Happy Holidays!

I will be enjoying the holiday season with my family and will start new blog posts right after the new year.

2010 will be a year of improvement in our careers, businesses, and projects.

• Are we ready for an improving economy?
• Are we positioned to take advantage of the demand for our services and/or products?
• Are we restructuring our methods of operation to use technology changes to our benefit?

I have always used the week between Christmas and the New Year to develop my business plan for the coming year. Business is generally slow and it gives us time to contemplate how to do what we do -- differently. Think "outside of the box" in developing your business plan. All too many will not change with the times or with the technology. We have incredible tools to use in promoting our businesses, services, and/or products. http://bit.ly/6PP1my View the slide show and consider some of the statements in your planning. Stay on the cutting edge since as a sole proprietor or small business owner we must compete with the big dogs or stay on the porch!.
We will do it!

Merry Christmas and Happy New Year to you and your family.

Due Diligence Report - Maps & Plans

Flood Plain Maps – The Federal Emergency Management Agency has posted the flood insurance rate maps on their website. By entering a property address, the flood map panel will be located for review. This map will illustrate the approximate floodway and may or may not include the floodplain elevation at cross sections depicted along the stream. The floodway is the stream channel and any adjacent areas that must be kept free from encroachments to allow the 1% annual chance of flood carried without an increase in elevation. A floodplain shown on a property will affect its development potential, increase permitting requirements, require significant design considerations and reduces the buildable area suitable for residential and non-residential uses.

Road Network Plan – Many communities prepare a comprehensive road network plan illustrating transportation links within a jurisdiction to accommodate future development. These road plans are anticipated road alignments generally locating road extensions, realignments or new roadway systems. The roadways provide a future transportation plan used by government in reviewing development plans. The local or county government will have a road alignment plan depicting the future road network serving future development. It is possible a future alignment will impact the development potential of a site by either accommodating the right-of-way in the design plans, improving offsite roads, or contributing to the traffic study for further analysis based on the development impact of the project. This plan may have the most significant impact on a project design and especially if it is overlook during the due diligence period.

This completes the section on maps and plans.

Due Diligence Report - Maps & Plans

I will finish the maps and plans section of the Due Diligence Report this week. If you find the "needle in a haystack", use the maps and plans section to contact local government and obtain all of the public information about the property. In Charlotte, NC, most of this information is online. Thus I can make an assessment of a site without leaving my office. The only information which is critical that I have to go to local government's office is for the existing water and sewer line locations. Complete all of this investigation before even considering a purchase.

In site analysis work, it is your job to find out all of the problems, all of the skeletons in the closet, and political baggage with the site. If you find problems, define the ramification of each. Many of the site constraints and solutions are associated with additional costs which are easy decisions. Either the project can absorb the additional cost or it can't. Since you are searching for the value, do not force the project to work. Walk away and look for another parcel. In today's market, you should have plenty of low priced homes with land to consider.

Wetland Inventory Maps – many states have used the soil conservation maps or GIS maps to overlay wetland areas and jurisdictional streams for delineating environmentally sensitive areas. This illustration is not precise. However, in evaluating the development potential of property, these maps will provide guidance on the location and size of area that must be not be disturbed and thus not considered as buildable area. It has been said that most of the good property has been developed so that the remaining land most likely will be impacted by wetlands or jurisdictional streams. The state environmental department would be the agency to contact for copies of the wetland maps. Compare the wetland areas or jurisdictional stream locations with the soils map. The soils in the area of the wetlands or streams should be classified as unsuitable soils for construction activities.

Job Searching in 2010

Although I am not an expert, I know a well structured cover letter and resume are essential in the job search process. I am currently assisting over thirty individuals in their job search in Charlotte. The good – it seems job opportunities are on the increase; the bad - the unemployment rate remains above 10% and is expected to remain constant through 2010. There will still be too many people after too few job openings. I will be sending the following ideas to my connections that are seeking new job opportunities. Note: this information is a summary from posts by recruiters, senior managers, and blogs.

If you are applying for a job, research the company on LinkedIn or other networking sites for employee names and positions – especially in the HR department. This is easy to do on LinkedIn. Find out what groups they (HR or Managers in the area of the position opening) have joined and determine if you have a degree of contact. Networking is the second best way to get your foot in the door. The first is a personal contact reference/recommendation. Use LinkedIn to forge alliances that will help you with your job search. Also, LinkedIn groups have a job post tab and there is an advanced job search method to narrow the search criteria. Submitting your resume over the internet seems like it goes into a black hole to never be seen again. Remember, the HR staff will be reviewing literally hundreds of resumes for a job opening – primarily submitted through the internet. If any connections can be made through social networking, your chances for an interview are enhanced. I would suggest following recruiter blogs for tips and ideas but until then, the following are tips to consider:


1. Title of your email is critical. List the title of the position you are applying for and your name.
2. Your Cover letter should not be an attachment. It should be in the body of the email.
3. Customize your cover letter to the specific job opportunity. Do not use a generic cover letter.
4. Review the job posting for relevant key words that should be used within your resume.
5. Specific key words should also be used in your cover letter.
6. Customize your resume to the position you are seeking.
7. In lieu of an objective, highlight your experience suited to the job in one line.
8. In my opinion from reviewing many resumes and selecting applicants for interviews, I gravitated to the concise and precise resume.
9. After submitting your resume on the internet, follow-up with a specific email to HR or hiring manager – not asking if they received your resume but to emphasize why they should hire you for the job. Be specific, short and to the point.
10. If you have a list of projects, publications, and/or presentation essential to your job search, a separate attachment may be better than including the information with your resume.

I am sure we all have good tips to pass along to others. Please add your comments to this post and share your thoughts. It is up to us to make 2010 a better year for us all.

Congress Redefining “Waters of the United States”

Link to the following article from Clean Water Action. http://www.cleanwateraction.org/mediakit/overview-clean-water-restoration-act-2009
This article provides an overview of the issue and the proposed legislation.Link to the following article about the legislative process slated for early in 2010.
http://www.washingtontimes.com/news/2009/dec/15/house-bill-extends-epa-reach-into-wetlands/

from the article, previous legislation …..“would allow the Environmental Protection Agency, in conjunction with the Army Corps of Engineers, to protect all of the nation's waterways. EPA polices only "navigable" waters, those large enough for ship traffic. Supporters of the measure say two Supreme Court cases significantly limited the scope of the 1972 Clean Water Act. The water bill faces an uncertain future in the House. When Mr. Oberstar introduced his bill in 2007, it had 176 Democratic co-sponsors.
The bill, if enacted, would give EPA authority over bodies of water as small as creeks and ditches along the roadside.”
The definition of “Waters of the United States” has been open for interpretation since the 1972 Clean Water Act. The new legislation is called “Clean Water Restoration Act”.

If this passes, the Federal Government will have a significant role in the permitting of any new development project, of any kind, in the future. Land will become non-buildable and redevelopment efforts centered at urban cores will be the result.

Federal Reserve Extends Low Interest Rates

Link to article about the Federal Reserve’s vote to maintain the current rates.

http://cl.exct.net/?qs=eb77745d1f58ae18f7f5e94facb7b0293485d800996869c211b548c7490b0c7a

Highlights of the article:

“Federal Reserve pledges to keeping rates low for an extended period”

Economy is likely “to remain weak for some time”

Fed’s key interest rate has remained near zero since December 2008!

The key is to watch prices in all goods and services. If you start seeing/experiencing increases in prices from milk to real estate, the Federal Reserve will have pressure to increase their rates to control inflation. For real estate, this will ignite buyers to buy since interest rates directly affect the mortgage amount someone will qualify for. I guess the next benchmark is early 2010. Keep looking for the needle in the haystack --- a house with property which can be subdivided at the lowest price possible and hold out for a house built after 2000 to minimize renovation costs for either reselling after subdivision or use as a rental. If you find a property and wish to have fee advice on the development potential, please contact me.

Peak of the Week - Twitter

The following is a summary of the information on Twitter.

Twitter is an instantaneous blog sending short comments to a following of people which can retweet your entry to others – eventually going viral

Tweet specific information that followers will find useful or interesting.

Use Tweeter consistently to stay on the ”front page”

Twitter Starts Testing Features for Businesses http://bit.ly/5kUArZ

More details over at the Twitter blog - http://bit.ly/4nkilj

Social Media

A short Social Networking article worth reading.
http://bit.ly/656mhh

I see the benefits and importance of using the various social media networking sites to generate leads and/or establish professional connections during the down economy. As the economy improves, your efforts will provide you with a much quicker recovery by establishing your social networking mode of operations - no matter what your business.

As an example, I only started with LinkedIn late last fall. I started my Land Development Group in late January 2009 and there are now over 1,100 members in the group. My thought was to create the group and hopefully have a few hundred group members. The result only tells me that people with like minds are seeking connections to assist others. My 2010 goals in social media include:
a. continue to promote the Land Development group
b. launch an eAssociation in early 2010
c. generate members for the Charlotte Real Estate subgroup
d. expand followers on Twitter - I think there is potential in this forum- still investigating
e. Facebook - I am not sure about the professional/business applications-keep open mind

To achieve my professional goals in 2010, I will:

Prepare Relentlessly

Live in a state of Gratitude

Invest in Others

US Debt Clock

Link on to USDebtClock.org – this provides a dramatic illustration of the spending habits of Congress.

http://www.usdebtclock.org/#

Enough said.

Good News!

Consumer Confidence up 155% over last year

http://cl.exct.net/?qs=f8aa865fbb4eb42c29622a8c7cd3f5e3ecb9290de34aa1861fac430112aa859c


California NEW home market up for 1st time in 3-years

http://cl.exct.net/?qs=f8aa865fbb4eb42ca0e863a0c6b4cea158fa6d69e1abe7a90547a09137c47946

Both articles can be found in Business Journal publications. Both represent positive news but which if any of these short articles would you consider good news?

Mortgage Calculator

The mortgage calculator is an excel spreadsheet which allows you to change the parameters i.e. sales price. The highlighted column is for a $160,000 selling price.

Remember to factor in the Federal Tax Credit for first time homebuyers ($8,000) and for repeat buyers ($6,500) into the equation. You can change the sales price to meet your needs and you can calculate the monthly mortgage payment. The highlighted FHA column shows a bottom line of cash required at less than the Federal Tax Credit of $8,000. With a sellers contribution to closing costs which is common in today's market, the first time homebuyer would be able to buy this home with little out of pocket cash.

The bottom line of the illustration is that a first time homebuyers could purchase a $160,000 home with $1,000 cash, seller contribution, and the Federal Tax Credit. The monthly mortgage payment would be estimated at $1,000 per month. A $160,000 house in Charlotte would be a 2-story, 3-bedroom, 2.5 bath home with a 2-car garage. And, built in 2006!

This spread sheet is to be used as a guide since interest rates and closing costs will vary and may change daily. Contact your mortgage representative to assist you with interest rates and exact closing costs associated with your housing goals.

You should contact your local Realtor® to assist you on the available inventory in your market. For the Charlotte, NC region please let me know your housing goals and criteria and I will be glad to provide you with a quick search of the MLS – no obligation or commitment.

Another Round of Mortgage Problems?

If a significant number of people stop making payments on their homes which the mortgage amount is greater than the value of their home, that is going to put us into another tail-spin;

which is going to put more pressure on the already-weakened banks,

who are going to cut back even more on lending,

which is going to put more pressure on the economy,

which is going to depress the job market,

and put more pressure on the housing market,

leading to more delinquencies.

And if the economy gets stuck in the above described loop, will the federal government have the resources to come to the rescue?
It's great the financial markets have bounced back and the economy is slowly growing again, is it? But the ongoing problems in the housing market could still result in a “W” recession. Housing has always led us from the valley of a recession. Just not yet. What are your opinions?
Source: Numerous Internet Blogs and Articles

Social Media Information

Use the following link to a variety of articles and info pieces on social networking. Pick and use those ideas that can assist you achieve your networking goals. A small business is an entrepreneur with one client.

Mashable’s Social Media Guide for Small Businesses http://bit.ly/7W6CzX

Recession Stats - Housing Sector

I prepared the above chart for a presentation in 2008 and updated some of the current stats over the weekend. Housing starts have always been an important indicator in the health of the economy. Many of the factors are positive including a low prime rate with low mortgage rates. An ever increasing population including family formations. Draw your own conclusions but the current recession is depressing housing starts. If my memory serves me correctly, coming out of the '81 recession, we had shortages in materials, labor and lots which created higher prices. I think we will again have material shortages since most manufacturers are cutting back on their inventories and the labor force has left housing construction. And the lot inventory is based on higher land cost which doesn't at all translate into lower prices. My point, real estate is a good investment alternative strategy - today.

A List of Business & Professional Social Networking Sites

The following social networking sites are listed for your future reference as you connect to those of like mind and interest. Invest in others.

AdvisorGarage – It is an online directory of advisers who are willing to assist budding entrepreneurs.
ArtBreak – ArtBreak is an artist community for sharing and selling artwork.
Blogtronix – Blogtronix promotes corporate social networking, enterprise 2.0 and wikis.
Commutal – Commutal is an online sharing platform for businesses to create media rooms, participate in domestic groups and share event happenings with each other.
CompanyLoop – An online co-working community for global businesses.
ConnectBeam – Connectbeam offers social networking specially designed for corporate users.
DoMyStuff – A good site for working professionals looking to find online assistants.
Doostang – An invite only career community for professionals.
Fast Pitch – It is a quickly growing business networking community in corporate world. Its online provides users with a one-stop shop network to market their business.

iKarma Inc. – iKarma is a specialist in providing customer feedback for organizations and professionals.
ImageKind – ImageKind is a community and marketplace for professional artists.
Jambo – Jambo lets you connect with your neighborhood friends.
Jigsaw – An online business card networking directory for users to establish contacts with each other. Each business card is listed with an email id and a contact number.
Konnects – Konnects enables members to create their own professional networking communities.
Lawyrs – A professional social networking community for lawyers.
Linkedin( ) – LinkedIn is a professional social networking website for business users, one of the most popular such sites out there. Some aspects of it are free, but many are paid.
mediabistro.com – mediabistro.com is for professionals in content or creative industry.
Pairup.com – Pairup connects business travelers assisting them to travel together.
Ryze.com – A site for establishing new connections and growing networks. Connections for jobs, building career and making sales.
Spoke.com – Spoke offers access to business network of over 40 million people worldwide.
Visible Path – Visible Path helps organizations to integrate social networking into their existing tools.
WebCrossing Neighbors – It provides a private label social network with personal spaces and user groups.
XING( ) – XING is a networking directory of business contacts powering relationships between business professionals allowing users to connect with each other.
List of Sites. SOURCE: Mashable – The Social Media Guide

A 3-Point Strategy for success in 2010

Innovation – we must individually create innovative business strategies defining new ways to promote and market our expertise. The new norm for ANY business has or will change during 2010 because of the social media phenomenon. Either spend the time to stay current with technological change or stay on the sidelines. Become proficient in LinkedIn, Twitter, Facebook and start a blog. It will take time to fully understand the benefit, value and capabilities of these sites. So start now and use the networking tools innovatively! There is still time but remember to give rather than take; lead rather than follow; and act rather than react.

Reinvent – each of us will need to reinvent the wheel regardless of profession, business, trade or hobby! Do not rest in comfort but discover new ways to do what you have been doing for many years. Use December and January to prepare a business plan with reinvented tools of trade.

Rebrand – change your image, your approach and your goals to match your reinvented tools of the trade marketed innovatively through social networking.

Why? Again from someone experiencing my fourth recession, when the economy starts to recover, the recovery has been swift and those on the leading edge benefit and those on the sidelines will be in a catch-up mode. This recession is different than the others so our positioning must not be blogged down in malaise. Even if this recovery may not be swift, don’t be swayed away from the need to do what you do - differently in 2010.

Peak of the Week

Wednesday is the peak of the week and it is my intention to post topics of interest for the week past or take a peek at where we are headed.
Today’s Interest Rate is 4.5%; FHA Down Payment is 3.5%. Federal Gov’t will give you $8,000 as a first time buyer or $6,500 for a repeat buyer and the inventory of homes on the market – at any price range is at an all time high!
What are people waiting for? More foreclosures? More short sales? Prices to drop further? Don’t have the down payment? Can’t make a decision to buy or sell a home?

As someone that has experienced four recessions – two of which as an executive for large builder-developers, the real estate climate to buy WILL NOT get any better. Jumping on the real estate band wagon now to gain appreciation in your home in future years makes sense. The fears of what may happen in the future should not be our motto.

Invest in others! Contact me today and I will be more than glad to assist you with your real estate questions, concerns, issues, etc. No obligation and no cost. Use my 35 years of real estate experience to your advantage. Post your thoughts. If not now – when?

Have you ever sent an email to the wrong email address?

A lesson to be learned from typing the wrong email address!

A Minneapolis couple decided to go to Florida to thaw out during a particularly icy winter. They planned to stay at the same hotel where they spent their honeymoon 20 years earlier. Because of hectic schedules, it was difficult to coordinate their travel schedules. So the husband left Minnesota and flew to Florida on Thursday, with his wife flying down the following day.

The husband checked into the hotel. There was a computer in his room, so he decided to send an email to his wife. However, he accidentally left out one letter in her email address, and without realizing his error, sent the email.

Meanwhile, somewhere in Houston, a widow had just returned home from her husband’s funeral. He was a minister who was called home to glory following a heart attack. The widow decided to check her email expecting messages from relatives and friends.

After reading the first message, she screamed and fainted. The widow’s son rushed into the room, found his mother on the floor, and saw the computer screen which read:

To: My Loving Wife
Subject: I Have Arrived
Date: October 16, 2008

I know you’re surprised to hear from me. They have computers here now and you are allowed to send emails to your loved ones.

I have just arrived and have been checked in. I see that everything has been prepared for your arrival tomorrow. Looking forward to seeing you then!

Hope your journey is as uneventful as mine was.

P.S. Sure is freaking hot down here!


Source unknown

Today’s Gift is Today

Each day has 86,400 seconds and we do not get this time back at the end of the day. Spend your time wisely and do not dwell on all of the negative economic news of the day. Today, there are opportunities but we will recognize these chances only with a positive frame of mind. Why not start today by investing in others?

U-2 Spyplane Flight Video

http://www.linkedin.com/news?viewArticle=&articleID=88405278&gid=1836254&articleURL=http%3A%2F%2Fangellaraisian%2Ecom%2F1016%2Fu-2-spyplane-flight-really-cool%2F&urlhash=K9VG&trk=news_discuss

This video was forwarded from a LinkedIn Group Discussion. It is relatively long to watch but it is worth watching. This will give us all a chance to reflect and contemplate on the true meaning of Thanksgiving.

Multifamily Projects

Andrew Hefe, CEO of Crescent Resources has stated that his company is on scheduled to emerge from bankruptcy in early 2010. He has indicated the real estate development trends to be inconsistent but is much more optimistic about apartments. He has indicated that multifamily projects will be a significant opportunity for real estate investment and development in the next several years. His predictions:

35% of the population will be unable to purchase homes and will have to rent

Multifamily housing will be essential to meet the demands of population growth

There is a lack of supply and the demand will exist.

For those of us in the trenches, what do we do with this glimmer of wisdom?

I am a strong advocate of rezoning for value and searching for the "needle in the haystack". Review the zoning maps in your community.
Highlight all of the multifamily, high density, and commercial retail areas.
Analyze the highlighted areas for land still zoned residential within higher use locations.
Most likely it is a left over parcel and not a large parcel. A 3-4 acre site can produce an apartment complex that most multifamily developers will consider.
Undertake a due diligence investigation of the property. If it doesn't make sense, walk away and do not spend any more time on trying to make it work.
If it makes sense, contact the owner - maybe they will want to partner with you to increase the value through rezoning.
If you have found a property that seems to make sense and if you need a second opinion on what to look for, contact me.
For those that follow me on this blog -- no charge for advice! I invest in others.

Unemployment Now at 10.2% and Rising

We are in a spiral that can only be broken by federal policies that encourage banks to become a community partner rather than running scared of federal oversight. Lending has always been a risk but minimized with sound judgment. We can’t get out of this economic depression without money flowing from banks to small businesses.

Banks are not lending money

Our economic problems become past history when we see positive job numbers

We won’t see positive job numbers until small business starts hiring

Small business represents 56% of our Gross Domestic Product (GDP)

Small businesses can’t obtain capital from banks NOW scared of risk

Small business are not hiring

Banks are not lending money

And we start all over again.

Brace for a difficult 2010. Real estate development is a high risk-reward industry. When do you think banks will again lend money for construction of homes, commercial/retail, mixed use, or any other real estate development project????

New Social Media Video

http://realestateopennetworkers.ning.com/forum/topics/social-media-roi-socialnomics?groupUrl=socialnetworking101&


New Social Networking Video to further reinforce the need and importance to be ahead of the curve and not swim against the current of social media.

Get in the game!

What will happen to Interest Rates?

If you are thinking about real estate investments as an alternative strategy, remember that interest rates begin to rise as a way to curb inflation. The key is to know when interest rates may start to trend upward. March 2010 seems to be a key date when the Fed decides to stop buying mortgage securities and if private investors do not pick up the slack - the result will be higher interest rates. Expect over 6%. Which by the way is still a low interest rate but the increase reduces how much you may qualify for a home mortgage. According to the National Association of Realtors:

Nov 20, 2009 Interest Rate @ 5.15% Median Home Price $174,900

March 2010 Interest Rate @ 6.00% Median Home Price $159,250

So in four short months while we are waiting for the Super Bowl after the holidays, our ability to buy a higher priced home disappears. To invest in real estate, remember the "perfect good storm" - low interest rates, depressed home prices, and willing sellers due to an over supply.

Foreclosures, short sales and low priced homes with LAND should be your target market.

Due Diligence Report - Maps & Plans

The following list of map or plans are invaluable in the site analysis work required in land acquisition.

Water and Sewer Maps – these maps can be obtained from the municipal water and sewer department or your community could be served by private companies. In either case, plans illustrating the location of existing water and sewer lines exist in some fashion – if only for maintenance purposes. Also, seek to obtain the capital improvement plans showing the future water and sewer extension projects. It is easier to follow water and sewer but the land cost may reflect the availability of the utilities. Ask for a paper print for your future reference. For water distribution, the size of the main and its location plus fire hydrant locations will be sufficient for the initial assessment. For the sewer line; location of the line, manhole locations and line invert elevations rim elevations and sewer line size are essential to determine if the PIQ can be served by gravity sewer. Note: the elevations shown on the municipal plans must be in the same datum as your topography map to make a quick assessment if the property may be served by gravity sewer.

Due Diligence Report - Maps & Plans

The following list of map or plans are invaluable in the site analysis work required in land acquisition.


Aerial Photo – a recent aerial photograph provides information not readily understood via plans, maps or site visits. The aerial will provide property use relationships and the overall development approach of the immediate surrounding area. Vacant parcels are also easily identified. If the location selected is Priority A, the cost of an aerial photo will vary but a recent aerial in Charlotte with labels was less than $500. Most on-line aerial photo’s lag development but with the downturn, the aerial photo’s may catch up with the development activity. If the site is infill, online aerial photo’s should be sufficient. This element of the due diligence package is essential to the overall analysis of a site.

Soils Map – the Soil Conservation District maps delineate the soil characteristics for every county. These maps provide an overview of the type of soils found in a location. The maps are dated by use of old aerial photo’s with soil types delineated. The key is to locate the PIQ on the aerial, sometimes not an easy task. Use a detailed road map to assist in this effort. After locating the property on the soils map, record the soil type on the property and use the Soil Conservation District soil descriptions and classifications to assess the positive and negative aspects for development operations. As an example, the report may indicate a high water table for a specific soil type. This would impact development costs; may alter the building foundation design; be classified as a wetland soil type; or the site may have rock 10” below the surface. Study the map and the soil types. This document is an overview and should be followed-up with a strategic soil investigation program onsite by using test pits and soil borings. The onsite investigation will further define the soil types and assist in delineating the extent of the soil types found on site.

Due Diligence Report – Maps & Plans

In today’s technology and the need for local government to keep pace with the information flow and development changes in their community, most local municipalities post online their ordinances and maps. Compile maps and plans available online and locate the subject property on each map or plan. There are some plans which can only be obtained from a regulatory agency but it is worth the effort. Analyze the property location and the site characteristics to determine the development potential.


Street Map and Community Amenities – nothing new here except find the best possible map to show the benefits of the community; features, schools, shopping, offices, employment centers, highway system, parks, etc. Locate the property on this map for future reference and distribution. The best resource is the Chamber of Commerce.

Topographic Survey or GIS Map – the more advanced municipalities will have flown topography maps for their jurisdiction. Topo from an aerial is much more reliable than GIS. In either case, the engineering office at local government will have topography maps for your use. Buy the necessary topo maps of the PIQ. Ask for adjacent property topography and adjacent development plans, if available. Also, ask for the construction plans, if any, for the frontage road servicing your property. Evaluate the information for consistency in elevations, land features, and property lines. Review low areas for wetlands, flood plains, jurisdictional streams, and/or poor soil. Delineate areas not suitable for development purposes. Severe grades, excessive non-buildable areas, or road frontage issues may hinder a cost effective development approach. Do not force the issue but be exhausting in the analysis of the information. You are determining the priority of the site for development potential.

Real Estate Investing Stats

According to the Move.com Survey:

12.1% homebuyers plan to purchase a home as an investment property
Foreclosure buyers account for 25% of consumers interested in purchasing a home
42% of foreclosure buyers regard their purchase as an investment
52.6% of those responding to the survey are ages 32 to 49
58.2% expect to pay 20% or less than market price for a foreclosure
38.5% expect a 25% or greater discount
73% expect their properties to appreciate 10% or more in 5-years
28% expect their purchases to appreciate 20% or more in 5-years

Investing in real estate at below market prices may be an excellent alternative in the use of money. The home can be rental or fixed up for re-sale. Remember, the first time and first move-up markets (or workforce housing) will continue to be the driving force behind the market recovery. In Charlotte, NC there are 5,946 homes on the market below $120,000. Check on the inventory in your marketplace - it is time to seriously consider real estate as a component of your investment strategy.

Never Forget

Due Diligence Report - Maps & Plans

I am an advocate of rezoning for value. Simply stated, buy land with a less valuable use classification and rezone the property to its highest and best use. As an example, buy agricultural use property for land located within a commercial area. If the rezoning to commercial is successful, the value of the property has increased in value. The real estate development business is a risk reward industry. To assess the possibility of rezoning for value, the zoning map and master plan are important public documents to be researched.

Zoning Map - this map is posted online by the local municipality. The map will show all of the zoning districts within the municipal boundaries. Locate the subject parcel on the zoning map and determine the assigned zoning classification for the property. Also, make note of the zoning classification for the immediate surrounding and adjacent properties. Assess trends and changes in zoning for the surrounding properties. Also contact the zoning or planning department and seek information about their intention of revising the zoning map for the town.

Master Plans – each jurisdiction will have an overall growth management plan illustrating the uses for areas and property within its jurisdiction. This plan will delineate uses i.e. Residential, Industrial, Commercial, etc. The master plan does not specify the zoning but designates the use. The master plan changes periodically and in some cases must be updated every 5 or 10 years based on local ordinances or state law. The property should be consistent with the master plan or consider a master plan change application. This may present a more difficult and lengthy regulatory process but most jurisdictions permit this option.

The due diligence report map and plan section will be posted on my blog over the next several days.

Due Diligence Report – Maps & Plans

In today’s technology and the need for local government to keep pace with the information flow and development changes in their community, most local municipalities post online their ordinances and maps. Compile maps and plans available online and locate the subject property on each map or plan. There are some plans which can only be obtained from a regulatory agency but it is worth the effort. Analyze the property location and the site characteristics to determine the development potential.

The following list of map or plans are invaluable in the site analysis work required in land acquisition.

Property Boundary Survey – at this point in the site analysis work, you may not have contacted the property owner. Thus, visit the municipal engineering or public works office and ask for surveys for the subject property or adjacent properties. There will be surveys available in and around the subject site unless the site is located outside the infrastructure core. This survey will illustrate boundary line problems i.e. cores, overlaps, access easements, rights-of-ways, utility easements, etc. The results will show the constraints to developing the site. While you are at the government office, request a copy of the road construction plans for the property frontage road.

Tax Map - this is an important overall map showing how the subject parcel fits like a puzzle with surrounding property. The tax map will give you lot number, blocks, parcel ID numbers and other references that can be used in deed research, tax information and prior ownership history. This map needs to be studied for development and ownership trends. Disneyworld land was massed by Disney using the tax map to find separate land owners and quietly purchasing property to assemble a large contiguous land area for the theme park.

The due diligence report map and plan section will be posted on my blog over the next several days.

New LinkedIn Group

I will be managing a new subgroup "Charlotte Real Estate". This subgroup is within the LinkedIn group - Network Charlotte. There are over 4,300 members in Network Charlotte and the subgroup will concentrate on issues, topics, data and industry news specific to the Charlotte real estate market. What is good about this group is that there will not be any listings nor promotiuon of services on the discussion board. If you are interested in the Charlotte market, please join this new LinkedIn group.

What is the definition of a Real Estate PERFECT STORM?

1. Interest rates remain under 6% and some sellers are contributing to closing costs

2. Home prices are at the bottom and home appreciation will come again

3. Inventory is at a peak!! Over 2,500 single family homes on the Charlotte MLS under $100,000. A buyers market and sellers are willing to negotiate price

4. Federal government may contribute $8,000 to the buying of your first home or $6,500 if you have lived in your current residence for at least 5 consecutive years in the past 8 years. The credits cannot be used on homes more than $800,000.

This is my 4th recession and have been in the real estate industry during these recessions and I have not experienced a real estate Perfect Storm – we are living this opportunity today but we know when it will end. April 30, 2010.

Someone told me that it is a lot to think about! What is there to think about. It will not get any better than this. If you believe real estate will regain its value over time by appreciation and you will stay in your new home for over 3-years, you should take advantage of this perfect storm.

Home Buyer Tax Credit Extended & Expanded

Legislation may be signed by the President on Friday! The following article from Business Journal provides an overview of the provisions.

http://washington.bizjournals.com/washington/stories/2009/11/02/daily94.html?ana=e_pft

Let’s take a hard look at this federal program. $8,000 tax credit for first-time home buyers is extended to April 30, 2010. Income eligibility is raised to $125,000 for individuals and $225,000 for joint.

Congress has added a $6,500 tax credit for owners of existing homes who buy a new principal residence. Owners must have lived in their old home for at least 5 of the past 8 years.

This tax credit will disappear in 5 short months!
Assume it will take a month to close (the system will slow the process down) since there will be a flood of activity. This will leave you ONLY 4 months to consider buying, locating the right home for you, and negotiating a contract of sale. Not a lot of time and if you procrastinate, the opportunity will pass you by.

Remember, you need to get on the real estate band wagon!
Interest rates remain under 6%
Home prices are at the bottom
Inventory is at a peak!!
This is a PERFECT STORM.
Ride the benefit – after all, when is the last time anyone wanted to give you $8,000??

Due Diligence Report - General Section

A due diligence report on vacant land is used to assess property for investment opportunities. The report will include a comprehensive analysis of the property. The essence of a due diligence report is to document what is known about the property. This report will assist buyers and sellers of real estate for development purposes.

As with any report, the initial section will be to outline the general overall description of the property. The following information would be essential components of the “General” section of the due diligence report. Additional sections will be posted on my blog.

1. Property Description and Ownership
Include name, address, city, phone number and email address – a complete contact list for the owners of the property would be a great reference. The property description will be a location description or directions to the property.
2. Legal Description
This is important for researching the property in public records. For this purpose, a Lot and Block, or Parcel Identification Number would be sufficient. Try to obtain a metes and bounds description of the property from the owner.
3. Tax Map and Parcel Size
The local municipal tax records/maps will have references to include in the report. The parcel size is typically stated in acres.
4. Master Plan Compliance
Visit your local municipal government Planning Office and find the parcel on the Master Plan approved for the community. This will outline government’s future overall growth patterns for the subject property and surrounding areas. Having your vision for the property consistent with local government would be the politically correct approach. Consistency is not always the case and amending the Master Plan may be the only way to develop property to its highest and best use.
5. Future Road Alignments & Right-of-Way Dedications
Obtain from local government their future plan for new roads, road realignments and expansion of road rights of ways. Determine how their plan effects the subject property and the surrounding area.
6. Review of Phase I Environmental Study, if available
If a Phase I environmental study has been prepared for the subject property and the owner provided a copy, review the findings in detail. This report, if not available, would be required by lenders and essential from your point of view.
7. Site Pictures
Walk the site and take enough pictures to document the site characteristics, adjacent properties, and existing roads. You can’t take too many photos. Include the essential overall site photos in the report. An aerial photograph is very important in assessing how the property is situated with the overall growth pattern of the immediate area. Check public and online sources first and if not current, retain an aerial company to fly the site and take sufficient photos from several perspectives.

12 Rules of Networking

Kim Albritton of Black Belt Business Profits shared the 12 rules of networking in the Pittsburgh Business Times. I have added my comments to reinforce how the rules may be applied.

1. Don’t try to sell
Most people mistakenly stroll into a meeting with the idea they need to find someone to sell to. Don’t do it on social networking sites.

2. Give before you get
I have found this rule to be true and establish yourself as a giver first to build your connections. And contribute to discussions with quality insight.

3. Understand that it’s network
Power networkers work at it and they set aside time to think about whom they know and how people in their network can help each other. And how they can help their connections.

4. Be interesting
Be fresh and convey information that your professional network can use – on a daily basis.

5. Set goals
Establish your goals for each social networking site. Work at networking daily to reach your goals.

6. Throw a Connection/Networking get to together
Agree with your contacts that you’ll meet for lunch and everyone will bring their contact list. Basically turn your contacts into appointments and projects/work.

7. Be interesting.
This one’s important enough to mention twice.

8. Make it easy to refer to you
So, you have succeeded and found a strategic partner who wants to refer people to you. Be specific and easy for someone to introduce or refer you to another connection/client.

9. Play matchmaker
Spend some time each week to think about whom you can match up within your network. Then make the introductions. This works and it expands your SOI. Remember Rule #2.

10. Say thank you
If you get a referral or introduction from someone, say thanks. Send a personal note.

11. Test alliances quickly
Don’t waste time on people who don’t understand networking is reciprocal. If someone is trying to sell you something that is not relevant to your, move on.

12. Have a system
Make your life easy and have a system for starting conversations, meeting with partners the first time, following up and making introductions. As an example for every connection, I have a standard written response thanking them for the connection and willingness to network together on projects of mutual interest.

Define Affordable Housing

What is your definition of affordable housing?
Is it workforce housing or housing for first time home buyers?
Or, housing provided only by Habitat for Humanity or Housing Agencies?

Affordability is dependent upon the monthly COST someone can manage owning and maintaining a home - not the price of the house. With mortgage interest rates below 6% and home prices pre-2002 levels in most markets, you may want to investigate homes available in your market.

As an example, in the Charlotte, NC MLS region, there are over 2,500 homes listed with a sales price below $100,000. The housing cost on a monthly basis will be less than renting an apartment. Don’t you think there is an investment opportunity or first time home buyer opportunities in all markets?

You have to get in the game!!

First Time Home Buyer Tax Credit Extension Vote this Week

Source: National association of Realtors®
Who Qualifies?
First-time home buyers who purchase homes between January 1, 2009 and December 1, 2009.
To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?
The 2009 First-Time Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Will the Credit Be?
The maximum allowable credit for home buyers is $8,000. Each home buyer’s tax credit is determined by two factors:
The price of the home—the credit is equal to 10% of the purchase price of the home, up to $8,000.
The buyer's income—single buyers with incomes up to $75,000 and married couples with incomes up to $150,000—may receive the maximum tax credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?
Yes, some buyers may still be eligible for the credit.The credit decreases for buyers who earn between $75,000 and $95,000 for single buyers and between $150,000 and $170,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $95,000 for singles and over $170,000 for couples are not eligible for the credit.

Will the Tax Credit Need to Be Repaid?
No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during the three-year period, the credit will be recouped on the sale.

How to be an Effective Leader

I attended an all day seminar yesterday by “Get Motivated”. They had many speakers including: Colin Powell, Former First Lady Laura Bush, Terry Bradshaw and others.

Rudy Giuliani talked about 911 and the aftermath. Very moving and he tied his thoughts into his six Principles of Leadership:

1. Have strong Beliefs – know where you are going – have goals
2. Be an Optimist – be a positive role model and problem solver
3. Have Courage
4. Relentless Preparation – answer the unanticipated, sense of calm with practice
5. Establish Teamwork – know the importance of others and invest in them
6. Communicate – use all of your tools

There seemed to be a common thread among all of the speakers as they shared their success stories.

1. Appreciate Life
2. Live in a state of Gratitude
3. Take Action

Sustainable Land Development Seminar – Day 2

“Sustainable Land Development – Ensuring Growth in a Green Economy”

Vertical Integrated Mixed Use Projects

Participants will explore the various mixed use project approaches combining different uses in the same project boundaries and within the same building. This project approach will be illustrated by case study and discussion of regulatory requirements guiding the layout and construction of vertical integrated mixed use projects.


Land Development Engineering Opportunities

Land development engineers will need to re-invent, re-brand and institute structural diversification to lead community growth patterns through action rather than reaction to industry changes: government, partnering, industry professionals, and design trends.


Social Networking for the Land Development Engineer

Not only will the industry alliances change but business development and client relations will change with the technological trends. Social networking will change our industry practices and learn how to effectively use: LinkedIn, Facebook, Tweeter, and Blogs.


Diversification & Profit Centers

Establish new profit centers in your marketplace to establish a solid foundation for consistent future growth for the land development engineer. Discussions will include a traditional client base but approached from “out-of-the-box” thinking. Partnering diversification will focus on alliances which have been overlooked by most land development engineers.


Cluster Land Planning Hands-on Exercise

Participants will compare a traditional single family subdivision to a low impact development approach with different price points but with an identical land price.

Comments on seminar content are appreciated.

Sustainable Land Development Seminar Day 1

Sustainable Land Development – Ensuring Growth in a Green Economy

DAY 1

Land Development Industry Overview

This session is a “look back” at the land development industry and a “look forward” to anticipated changes in the industry as the economy rebounds. A discussion on what engineers will need to know about “green” initiates, energy alternative sources, and future controls implemented by local government. This session will also explore the role of industry professionals in a fragmented but changing industry.


Sustainable Land Development Projects

Defining “sustainability” and discussing the importance of a sustainable land development project will be the focus of this session. Each element of a sustainable project will be reviewed in detail. The discussion will include environmental (“green”) approaches, economic considerations, and social factors.


Low Impact Development

LID is a proven design method for adhering to the goals and objectives of a “green” approach. This session will evaluate each component of LID and consider the regulatory, economic, and market factors affecting project results.


Leadership Energy Efficient Design

An overview of the LEED program and its changes to the accreditation and certification processes. Discussions on the role of the engineer and alliances which need to be forged as this “green” program may become the new norm.


Mixed Use Community Design Case Study

Class participants will work in teams to prepare a sustainable mixed use community land use plan. The class will consider sustainable project factors, marketability, and infrastructure planning to prepare an overall plan for a large tract of land. “Out of the box” planning and engineering approaches will be considered in preparing a land use plan consistent with industry future trends.

Comments are appreciated.

Housing Status - An Excellent Overview

http://seekingalpha.com/article/168311-the-housing-tax-credit-maintaining-a-market-on-the-brink

This article is an excellent overview of the housing industry and it's current status. As you know, there has been positive sales reports of existing homes. Let me outline several thoughts concerning the surge in sales.
1. During stable economic times, builders would raise prices on the new homes in a subdivision because they could and more importantly to create a sense of urgency for the buyer. With prices rising, the buyer needed to get off the fence and make a decision. Buy now or buy at a higher price.
2. This is the same for interest rates. When interest rates start to climb, there is always a surge in home buying. Buyers have to make that decision to buy now or use their crystal ball and guess what interest rates will do.
3. We now have the $8,000 federal housing tax credit expiring at the end of November. If a first time home buyer is not under contract now, they may not close in time to receive the tax credit. Thus, there has been a surge in sales for first time home buyers.

Historically, interest rates should be around 8%. Currently interest rates are below 6% and have been for a long time.

So ...... if prices are dropping and not increasing. Inventories continue to increase. And interest rates are at historic lows, the main reason for the surge in home sales is the tax credit will soon expire. A reason for first time home buyers to buy. Now the rest of the story......

The 3rd quarter was the worst quarter on record for foreclosures.
Housing starts are bouncing along the bottom and at historic lows. See the graph above.
The economy will not recover without the consumer buying anything including homes. And the consumer will not be spending if they don't have a steady income. Jobs, Jobs, Jobs are needed.
Also, the extension of the housing tax credit is needed to sustain sales and create jobs.

Protecting Water Resources with Higher-Density Development

A Report from the USEPA:
Growth and development expand communities’ opportunities by bringing in new residents, businesses, and investments. Growth can give a community the resources to revitalize a downtown, refurbish a main street, build new schools, and develop vibrant places to live, work, shop, and play. However, with the benefits come challenges. The environmental impacts of development can make it more difficult for communities to protect their natural resources. Where and how communities accommodate growth has a profound impact on the quality of their streams, rivers, lakes, and beaches. Development that uses land efficiently and protects undisturbed natural lands allows a community to grow and still protect its water resources.

The U.S. Census Bureau projects that the U.S. population will grow by 50 million people, or approximately 18 percent, between 2000 and 2020. Many communities are asking where and how they can accommodate this growth while maintaining and improving their water resources. Some communities have interpreted water-quality research to mean that low-density development will best protect water resources. However, some water-quality experts argue that this strategy can backfire and actually harm water resources. Higher-density development, they believe, may be a better way to protect water resources. This study intends to help guide communities through this debate to better understand the impacts of high- and low-density development on water resources.

To more fully explore this issue, EPA modeled three scenarios of different densities at three scales — one-acre level, lot level, and watershed level — and at three different time series build-out examples to examine the premise that lower-density development is always better for water quality. EPA examined storm water runoff from different development densities to determine the comparative difference between scenarios. This analysis demonstrated:
· The higher-density scenarios generate less storm water runoff per house at all scales — one acre, lot, and watershed — and time series build-out examples;
· For the same amount of development, higher-density development produces less runoff and less impervious cover than low-density development; and
· For a given amount of growth, lower-density development impacts more of the watershed.

Taken together, these findings indicate that low-density development may not always be the preferred strategy for protecting water resources. Higher densities may better protect water quality — especially at the lot and watershed levels. To accommodate the same number of houses, denser developments consume less land than lower density developments. Consuming less land means creating less impervious cover in the watershed. EPA believes that increasing development densities is one strategy communities can use to minimize regional water quality impacts. To fully protect water resources, communities need to employ a wide range of land use strategies, based on local factors, including building a range of development densities, incorporating adequate open space, preserving critical ecological and buffer areas, and minimizing land disturbance.

Will local governments follow EPA and revisit zoning districts? My guess is no. Then how does it get implemented?

For hard copies, please send an e-mail to nscep@bps-lmit.com or call (800) 490-9198 and request EPA publication 231-R-06-001. If you have any questions concerning this study, please contact Lynn Richards at (202) 566-2858.

Good Morning Thursday

An engineer dies and reports to the pearly gates. St. Peter checks his dossier and says, "Ah, you're an engineer -- you're in the wrong place." So the engineer reports to the gates of hell and is let in.
Pretty soon, the engineer gets dissatisfied with the level of comfort in hell, and starts designing and building improvements. After a while, they've got air conditioning and flush toilets and escalators, and the engineer is a pretty popular guy.
One day God calls Satan up on the telephone and says with a sneer, "So, how's it going down there in hell?"
Satan replies, "Hey, things are going great. We've got air conditioning and flush toilets and escalators, and there's no telling what this engineer is going to come up with next."
God replies, "What??? You've got an engineer? That's a mistake -- he should never have gotten down there; send him up here."
Satan says, "No way. I like having an engineer on the staff, and I'm keeping him."
God says, "Send him back up here or I'll sue."
Satan laughs uproariously and answers, "Yeah, right. And just where are YOU going to get a lawyer?"

Ultimate Fan Package Sweepstakes

For those that live in NC or SC - check this out!

Allen Tate Realtors’ Ultimate Fan Package Sweepstakes rules: NO PURCHASE NECESSARY. VOID WHERE PROHIBITED OR RESTRICTED BY LAW. Open to residents of NC and SC who are 18 years or age or older at time of entry. To enter, visit www.allentate.com and complete the online entry form or stop by any Allen Tate office in NC or SC and an agent can assist you in signing up online.

Sweepstakes begins 10/15/09 and ends 11/15/09 at midnight. Limit one entry per person and per email address. Contestants must provide a valid e-mail address. See www.allentate.com/contest for a copy of the Official Rules. One Grand Prize will be awarded. Grand Prize is:

4 Lower-Level tickets and 4 Passes to the January 3, 2010 Carolina Panthers game at Bank of America Stadium, Charlotte, NC AND;

A signed, framed Carolina Panthers Jersey AND;

A 42-inch LG Plasma HDTV.

(Approximate retail value of Grand Prize: $1,760.00. Odds of winning depend on the number of eligible entries received. SPONSOR: Allen Tate Company, 6700 Fairview Road, Charlotte, NC 28210.

Remember to Interpret the Media

From the South Florida Business Journal:


http://southflorida.bizjournals.com/southflorida/stories/2009/10/19/daily4.html?ana=e_bjtt


Extend the First Time Home Buyer Credit!


Metrostudy: Housing Starts nearing Bottom!


I will continue to post articles of interest as the media and organizations strive to predict the real estate bottom and when the industry will establish an uptrend. All I know is that it took a long time to get into this mess with the help of unethical people. And the real estate industry will establish a "new norm" -- when? Since the real estate industry is a fragmented industry with local markets in over 40,000 local municipalities, should we even care about what happens in California and Florida? Yes, we should watch their market trends and new housing start activity. As soon as CA and Fl markets rebound, all other markets will be positively influenced.

Site Analysis Reports

A recent aerial photograph will be useful in assessing the development opportunities and value of a parcel. In the above case, the property is well located close to a regional mall and across the street from a Super Target and Lowes shopping areas. There are two major interstate highways for access and W T Harris Blvd, the road fronting the property has high traffic volumes.

1. If you had a chance to develop this property to its highest and best use, what zoning would you recommend?

2. If this parcel is 7 acres, what would you do to maximize the value and development potential of this site?

3. What physical characteristics of the site may hinder the development of the property?

Just a few questions that would need to be answered before proceeding with a contract to purchase. This week, we will explore the elements of a due diligence report.

Buy Land for a Profit

1. Buy unimproved raw land for inventory without designs or approvals.
purchase available land at below market prices
prepare site analysis to determine future problems limiting development potential
complete yearly site assessment to ensure regulatory changes do not impact development potential i.e. master plan changes, zoning changes, changes to uses of adjacent properties, etc.
end user is anyone from anywhere

2. Sell unimproved raw land with approved plans and permits
read my White Paper on the Future of Land Development Part I - a discussion on the alliances which will be forged for future real estate development projects
remember - anyone can enter the land development field
prepare site analysis, marketing and project feasibility studies
obtain regulatory approvals and permits
end user: developer, builder, builder/developer, government

3. Sell approved and improved right of way
business plan of a “developer”
requires substantial cash flow & bonding capacity - will be difficult in new era of real estate development practices
design to permit product flexibility
requires covenants and restrictions to protect integrity of the project
design project in phases to limit cash flow and control absorption
developers shift as much cost on to the lot purchaser
infrastructure phases will permit reductions in performance bond amounts prior to completion or obtain maintenance bond status quicker
develop infrastructure
sell lots so that the end user will make a profit and be consistent with the market
end user are homebuilders, individual homeowners, commercial builders

4. Construct Infrastructure and build/sell homes, lease retail, rent apts, etc.
business plan of a “builder-developer”
market sensitive - location, location, location
follow market study but be flexible in market changes - reaction is critical
determine special market segments
end users are individual home buyers for residential, office tenants, renters of apartments, retail commercial, industrial users, etc.

Real estate development is a risk-reward business and will continue to be for those seeking to use land as a business profit center. Next week, I will emphasis rezoning for value.

Overview Website

If you have been looking for a website that provides an overview on most of the social media sites, go to www.addictomatic.com.

Housing 2010

Housing Market: I am convinced that the housing market for new homes will remain flat well into 2010, if not beyond. The housing industry has always been a barometer of the economy - in a down turn and when recovery starts. Builders will be exhausting the inventory of finished lots before the thought of land purchases for design and entitlements. Land prices will continue to slide but will not reach match the reduction in home prices.

Well located land and priced well below the market will be a good investment. If the property has potential for rezoning to add value, then now is a good time to investigate.

We all know that the way we develop land and build homes will change. The process in which to evaluate land for future use will not change. The basics remain intact. We may need to add several new items to investigate but buying land remains an art. In your market, investigate opportunities of forclosed homes with land. I will be discussing site analysis and due diligence work required to evaluate land for development purposes.

Social Media Update

LinkedIn - my group "Land Development" has been growing steadily since late January 2009. We just passed 1,000 members and will continue to gain in professional networkers. This group doesn't necessarily compete with other LinkedIn groups but it is industry specific. Members are from around the world.

I posted a discussion on several groups about the "Future of Land Development, Part II" and requests have passed 200. This adds to my ability to network since my professional sphere of influence continues to expand. What does it mean? I am convinced that social networking is an important component of branding yourself, marketing your expertise, and connecting for projects/jobs/leads, etc. I do know one thing - I would have never known nor have been able to contact the members of the Land Development group without a social networking forum.

With the above in mind, I started this Blog. Did you know that the number of blogs doubles every six months? I have now joined Twitter. I am not sure of its value yet but it is worth investigating. I consider social networking forums to be a tool used to promote my business by giving expertise and very rarely taking from someone else. I would expect Twitter may have a professional reason to use it daily. Once I find out, I will report back and let you know. For those on Twitter, please let us know what you think of its value. By the way, www.twitter.com/RealDevelop.
Facebook - not so much.

The next significant project that I will be launching is an eAssociation. The real estate development industry will change on its own and by government regulation. This group will follow industry trends and support the members in their profession of buying, selling, designing, permitting, approving, constructing, and closing land for a profit.

Change is occurring. I would suggest that it is better to act rather than react when change is happening. What are you doing to keep yourself current and active in social media networking?

Has LEED Lost its Buzz?

http://twincities.bizjournals.com/twincities/stories/2009/10/12/focus1.html?b=1255320000^2236771&ana=e_bjtt

This is a Business Journal article on the status of the LEED program. This program on Leadership in Energy and Environmental Design has been around a while and over the past several years has received free press for LEED projects. In this article, it would seem that the LEED projects are more common place and will not be the marketing edge many owners and architects are seeking. Remember, civil engineers contribute to the project certification. As a LEED civil engineering professional, you would be expanding your networking opportunities with clients and diversifying your client base with architectural firms.

The above building may have been the very first LEED accredited building by addressing the transportation element with creativity and efficiency!

Quote on Engineering

“It is a great profession. There is the fascination of watching a figment of the imagination emerge through the aid of science to a plan on paper.
Then it moves to realization in stone or metal or energy. Then it brings jobs and homes to men. Then it elevates the standards of living and adds to the comforts of life.
That is the engineer’s high privilege.
To the engineer falls the job of clothing the bare bones of science with life, comfort, and hope.
No doubt as years go by the people forget which engineer did it, even if they ever knew. …….
but the engineer himself looks back at the unending stream of goodness which flow from his successes with satisfactions that few professions may know.

I believe, in 1954, Herbert Hoover , our 31st President and only practicing engineer before becoming President was speaking about a land development engineer.

As I tell my students, this is the best time to enter the land development engineering field. There will be a shortage of land development engineers as real estate development projects start up again. That is a good thing!

Distinguish Yourself from Others

http://www.irs.gov/newsroom/article/0,,id=204519,00.html
Sales Tax Deduction for Vehicle Purchases

http://twincities.bizjournals.com/twincities/stories/2009/10/05/daily48.html?ana=tt3245
Target slashes toy prices to challenge Wal-Mart this Holiday Season

http://triad.bizjournals.com/triad/stories/2009/10/05/daily34.html?ana=e_bjtt
Dell closing plant - 905 jobs lost

http://denver.bizjournals.com/denver/stories/2009/10/05/daily45.html?ana=e_bjtt
Economy Improving and 2nd recession unlikely

Just a few stories from yesterday's Business Journals. Not to continue a theme of difficulties but to emphasize the need for us all to:
1. interpret the news
2. expect for the worst and plan for the best
3. take advantage of opportunities. And

"How are we going to distinguish ourselves from our competition"?

We all have expertise; we all have creativity; we all have the desire to succeed in the worst of economic times. Now is the best time to re-brand yourself, ; build on your experiences and promote yourself from the competition. Do this if you are looking for a job; if you are seeking a new client; if you are preparing a proposal for a new project; if you are seeking a promotion............. it is time to do things differently and think out-side of the box! Shape the new norm.

As a Professional Engineer in 5-states, Professional Planner, industry stakeholder for many years, and an instructor at a University, I did not remain idle as our land development industry disappeared before our eyes. I got my real estate license. My emphasis will be on finding land to sell and maybe buy. Through this effort, will I be networking with those that are left standing in the industry? Projects are still being designed and constructed. Just not that many. I will create my engineering work through my real estate work. I plan on distinguishing myself from the competition and just maybe, create a niche that differentiates me from my competition. What is your plan?

Less Bad is Good

My Blog of September 16th addressed the End of the recession - Current Predictions. Not a positive outlook but a layman's view of our economic forecast and the need to plan for the opportunities NOW and for the eventual rebound. Recently billionaire investor Warren Buffett was quoted in the Bloomberg Press from an interview on CNBC as follows:

He called the financial crisis an "economic Pearl Harbor"

"We have not bounced but we've quit going down"

The US economy has "hit a plateau at bottom"

"We're through the worst of it in residential real estate in all probability"

He doesn't expect a double -dip recession. Is this recession a "V" "U" "L" "W" ?

In my opinion and I continue to stress in various postings is that you plan for the worst and expect the best. Three out of the four scenarios defining a recession are not so good.

Expect the way we do what we do to change. We have to be willing to change our business mode of operation to be leaders and not followers. Social media networking is here to stay and you should become a participant.

Ali said "Float like a Butterfly and Sting like a Bee". The best opportunity which MAY BE re-authorized is the first time home buyer credit of $8,000. We hope to never see this give-away again but be ready in case congress re-authorizes the bill. You must know someone that can take advantage of the federal government giving them $8,000 if they buy a home which are affordable at low interest rates.

Stay focused on your goals.

Seminar Textbook

The new seminar that I outlined yesterday will be based on my book addressing large-scale mixed use developments. This book was published by John Wiley & Sons in 2008. I also use this textbook for my class at UNCC - "Land Development Studio".

Last night, the students presented segment one which was a standard single family subdivision with specific bulk requirements. They had to present their project to the class which acted as the general public and politicians. They performed very well and will only gain in confidence and organization as we enter into the multifamily site plan segment of the class. They responded very well in the question and answer session.

New 2010 Seminar

At the end of last week, I finished my discussions and negotiations with ASCE to continue my residential land development seminar into 2010. Seminars and continuing education always fall by the wayside during a recession. My seminar based around residential land development practices was a hit from 1997-2007. The last couple of years, we cancelled more than were held. We agreed on a new title, redefined the goal, and re-established the content. The future of land development and how the industry will work as we surface from this prolonged recession will be the focus of this new seminar. New title:

"Sustainable Land Development - Ensuring Growth in a Green Economy"

As I prepare the two day seminar, I will share the sessions on my blog to gain your input and suggestions. This new seminar will be scheduled for:

June 10 & 11 Minneapolis
July 15 & 16 San Francisco
Sept 16 & 17 Atlanta

I look forward to presenting each session on this blog for your review on relevance and interest. I will keep you posted!

Customer Service & Customer Satisfaction

http://columbus.bizjournals.com/columbus/business_resources/starting_a_business/business_advice/at_your_service/2009/01/19/column60.html?s=sbc:3

The above article by Hal Becker is "Ramp up customer satisfaction for better sales in a down economy". By combining your goals of maximizing your resources to improve customer service will be key elements of business success over the next 6-months. Can we use social networking to replace face-to-face networking? As an example, a house listing that expires will receive multiple contacts from agents by phone, letter and maybe email. How many will make an effort to knock on their door and just drop off information? The sellers need only one agent to help them - and the winner is?

Remember, we need to help people in a down economy. We need to help them do their job better (because they have to work harder with less staff), we have to be a resource for them (because they have to do multiple jobs), we need to show them how to save money (because maintaining cash reserves is essential in a down turn), and we must always have excellent customer service (because stress in a down turn - turns up!)

Use all of your resources to improve your customer service by helping your customer or client succeed. I use my expertise as a valuable resource providing more upfront consultation without charge - more as a mentor. By practicing this approach, I am the winner.

Remember, you need to help your customer or client in a down economy.

Social Media Goal

http://rdnelli.ning.com/profiles/blogs/how-cheap-is-a-social by Rebecka Nelli

http://socialnomics.net/video/ this is a social media blog and the video was posted on this blog several weeks ago. Worth watching again.

Our goal of using social media to our advantage in the marketplace requires us to evaluate our social media options. To find out what works, the best advice is to try each networking site. But first, determine what you goal is in using each networking outlet. Is it professional?; selling a product?; promoting services?; venting?; or just being involved?

I joined LinkedIn less than a year ago and started a group "Land Development" in late January 2009. There are over 980 members from all over the world. This is a specialty group catering to a segment of the real estate development industry. A more general group would attract more members with diversified backgrounds. As an example, Network Charlotte is for anyone in Charlotte NC seeking to network with anyone about anything. This group was started in April 2009 and has over 3,800 members.

Whether it is a specific industry niche group or a general networking group, you must decide your personal, professional, or business goals and how social media can be used to meet your goals. Use the social media options to your advantage and select the otion best suited as a tool to reach your goals.

However, without a doubt, social media will be changing daily and with any new technology, it is best that you jump in now!

Interpret the Media

http://www.nytimes.com/2009/09/27/business/economy/27jobs.html?_r=1

Link to the above NY Times article on unemployment. This article highlights how the number of job seekers clearly outnumbers the job openings by a record ratio. It seems to me that as we bounce along the bottom of the market, the creation of jobs is one of the most important elements of our economic recovery. http://www.nytimes.com/2009/09/30/business/economy/30econ.html?em

Link to this other NY Times article with the headline "US Home Prices continue to Improve, Index Shows"

Yesterday, the first goal for next 6 months is to interpret the media and figure out what it is they are really saying. Don't hesitate to post your comments.

2009-2010 Goals to Achieve

As per Gary Scott, Senior Vice President of the Allen Tate Company, he has defined five action items that we should all concentrate on now and carry into 2010. The commentary is my perspective on each goal.

1. Interpret the Media – every news story has a slant and the entire story must be read and interpreted to understand the emphasis of the story. The title of the article may not all reflect the point of the story. Housing starts, increase sales, consumer confidence, and the economy are subjects slanted by the media outlet for viewership and only one perspective. We owe it to ourselves to be fair and balanced!
2. Return on Investment - are we seeking new ways to do what we do? Technology is changing faster than we can keep up with but it does provide us with a new avenue in which to do our work. Find faster, easier and cheaper ways to do what you do!
3. Maximizing your Resources – are you overlooking any resources that may benefit you? How about a business mentor willing to help, answer questions and provide guidance?
4. Social Media – you must become active in the changing world of social networking sites. The opportunities are enormous and the connections are seemingly endless. Connect and make the world a closer network. I would be glad to provide tips on the use of LinkedIn.
5. Customer Service – we can’t diminish the importance of customer service – no matter what the industry. Communication, reputation, and professionalism will differentiate you from all of your peers!

All of these goals are achievable with a strong foundation of using the fundamentals of your expertise in new venues and in new ways. Using your knowledge, connections, and networking to make 2010 the best year yet will become “The New Normal”.

Sustainable Projects

A follower of my blog, Bill Futral forwarded an interesting development concept. Definitely a niche market but may be a trendsetter in future project planning. Please take a moment and click on the links. Bill and I would be interested in your opinions of this community/concept. http://www.terrain.org/unsprawl/24/
Bill believes when the market comes back that there will be a demand for this type rural setting with conveniences. Serenbe south of Atlanta is another community that has incorporated agriculture in their design. Please offer your opinions. In my opinion, this type of project is very much a sustainable community approach. Most municipalities would not know how to handle the land use designations or zoning classifications. I can easily see developers and designers using this approach in a variety of ways using agriculture as a component of a mixed use community.
Contact information: Bill Futral
bill@futral.net
www.futral.net
http://www.linkedin.com/in/bfutral

Social Sustainability

A community is composed of people as well as the places where they live; it is as much a social environment as a physical environment.
Communities must not only be environmentally sustainable, they must also be socially sustainable.
We should promote local area design plans that consider and reflect who will live in an area, both now and in the future.

Mixed use is seen as essential for social sustainability because:

• Different uses create a sense of place, community, life and vibrancy.
• Local people can make the most of the infrastructure by using it in different ways at different times of the day.
• Local people do not need to drive to their nearest facilities, providing health and environmental benefits to local residents
through walking and fewer exhaust emissions.
• Residents are not left out of opportunities that may need long-distance travel or that may not be in their local area.
• Local employment opportunities are available.

These communities balanced economic, environmental and social factors into successful examples of sustainable mixed use community projects.

Reston Virginia
Columbia Maryland
Irvine Ranch California
Celebration Florida
Seaside Florida

However, to consider sustainability as a main stream approach any policy change at the local level must be embraced by the citizens at the local level.
If a project is marketing “green”, this does not represent sustainability in real estate development.

Small scale vertical integrated mixed use provides in-fill
opportunities adhering to the principles of sustainable development.

Large scale planned horizontal mixed use community design provides the proper
balance between economic, environmental and social considerations.

Economic Sustainability

Economic sustainability in any community is difficult to achieve and measure.

Economic sustainability and development is influenced by market, physical, regulatory, financial, and political issues.

Economic sustainability is constantly changing because of growth pressures.

Therefore, whether it is at the federal, state, or local level, virtually all entities view economic sustainability and address economic development differently.

Economic sustainability can be achieved by:

1. Amending Land Use and Development Codes to require a fiscal impact analysis for major development projects
to determine if the development would benefit the community from a financial perspective.
2. Pursuing opportunities that diversify the basic industries and revenue streams within the community
3. Evaluating land use needs, availability and patterns for industrial and commercial uses.
4. Identifying, seeking, and recruiting target industries.
5. Understanding the local economy, economic development capacity, and supporting infrastructure.
6. Diversification – Mixed Use Developments