Deal-Maker
CONFESSIONS OF A DEAL JUNKIE
You can tell you are a deal junkie when:
At age 7 you traded your bigger nickels for smaller dimes with your younger brother and his friends who were happy because they could use their nickel to buy pop cycles or candy bars at Knowlton Drug.
At age 11 you organized a lawn mowing business, charged $2.00 per lawn, hired your friends to do the mowing for $1.00 per lawn—including Harold Jensen who was assigned to his Doctor father’s yard.
At 13 you coveted Andy Sorensen’s Cushman Motor Scooter, and traded him a new watch, wallet, pocketknife and flashlight, which you obtained as prizes in various 5 cent a grab claw machines in the Lagoon Penny Arcade. The 5 cents were “lent” by Keith Merrill who worked in the Arcade.
At 14 you persuaded Paul Van Fleet to give you a broken down Model T Truck which you let your mechanical friends repair and supply needed parts, battery, and fuel in exchange for rides around and around the family field
As the high school Sports Editor you engaged your friends in supplying game stats and information, wrote stories as each game was played, then got paid for calling information on northern Utah Football and Basketball games to the local radio station, the Salt Lake Tribune, the Deseret News, the Ogden Standard Examiner and the Davis County Clipper.
You and your best high school buddy contracted to provide after hours custodial services for the seminary building, then used the sound system to play popular rock music and invited special girl friends to assist with nightly “clean-up” parties.
As a church missionary you organized youth finding missionaries, community youth dances, special town meetings, and similar activities to become a top baptizing missionary, avoid daily tracting, and enjoy leadership perks including driving a TR 4 Sports Car all over Southwest England.
You were not totally committed to the girl who became your wife until a competitor made the first marriage proposal and you quickly structured a better deal…that proved to be the best transaction you ever made.
You decided early to do your own deals rather than be on someone else’s payroll. That is what you did except the first two years after receiving an MBA and working with Borg Warner; a one-year obligation to work for Theodore Barry Consultants after merging your Business Development Associates Consulting practice; and various part-time teaching assignments at the University of Washington, Chapman College, and California State University during and after your DBA studies.
You organized Campus Marketing Company to market products and services to college students, with commissioned student representatives located on over 300 American university campuses. Marketing deals were made with United Airlines, Ford Motor Company, Arbys, Flagstaff Brewery along with 100s of regional and local retailers. Your primary venture partner was Paine Webber Venture Fund who put-up $500,000 and wanted to do a public offering.
Your first real estate deal was the purchase of 3 acres of Kaysville, Utah commercial land, which cost $90,000. $45,000 was raised from an architect partner, and $45,000 from First Security Bank. The land was divided into 6 one-half acre parcels; the first two parcials were sold to pay-off the architect and the bank.
You worked with Bud Yorkshire, Marshall Reddick, Cree-L Kofford, and Jim Condie to acquire rights to a Boise Cascade Lake Arrowhead, California Lake Front Town home development which had been foreclosed on by Wells Fargo Bank. You had Wells Fargo provide 95% user purchase loans, and organized a company to market the units through your Real Estate Brokerage for an average 18% commission.
You formed a company to develop commercial real estate with the primary focus on medical facilities. Your first deal was done with no cash in Layton, Utah where Humana sold land at their cost, payable after completion of the project, to build three hospital supporting medical office buildings. Your second was in Sandy, Utah where you helped Intermountain Health Care develop a new Health Care Campus and supporting Medical Office Buildings that you completed and sold.
You built a 50,000 square foot medical building in Montebello, California on hospital subordinated lease land where you retained a 5% general partner interest and syndicated 95% for a $1,200 000 profit.
For your second California medical project you persuaded Humana’s President to loan $5,000,000 (which exceeded your cost) to construct a 6-story West Hills Canoga Park Medical Building. You then sold a 50% interest to the Whittier Group for $1,000,000 cash and later the other 50% to physician tenants for an additional $1,400,000.
You developed a Northwest Hospital, Seattle, Washington Medical Office Building that was master leased by the Hospital and sold for a $1,800,000 profit.
For St. Luke’s Hospital in Phoenix, Arizona you obtained 100% plus financing from a County Non-Taxable Revenue Bond then leased air rights to build 60,000 square feet of Hospital connected medical space that was syndicated and sold to physician tenants for a $1,400,000 profit.
You purchased an existing 50,000 square foot East South Temple Salt Lake City, Utah medical building, parking structure, and land for $800,000, using a $2,700,000 Valley Bank loan for acquisition and upgrading; hired Richard Dunn to manage the improvements and space lease-up, enjoyed over 10 years of positive cash flow, refinanced the property with a $3,500,000 non-recourse loan, and sold the upgraded project for $4,000,000.
You organized Design Furnishings, Inc. with Don Harward as Managing Director, to provide design, tenant improvement, furnishings and equipment for health care tenants.
You founded a company to partner with financial planning and insurance professionals, real estate brokers, attorneys, CPAs and Planned Giving Professionals to assist owners of highly appreciated assets avoid or reduce taxes and receive lifetime income and cash to heirs through Wealth-Partners’ Planned Gifting Programs working with qualified charities such as Primary Children’s Foundation, McKay Dee Hospital, Southern Utah University, American Indian Services, Common Thread, McGruff Foundation, and the LDS Foundation.
You re-joined a friend who you had helped in starting the Marshall Reddick Real Estate Network 25 years ago that has grown to selling over 1000 investment properties a month to a loyal group of over 100,000 buyers. You became the C.O.O. of the Network and also the Managing Partner and majority owner of Network Development Properties; an affiliated company which partners hotel, apartment, and office condominium conversion development projects throughout the United States.
Your favorite books include Genesis where God created the Earth and its Inhabitants as the second most impressive deal behind His creating the Universe, and Donald Trump’s Art of the Deal.
You pledge allegiance to John Adams and Thomas Jefferson as the principal dealmakers in establishing the United States of America and to Joseph Smith as God’s primary dealmaker in restoring the Gospel of Jesus Christ.
Your favorite phrases include “It hasn’t happened yet”, “Anything is possible to him that believeth”, and “Make no little plans for they have not the power to stir men’s souls.”
You know that with the right idea and management team that financing is always available; with the right idea and financing that the right management team can be organized; and with financing and a good management team a workable idea or entity can be acquired.
You believe that any company, real property, or deal can be enhanced through better structuring.
You believe that you were born to do deals, will always have deals-in-play, and will continue to do deals in the after life.
Your 12 Deal Junkie Business Principles are:
Integrity always
Multiple income streams
Maximize profit-per-project
Wealth-partnering
Best only partners
All win
Big projects
Leverage
Risk management
Anti-domino
Quick and quiet
Give back.
You presently have deals-in-play.
You can tell you are a deal junkie when:
At age 7 you traded your bigger nickels for smaller dimes with your younger brother and his friends who were happy because they could use their nickel to buy pop cycles or candy bars at Knowlton Drug.
At age 11 you organized a lawn mowing business, charged $2.00 per lawn, hired your friends to do the mowing for $1.00 per lawn—including Harold Jensen who was assigned to his Doctor father’s yard.
At 13 you coveted Andy Sorensen’s Cushman Motor Scooter, and traded him a new watch, wallet, pocketknife and flashlight, which you obtained as prizes in various 5 cent a grab claw machines in the Lagoon Penny Arcade. The 5 cents were “lent” by Keith Merrill who worked in the Arcade.
At 14 you persuaded Paul Van Fleet to give you a broken down Model T Truck which you let your mechanical friends repair and supply needed parts, battery, and fuel in exchange for rides around and around the family field
As the high school Sports Editor you engaged your friends in supplying game stats and information, wrote stories as each game was played, then got paid for calling information on northern Utah Football and Basketball games to the local radio station, the Salt Lake Tribune, the Deseret News, the Ogden Standard Examiner and the Davis County Clipper.
You and your best high school buddy contracted to provide after hours custodial services for the seminary building, then used the sound system to play popular rock music and invited special girl friends to assist with nightly “clean-up” parties.
As a church missionary you organized youth finding missionaries, community youth dances, special town meetings, and similar activities to become a top baptizing missionary, avoid daily tracting, and enjoy leadership perks including driving a TR 4 Sports Car all over Southwest England.
You were not totally committed to the girl who became your wife until a competitor made the first marriage proposal and you quickly structured a better deal…that proved to be the best transaction you ever made.
You decided early to do your own deals rather than be on someone else’s payroll. That is what you did except the first two years after receiving an MBA and working with Borg Warner; a one-year obligation to work for Theodore Barry Consultants after merging your Business Development Associates Consulting practice; and various part-time teaching assignments at the University of Washington, Chapman College, and California State University during and after your DBA studies.
You organized Campus Marketing Company to market products and services to college students, with commissioned student representatives located on over 300 American university campuses. Marketing deals were made with United Airlines, Ford Motor Company, Arbys, Flagstaff Brewery along with 100s of regional and local retailers. Your primary venture partner was Paine Webber Venture Fund who put-up $500,000 and wanted to do a public offering.
Your first real estate deal was the purchase of 3 acres of Kaysville, Utah commercial land, which cost $90,000. $45,000 was raised from an architect partner, and $45,000 from First Security Bank. The land was divided into 6 one-half acre parcels; the first two parcials were sold to pay-off the architect and the bank.
You worked with Bud Yorkshire, Marshall Reddick, Cree-L Kofford, and Jim Condie to acquire rights to a Boise Cascade Lake Arrowhead, California Lake Front Town home development which had been foreclosed on by Wells Fargo Bank. You had Wells Fargo provide 95% user purchase loans, and organized a company to market the units through your Real Estate Brokerage for an average 18% commission.
You formed a company to develop commercial real estate with the primary focus on medical facilities. Your first deal was done with no cash in Layton, Utah where Humana sold land at their cost, payable after completion of the project, to build three hospital supporting medical office buildings. Your second was in Sandy, Utah where you helped Intermountain Health Care develop a new Health Care Campus and supporting Medical Office Buildings that you completed and sold.
You built a 50,000 square foot medical building in Montebello, California on hospital subordinated lease land where you retained a 5% general partner interest and syndicated 95% for a $1,200 000 profit.
For your second California medical project you persuaded Humana’s President to loan $5,000,000 (which exceeded your cost) to construct a 6-story West Hills Canoga Park Medical Building. You then sold a 50% interest to the Whittier Group for $1,000,000 cash and later the other 50% to physician tenants for an additional $1,400,000.
You developed a Northwest Hospital, Seattle, Washington Medical Office Building that was master leased by the Hospital and sold for a $1,800,000 profit.
For St. Luke’s Hospital in Phoenix, Arizona you obtained 100% plus financing from a County Non-Taxable Revenue Bond then leased air rights to build 60,000 square feet of Hospital connected medical space that was syndicated and sold to physician tenants for a $1,400,000 profit.
You purchased an existing 50,000 square foot East South Temple Salt Lake City, Utah medical building, parking structure, and land for $800,000, using a $2,700,000 Valley Bank loan for acquisition and upgrading; hired Richard Dunn to manage the improvements and space lease-up, enjoyed over 10 years of positive cash flow, refinanced the property with a $3,500,000 non-recourse loan, and sold the upgraded project for $4,000,000.
You organized Design Furnishings, Inc. with Don Harward as Managing Director, to provide design, tenant improvement, furnishings and equipment for health care tenants.
You founded a company to partner with financial planning and insurance professionals, real estate brokers, attorneys, CPAs and Planned Giving Professionals to assist owners of highly appreciated assets avoid or reduce taxes and receive lifetime income and cash to heirs through Wealth-Partners’ Planned Gifting Programs working with qualified charities such as Primary Children’s Foundation, McKay Dee Hospital, Southern Utah University, American Indian Services, Common Thread, McGruff Foundation, and the LDS Foundation.
You re-joined a friend who you had helped in starting the Marshall Reddick Real Estate Network 25 years ago that has grown to selling over 1000 investment properties a month to a loyal group of over 100,000 buyers. You became the C.O.O. of the Network and also the Managing Partner and majority owner of Network Development Properties; an affiliated company which partners hotel, apartment, and office condominium conversion development projects throughout the United States.
Your favorite books include Genesis where God created the Earth and its Inhabitants as the second most impressive deal behind His creating the Universe, and Donald Trump’s Art of the Deal.
You pledge allegiance to John Adams and Thomas Jefferson as the principal dealmakers in establishing the United States of America and to Joseph Smith as God’s primary dealmaker in restoring the Gospel of Jesus Christ.
Your favorite phrases include “It hasn’t happened yet”, “Anything is possible to him that believeth”, and “Make no little plans for they have not the power to stir men’s souls.”
You know that with the right idea and management team that financing is always available; with the right idea and financing that the right management team can be organized; and with financing and a good management team a workable idea or entity can be acquired.
You believe that any company, real property, or deal can be enhanced through better structuring.
You believe that you were born to do deals, will always have deals-in-play, and will continue to do deals in the after life.
Your 12 Deal Junkie Business Principles are:
Integrity always
Multiple income streams
Maximize profit-per-project
Wealth-partnering
Best only partners
All win
Big projects
Leverage
Risk management
Anti-domino
Quick and quiet
Give back.
You presently have deals-in-play.
posted by DBStayner at 8:36 PM
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