May 25, 2021

“Boy, do I have a deal for you”, says the developer on the phone…

ARTICLE 1 of 4

Today is the kickoff of a series of articles for 2021 addressing the concerns families or property owners should consider when contributing their land or a large cash investment in a real estate development.
May 25, 2021

How Development Opportunities Arise and Initial Considerations

ARTICLE 2 of 4

We will address what questions to ask, how to vet the developer, and how to match their appetite for risk to different possible deal types and what your risk tolerance may be. Today’s chapter will focus on how these development opportunities arise and things you should consider in advance.
May 25, 2021

Getting to Know the Developer

ARTICLE 3 of 4

If investing in a joint venture development appeals to you, one of the key components in your decision making is knowing the developer of the opportunity.  Entering into a joint venture is like getting married, and you don't typically decide to walk down the aisle after the first date.
May 25, 2021

Development process

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The path from start to finish for a commercial development can be like a roller coaster. While it appears to be linear, in reality there are many ups and downs, and several points when your car can feel like it’s going to jump off the rails!
October 5, 2020

Real Estate Budgeting in the COVID era

It’s fall and that means…. budgeting for 2021! Wait, don’t go. Budgeting serves several purposes. First, it creates a way to hold management accountable for financial goals and to track progress. Second, it identifies capital needs and sources. Third, it shines a light on financial statements to determine if amounts included are reasonable. Are any amounts significantly higher or lower than expected and if so, why? […]
July 7, 2020

What Families Can Do To Protect Their Real Estate Portfolios

While the economy is opening back up, here are some items families with real estate holdings should be considering as we move forward: Cash is King.  You’ve likely heard this a lot lately, but it’s true.  Now is the time to preserve cash, monitor expenses, and only spend money on matters that can’t be deferred. Also, don’t wing it; prepare a rolling 12-month cash forecast and update […]
February 2, 2017

Pigs Get Fat, Hogs Get Slaughtered

A home-builder client and I were discussing a large plat he is working on.  It’s in the dirt-work phase, so he has not yet committed to building homes.  When I asked what his plans were he said, “In this market, I’m a seller.”  He will most likely sell the finished plat to another home-builder when complete.  He went on to say, “I could probably get more for […]
December 1, 2016

What Finance Brings to the Team

I wrapped up an assignment working with a family whose real estate portfolio was in serious trouble. Due to years of poor financial thinking, the portfolio had terrible cash flow, a pile of credit card and other high-interest debt, many major deferred maintenance projects, and was seriously past due on property taxes to the point of almost losing properties to the county and lenders threatening action. […]
November 22, 2016

It’s Tough to Sell a Dirty Truck

A friend of my son who lives across the street has been trying to sell his 4X4 pick up.  Yesterday, I saw him come home from off-roading with it.  How did I know he was off-roading?  The truck was covered in mud. He parked the truck and promptly put the “For Sale” sign back in the window.  I scratched my head wondering if he had thought […]