Friday, October 30, 2009

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

Wednesday, October 28, 2009

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.

Tuesday, October 27, 2009

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.

Monday, October 26, 2009

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.





Friday, October 23, 2009

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.

Thursday, October 22, 2009

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?"

Wednesday, October 21, 2009

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.

Tuesday, October 20, 2009

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.

Monday, October 19, 2009

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.

Friday, October 16, 2009

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.

Thursday, October 15, 2009

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.

Wednesday, October 14, 2009

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.

Tuesday, October 13, 2009

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?

Monday, October 12, 2009

Has LEED Lost its Buzz?




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!

Friday, October 9, 2009

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!

Thursday, October 8, 2009

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?

Wednesday, October 7, 2009

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.

Tuesday, October 6, 2009

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.

Monday, October 5, 2009

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!

Friday, October 2, 2009

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.

Thursday, October 1, 2009

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!