There has been a noticeable increase in the number of investors looking again, especially Americans, and they are running into a new phenomenon.  A majority of sellers are turning down all cash, fast-close offers for being far too low! They somehow have gotten the confidence to hold out for higher offers, even if it takes much longer to get one. Consequently, the other side of this phenomenon, in my own observation, is that at least 7 out of 10 foreign investors (especially Americans) become frustrated, even angry, and leave after failing in multiple attempts to buy properties with extreme, “low-ball”, cash offers. It is almost as though they cannot accept that local property owners really feel their properties are worth more than their offers. They usually leave vowing to return next year, “when everything is even lower.” However, I don’t think that will be the case, and they will have missed the moment to buy at some of the best prices – even if they don’t believe in them.

How can this be? Costa Rica property owners, especially those that serve the tourism industry (condos, hotels, rental houses) are anticipating the third year in a row of record visitor volumes. In surveys, Costa Rica remains tied with Kauai as the #1 travel destination in the world, and after a dip in 2009, has resumed its successive-year, record-setting visitor pace in 2010 and 2011. In 2012, advance bookings are very, very strong. Tourism-related property owners are experiencing steady, growing incomes from their investments, and their prior concerns about holding them in an uncertain economic climate have faded.

This situation has created a “disconnect” between the expectations of sellers and aggressive foreign buyers, who are possibly used to much worse conditions in their home markets. Of course, there are still certain Costa Rican properties being sacrificed, but the number of those types of closings, is being overshadowed by the number of rejected offers, while sellers bide their time. Anyone with a serious interest in a long-term property investment in Costa Rica (retirement?), may want to consider making their move in the next 6 months, without a predatory approach, before Costa Rica experiences a third record visitor season.

I have been using BEST Instruments as a way to help individuals understand how they communicate and what they can do to be more versatile and effective in their jobs. The tests are simple but very telling. It’s amazing how a 15 minute “quiz” can be so revealing. It is a way to understand yourself and those around you.

The key is learning how to value each other and to realize that each employee has his/her own assets which should be developed, leveraged and shared throughout the company. This way people learn from each other and feel valued. By understanding your employees, your company can create a highly motivated group who will continually exceed expectations.

One of the things that was brought to my attention was that everyone in the room was similar in personality style. The person in charge said to me, “It’s because the person doing the  hiring is choosing people just like himself. This is not uncommon, because people hire people who make them feel comfortable. Someone who understands team dynamics and how businesses work realizes that diversity is important. If you’re going to meet the diverse needs of your customers, you will need different types of sales people. My father used to say, “People are all different, and they like it that way!” In other words, don’t try to make everyone the same.

Change is what’s happening! This is no time to keep the status quo! f you’re not changing, your competitor is and taking your customer with them! Sure, you may have to be more understanding with people who are different than you, but consider another point of view as a gift. It’s like eating Chinese food your whole life and finding out that Italian food is just as good! How will you know unless you try it? Life is for testing and trying, not for staying safe.

The MOVEABLE application offers a window into the heart and soul of DOWNTOWN magazine by using the latest in mobile technology. Bringing the “Downtown On…” section of issues to digital reality is MOVEABLE, our top pick from the NY Tech Meetup (which we covered earlier this month, here). In the most simple terms, this app leads users on a virtual-experience tour, either through nearby locations or elsewhere in the world, for the “armchair tourist.” 

MOVEABLE provides the user with a catalog of map-driven journeys where each stop can have any combination of text, photos, video and audio.  Because you are your own guide, the timing is up to you, as are detours and stops along the way. MOVEABLE encourages you to share your own trips, and using social media features, you can send virtual postcards through Facebook, Twitter or Tumblr. 

DOWNTOWN is extremely excited to announce that we have already started a partnership with MOVEABLE Feast Mobile Media and the application includes two free tours created by our own editors and photographers. We will be bringing more tours to the application regularly, making it a superb tool for locals and visitors alike.  We encourage you to try the tours, and keep checking back for new additions. 

Moveable is currently only available for iOS.

Real estate professionals, architects, engineers, builders and owners can find themselves faced with a dilemma in an environment of economic uncertainly. It has always been true that buying exclusively based on lowest price is a dangerous way to do business. Catering to such clients can be hazardous as well. Consider the guy looking to buy a new suit. He enters a clothing store but he doesn’t want to spend too much money. The tailor shows him a designer brand nice suit for $400. “It is too much,” he says. Shown another suit for $200, he says, “It’s still too much money.” After several others, finally he is shown one that only costs $10. “That’s more like it!” the guy says, and tries it on. He looks in the mirror and one sleeve is about two inches shorter than the other.

“No problem,” says the tailor, “Just hunch up your right shoulder.”

So the guy hunches his right shoulder way up, and the sleeves look OK, but the lapels are crooked.

“No problem,” says the tailor, “Just stick out your left arm and cock it like a bird’s wing.”

So the guy sticks out his left arm and the lapels look OK. But then he notices that one pant leg is shorter than the other.

“Well, just keep that leg stiff,” says the tailor, “and no one will notice.”

“I’ll take it!” the guy says.

The guy leaves the tailor shop wearing the suit. Walking with his left leg stiff, one arm stuck out like a bird’s wing, and one shoulder hunched way up. Walking down the street he passes two orthopedic surgeons.”I have never seen anyone in such bad shape in my twenty-five years of practice!” says one of the doctors. “Me neither,” the other doctor says. “Nice suit, though.”

Maybe we all need to remember, even in the face of increased pressure to deliver low-cost solutions, the integrity of our collective professional lives depends on value without compromise, appropriate quality, and sustainable building that will serve well into the future. Ultimately, when someone says “Nice building!” let’s hope it is true for the intended life-cycle of the project.

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Wes Morgan is founder and principal of Morgan Studio/East, a firm designed to help companies with planning and execution of effective marketing communications. For More Information Contact: Wesley A. Morgan, e-mail morganwes@aol.com or visit www.morganstudioeast.com.

We have all cringed when we see a home coated in those oh-so-seventies ceramic tiles that create an intricate, yet, undesirable design.  Almost instinctively our minds wonder, “Why would anyone use that tile? It must go.”  But graphic tiles are, like many other design trends, on an upswing with new delightful designs.

Credit and gratitude is owed to Ashley Hicks, an enormously talented London-based designer, for these modern Moroccan-inspired tile designs. The tiles are cast in cement and the colors are mixed by hand for that vintage feel all leading to a breathtaking floor or backsplash.

Happily, these are not your mother’s graphic tiles.

For more design inspiration, email marie@marieburgosdesign.com, and visit www.marieburgosdesign.com.

Images: www.mstreetdenver.com

After 2 long grueling days of business meetings, we started the conference off Wednesday night. I had the opportunity to meet Mick Fleetwood in person before the event. While enjoying some drinks with friends, Emmitt Smith came in (our keynote speaker for the kickoff Thursday!)! Both Mick and Emmitt were GREAT!

We made our way over to the actual Inauguration/New Designee event. After several awards and recognitions, our new 2012 President, Leil Koch, gave a heartfelt welcome to everyone and got everyone ready for the band. We had the Henry Kapono Band with a guest appearance by Mick Fleetwood. This had to be one of the most successful Inaugurations/New Designee events for quite some time!

The next morning, Emmitt Smith started the event. There were a few really good takeaways that I gained.

1. Yyour attitude will determine your altitude.
2. Preparation is key.
3. There will be failures, but it’s getting up that matters.

The education track that followed that I attended was the REO Lifecycle. Again, the panelists were right on. Jeff Pitcher, Tim Michel and Steve Price were led by Mark Polon. Great info!

We came back together for a lunch presentation by Ken Riggs and Mark Dotzour. I really like Ken’s definition of the new optimist - “Things are so bad that it can’t possibly get any worse.” Mark made light of what’s going on in the economy with several jabs at the government just needing to get out of the way.

After lunch, I had the opportunity to reconnect with Dr. Jeff Lenn. He was leading the discussion of the Effective Leader. On his panel were Ron Phipps, Leil Koch and Frank Simpson. Dr. Jeff Lenn always has a way of getting people to come out and really discuss what people really want to know.

There was a little break in the action before the next education tracks started - Technology Social Networking Tools and What Employers Want. I bounced around between both of these sessions. One good takeaway from the Tech Social group was to create Google Alerts for different projects on which you are working. From the Employers session, the biggest news here is that most of the employees being hired in the commercial real estate field are getting close to the salaries of the peak market. The reason is that employers are looking to ramp up.

The day ended with a Vendor Runway. This was the opportunity for our sponsors to discuss their products and services. Then there is a vote by those attending of which product or service wins. I’m happy to announce that REA (Tim Creagh) took first place followed closely by REIWise (Brendan Erickson).

It was amazing how much we packed into 1 day! To think, I still had 1 more day to go!

The second tool in the firm’s survival tool chest was salary reductions.  Unfortunately salaries are fast to fall and slow to rise.  Some of the highlights from the article include the following:

• The median salary fell from $88,800.00 to $80,900.00.
• 68% of the firms surveyed made changes of some sort last year.
• There was a slight increase in bonus’ correlating to smaller base salaries.

What I have seen since this article was posted is good news; the worst may be over.  The industry is taking its cautious steps to recovery. I also think the industry may be set up for another problem, a looming talent gap as a mass exodus of talent finds shelter in other industries.  The article states that most of the lay-offs were concentrated in the lower salary spectrum. This young talent could not wait for the industry to recover and has left or is thinking of leaving for greener fields. This talent gap will be a blow to the industry not realized for another decade.

It will also be history repeating itself.  The recession of the 1990’s created a talent gap as young architectural talent left the industry due to lack of work.  As the industry recovered, grew and thrived this talent gap became more obvious.  While the work younger staff does, mainly drawings, can be outsourced to other firms or even done by a Project Manager or Sr. Project Manager, the business development, client management and other “higher function” skills that are unique to each firm cannot be passed down to the up and coming talent, because they are not long in the industry.  This creates a stress on the more seasoned staff.  They worked more in the weeds, unable to lend their skills at a strategic level, and some even postponed retirement.

We know what will happen.  We have seen it in recent history.  So what is the fix?  While one fix does not fit all needs, one idea might be the AIA.  The group is uniquely poised to help firms fill the talent gap, not through hiring but through training.  The AIA’s continuing education program is a great forum to train the industry on firm management, business development and other important aspects of the business of architecture. I know that this is already a part of the wonderful curriculum the AIA puts together, I just wonder if there is a bigger idea there.  Maybe there is some way either to train leadership how to mentor and train younger staff or to provide individual training to firms.

These are my opinions, but what are yours?  Whether we are creating a new talent gap with this recession or not, we are still working through the last one.  I know the attitude of the firm leaders I work with is “all ideas are welcome.”

                        

Are you interested in knowing more about and being a more informed negotiator of equity joint venture partnerships? REFM is excited to announce a unique industry-wide opportunity to shine light on this area of real estate that has not had much transparency associated with it to date.

This fall, we will launch the REFM Real Deals Non-Institutional Joint Venture Equity Partnership Structure Database. The purpose of the Database is to provide non-institutional principals and investors with a searchable set of redacted individual transaction equity partnership structures with which they can inform the evaluation and negotiation of their own structures.

To further seed the Database with records of equity partnership structures (actual, proposed or typical), REFM invites you to participate in the 10-minute online Survey. In return for your providing a redacted version of one or more equity partnership structures, REFM will grant you12 Months of Free Access to the Database (a $495 value).

If you are interested in participating, email bkirsch@getrefm.com now with the best day and time for me to assist you with filling out the survey.

1. Mission Control - Design Build will grow in popularity as will trends toward improving the method itself. Design-Build is at its very best when all the parties associated with a structure communicate accurately and in a timely manner. One top Design Builder in the Midwest, for example, maintains what they call Mission Control where project management software and documents are managed by a support team, so project managers can focus on the project details. Plans, e-mails, meeting minutes, change orders and project web cams are a mouse click away. It isn’t just the technology; it’s the culture of teamwork. Each project is a fully integrated group working toward the successful completion of the job. Project management software and tools support the process, not hinder it, always with the idea of making sure everyone on a job understands the scope as well as the details. Value engineering happens more often and faster in a process that replaces finger pointing with a shared vision.
2. Design and Construction of Green Buildings - The emergence of the United States Green Building Council and their Leadership in Energy & Environmental Design (LEED) helps to define what it means to be Green. Design-Build may be the very best way to deliver it. Design-Build enhances LEED projects and, done well, addresses the critical components of Sustainable Sites, Water Efficiency, Energy & Atmosphere, Materials & Resources, Indoor Environmental Quality as well as Innovation & Design Process. Design-Build is all about understanding the very specific goals of a project up-front and maintaining the commitment to those goals through completion.
3. Seamless and Single-Source Design-Build from Site Selection through Punch List - It could be a sign of things to come. A totally integrated concept for design and construction may be expanding to include real estate service from site selection and due diligence all the way through leasing and longer term facility planning.
4. Strong finish - Smart design-build firms know that the next job could very well hinge on the proper closeout of the job finishing up today. The importance of quality control and best practices cannot be underestimated. Satisfactory job completion through the very last punch list item is the best marketing any builder can do.

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Wes Morgan is founder and principal of Morgan Studio/East, a firm designed to help companies with planning and execution of effective marketing communications. For More Information Contact: Wesley A. Morgan, e-mail morganwes@aol.com or visit www.morganstudioeast.com

There are some instances where paying rent with a credit card is actually beneficial to you. If you do have a credit card that works on bonus points or air mile points, and your credit limit is high enough then the more purchases you make, the more points you get. However, not all credit cards work this way. If you are working on a reward system then you may be able to score a free trip by putting all your purchases, including your rent, on your credit card. You need to be sure that you are paying it off in full, after the allotted “free time” before interest starts piling up and not go over the credit limit to avoid the “over the credit limit” charge. Most credit cards allow their customers 21 days to pay off the debt before they start charging interest. 

If you do manage to pay your credit card off before the interest settles in, then you will still be paying the same amount for rent as if you are using another method of payment. However, this is a tricky business and you need to have a specific day that you pay off your credit card to make this system work. For super organized financial gurus, this may work. For the budget-challenged, however, this may be too advanced, and you could end up in the red really quickly.

Budgeting for Rent

For most people, your credit card is pulled out at the end of the month when there is simply no more money left in the account. Because rent is usually due at the beginning of the month, many renters do not have the money at this time. This is why they reach for the credit card.

Sit down, and go over your finances to find a way to actually make the rent every month on your money, not borrowed money. Write down what you earn each month and what your expenses are. If you are spending more than you earn, it’s time to cut back as much as possible, so that you are well in the black every month.

Paying with a credit card is not necessarily a bad thing if you are able to manage your finances and pay the amount back in full before the 21 days. However, if not, then it is best to stay away from any type of credit money and stick to what you have. Budget so that rent is the first thing that comes out of your pay check, and so that you are able to make rent every month without reaching for your card.

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Merchant Solutions IQ offers you the ability to set up a check processing account which allows you to authorize a check within seconds. You can run the check verification directly though your credit card terminal or even over the internet. We provide free terminals, cash advance programs, gift cards and more, at Merchant solutions, so contact Julio Diaz for more information.