To Flip or Not to Flip?

We are well aware of the flipping craze that is taking both our nation and TLC by storm, and we have all certainly heard the perks and the drawbacks to pursuing these types of projects. We have heard many stories about impressive sums of money being both made and lost, and even our fair share of horror stories when it comes to the actual work that is done on the property. There is however, one aspect of a flip that I seldom hear anyone speak of : the COORDINATION efforts involved in making a flip a success. A word of warning for those contemplating a flip – this can become a full-time job! If you have a busy lifestyle as is – you may want to reconsider.

Not only does one person have to have done their homework in finding the right opportunity (a daunting task in itself), but the actual execution of the flip can require over a dozen different parties! Between architects, general contractors, bankers, mortgage specialists, realtors, and a half dozen subcontractors (minimum) – the amount of meetings and volume of correspondence is mind boggling. This doesn’t include the due diligence phase of hand picking the team members from a long and detailed list of potential candidates.

When you add up all the projected revenues and expenses from the project, do not forget to factor in the value of your time! When you figure out your initial projected timeline, factor in how valuable that time is to you, and subtract it from your profits to get a better idea of the true profit. Don’t forget to pay yourself!

 

Thoughts?

Lowest and Best Use?

Those familiar with Real Estate certainly know about the Highest and Best Use Principle. It states that the highest and best use of a property is one that produces the highest property value. Now while `highest` here doesn’t necessarily mean to build up, when I say LOWEST, I do however mean to build downwards – a little play on words. Now I have worked in buildings that had office space, workshops and gyms atleast 60 to 80- feet underground. If one watches the beginning phases of the construction of office towers, they will see what I am talking about. Now what if this principle was applied to other types of buildings? What if industrial buildings were to keep their warehouses underground? What if residential buildings had basements with 12 foot ceilings? Grocery stores and their stock, retailers and their clothes etc. With current technology, architecture and design, underground space need not be limited to boiler rooms or parking garages anymore – and it isn`t. If one spends about 5 minutes on GOOGLE, they can find magnificient examples of how the ground below us is being developed in certain parts of the world. What I am suggesting is thinking about how everyday development projects may make use of this concept. If landowners are looking to maximize the use of their land and make use of its potential – they should not only consider building up to maximize the surface area, but also those aspects of the development that may be just as well suited below ground.

What are your opinions on building underground?

Agricultural Innovation out of Necessity?

I have a Global Environmental Challenges class at the University of Ottawa, and we are currently focusing on population dynamics and the strain it is causing on the earth. It got me thinking… what may need to occur, or what would `save` the world if you will, is another agricultural revolution. With the whole `green movement` as of late, there has been a tremendous focus on innovation in Real Estate development. What is missing (in my opinion), is architectural innovation with respect to agricultural land development – building UP instead of OUT for example. I know there are already people working on these types of ideas – I have seen a picture or two. My question is… what do you think will happen to the value of agricultural land if (or maybe WHEN) there is another agricultural revolution, and new and innovative development is ALLOWED on agricultural land?

 

Is this something that you think could ever happen?

 

Global trends would have me believe that such an event may happen out of necessity (main driver of innovation), and when it does – the currently low valued AG land may skyrocket.

 

 

The Power of Positive Role Models

From the early age of one or two years old, young children begin to copy other peoples’ behaviour.  Over the next few years, these children will begin to take on behaviours and gain a sense of self and follow through on their own ideas.  It is during this impressionable time that a positive role model will be able to influence a child’s life and create a foundation for positive and constructive behaviour.  Many children become inspired to aim for goals and achieve ambitions which they think are beyond themselves.  Here, qualities that are highly valued by business, such as perseverance, strong work ethic, determination and pride begin to grow.

In a recent survey, 100% of respondents explained that they have adopted more than one positive or constructive trait from a positive role model. Qualities that were said to be inherited directly from a positive influence included confidence, courage, self-control, sense of responsibility and the ability to prioritize and self-manage. These qualities are extremely valuable to employers because they are qualities that one can only teach to a certain extent. These qualities maximize their potential only when they are adopted by inspiration. Such deeply rooted qualities make up the content of ones character and are strong and constructive traits. Since employees are a company’s most valuable resource, the quality of this resource will play a dominant factor in how successful a business can become.

 

Perhaps one of the most important aspects of positive role models is that they are able to reproduce themselves in the sense that the defining qualities of the role models transfer themselves into new hosts via adopted behaviours. Since these traits cause one to act or behave in a certain manner, positive role models could be interpreted as a source of renewable energy. This process becomes a pattern, where the new host refines and displays the inherited qualities that in turn inspire others, further spreading the influence. This process is recognized as being so significant and vital to society in general that many organizations’ sole purpose is to bring forth and refine these qualities. The University of Ottawa is a great example of such an organization.

 

 

If a business is able to fully comprehend how positive role models are created and how they can reproduce themselves, it can, if carefully managed, harness this power for their own purpose. The beginning of the positive role model cycle explains that certain behaviours arise from specific needs. The key here is to create an environment where a need can become satisfied if certain behaviour is presented. Once the behaviour is presented, it is to be glorified and rewarded accordingly. This will in effect inspire others to adopt similar behaviours; the cycle of the positive role model begins. If this environment is properly managed, it can be used as a system that creates positive role models that demonstrate values, ways of thinking and acting that are in accordance with a business’s vision and purpose.  

 

The influence of positive role models on business is one that is invaluable. Positive role models are a unique form of energy for businesses because they are able to motivate and inspire workers to perform at a level would otherwise seem beyond themselves. Most notably, this source of energy is able to reproduce itself in the sense that the traits that make up a positive role model are contagious, and pass along from person to person in the right environment. Using this knowledge, a business should be able to create this environment and use the concept of positive influence to guide the direction of its employees in the direction its vision and purpose dictates. The central theme of this blog will hopefully inspire original thought in the reader about how positive role models not only affect themselves and those around them, but how business models and certain situations can benefit from the concept of positive influence.