three different brand banks but eventually that guy or gal's got to stay put and get into management with their senior lender things like that you know knowing the ceo helps um in smaller organizations it's very helpful but in a big bank like a you know like a jp morgan or something i mean you need to know the guy that's actually carrying the wood and get getting the loans approved and has credibility within his own organization right right okay and you guys ever specialize or work with fintech companies that will then turn around and lend out the consumers or are not too much in that that small niche i we have looked at lending club a number of times and a friend of mine back in maryland does quite a bit with that organization we have partnered with bhg which is an interesting organization out of new york and florida and they place a lot of medical paper so yes the answer is yeah we we're we're trying to do that but again we're right in the midwest pretty conservative pretty mom and pop kind of down to earth smaller banks so we're we can feed off the crumbs of the big banks and do just very very very well right right i know a lot of banks do require guarantees for properties um what's the ltv or is there a threshold where you can have non-recourse and the bank be comfortable with that and everybody's happy or is the default really to have a personal guarantee on almost everything now i think we generally i think if you're getting down on 60 or lower you're gonna possibly be able to get non-recourse it's a case-by-case deal but if it's a real vanilla tried and true experienced uh project that cash flows quite well it's got a little on the value then we're gonna generally look toward ownership not to lose that equity so i think that's when you sometimes forego the personal guarantees right right yeah it makes sense and then my last question and then we'll make sure people have your url to learn more about is um about kansas city in general i mean you said you've seen some investment activity there um over the years because of your location and the cost of management being superior and the returns being a little bit better for some some investors what about during covet these last few months you know in march april a lot of people were just you know seen as this would all go away by easter you know like like some people thought at the very beginning and obviously that didn't happen but past march april you know may until now have you seen you know silence on the investment front has it been just as busy as last year you know what what are you seeing in terms of momentum in your space it it slowed down quite a bit when everybody went home so we we sent our people home for two months now they're back in the office and they're all masking up in the office and things like that but our deal flow did slow down during that time it just felt like our pipelines kind of they didn't dry up but they really slowed down a lot of projects on construction got delayed and then a lot of our some of our bigger projects got delayed but some of our guys are they're just powering through and they've got like commercial building downtown kansas city got renovated and he's got three commercial leases that were signed up one was retail which is kind of interesting so it's kind of a mixed bag here i think our pipelines are back full again i think and then also because we're small we jumped right back into it and the big banks they've got more policy you know a lot of their people are at home still and so they're the bigger organizations are struggling a little bit with some of this the mechanics in kansas city is pretty robust we're actually we're not a cool town like chicago or some of the other places but we're boring conservative but we've got a little bit of a vibe going the royals got sold uh we got a you know kcp l street car stuff i mean it's it's not anything like florida miami or something really exciting like that but for midwestern town it's really a nice place to have have safe investments made right right yeah i think a lot of investors are trying to avoid um you know some primary markets or they're afraid of buying something too expensive there and then what used to be called tertiary or secondary like the nashvilles of the world or austin or denver have now become very expensive as well seattle et cetera so kind of looking another layer deeper at like huntsville and in kansas city and cleveland and uh some investors you know not not all of course but um yeah interesting great well um like i said before we've got a restaurant chain in kansas city as well as a um multi-100 million dollar real estate firm that i should connect you to just because maybe there's business you guys could do together but um for anyone listening who wants to get a hold of you or just kind of check out you know how to do business with your bank what's the best place for them to visit online you bet my name is john and i'm the ceo and founder we formed the bank in 2001 just right before or right after we got open right after 9 11 so you know crisis are going to come hit us from time to time my connection is uh [Laughter] that's my email or just google search in overland park kansas cool great awesome i appreciate your time here today and i'm happy to keep in touch thank you very much good luck to you thank you youtube john take care bye-bye