On November 4th, 2008, voters in Florida passed Amendment #4, Property Tax Exemption of Perpetually Conserved Land; Classified and Assessment of Land Uses for Conservation.  A big fancy name, but basically the Amendment, will provide property tax exemptions for real property encumbered by perpetual conservation easements or other perpetual protections.

Sounds great if you own conservation land, right?  Yes, but it can be used for other owners as well.  Take for instance the agricultural or greenbelt land classifications.  I know quite a few people who have used cows to save on taxes and it is within the law’s requirements.  Some opponents are claiming the same type of “abuse” could happen with the new exemption.  So, legislatures will have to determine what time frame will qualify for the tax exemptions (i.e. how long it is to remain conservation land).

Why is this important to me?  I think you may be interested to know that St. Joe’s Lobbyist was instrumental in getting the Amendment on the ballot.  Remember, St. Joe is the largest private landowner in Florida.  I am sure there is a substantial tax benefit to St Joe, since a large part of their land in undeveloped.

While I am not advocating abuse of the law, I do think it is worth a read to see how the tax advantages can help your company.   

One curtailing side effect will be the decrease in local government revenues, in times where they have already seen drastic revenue shortfalls.  The most heavily affected areas will be rural areas with large open spaces.

For a full version of the Amendment, please go to http://election.dos.state.fl.us/initiatives/fulltext/pdf/12-5.pdf.

WE ARE. We’ve started to receive direct inquiries about our services AND referrals from people we know through Facebook. It’s not huge by any means, but my sense is that we’re at the beginning of an important change.

It started over the summer. I’d been on Facebook for about six months. I’m embarrassed to say that I only had three “Facebook Friends” and they were all employees who, no doubt, “friended” me because I’m the boss. I’m just a few years too old to be in the early adopter group for Facebook and most of the other social network sites. In fact, Al Gore was just putting the finishing touches on his new invention “The Internet” when I graduated college.

So I had a severe Facebook inferiority complex. Then something astonishing happened. All of a sudden I started talking to, let’s call them mature, business contacts. They were joining Facebook. And not just a few…nearly every lunch appointment or networking event I went to, Facebook was the new fad. I started getting and sending friend requests to people I knew (that’s how you add someone to your network on Facebook). I also noticed more businesses and business groups represented on Facebook.

A trend is forming, and I think it’s here to stay. So I thought I’d share with you my top 5 reasons for incorporating Facebook into your business marketing:

#5. It’s the best way to reach millenials and Gen-Xer’s.

#4. You can quickly (in minutes) create a company or development specific page with video, events and a blog (called the ‘wall’).

#3. Prospects can identify themselves to you by becoming “fans” of your company or development. Now you can focus your message on people who want to hear it.

#2. You can learn about your customers through their Facebook pages. You’ll better understand what motivates them to buy.

#1. You can bring YOUR personality into your marketing. Your customers crave this connection with you. Facebook is a VERY easy way to “pull back the curtain” and let them see your human side.

If you’re not on Facebook, follow my easy 8 step process to get started today.

1. Go to www.facebook.com and sign-up (I know it’s obvious…but do it).

2. Fill-in some details about yourself in your personal profile. In my profile, you’ll see that I live in Tallahassee, FL, my birthday is June 12th, I’m married, I went to the University of Florida (GO GATORS!) and I went to Episcopal High School in Jacksonville. You’ll also see some of the groups I belong to. This serves two purposes. It makes it easy for people I’ve known to find me. In fact, “the girl next door” from my old neighborhood found me by searching for people who went to our high school. The second purpose, is that it tells my Facebook “Friends” about my background…stuff that they may not have known. That makes me more accessible and authentic to them.

3. Search for people you know by name or email address. You can even upload your contact list and Facebook will do the searching for you. Once you’ve found some familiar faces, send them a “Friend Request”. They’ll be notified of your request and asked to confirm you as a friend (this helps keep away bogus friends). When they confirm you, you’ll be able to see their Facebook page and they will see yours.

4. Setup a “Group” for your company. You can make your group open to anyone or by invitation only. You can post videos on your group page…a great way to add a personal touch to your marketing. You can also have a group discussion board on your page. This will allow you to have a conversation with your customers.

5. Create an “Event” for your next development launch of sales promotion. Invite your Facebook friends and your company’s fans. This is a great, free way to get to people that are likely to be interested in your offering.

6. Post tasteful, personal comments on your wall. Give status updates when you’re doing something interesting. Recently, I was in San Francisco on a business trip. One evening I had a dinner cruise in San Francisco Bay and posted a status update saying I was cruising past Alcatraz. When I got back home, four people asked about my trip at the next networking event I attended. It was a great conversation starter.

7. Send me a friend request (search for sgordon@1globalmind.com) and I’ll introduce you around.

8. Join the GlobalMind group.

People want to do business with people, not stuffy corporations. Facebook gives you a simple way to show some of your unique personality to your prospects and customers. Go ahead, give them what they want.

I don’t know about you, but I spend an awful lot of time trying to find information for our clients. Just in the last few weeks I’ve had to track down…

• The land development code for a city three hours away from my office.
• The wetlands and soils for a large acreage property.
• The public meeting dates for a city zoning board.
• The permit application for county we had not worked in before.

These four simple requests burned up SIX HOURS of my time. The truth is I hate doing this kind of research. It’s both BORING and TIME CONSUMING.

I’ve got two young daughters who think I’m the King and they’re my princesses…I’d rather be ruling my kingdom than doing the jester’s task…research.

And I know I’m not the only one in this business that feels that way. So last month we decided to do something about it.

We put all of the information that we go looking for (and you probably do too) into one easy to access place. In fact, we decided to do it for all of Florida. AND, we decided to put it on the web for you to use.

The Land Development Resource Center is Born!

On our website you can now find…

Links to city and county land development agencies.

Land development regulations.

Permit and development applications.

Local council and board meeting schedules.

Articles on land development topics.

Free reports to help you understand more complex issues.

Maps showing aerials, wetlands, soils, flood zones and contours for every property in Florida.

Audio interviews with leaders in the industry.

Monthly webinars on important land development topics

And much more to come…

We began the Land Development Resource Center as a resource for ourselves; We hope that by sharing it with you, that you’ll save time and frustration…

…AND spend more time in your kingdom!

To use the Land Development Resource Center go to:

1globalmind.com/resource-center/

I am not sure about you, but I feel like I can’t go anywhere without hearing about green building.  Don’t get me wrong, I am all for innovating the process to conserve the environment.  I just can’t help but wonder how long the “Green Movement” will last and what part will stick around for the long term.

Environmentally friendly is not a new concept.  I can remember when recycling was introduced and when I used recycled notebook paper for the first time.  How about the grandmother who wraps the presents with newspaper, isn’t that “green?”  Granted, many resources that have been widely taken for granted are becoming more expensive and in time may just disappear.  Thus we have a need to come up with new technologies and innovations for things like energy, but isn’t that what we have always done?  We have a problem and find a solution.

I attended a local development event recently and a heavy debate erupted as to whether or not the costs of green building could be recouped in an office building.  On one hand, you have the developer saying it is almost impossible to rent at a higher rate.  The tenants do not understand the costs savings, nor can they see a discount or savings on their bill each month that would equal the amount of increased rent.  On the other side are developers who say they can’t lease their space to large fortune 500 companies or the government without meeting the green building certifications. 

So, is green always more expensive?  Not necessarily says Peter Morris.  Morris states that reasonable levels of sustainable development can be incorporated into most building types at little or no additional cost.  In a report published by Buildings, the average return on the initial investment  for a LEED-certified building is 2.6 years.  The LEED-certified buildings also had annual net savings of more than $170,000.  LEED-certified is the lowest LEED level a building can earn. 

I have always heard the lower the level, the lower the investment cost.  Just in case you are wondering, according to Beth Anderson to obtain LEED-silver, the building would cost an additional 3.5%, gold would be an additional 4.5% and platinum would be an additional 11.5%.  What are the benefits of pursuing a higher level of LEED designation?

A study performed in California yielded results of the following energy savings based on current LEED buildings.

Is it worth pursuing the higher LEED levels?  I believe that is still up for debate but there are many facts that support building a certified or silver LEED building results in costs savings in energy.  With the increase of fuel costs, everyone is looking for ways to save on energy.  Another fact that has fueled the demand for LEED buildings is the occupancy rates.

Occupancy rates, as well as rental and sales rates, are typically higher in a LEED building (or energy efficient) versus a building that is not energy efficient.  In the last two years, there has been a 70% increase in the rent charged per square foot in LEED buildings.  The increase represents a premium of 36% over a non-LEED building (AIA.org). 

Consumer buy-in has become a major factor in the green movement.  LEED buildings also have a 4.1% higher occupancy rate than the non-LEED buildings.  The chart below highlights some of the difference between LEED and non-LEED as well as Energy Star and non-Energy Star.

 Does this mean you should go green?  I think that decision rests very much in how you want to serve the market.  The estimated green construction for this year will only amount to about 2% of the total construction for the year, but by 2010 it is estimated to be as much as 10%.  In dollars, that would be equivalent to $29 to $57 billion (CNN Money).

No matter what side of the fence you are on, I feel that LEED is here to stay.  Over time, the requirements or rules may change, but some form of our current Green Movement will remain.

In the July 2008 issue of Sustainable Land Development Today is an article by Dan Beardslee titled How to Hire a Competent Surveyor. Dan makes a number of outstanding points that parallel our own white paper The Land Developer’s Guide to Working with Surveyors. Dan makes two great observations that those of us in the profession know well:

1. It’s not easy to tell the difference between a good and bad surveyor.
2. Good surveys and bad surveys often look the same.

Why is it so hard to judge the good from the bad? Simple, good quality is not about appearances it’s about the experience, knowledge and behavior of the surveyor you choose.

Dan’s article lays out five key points to consider in hiring a surveyor.

1. Is the Surveyor Licensed by the State?

All 50 states and several US Territories require individuals and companies that provide surveying services to be licensed by the state. State licensure typically requires three components

1. Education
2. Experience
3. Examination

Florida is on the leading edge of the current industry trend of requiring surveyors to hold at least a bachelor’s degree in surveying. However, only about 10 percent of the licensed surveyors in Florida have a degree or any formal surveying education (the other 80 percent have been “grandfathered” or allowed to continue their existing practice). College educated surveyors have a distinct advantage in today’s technology driven survey industry.

Dan’s article focuses on the qualifications of the licensed surveyor. While these are very important, surveyors have largely become managers of the survey team—field and office technicians who actually perform the work. For that reason it is vital that you look at the qualifications of the entire team. The National Society of Professional Surveyors certifies the competence of survey technicians through the “Certified Survey Technician” program. Find a firm that requires their staff to be certified.

2. Is the Surveyor a Member of the State Surveyor’s Association?

As a past-president of the Florida Surveying and Mapping Society, I’m a big believer in professional involvement. During the 12 years I served as a volunteer in the association it was clear that the men and women I served with were among the best in the industry. Look not just for membership, but active involvement as an indicator of professional expertise.

3. Does the Surveyor Appear Competent?

I know I said that it’s not about the appearances. It is impossible to differentiate based on appearance alone, but they can be an indicator of the professional’s own values and business expertise. Use appearance as one factor of many.

4. It’s Important that the Surveyor Operate a Strong Business

I couldn’t agree more. Many surveying firms are “one-man-shows.” While I have no objection to a professional who chooses to practice alone, I worry about the clients who are relying on him. I’ve seen real money lost by clients when sickness or even death prevent the surveyor from completing the work. I detail one such real-life story in my white paper.

5. Are the Services Expensive?

Dan’s final point is to look at the cost of the service. While you certainly want to get the best value for your dollar, Dan (and I) believe that the old rule “you get what you pay for” applies to surveying as it does to every thing else. You don’t need to hire the most expensive firm, but the cheapest one may not be right either. A secondary point here, is to ALWAYS use a written contract. Many surveyors do business on a handshake.

While I think a handshake is a great sign of trust, I also know that communication between people is hard. A contract is a simple way to lay out in plain language what the surveyor will do, what he won’t do, what you’ll do and how much it will cost. Getting written proposals from surveyors also gives you a chance to see exactly what each firm will do for you. It will help you compare real costs.

I’ve got a number of other recommendations in my white paper The Land Developer’s Guide to Working with Surveyors it’s available for free by clicking here.

I’d love to hear your successes and challenges in hiring and working with surveyors. Please leave a comment below.

Listen Online:

Download in MP3 format.

In this episode of the Florida Real Estate Development Podcast, we talk about a recent article about the poor performance of the real estate sales force. To talk about how you can improve the effectiveness of your sales efforts–even in today’s market–we brought in Greta Schulz of Proactive Training and Consulting.

Greta  is the president and CEO of ProActive Training and Consulting. She has been involved in sales, sales management, marketing, and training for over twenty years. She is a columnist in many business publications around the country and a contributing author of  “Masters of Sales” a Wall Street Journal and New York Times Best Seller. Greta is presently writing her own book titled “To Sell is Not to Sell”, a conglomeration of stories and tips in the world of sales.

I hope you enjoy the interview!

In this episode, I interview Tom Wheatley, Vice-President of Business Development at Flagler Bank. Tom talks about the current state of the credit market, what projects are getting funded and how to best approach lenders now.

The Florida Real Estate Journal is reporting a slight up-tick in existing home sales in the three Southeast Florida MSA’s–West Palm Beach, Ft. Lauderdale and Miami. The report is from Mike Pappas, CEO of the Keyes Company (one of the largest residential realtors in the region).

The gains aren’t huge, but they are gains. Pappas attributes the bump to buyers seeing a bottom in prices. I also think the realization that the cheap money days are ending is motivating buyers to get off the sidelines.

This report is consistent with anecdotal evidence we’re seeing in new home construction in the Southeast Florida market. Let’s hope this blip turns into a trend.

If your sales force only contacted 56% percent of the leads that walked in your door, how would you react?

If you think that number is wrong, you should read the article, Despite Housing Crunch, Some Builders Ignore Prospective Buyers. In the article, Marc Lumpkin explains that in the Denver area, only 56% percent of the prospects that walked into the sales center were asked to fill out a registration card and 16% of the shoppers were not greeted when they walked in the sales center. Sadly, only 1 in 3 of prospects that left information was contacted.

In the days of decreased home sales, why would anyone in the new home business not jump through a hoop to make the sale? I have read many articles where agents have offered, cars, home décor, vacations, free upgrades, club membership and other perks to sell homes. I recently read an article about a woman in Florida who is selling her home along with herself (a marriage proposal). So with all the interesting incentives out there, why would your new home sales agents fail to obtain customer information and then only follow-up with one out of three prospects?

What can you do?

First things first, make sure your sales force understands that the customer is the TOP priority. No matter what they are doing, greeting the customer is top priority. If the sales staff is typically in another area other than where the customer enters, consider hiring a hostess. A person that can greet people, hand out brochures and give a rough tour of the models. I know, you are probably thinking how can I afford to add staff when I have reduced sales? Well, have you ever heard of a department store named Nordstrom’s?

Nordstrom’s understands the service in customer service. Nordstrom’s sales staff will go out of their way to assist a customer. I have heard stories about their sales staff taking used tires, removing other stores security tags (of course the merchandise was paid) and changing sleeves on a shirt. Why do they do this? Because Nordstrom’s understands that a satisfied and happy customer will continue to buy from people that are trusted. Make it “OK” for your staff to go out of their way to win a customer.

Next, get rid of the low performers. Look for a sales force that can sell. During the boom, I saw many people get into real estate because they thought it was easy money. These individuals have little or no selling skills and really do not understand the nature of the business.

Once you have a good sales force, incentivize and reward them. I like this part of the plan the best. Why, because you do not have to pay out anything until they make a sale. Be creative. Figure out what your sales force likes, and each person is different, and use that as an incentive. For instance, Ms. Smith has always wanted to go on a European vacation. You could offer Ms. Smith a 10 day trip to Europe when she sells five $500,000 houses.

Also, make sure you have a method to keep track of the customers that visit your models and ask to see the data weekly. Give incentives to the prospects for leaving their information. Some simple, inexpensive ideas are special ‘deal’ emails, $1,000 upgrade by email or a dinner certificate.

Finally, leave a way for the customer to contact the owner or senior management if they feel they are not receiving the level of service they desire. Yes, you may have a person call you that really should not have, but if you could save one sale from going out the door….isn’t it worth it?

I’ve been consulting with land developers for 14 years now and I’m fed up. I keep seeing bright people get “hood-winked” by their consultants. In this market, I’m surprised that it’s allowed to continue. The costs are hidden, but enormous, maybe that explains it. Or, maybe as an industry we’ve just come to accept it. In any case I think the money wasted by this practice is ridiculous.

“Just Submit it and Take a Comment”

If you’re a developer, you may not have heard that statement before. Those seven little words form the dirtiest secret in land development consulting, and they cost you big money on nearly every project. For 14 years I’ve heard my peers say this and it gets me hopping mad! I heard it again last week and had to write this.

Here’s how it works: A consultant–engineer, surveyor, planner, architect–is stretched too thin to get all of his work done on schedule. He’s got 5 or 10 or 20 clients and projects going at the same time all with different priorities to HIS firm. HIS highest priorities get the attention and the others move forward based on the volume of screaming from the clients.

Usually, the client can be silenced temporarily by submitting a plan to the local government. The client sees this as progress. But, the consultant knows what he submitted is incomplete and will GET A COMMENT (or many comments).

Several weeks go by and the comments finally come. The consultant explains to the client that the municipal reviewers are way out of line and overly picky, and it will take a month to resolve the comments and cost an additional $3,000. And the project goes on the back burner until the client screams again. 

Rinse and repeat.

Sounds like a pretty good deal for the consultants, right?

This practice drives me crazy for two reasons: 1) I was taught early in life that if you’re going to do something, do it right; 2) Working on a team with consultants who do this costs me money, because projects drag on too long and scopes creep larger and larger.

I don’t think this happens at the firm CEO level. It’s the project engineer or surveyor or planner who’s trying to keep up that make the decision to submit an incomplete plan. 

What I’ve done to address this in our firm is set a 1 comment per page performance standard. We haven’t hit it yet, but we’re getting real close. Reality is that you’ll probably never get to zero comments, but when the number per plan page is just a few, you can submit a revised plan for approval (not re-review) within days, not weeks.

Look out for this pattern on your development projects…it’s costing you money.