Racing for Charity

This past weekend I participated in the " 33rd Annual Great Dock Canoe Race" at Crayton Cove in Naples, Florida. I have been attending this event since 1990 and this year was my first time competing!

The Annual Great Dock Canoe Race is arguably Naples' most popular event. Contestants and spectators travel from throughout the country to race and watch, and thousands of people, from young children to grandparents, celebrate the Race on land, dock and bay. The Theme for the event changes each year, and the costumes and headgear of the participants and spectators are as much a part of the day as the paddling.

My partner in the race, Kent Skrivan of Garlick, Stetler & Skrivan is a very strong rower and is generally responsible for our 5th place finish in the VIP race with a respectable time of 4:26.

At the races, over $7,000 was raised for CHS Healthcare a private, not-for-profit “safety net” health care provider with 12 health care facilities located throughout Collier County which includes the Ronald McDonald Care Mobile. They offer basic primary and preventative medical and dental health care services. In calendar year 2008, they provided services to over 46,700 patients (over 31,000 of which were children) for a total of nearly 186,000 patient visits! You can visit their website at http://www.collier.org/

In the pictures, I am the one in the front wearing an orange Gator hat.

What is Land Development Consulting?

Many people ask what I do for a living when I meet them as I am sure happens to you. I tell them I am a land development consultant which results in a puzzled look followed by a "huh?".

I briefly explain my background in civil engineering, planning and development to them and I tell them that I use my experience to help those less familiar with the development process. This leads to a sigh of relief from my new friend and a comment such as "oh, so you are a builder?" or "oh, so you are an engineer?".

Okay, yes, I have done both of those things but I offer so much more! More time with your family, more money in the bank and more neighbors happy to see you. Let me explain it this way; my son loves to turn all of the lights on in our house but cannot remember to turn them off. We are trying to teach him to turn lights off when you are not in the room. Much of the time he forgets to turn the lights off even though we remind him all of the time. We have implemented a new strategy in our house to help him remember to turn the lights off - we charge him a quarter for every light he leaves on! We explained to him that electricity costs money and since we are getting charged, he is going to get charged. A few nights ago we took two crisp dollar bills from his piggy bank to pay for the eight lights he had left on up stairs. To say he was upset would be an understatement. He did not want to see his money leave his bank. I am sure it will happen again since he is only six years old, but let's just say he has not left a light on since then and he has even reminded us to shape up!

The purpose of sharing a personal story with you is to convey the point that until something costs YOU money, it really is not very important. A developer will hire an attorney, an engineer and a planner and assume these professionals will tell them all they need to know for a successful project. You have to admit it makes sense. The problem is there are many ways to spend money when developing a project. There are many ways to lose money on a project. Who does it hurt in the long run? The attorney? The engineer? The planner? NO! It is the developer that pays.

What is the incentive for any of these professionals to learn how to not cost you money? A very good (and rare) professional may advise you on a subject within their specific area of expertise such as a title issue, a drainage issue or a zoning issue, but which one is going to warn you (before it is to late) the neighbors will fight the project if you do or don't do something? Which one will tell you why you should avoid asking for too much density in a rezone case? Which one will explain how the timing of a project can mean huge savings?

A land development consultant has been "there" and has spent their own money on unnecessary issues at the direction of a "professional" They have had situations where they were told "don't worry about it" and it cost months of delay at a cost of $25,000 per month. A land development consultant has watched as one professional after another has said "they have to approve this" and then seen the project denied approval.

Can you imagine a football team without a quarterback? There is a lot of talent on the field but without a leader, someone to call the shots, the talent is misused or underutilized. At worst, a land development consultant is an extra layer of review and additional costs. What is so bad about an extra layer of review from within the team? While money is always tight, is an extra $30,000 in land development consulting fees on a $12 million project significant? If that $30,000 in "extra fees" saved you three months of interest carry would it be worth it? You bet. I am here to help those in the development industry and those serving the industry such as banks and investors. Are you unsure if you need my help? Give me a call or email and tell me what you are thinking of doing and I will give you an answer on the spot - no strings attached.

Why make mistakes that can be avoided?

Let's Make Hay While The Sun Shines

Remember when everyone was making money hand over fist in the real estate market? Boy the sun was shining then. Now that it is raining cats and dogs in the real estate market, I believe the sun is shining for investors. Sorry to mix my metaphors. I will not go out on a limb and say this is the perfect time to buy because "perfect" means different things to different people. Some investors are looking for income producing properties, and others are looking for an end return on their investment.

With that caveat behind me, I will say this; it is the perfect time to look for/at whatever type of property appeals to you. The market will be flat for some time, so many will want to wait for prices to move up before they buy. I respect that. However, the best properties will be purchased and therefore off of the market first. As prices rise it will be the inferior properties that will be left to choose from. The sellers and developers I am talking to are increasingly willing to deal if you have cash and a quick close. We are emerging from the winter of real estate market cycle and headed into spring. Spring is the time to sew our seed for future harvest. As investors we take on risk, that is just part of the job. That does not mean we need to take on unlimited risk. We can measure risk and take steps to mitigate for present or future risk. If you are concerned that you may buy something too soon, then you may want to take on one or more partners to share that risk with you. Another way to mitigate risk is to only buy when the investment pays for itself in terms of cashflow. The way to make money going forward is to NOT take large risks but a lot of calculated risks.

The market of 2005 is gone forever. It was too good to last and was therefore destined to end. There is nothing wrong with assets that do not double in value every year or two. While the stock market has been trading sideways for the last 6 months I have been buying stocks and selling options against those stocks to lock in a 25% return. In some cases I made 25% and in others I only made 25% while the stock doubled. My point is this; if you protect your principal with risk mitigation, there is nothing wrong with double digit gains. So, while it is raining cats and dogs, let's make hay while the sun shines. I am telling you the future is so bright we will need to wear shades.