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Self-taught filmmakers driving local industry

Self-taught filmmakers driving local industry

Ask a local about the film scene in Southwest Washington, and you’re likely to b...

Legal marijuana sales underway in Washington state

Legal marijuana sales underway in Washington state

A year and a half after voters legalized recreational marijuana in Washington st...

New apartment complex breaking ground in downtown Vancouver

New apartment complex breaking ground in downtown Vancouver

Portland-based DBG Properties LLC will break ground next week on a new $17.4 mil...

Southwest Washington’s Innovation Advantage

Southwest Washington’s Innovation Advantage

What enables Southwest Washington to attract innovation giants such as Hewlett P...

Clark College introduces new technical program

Clark College introduces new technical program

Clark College has introduced a new technical program while adjusting some existi...

Q&A: Commissioner Barnes talks business

Q&A: Commissioner Barnes talks business

We recently sat down with newly-appointed Clark County Commissioner Ed Barnes to...

Buy Local

Self-taught filmmakers driving local industry

Self-taught filmmakers driving local industry

Ask a local about the film scene in Southwest Washington, and you’re likely to be met with a blank stare. We have a few movie theaters, and there are some places that make videos, but a real film industry? If we do have one, where is it?

Well, if we’re looking for a real film “industry,” we’re going to have to keep looking for a while. However, there are many more hobbyists making their own movie...

Education & Workforce Development

Workforce Development: A return to personnel investment

Workforce Development: A return to personnel investment

It is a common reaction to economic downturn: companies understandably tighten their budgets; non-essential or slow-to-return investments get nixed pretty quickly. During the Great Recession, this was the case not only in Southwest Washington, but throughout much of the nation, as investing in a company’s most valuable asset – their employees – fell victim to the reigning in of purse strings.

Wit...

News Briefs

DiscoverOrg achieves record revenue growth in first half of 2014

DiscoverOrg, a Vancouver-based provider of IT sales leads intelligence, announced that it has achieved record revenue growth (+62 percent) in the first half of this year, compared to the same period in 2013.

Spotlight

Teamwork & training driving growth at Premiere Property Group

Teamwork & training driving growth at Premiere Property Group

Four years ago, Steve Borwieck, owner of Premiere Property Group LLC, (PPG) decided to launch his own brokerage.

“When you know something you should teach it, because when you teach it you master it,” said Borwieck.

But when he approached his boss with the idea of teaching some classes to brokers, they “brushed him off.” So, he said, “I rocked back in my chair and thought ‘I can do this as well’...

The real estate developer’s recipe for success

It may be odd to talk about how one might approach development activity when we are in the depths of a real estate market abyss, unless we discuss the issues for purposes of enabling a company to better prepare itself for times like these in the future.

It may be odd to talk about how one might approach development activity when we are in the depths of a real estate market abyss, unless we discuss the issues for purposes of enabling a company to better prepare itself for times like these in the future.

The Federal Reserve is engaging in such proactive preventative measures, proposing now to adopt rules cracking down on shady lending practices in an attempt to prevent a future mass mortgage crisis.

Never mind the hypocrisy of the Fed’s recent liberalization of its own lending practices that will certainly cost all taxpayers dearly in years to come – bailing out investment firms, Freddie Mac and other institutions … but enough about the Fed.

Real estate developers can, to a degree, determine their own fate. I asked an officer of a successful residential development company how the company is doing amid the current slowdown, and he replied, “Better than most of our competitors. We should survive – we’ve made it a policy to never borrow our equity.”

You might ask, “What did he mean by that?” In essence, he meant that they project realistic end-product sales prices for their proposed projects or lots, determine realistic land acquisition and construction/development costs and having determined the prospect for profit margin between the realistic sales price and realistic costs, they limit their borrowing to the costs – or less.

They do not, as some foundering contractors and developers may have done, build a “reasonable profit” component into the loans they obtain similarly to the way a residential lot owner’s loan for construction of his own house would include funds for the reasonable profit of his hired builder.

Successful developers do not see the bank loan as their end game, disbursing funds from it for new Cadillac Escalades for each of their family members and counting on 100 percent lot sales to pay off the bank before the loan matures. Their end game is the sale or lease of the developed property for profit – profit being the amount of money they take in from sales over and above their loans and other costs.

Projecting sales and profit takes real skill, planning, and self-control. It is more than pitching a project’s value to a bank at the project’s maximum potential value based on escalating lot prices in an upswinging market, borrowing the maximum amount possible and assuming the debt will be covered by prompt sales – which in manic times appear infinite. Project pro formas should not be substituted by blind trust that the bank’s crystal ball is accurately forecasting the project’s successful payoff of the debt.

There are various methods for evaluating a proposed development and limiting risks. It is conservative borrowing, however, that seems to distinguish the surviving developers – not superior salesmanship to a banker who may, himself, be running to the Fed for a loan, having guessed wrong on projects before.

David W. Meyer is an of-counsel attorney with of Bullivant Houser Bailey PC. Meyer can be reached at 360-737-2301 or This email address is being protected from spambots. You need JavaScript enabled to view it. .

Opinion

Focus Column

A long-term win for all

A long-term win for all

Becoming involved with workforce development is an opportunity for businesses to contribute to the economic health of ou...

Outstanding employees are standing by

Outstanding employees are standing by

In today’s competitive marketplace every employer wants to hire outstanding employees. While there continues to be a hig...

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