Plethoric cornucopia of plenty

Lease vs Mortgage Superiority

2009-05-21T19:33:00.000-07:00

Lenders are seeking to protect their investment by ensuring that, in the event of default, they are superior or, "first-in-line," to have their investment dollars returned and to control the foreclosure action. Depending on the jurisdiction, a foreclosure proceeding can terminate a leasehold interest in property unless the lease is either superior to the mortgage or contains an appropriately worded subordination, nondisturbance and attornment agreement (SNDA). How this is structured (SNDA vs superiority) is established in advance of any foreclosure proceedings and grants control and certainty to either the tenant or the lender.

Without either an SNDA or a superior mortgage a tenant's leasehold interest in the property is subject to the goals and strategies of the lender and their efforts to make the building more appealing for potential buyers. If the tenant is paying above-market rents with an otherwise agreeable lease arrangement the lease may be allowed to survive. If, however, the tenant is paying below-market rent or is in an otherwise tenant-friendly arrangement, it is more likely the lender will terminate the lease document.

Tenant Improvement Dollars

2009-05-19T19:30:00.000-07:00

When evaluating a lease document for TI dollars there are numerous components to track and be aware of. The ultimate dollar value receives the most scrutiny, but it is also important to review what costs are eligible for TI reimbursement, what happens to unused amounts and what prerequisites must be cleared before a Tenant is eligible to receive reimbursements from the Landlord.

The Tenant's goal is to derive the maximum benefit with the fewest restrictions to be received as early as possible. The Landlord is seeking to contribute as little as is required, protect their interest in the property and delay making any dispersal for as long as possible.

Landlord's can require lien waivers, COIs, occupancy permits, inspector approval or other control points be completed before reimbursing the Tenant for capital expenditures. If there is a time limit for the reimbursement, 60 days or 180 days from a given benchmark for example, the Tenant must be sure to complete all required steps by the stated deadline or risk losing the TI amount.

Craigslist Suit Raises Red Flags

2006-10-06T08:35:00.000-07:00

Craigslist Suit Raises Red Flags
By Rosmond Jones Dolen Esq.
Units (publication of National Apartment Association)
April 2006 issue

Two legal documents provide conflicting advice regarding online real estate postings. The Fair Housing Act (FHA) says that it is illegal to discriminate based on race, color, religion, sex, handicap, familial status and national origin in regard to real estate sale or rental transaction. The Communications Decency Act of 1996 (CDA), however, states that providers or users of interactive computer services are not considered publishers or speakers of content/information provided by a third party.

This conflict potentially immunizes online “publishers” such as Craigslist from being persecuted for discriminatory housing practices. The CDA does allow, however, for persecution of the person who posts the ads. Often the identity of the individual is not known due to anonymous posts or encoded information, which is held by website and not readily distributed.

Often legal action is taken against the publishing organization for a few reasons. First, corporations have deeper pockets. Suing an individual for discriminatory listings would be less lucrative and more difficult. Second, suing a publisher has the effect of forcing the organization to be more proactive in the elimination and monitoring of all adds effectively creating a more widespread solution to the problem.

Further difficulties arise in the definition of “discriminatory ads” examples given in the article range from “only Muslims apply,” to “Very quiet street across from church.” The latter being, apparently, implicitly discriminatory because some residents prefer the situation over others.

Suggestions given by the article to avoid discrimination include:
Follow the requirements of the FHA
Don’t try to circumvent the law by posting discriminatory content anonymously
If in doubt, check HUD’s guidance to advertising online
Report housing discrimination

Print is Not Dead

2006-10-06T08:33:00.000-07:00

Print is Not Dead
By Lisa Trosien
Units (publication of National Apartment Association)
April 2006 issue

There has been a major swing in opinions over the past few years. Previously owners and managers of rentals were waiving off internet marketing as a “fad” and a medium not frequented by their clientele. Now these same owners/managers are proclaiming that print is dead and all their leases come off the internet.

What is missed by many owners/managers is that print advertising often directs potentials tenants to websites for more information. The most powerful method of advertising is creating print and online advertisements that complement each other. When tracking lead generation, ask “where did you see our advertising?” rather than “where did you hear about us?” the difference between these two questions is the number of sources the individuals are encouraged to cite.

79% of renters use a variety of methods to find their apartments and typically use three to four sources. When marketing a unit it is important to be strategic and consistent with the message and diversify the marketing approaches.

Rent-to-Buy Plan Gets Residents in the Door

2006-10-06T08:30:00.000-07:00

Rent-to-Buy Plan Gets Residents in the Door
By Larry Schaffel
Units (publication of National Apartment Association)
June 2006 issue

40% of tenants are not “very likely” to renew their leases and the top reasons are relocation and homebuying. A Chicago developer has begun using a program dubbed RentBUY to provide tenants the opportunity to contribute up to 25% of their rent to the eventual purchase of a home. As a marketing tool this has proven very effective in attracting tenants who intend to buy homes. Additionally, the developer has constructed units and homes to both rent and buy meaning they retain tenants within their company when they choose to buy.

Thursday, 10/5/2006

2006-10-06T08:28:00.001-07:00

We had our weekly sales meeting in the morning. Some potential deals are in the works at the office, some listings and some price reductions, nothing outstanding. I was able to inform everyone about my upcoming meetings and potential listings so that was encouraging.

Todd and I reviewed property valuation using Metroscan and the MLS system finding comparable property sales in the vicinity of two properties I am looking to list this in the coming week. The best approach is to look for properties as similar as possible to yours that have sold in the previous 6 months (up to 1 year if necessary). Luckily we were able to find a few properties that had sold and a couple whose listing expired which will allow us to provide an up to date and accurate price range for the property.

We were supposed to have a meeting with a perspective seller at 3, but there was a miscommunication and we have had to reschedule for Monday. It was almost my first face to face meeting with a seller, but I guess I have to wait till Friday to accomplish that.

Tomorrow I send in my application for the St Louis Association of Realtors so I have my own access to the MLS and other informational databases.

Wednesday 10/4/2006

2006-10-06T08:28:00.000-07:00

Today I spent the majority of my time reading articles regarding apartment ownership and management. The way in which I can make myself the most valuable to my customers is to be able to contribute to their current status whether they are interested in buying/selling their property or are simply looking to manage their property to make the most money. As I read articles I will cite the original information source and write either an abstract or a outline of the important points. The articles will be posted by their title.

Ninth Day - 10/3/2006

2006-10-04T09:10:00.001-07:00

AM training was focused on active listening and its impact on everything form cold calls to ongoing meetings and providing the best service we can to clients/customers.

I made one call today because that is all I needed to setup a meeting on Friday with a woman who is looking to sell two properties and buy a new investment building closer to her home. She works for a local mortgage firm and many of her clients are looking to buy or sell investment properties as well. Talk about a great contact to have made. We spoke on the phone for 10 minutes and I am very much looking forward to meeting her in person.

Being in the information industry one of the best ways to improve myself and the value of my services is to become more educated and active in real estate, property management and the local market. I will begin posting articles relating to these topics on the blog. The posts will be abstracts of articles and will cite the original source so readers may obtain the original if they so desire.

Eighth Day - 10/2/2006

2006-10-04T09:10:00.000-07:00

I’ve begun setting up my cold calls in sets of 10. During the calling process I keep track of how many people I speak with and their responses. I spoke with one woman during my morning calling session who is interested in selling a different property than the property where I picked up the for rent number. Over lunch I drove by and the property is nice looking from the outside and is 100% occupied. I will call her back and see if I can get a listing on the building.

We listened to the 2^nd half of the Steve Shiffmann CD, my notes of which will be posted in a separate posting.

Timing is everything. I spoke with a man in my afternoon round of calls who, upon being asked if he wants to sell his building simply responded “yes.” He is out of town until Saturday afternoon but we will be in touch Monday morning and set up a meeting at his building so I can get a listing.

Seventh Day - 9/29/2006

2006-10-04T09:09:00.000-07:00

FINALLY, (I guess it has only been a week) I made some cold calls. I called 10 for rent numbers I picked up the other day. The numbers have been entered into a new database I created that includes name, address, phone number and property descriptions of each person called. Before any new number is called it will be cross-referenced against this database to ensure either they haven’t been called previously or to adjust my introduction based on previous calls.

There were a couple people interested in buying additional properties but no one eager to sell. After reviewing my calls I found myself being too “soft” on the calls and not strongly pursuing my script and a meeting. Next time I will continue to push for meetings.

Todd and I listened to the first half of a cold calling CD from Steve Shiffmann. I will include a copy of the notes I took in a separate entry after we have finished the course.

I left the office at 12:30 and drove around my farm area for 4 hours picking up nearly 100 phone numbers of multifamily properties for rent. This will be the beginning of my database.

Sixth Day - 9/28/2006

2006-10-04T09:08:00.000-07:00

We had our weekly sales meeting this morning where discussed new properties listed in the office and market trends. After leaving the meeting I was prepared to make my first cold calls, but after doing a little more role playing with Todd, I got cold feet and retreated to my computer to script some responses.

I did learn an interesting method of property valuation. When calculating a return/cap rate for a property many investors account only for utilities and maintenance expenses. In actuality, many additional expenses are associated with rental units including marketing, credit checks etc. the average figure according to research firms is between $2500 and $3500 per year per unit not including financing payments. The range of these figures is associated with the age of the building, style of construction, turnover of tenants and location implications of the building. These figures represent “hands free ownership” where you pay a third party for all activities.

These figures are significant because if a building is owned free and clear, i.e. you pay 100% cash for the property, rents must be approximately $300/month per unit to break even. Once mortgages and financing is included the break even amount increases. I also learned the term “buying a job” because if you buy a property with the intention of performing maintenance and management tasks yourself, you are essentially buying a job. What people fail to include in their property valuation figures is compensation for time they spend working on the property.

Fifth Day - 9/27/2006

2006-10-04T09:07:00.000-07:00

Apparently due to Brokers renewing their licenses and new rules regarding license issuance, there is a huge backlog at the MREC. Apparently I can expect to receive my Broker license no earlier than mid October.

Todd and I went to look at a FSBO property on North Kingshighway this morning. The owners are looking to exchange into a strip center from the 20+ unit apartment building. The property is advertised as partly improved and we looked at one of the “improved” units. It appears that a lot of the repairs have been cosmetic with a few broken windows.

Todd had apparently looked at the property previously and had some very interesting comments about the status of the building, its operations and the location.

We returned to the office and practiced a few more calls and planned additional responses to “nos.”

I spent the afternoon walking around a couple streets in my farm area collecting for rent addresses and phone numbers. For Rent signs are a great way to generate leads for a number of reasons. First, the numbers are readily available and it shows if the building is managed by a PM or by the owner etc. Second, one or more units are empty and the property is cashflowing less than the maximum amount which might create a negative cash flow situation, aka motivated seller. Third, there is at least one unit vacant meaning if a meeting is set up, you can see a unit without interrupting a tenant and have a quiet/private onsite location to discuss a listing.

Fourth Day - 9/26/2006

2006-10-04T08:52:00.000-07:00

On Tuesday mornings Bob provides training. All new agents are required to attend and it is optional to more experienced agents. Today’s topics covered the impact of the current housing market on rental properties, negotiations and escrow account management.

After the meeting I met with Todd and we role played some cold calls. His responses were much more positive than what I can expect to receive during actual calls, but the emphasis was on dialogue and responses.

I was amazed at how different it is to listen to Todd make calls compared to our simulated calls. The key to a successful call is having a purpose and direction to the phone call whether it be a meeting, a listing, information etc.

Third Day - 9/25/2006

2006-10-04T08:51:00.000-07:00

I drove around the three zip codes on Friday and have decided to focus on the 63109 zip code. The area encompasses over 1000 multi-unit properties, the majority of which are 4 family (720) but that also includes numerous larger properties. This area will allow me to become experienced listing and selling some 4 family units while also allowing scalability to large units as my experience increases. The area includes all or parts of 5 neighborhoods and has local business associations, housing corporations and local groups, all of which will provide an excellent opportunity to network and get to know the area.

Todd and I identified properties both for sale and for rent in Sunday’s paper and called for more information. It was interesting to listen to his pace of conversation and line of questioning that ultimately leads him to a meeting, listing, information or whatever he determined was the purpose of the call.

I need to create or find a database program that allows me to list and group contacts. Todd suggests listing the contacts by phone number so that before I call, I search for the number and find out if I have contacted them previously if they have had previous property listings etc. Phone number is ideal because in the paper the name is not always included and can be hard to obtain.

Another tool that will be extremely valuable when I cold call will be a tracking system. The calling process has been described by many as a slot machine. Every time you “pull the lever” you have a change to “win.” When you pull the lever and don’t “win” and you know that for every 10 calls you make you will get 5 appointments, then every “non-win” is simply one call closer to the “win”

Second Day - 9/22/2006

2006-10-04T08:50:00.000-07:00

I picked up a map of St. Louis on my way into work today. I need to begin identifying a Farm Area. A Farm Area is a geographic area of specialization where an individual knows the market intimately, market drivers, neighborhoods, streets, rents, investors, etc.

I began using Metroscan in conjunction with Google Maps and Zillow to identify promising areas. I’ve narrowed it down to three zip codes in St Louis City.

First Day - 9/21/2006

2006-10-04T08:49:00.000-07:00

I arrived at 9 am for a weekly update meeting with the real estate group. The meeting was casual and informative with information primarily provided by Bob, the managing broker regarding the residential and commercial real estate industries locally and nationally. While foreclosures and listings have increased dramatically over the previous year the market is favorable for multi-family properties and investment properties.

After an initial overview of the MLS system I met with the trainer/mentor, Todd, and we spoke about the training process and research/information tools. MetroScan is a program which uses city and county Assessors’ information to provide a searchable database of properties. MetroScan used in conjunction with the MLS database and other informational sources is a primary provider of leads and research.

One of the major delays in getting started is going to be getting my license assigned to Bob. At the moment I have a temporary work permit which has been approved by the MREC. Within a few days I should have received the individual broker license. Once I have the license it can be returned to the MREC and a Broker-Salesperson license can be placed with Bob.

What I learned today:

Brokers are information providers
Property owners have four actions they can take

Sell
Buy
Hold
Exchange

Lead generation practices

Tomorrow I have four tasks to complete:

Define farm area
Identify existing “players” in the farm area
Begin compiling contact information database
Meet other agents in the office

I’m extremely excited about working with the professional at Realty Exchange and am confident that the combination of their guidance and my hard work and persistence I can be as successful as anyone in the industry.

Meetings

2006-10-04T08:48:00.001-07:00

I spent three weeks talking with principals and managing brokers of many firms in St Louis getting to know the industry/market and looking for employment opportunities. Each person I spoke with addressed the difficulty of getting started in the industry especially from a financial and motivation stand point for the first 3-6 months. Commercial real estate is driven in large part by knowing an area’s prices, rents and investors very well and being able to network with owners. Developing this network is a long and difficult task.

Ultimately I joined Realty Exchange, a firm with department focusing exclusively on various areas of the market. Appartment Exchange is the property management branch, Coldwell Bank Premier is the Residential branch, Realty Exchange is the multi-family and investment branch and Realty Exchange Commercial Group focuses on retail, office, industrial and land brokerage.

I selected the multi-family and investment branch to begin because it is what initially drew me to commercial real estate, is the most relevant to my interest and has a faster learning curve than other segments.

Broker License Application

2006-10-04T08:48:00.000-07:00

The application was provided by AMP with the results of the exams. To receive a salesperson’s license, the license must be held by a Designated Broker and said Broker must sign the application and provide the business location for the MREC to send the license. I applied for an Individual Broker License since I did not have a broker to associate with and had to complete the application immediately. The website where I took my education requirements provided Certifications of my having completed the courses. Since I was applying for a Broker License I had to supply a Consent to Examine and Audit my escrow account.

The application says it takes 3-4 weeks to receive a response so by late September I hope to have a response. And barring an unexpected discovery during their background search I will be a licensed Independent Broker.

Escrow Account

2006-10-04T08:47:00.000-07:00

All licensed brokers in Missouri are required to have an escrow account. The account must be registered with the MREC and the MREC must be allowed to review and audit the account at any time.

I contacted my local bank, Bank of America (BOA), and asked my service rep if they offered escrow services and how long it would take to set up an account. The rep said he would investigate as he wasn’t familiar with escrow accounts and get back to me. I’ve found its very helpful to find people like this service rep who are reliable and will help perform research into certain topics. He called be back 30 minutes later and said they would set up an account but would take no part in its management. I met with him that afternoon and 15 minutes later the account was established.

According to Missouri License Law, the account cannot be interest bearing unless all parties who have an interest in the escrow funds (buyer, seller) agree that the account be interest bearing and agree who receives the interest accrued. I kept it simple and asked for a non-interest bearing account, which I’m sure BOA won’t mind providing.

License Success

2006-10-04T08:46:00.000-07:00

I have passed both the Salesperson and Broker License exams in Missouri with scores in the mid 90%s. I wasn’t particularly comfortable entering either exam. If I had not needed to complete the courses within such a tight timeframe, I would have taken an additional few days to study the content for each exam. However since one only needs 75% to pass the exams, it worked out just as well.

The exams are pretty interesting. The facility is run by Applied Measurement Professionals (AMP). The facility consists of 25-30 computer terminals. Before you walk in they load the test you are about to take. After a brief introduction to the testing platform and commands you complete a practice exam of 10 questions.

The candidate completes the exam at their own pace (with a maximum time limit in place) and can mark questions they are uncertain about and return later. Upon completing the exam, one fills out a review of the facilities and test proctor. By the time you leave the examination room the results are printed and delivered to you.

Salesperson and Broker Content

2006-10-04T08:45:00.000-07:00

As mentioned in previous posts, I obtained both the Salesperson and Broker Licenses simultaneously through an online real estate school. While I was expecting the content to be similar, I also presumed the Broker content would be more detailed and in depth. I was therefore very surprised when the content for both were identical. The slides used to convey the information were not just similar; they were the exact same slides I had read just weeks earlier for the Salesperson course.

While this came as a surprise, it certainly reinforced the material I had learned and allowed me to understand it more thoroughly. The test itself was more difficult in some aspects, especially the math portions, but very manageable.

Real Estate License

2006-10-04T08:43:00.000-07:00

The requirements to obtain Salesperson and Broker Licenses are controlled by State Governments and enforced by the State’s real estate governing body. In Missouri, real estate practice is overseen by the Missouri Real Estate Commission (MREC). On August 28^th, 2006 an amendment to existing rules and regulations took effect increasing requirements for obtaining a Broker License.

Prior to August 28^th, to be eligible for a Broker License an individual needed to either;

a) have been actively involved in the Real Estate business under a licensed Broker

for 12 of the previous 18 months, or

b) have taken a 48 hour Broker License course.

With both choices, the individual would have to take and pass the Broker exam and apply for a Broker License with the MREC. After August 28^th, individuals need to be actively involved in the real estate business under a licensed Broker for 2 years to be eligible to take the licensing exam and must still apply through the MREC.

The information regarding this bit of legislation was an important factor in my decision to obtain both Salesperson and Broker Licenses simultaneously. I learned of the change when I was in Wyoming through a friend’s father with whom I had met and expressed my interest in the commercial real estate industry in St Louis.

Beginnings of Real Estate

2006-10-04T08:41:00.000-07:00

I’ve known for a long time that I was interested in real estate and viewed my recent move to St Louis as the perfect opportunity to transition into the industry. A license is required to participate legally in the profession, Salesperson’s License at minimum and a Broker’s License is required to act independently. I also knew that I wanted to get a Broker License if possible to allow myself the greatest immediate and future flexibility within the profession. I researched distance education programs as I was still in Wyoming at the time, and decided upon www.realestateexpress.com.

The courses were structured into State and National portions and further subdivided into categories specific to the test and content. There were usually eight to twelve units per category which contained 10-15 slides each. The slides were similar to power point slides densely packed with information and split their form between bullet points and paragraph narration. A few situational examples were provided to make the content more tangible. Supplemental materials were also provided; the Missouri License Law in its entirety, practice tests and an online textbook

Selling the Air Above

2006-03-06T10:53:00.000-08:00

Selling the Air Above

Fascinating article about Air Rights sales and negotiations in NYC.

Retail Without the Risk

2006-03-02T14:53:00.000-08:00

Retail Without the Risk

This is an article I found while browsing through the CNN website. At this point in its evolution, I believe everyone has heard of Ebay and numerous stores that have sprouted up utilizing this ecommerce tool. This article describes a highly successful couple's Ebay store adventures from drop shipping TVs to a highly profitable product, atuo floor mats. The article contends that with the myriad of people/businesses trying to make money selling tech products through Ebay this approach no longer works; tech has been commoditized.

Opportunities are still available identifying niches that are underserved such as Floor Mats for pre 1999 Ford Automobiles, finding a supplier of these products and listing it on Ebay. The situation the Casper's have negotiated allows them to sell the mats while investing in and holding zero inventory which makes it a risk free business. With sales topping $1000 when their current auctions come through, this business is highly lucrative.

The message of the article is, of course, not to demonstrate how much money there is to be made in auto floor mats, likely within 3 months of this article's publication the mat market will be commoditized much like tech products. Rather, the article communicates the opportunities that are available serving niche markets on Ebay. Something to keep in mind.

Two Interesting Entrepreneurial Link

2006-02-27T11:33:00.000-08:00

The first website is Idea-a-Day.com. While listening to Purple Cow by Seth Godin. Idea-a-Day provides a subscription email service that, as one might expect, sends one product/service idea per day to your inbox. Today's (2/27/2006) idea was number 2020, meaning they have been providing this service for over 5 years. The ideas, range from interesting and immediately applicable, to products requiring years of R&D to implement. The ideas, however, initate a thought process and jump start creative thinking that can apply to any situation.

The second website is BPlans. I was searching for sample business plans and structures to follow in my composition of three business plans and came accross this site. It offers samples, outlines and advice on the structure and content for business plans. The site also offers excellent legal, marketing, financial and general advice for the entrepreneur. I've browsed around for 15 minutes getting a feel for the site and am under the impression that it offers even more than I have mentioned above.

The ABCs of Real Estate Investing by Ken McElroy

2006-02-24T10:42:00.000-08:00

ABCs provides an excellent insight and how-to for anyone interested in Real Estate investing. Written as part of the “Rich Dad, Poor Dad” line of books the author, Ken McElroy, provides the well written informative book that loyal readers have come to expect of the series. Ken has been investing in Real Estate, primarily in Arizona, for many years and has developed quite a successful track record. He was approached by Robert Kiyosaki, originator of the “Rich Dad, Poor Dad” series, to write this book imparting his knowledge of the industry.

The basic premise of ABCs emphasizes investigating the local market, its current state, growth potential and individual properties, building a cohesive team and buying the right property to maximize return. Chapter subjects include; putting together the investment team (brokers, management companies, attorneys, etc), attaining financing, improving the facilities, and preparing the property for sale. All subjects are well described and investigated, providing recommendations based on years of practical experience.

I’ve read a number of books on Real Estate investing, but have yet to find one that provides the level of detail that can be found in ABCs. After reading this book, I have a much more concrete idea of how to initiate the investing process and how, through diligence and patience, one can find properties that have higher profitability and higher success rate.

Getting Things Done by David Allen

2006-02-23T14:09:00.000-08:00

This book was phenomenal. In a market that is well-saturated with self-improvement books, magazines, websites and personal coaches, Getting Things Done seems to distinguish itself. Author David Allen discusses methods and the logic behind the methods that allow an individual to “de-stuff” both personal and work lives.

His premise is built on the fact that our memory is like computer RAM. It can only handle so many thoughts and topics at once. If we are filling this space up with thoughts of what to get at the grocery store, projects at work and weekend schedules, we are not at our intellectual peak and cannot be truly creative or stress-free.

Many people claim to use systems such as ABC prioritization, calendars, to-do lists etc. Often times these systems are imperfect and require a serious life change and large time allotments to truly have an impact. The system introduced by David Allen begins with the simple step of writing thoughts down, getting them out of your head and freeing up that mental capacity for more complex or original ideas. Once written down it goes into a trusted system of project lists, next actions, calendars etc in a systematic and formulaic manner that is extremely intuitive.

The processes outlined and discussed by David Allen will work for individuals to corporations and accommodate every situation imaginable. I am going to listen to the book again in a few months as suggested by the author to further implement his system. I highly recommend this book or audio book to everyone. It will reduce the clutter and “stuff” in your life, reduce stress and have an overall positive impact whether you follow all of his suggestions religiously or only implement some points.

When Two Companies Are Not Enough

2006-02-23T09:11:00.000-08:00

When Two Companies Are Not Enough

This article introduced me to the term "Serial Entrepreneurs." These are individuals who become addicted, for lack of a better term, to starting up their own companies, making them successful and selling them. Many have made careers from working on a concept for 2-5 years and then moving on to the next opportunity. Serial Entrepreneurs view this "flipping" of companies as a game in which the score is kept in units of millions made and number of companies started. Their personalities make financial costs incurred and physical/mental stresses endured small prices to pay for playing the game.

I found this article interesting becuase these Serial Entrepreneurs have numerous ideas that they see through to fruition then move on. The don't have a short attention span, they simply have many interests and act upon them. I hope that in 5 or 10 years this term will be applicable to myself, my business interests and my entrepreneurial ventures.

The Ever-Leveling Playing Field

2006-02-21T11:38:00.000-08:00

A Cyberfueled Growth Spurt
From The New York Times

This article was sent to me by my dad who is always on the lookout for interesting news bites especially regarding technology and its practical applications.

The article further investigates a now well-known concept; technology levels the playing field. The author cites how the evolution in the internet, email and programming is allowing companies to cater their services to small businesses (defined as ranging in size from 1 to 500 employees), a market segment previously ignored by larger companies. Using software like Microsoft's Small Business Server and search engines such as Google, companies are able to dramatically reduce operational overhead and target their marketing strategies on segments that are more likely to respond to their product offerings.

While not groundbreaking in its findings, the article provides interesting insights and specific examples which are encouraging to any entrepreneur and small business owner.

Photography

2006-02-15T13:00:00.000-08:00

For the past week I have had the opportunity to shadow and work with Ken Redding, a professional photographer JHMR contracted with for photos of the resort. Ken has 30+ years of experience in the photo industry and has some big name clients he works with. His equipment ranges from WWII cameras to the latest in digital technology, from working with natural light to rigging entire studios with his lighting equipment.

Seeing how he setup shots, interacted with models and supplemented natural light with equipment was truly an interesting and educational experience. I came away with the realization that there is money to be made in the photography industry, but one has to be very focused, self aggrandizing, and talented. I can see how photography will play an intricate role in some future businesses and how it will be a hobby of mine for a long time to come.

Mac vs Mac

2006-01-26T14:07:00.000-08:00

You might think the title for this post odd. I'm trying to decide whether or not to buy a new computer and if so, which to purchase. One might expect the title to be "PC vs Mac" or some variation, not here. I've made the decision that enough of my money has been "donated" to PC companies for products that work for a virus infested, sluggish period before finally crapping out and I'm ready to transition to a Mac. The title, therefore, refers to the new iMac vs the G5, which , competitively, puts Apple in a very good position, but also means in a way they just cannibalized their own product. I don't hear Steve Jobs complaining.

Based on the Intel Pentium processor the iMac is proclaimed to be 2x as fast as the G5. This claim, however, is based on basic computing tasks that are used to make such statements. When it comes to a more practical test using software performing tasks and executing commands that uses might actually benefit from, the spectacular achievements and speed increases are no longer as astounding or even existent. Macworld recently completed tests with this exact comparison in mind and their results can be seen here.

I'll summarize their findings here. For basic computing tasks using programs that are written specifically for the new Intel chip and iMac, tasks are accomplished more quickly than on the G5. The sped difference is not astounding, and more in the realm of 30%-50% faster. Programs that are not native to the iMac platform use a program, cleverly named Rosetta, to translate the code and allow the programs to function properly. This causes the remarkable processing time to be not-so outstanding.

Given the brief period that has elapsed since the intention of using Intel chips in Macs was announced publicly and the subsequent product release, few companies have adapted their programs to operate on the iMac platform. Specifically, programs that I will primarily be using such as Photoshop CS2 and Dreamweaver currently perform tasks significantly 30%-70% SLOWER than the G5.

It has been stated that as more programs are written for the iMac platform the speed comparison will turn strongly in favor of the iMac. But at the cost of new software packages that will likely take months or even years to be adapted and developed. The question therefore is the following: Is it better to buy the faster yet currently slower iMac now and buy the software for it later, or buy the slower but currently faster G5 now and buy a faster computer and new software later. Hmmmm.

It can also be assumed that the initial round of products created using the Intel chip may have some kinks to be worked out. Just another aspect to take into account.

Initial Post

2006-01-24T10:16:00.000-08:00

I've never had a particularly high opinion of blogs. It seems to be an interesting offshoot of our society that we feel our opinions are so tremendously important that everyone should listen. In conjunction with collectively being such poor listeners, it drives people to write their opinions in blogs and such. It is said that rather than listening to what other people are saying, individuals are more apt to plan, structure and word their next statement, which doesn't so much make for a dynamic conversation as it creates dueling monologues competing for attention.

There are other uses for blogs as tools, however, which is the motivation I had for starting my own. As a particularly one sided conversation, almost diary, and publicity tool, a blog can be used as a motivational tool; publicly setting goals and time lines makes it much more likely that these will be acheived. The blog can allow for analyses of these goals and time lines and hopefully lead to self improvement.

Thus I embark on the self-motivational, self-analytical, quasi-public forum that is this blog.