Land 101: Understanding The Basics
Owning land is like raising a kid, it’s a lot harder than it looks. It can be very rewarding if you are committed to it; someone always has something to say about it (including the government); and, if you don’t put some thought into what you are doing, it will come back to haunt you. Joking aside, while it’s not entirely like raising a kid, the point is that if you are thinking about buying land, or have inherited land, you will want to become knowledgeable about the subject because even a little bit of knowledge can help you sidestep some real issues, and prepare you for a wealth building opportunity.
Owning land is like raising a kid, it’s a lot harder than it looks. It can be very rewarding if you are committed to it; someone always has something to say about it (including the government); and, if you don’t put some thought into what you are doing, it will come back to haunt you. Joking aside, while it’s not entirely like raising a kid, the point is that if you are thinking about buying land, or have inherited land, you will want to become knowledgeable about the subject because even a little bit of knowledge can help you sidestep some real issues, and prepare you for a wealth building opportunity.
What’s it good for?
Before you get into how much it costs, you really need to know what the purpose of the land will be? A simple check of your county’s property records will tell you the zoning designation, land use plan, and environmental factors that can seriously impact the short and long term use of the property. Each of these data points will have an impact on the highest and best use of land.
Not knowing these data points is like buying one of those mystery boxes on a second hand online shopping portal. Seriously, who does that? Of course, if you are inheriting the land, then it could be like getting one of those unexpected holiday presents from a distant family member. The point is, these data points will help to answer what is the land good for.
What’s it worth?
Once you have the initial data points, then you can begin to assess what the property is worth. Certainly, having your professional broker run a comparable market analysis is very useful, but if the broker only compares it to other land that sold nearby, without truly knowing what makes the land comparable, then you could be seriously misled on the worth. Above all else, the simplest question to determine the worth of the land comes down to what is the highest and best use that can be put on the land in the least amount of time, with the least amount of municipal oversight, and least amount of cost? The path of least resistance to use the land is typically the easiest way to begin to calculate its worth. Add resistance by way of rezoning, extensive land planning, and/or development and construction, and the land’s worth can go up significantly, but so do the costs. If you don’t have the knowledge or appetite to become knowledgeable, as well as the money to spend to achieve significantly higher wealth opportunities, then the KISS method is the easiest way to go: Keep It Super Simple!
Financing land purchases can be a specialized matter as well, particularly if development is not the immediate or eventual intention. If you are planning to borrow money, expect that lenders are going to have timetable related questions as well as income/repayment related questions if the land isn’t going to make you money immediately.
Who can help?
Finding the options of available (and not so available land) is where a good land broker can help. But we aren’t the only ones that can help! If your municipality has an economic development office, they may be able to help you find land for specific uses. Municipal planners can also be a good resource, but I’ve heard several say that it can be like being a foot doctor, you get tired of seeing them everyday, and after a while they all look the same. The easiest way to shop for land is to understand where the path of growth is occurring then find land that is further down the path. Many times this is literal to traffic corridors and how far people are willing to commute on a main or secondary road. If you’re not sure what I mean, look up maps of the local metro area from 100 years ago, and you will quickly see the paths growth has taken.
There’s a whole other set of people who can help with land as well, once you’ve narrowed down the options: site engineers, surveyors, soil scientists and land attorneys to name a few will be critical to the planning process if you plan to develop the land. The prep work they do can also help you increase the value of the land because they will help answer the very first question: What’s the land good for?
What’s the catch?
Land is rarely a short game strategy. It’s an easy way to put money into a stable, long term investment that is likely only going to appreciate over a period of time. Taxes and some level of maintenance should be expected, but if there’s good timber, or it’s flat or good farming soils or permissible game for hunting in place, there could well be income that easily offsets the taxes. If taxes from other investments are a burden, then land could be a good investment to balance out your liabilities. That’s a good question for your accountant, if that’s your situation. Ultimately, it goes back to the first question, you have to have a sense of what it’ll be good for.
If you have any questions about land, please feel free to reach out and ask. We are always happy to help, and bring value to your experience.
Diego Munoz
KW Commercial
diegom@kw.com
Purposeful Networking: Know Your Numbers!
In recent years, I’ve been told by so many people that I should write a book on networking. I’m so very grateful for the positive feedback but the truth is that for so many years before then I was not very good at networking… not at all. So I’ve decided to write a series on networking that has worked for me. Some of the content is original, but most is from watching and learning from those that simply do it so well. If you get something out of this, please do what I’ve done, share it! The better we get at networking, the more business we all can create!
With the start of the 4th quarter starting, there is a lot of business planning that should be done in preparation for 2023. How you prepare is going to determine how you progress, and what you use to prepare will undoubtedly determine what your progress actually looks like when you get it going!
Ultimately, the question I start with is, “What are my Numbers?”
This is a loaded question, because in any business there are so many numbers to track that figuring out which ones are important and which ones are derivative can send you into a spiral. If you have a substantive organization with staff and products and vendors and delivery expectations; the ability to determine which numbers are the Key Performance Indicators that drive your business, is also the ability to know where your time needs to be spent as the Key Performance Manager.
One resource I found had 170 KPIs broken down into 10 different departments, (image 1). That’s more than anyone could ever conceivably manage and expect to get any sleep on a regular basis. Larger businesses will have managers to help track KPIs by department, which certainly helps.
KPIs By Department
(Source: qlik.com)
But what if you are a small business?
The point is that in knowing your business, you really need to know the numbers that drive your business. I find that the KPIs that really drive my business revolve around the stages of business conversion from intake to closing. If the business opportunity isn’t maturing through our pipeline, then how much we have coming in won’t correlate to how much is closing out. I typically call these Lead Conversion to Transaction. We have 3 or 4 stages built in which are dependent on the type of real estate transactions.
There are two other KPIs that are critical to our business and also quite measureable in time spent, they are called the Sales Cycle Time and Milestones on Time. How much time we spend on transactions is very important to our business; it is its own KPI known as Time to Productivity. The better we manage milestones and sales cycles, the more effective we can be in properly applying our team’s time and resources for our clients and their expectations.
The market is always a variable that impacts KPIs. Down markets will expect more with less from us, testing the strength of our business processes and systems that manage our KPIs. Up markets will shape growth opportunities that create other types of pressure on businesses and can impact once reliable, but now outdated KPIs. It’s why so many small businesses also seek out customer service and employee satisfaction KPIs.
Too often the only number leaders focus on is the bottom line, and while that is important, if you don’t know what variables got you to that bottom line, then can you really say you know your numbers? And more importantly, can you improve upon them for 2023?
I hope you find this information useful, and as with anything we offer, please do not hesitate to reach out and ask any questions. We are always happy to help.
Diego Munoz
KW Commercial
diegom@kw.com
Purposeful Networking: Ask A Better Question
In recent years, I’ve been told by so many people that I should write a book on networking. I’m so very grateful for the positive feedback but the truth is that for so many years before then I was not very good at networking… not at all. So I’ve decided to write a series on networking that has worked for me. Some of the content is original, but most is from watching and learning from those that simply do it so well. If you get something out of this, please do what I’ve done, share it! The better we get at networking, the more business we all can create!
In this go around, I want to go deep on questions, but add a spin on it that will help us all get better at creating connections and referring business. It’ll also help you know how to better equip your referral partners to send you referral business as well!
When we are networking we have all known that more listening and less talking is the best way to gather information. The question is, is it information that is useful? There are plenty of people out there that love to talk and sometimes need some help stopping for air. I’m sure I’ve been guilty of that myself. The point is, unless we have specifically paid to hear a speech, the questions we ask should be intentional to direct the conversation.
I’m sure you all of you have gotten past the basic questions of:
What do you do?
Who do you work for?
What’s your biggest challenge?
In some instances, you should be able to gather this information from their name tag or by the nature of the networking event you are attending. They are easy icebreakers, but a decent business card and website will provide all the same information.
The next level of questions will get you closer to a more meaningful opportunity, but still doesn’t connect you with the person you are talking to. These are questions like:
Who would you like to meet?
What is your ideal client?
How can I help you grow your business?
What’s a good referral or lead?
I used to love these questions, and would come prepared to networking events ready to answer them… and if I’m honest, I still do to a degree. What I have found though is that these questions assumed that anyone who asked me these questions, or anyone I asked these questions to were going to be automatic referral sources. It left it up to the person asking the question to determine if the answer was something they could work with. Truly, no one likes to be in a position where after hearing the answer to these questions, they are left with the thought, there’s nothing I can do to help this person.
The reason is because the question assumes the person you are asking knows how you interact with your clients, with your sphere, with your community. If you are networking with people that understand your industry, then these questions are likely to work, and the assumptions made can range from “implied” to “understood” to “easily forgivable”. These assumptions can also be highly embarrassing or worse, if they aren’t clarified before too long. The best example I can offer from experience is when I’ve referred a client of mine to vendors assuming they’ll ask the questions they need to qualify the client, and they’ll assume I’ve asked the questions preparing the client for the conversation with the vendor. You only have to learn that lesson once!
So what are the questions I like to ask? It really boils down to something as simple as this:
When I’m talking to a client or prospect about buying, selling, leasing, investing or developing commercial real estate, what questions should I be asking or what key words/ phrases should I be listening for that can help me create an introduction or referral opportunity for you?
I love this type of question, because it introduces to my conversation partner what type of business or professional conversation I typically have, and allows them to consider how my client might respond to matters that could lend themselves to a referral or introduction. They can better sense the nature and path of my conversations and where they could fit into it naturally.
I know what you are thinking… I think… My question is narrow and only allows for certain types of industries or professionals to be able to thoughtfully consider an answer. Interestingly, that hasn’t shown itself to be the case.
I have received referrals, and have been able to give referrals to people I never thought I ever would because of the key words and phrases portion of the question. Listening for words of heightened emotion and stress, or timing and urgency, or cause and effect have helped me help my clients and sphere in ways they didn’t expect me, as a commercial real estate agent, to do so. I’ve become a trusted source and connector outside my own industry by listening for those questions, key words and phrases that others have ingrained in me.
And, in helping my network listen for those questions, key words and phrases that can trigger an introduction to me, then I know I’m asking the right questions.
GOING DEEPER
I could end here and hopefully it will have helped you think about the questions you are asking that will help grow business and grow your network. But I also come across another method that has helped me grow my sphere professionally and personally in a profound manner. This method doesn’t work for and with everyone, so you have to know yourself to know if it’ll work.
I’ll often get asked, what’s a good referral for me? And I’m sure my answer makes some people cringe, but it’s honest and has led me to some of the best growth opportunities to date. I want to talk to interesting people that can have interesting, meaningful conversations.
Conversation is a lost art.
It’s in these conversations that I’ve learned things that can offer real value to others, that has made me a source of information to others, that has moved me from not knowing what I don’t know to knowing what I don’t know and wanting to be in the know! It’s not always about business, but it is always about trust and honesty and understanding and being genuine. And aren’t these the character traits of people we want to share our lives with personally and professionally?
So, if you want to really engage someone, ask better questions that connect your understanding with theirs. And if you are open to going deep, then put aside your comfort zone and test your ability to stay in curiosity, and get meaningful. It’s worked for me and I hope it works for you.
I hope you find this information useful, and as with anything we offer, please do not hesitate to reach out and ask any questions. We are always happy to help.
Diego Munoz
KW Commercial
diegom@kw.com
Purposeful Networking: For The Networking Challenged
In recent years, I’ve been told by so many people that I should write a book on networking. I’m so very grateful for the positive feedback but the truth is that for so many years before then I was not very good at networking… not at all.
I would be in awe of THOSE people that everyone knew, that could just stand in a busy room and attract people to them. What on earth were they doing that made them a magnet? Made networking so very easy for them? I have always been an observant learner and after attending a fair share of events, what I realized was that their “secret” was not a single thing they did, but a culmination of cumulative things they did that made them purposeful in their networking.
As a result, I started to think about what things I could do to become more purposeful in how I networked knowing that there were people that were simply better at it than I. Since this is a blog, I will give you one super simple trick that fed into my competitive nature and pushed me out of my comfort zone when it came to meeting people I didn’t know, AND wanted to do business with.
BUSINESS CARD BINGO
This was a really easy trick I used to do when I needed to motivate myself to get out of my comfort zone and meet people. Not many people still use business cards, but you really don’t need one to use this trick. Any small piece of paper that you can write on will work as your BUSINESS CARD BINGO card.
I would take one of my business cards and on the back would draw a circle in the middle and line to each side to make 4 quadrants.
I would write the following set of letters, one per quadrant and one in the circle.
They were my 5 GOALS for the event:
SIK: Someone I KNOW
SIM: Someone I MET
SIH: Someone I HELPED
SHM: Someone Helped ME
MTG: Set a MEETING
This would become my BUSINESS CARD BINGO game that I would play at every networking event I attended, purposefully working to achieve these 5 simple goals. What I soon started to realize was that not every networking event I attended was equal. The beauty of the game was that it became a way for me to assess the value of the event and attendees. This may sound harsh, but the truth is not all events are good, and not all networkers are good. If any of the examples below ring true, then you know that these are not likely networking events you want to go back to:
The host spends most of the time talking, not allowing the attendees to interact with each other.
The attendees stay in small isolated groups and do not interact with each other.
The room is awkward in shape and makes movement a challenge
The people you meet are happy to tell you all about themselves and what they are looking for before moving on to tell someone else.
If I couldn’t get at least 3 marks off on my bingo card, then it wasn’t likely an event I was going to return to. If I could get BINGO multiple times, then I wanted to know when the next one was, how to register early, AND would make it a point to use that information as a VALUE OPPORTUNITY for people I met at other events. I would have great information ready for my SIH quad!
You can choose to take the game deeper and collect BONUS POINTS, as I eventually did by doing any of the following:
Linking SIK with SIM to create connections that helped both those people
Collecting business cards from SIMs that would go into my database. I would really be purposeful and go into events with goals to get SIMs in specific industries that I needed to be immersed in deeper to help my clients or referral partners
Set MTGs in stacks so that I could run meetings back to back to back on preset days and create introductions as they overlapped. Or, if the people knew each other, meet in a POWER GROUP of 3 or 4 to create some good synergy.
Now as you’ve probably noticed, I haven’t spent much time on SHM and that’s because intrinsically, if I was doing all the others with purpose, intention and sincere joy, the people I was helping and introducing and setting meetings with would make it a point to want to help me. I found that I didn’t have to go asking, they would ask me how they could help and go about doing so, happily! The network became a net win!
I hope you find this information useful, and as with anything we offer, please do not hesitate to reach out and ask any questions. We are always happy to help.
Diego Munoz
KW Commercial
diegom@kw.com
Opening A Restaurant
Opening a restaurant can be an exciting and rewarding venture, but it requires careful planning and preparation. Here are the general steps involved in finding a space with a commercial real estate broker.
Opening a restaurant can be an exciting and rewarding venture, but it requires careful planning and preparation. Here are the general steps involved in finding a space with a commercial real estate broker:
Define your restaurant concept and budget: Before you begin your search, it's essential to define your restaurant concept and budget. This will help you narrow down your search to spaces that fit your needs and budget.
Research commercial real estate brokers: Look for commercial real estate brokers who have experience working with restaurants and understand the unique requirements of restaurant spaces. You can search online or ask for recommendations from other restaurant owners or industry professionals.
Meet with the broker: Schedule a meeting with the broker to discuss your restaurant concept, budget, and requirements. Be sure to ask questions about their experience, the neighborhoods they specialize in, and their process for finding and showing spaces.
View potential spaces: Once you've identified some potential spaces, schedule a time with the broker to view them. Be prepared to take notes and ask questions about the space's layout, condition, and any necessary renovations or upgrades.
Negotiate terms: If you find a space that you're interested in, work with your broker to negotiate lease terms with the landlord. This may include rent, lease length, and any improvements or concessions.
Sign the lease: Once you've agreed on lease terms, review and sign the lease with your broker and landlord. Be sure to carefully review all terms and conditions before signing.
Obtain permits and licenses: Before opening your restaurant, you'll need to obtain the necessary permits and licenses from the local government. Your broker may be able to provide guidance on this process or refer you to a consultant who can help.
Opening a restaurant can be a complex and challenging process, but working with a knowledgeable commercial real estate broker can help simplify the process of finding and securing a space.
Working with a commercial real estate broker can be beneficial for several reasons:
Access to market information: Commercial real estate brokers have access to information about available properties and market trends. They can provide you with data and insights that can help you make informed decisions about the best location and space for your restaurant.
Expertise in negotiating leases: Negotiating a lease can be a complex and challenging process. Commercial real estate brokers have experience in negotiating lease terms and can help you secure a favorable lease that meets your needs and budget.
Time-saving: Searching for the right space can be time-consuming, especially if you're not familiar with the local market. A commercial real estate broker can help you narrow down your options and save you time by showing you only spaces that meet your requirements.
Connections with industry professionals: Commercial real estate brokers often have connections with other industry professionals, such as architects, contractors, and attorneys. They can refer you to trusted professionals who can help you with the various aspects of opening a restaurant.
Guidance through the process: Opening a restaurant involves many steps, from finding the right space to obtaining the necessary permits and licenses. A commercial real estate broker can provide guidance throughout the process and help you avoid common pitfalls.
Overall, working with a commercial real estate broker can help simplify the process of finding and securing a space for your restaurant, saving you time, money, and stress.