The Rewards of Development

In last week’s post, I shared parts of a bio of mine written years ago. Part of what that bio recounted was how I got into real estate. I started with small properties at first, but later on I gravitated into a much more profitable part of real estate known as development. Looking back, some projects I did really surprise me. I find myself thinking, “Wow, little ole me did all that!”

My work in the development side of real estate has been some of the most profitable of my entire career in investing. I’ll never forget getting a call from a guy in Pennsylvania telling me about a 77-unit apartment building that was for sale at a great low price. Shortly after that I heard, for the first time, about people converting apartment units into condos. After a lot of red tape with the local authorities of Bethlehem, Pennsylvania, I got the go-ahead to convert all 77 units into condos and, wow, what a quick 2.7-million-dollar profit I made. It was so easy because most of the renters bought their own unit.

I followed that up with a 44-unit condo development in Mississippi and walked with 1.3-million-dollars in profit from that. After those great successes, I developed a 13.3-acre commercial development right here in Salt Lake City and made 1.1-million-dollars in profit there.

I was on a real roll when my Kauai attorney called me and told me of a great plot of land on which I could develop a bunch of condos. I was skeptical at first, but after I drove by the golf course that was next door to it, I forged ahead and laid out plans to build 68 condo’s right near beautiful Princeville, Hawaii. Wow, was I super surprised when I sold all 68 condo lots before we even broke ground.

Timing is so very important with development. You sure don’t want to get into a big development when the real estate market is at the top and there are reasons to believe that the market is turning and heading down. You also don’t want to get into a market that is oversupplied in the type of real estate that you want to buy into. That’s when you need to be patient or need to look at another city or state where the market is already down but looks like it’s picking up.

I continue, to this day, looking for the right and best real estate, whether it’s dirt to be developed or apartments and commercial developments. In August 2003, I hired an office manager (Kimberly Wangsgard), because, wow, did I need help with all my properties. Ms. Wangsgard had, in her former job, played a critical role in development for S-DEVCORP, a company that had developments ranging from 1.5 million dollars to 30 million dollars.

She helped me so much that I eventually had her change her last name to HAROLDSEN. Yes, I married that very beautiful, brilliant, and kind woman and it’s been an absolutely wonderful and happy marriage. An excellent development indeed!

The Greatest High

When I was very young, I never got high. But now, at almost 77, I must admit I get high quite often. In fact, right now is one of those times. I’m high, real high – the captain just announced that we are about 33,000 feet high.

Ho ho… you might have thought I was talking about drugs, drugs that stimulate the brain. Nope. I’ve never done drugs. I really do love being at 30,000 feet or more, as long as I’m on an airplane. Oh yes, I love to travel, and flying not only gets me 30,000 plus feet high, it also lifts my brain as I see and experience new things.

The brain responds tremendously to novelty such as new sights and sounds. It certainly gives me a high. Yes, I know that many people are afraid to fly, especially when they see things like a jet losing an engine over Denver. But wow… look at the odds of dying on a commercial flight. Research shows there is a 1 in 29 million chance that you will die that way.

I love to visit foreign countries, not just because of the flight there, which I love, but because of the uniqueness, the novelty of new countries and new people, and the amazing variety of cultures. Sadly, those great things like foreign travel and being very social were suddenly taken away from us, but it isn’t permanent. Fortunately, it seems like we might be pulling ourselves out of this COVID mess. (And, yes, I did get my COVID vaccine!)

As I write this, we are thousands of feet above the Pacific Ocean, flying from Kauai to Seattle then on to Salt Lake City. And, yes, our months in Hawaii were warm and wonderful although it did rain a ton! But we still got in some tennis time and beach time.

I am a huge believer in staying active. There is so much evidence showing that if you keep moving you will, on average, have better health and a longer life. Pair activity with novel things to do and novel places to visit and you can lead a longer and healthier life while having tons of fun!

We are now making lots of plans for future trips and are very carefully increasing our social life. I hope the best for you as well as we get our lives back to normal. How novel everything will seem then!

Inspired by Success

I absolutely love reading about super successful people and many times I go out of my way to actually meet them and get to know them. Just paying attention to other success stories can teach you a lot and help you find your own big successes. Here is an old story of success but one we can learn from all these years later.

Wallace A. Wright Jr. is an excellent example of what leverage can do to help a person have super financial success. He had a dream of converting an old, beat-up bus barn in Salt Lake City into a collection of quaint shops and galleries based on San Francisco’s famous Ghirardelli Square.

It all started back in 1973 when Wallace, an Air national Guard pilot, was in a jet fighter streaking across the West. He’d led a formation of three F86 jets on a training flight to San Francisco. There, he saw, for the first time, the celebrated Ghirardelli Square–a chocolate factory turned into a potpourri of quaint shops and galleries. That’s when he thought, “Wow. Now that’s what I’d like to see in Salt Lake City someday.”

Mr. Wright had the ambition and the dream, but he needed the big, long lever known as “other people’s money”. It took some time, and he had his difficulties, but he eventually found that lever and less than a decade later, a 10-acre plot, once the home of slumbering streetcars, became Trolley Square. Back in its day, his development, Trolley Square was Salt Lake City’s biggest man-made attraction.

Trolley Square is now a vibrant, shopping-entertainment complex. Some of the 30 retail shops are anchored, at seemingly improbable angles, beneath the steel girders and glass skylight of the old car barn roofs. Wrought ironwork abounds. So do ornate staircases, woodwork, and stained glass, much of it salvaged from doomed mansions before they crumbled under the wrecker’s bulldozer. I’ve been there many times and it truly is impressive. I even had the privilege of meeting and getting to know Wallace.

I think this story is incredible and shows all of us how powerful the brain, and a determined spirit, can be. We should all note that he made his fortune by just being very observant of other people’s success and pushing himself to actually go out and do it. We all should be looking out for things that show great success and put our minds and bodies to work to do something similar.

Big Brain Boosts

One of my favorite things about the brain is how a new, unique, or novel situation – seeing something totally new or having a new experience – can pump your brain and your body up and suddenly make you feel fantastic. The brain seeks and loves novelty. Novelty really does do great things to our brains. This brain stimulus is what motivated me to travel the world, to see new countries and cities, and to meet new people in different cultures. Even when I’m a bit fearful to visit a rough, semi-dangerous and poor country, like some that I’ve visited in Africa and the Middle East, I push myself to follow the advice in Susan Jeffers’ great book Feel the Fear and Do It Anyway.

When I see and experience all the unique and novel neighborhoods, cities, countries and people in my travels, it gives my brain and life a huge boost. Even our short trip to the Indian Wells tennis tournament last week, watching guys like Roger Federer and Novak Djokovic, was a good brain booster, partly because we stayed in a new place, in a beautiful big house with friends, met and befriended new people, and drove through unfamiliar areas of the wonderful desert towns of Indian Wells and Palm Springs. Even the super oversized palm trees they have there (they are twice a tall as Hawaiian palms) turned my head and gave me a rush.

You don’t have to go out of the country, or even out of your city, to get a big brain boost from seeing and experiencing new and novel things. Just taking a walk or a drive through a totally new and different part of your city, or going to a big game or competition with new friends (maybe one that features a sport or some big event that you have never seen in person), can perk up your brain.

A big reason I go on so many hikes in the mountains is that I almost always see something novel. Even a totally super twisted tree, or an oversized or undersized deer or elk, will give my brain a rush. And, if I see a bear, yikes … my brain gets a rush but my adrenaline is instantly overloaded too. I don’t like that as much.

The bottom line is, don’t ever let up on seeking out new and different places, people, and experiences if you want to stay excited and turned on by life. Keep your brain and body excited and curious and you may not only live longer, but you will probably be healthier and certainly more fulfilled and content.

One more helpful hint – if you are not already signed up with a travel service like Kayak, Expedia, Hotwire, or Priceline, you should do that inasmuch as they send you many super deals on airlines and hotels. I’ve seen prices as low as $390 round trip to Paris from Salt Lake City and under $200 to Hawaii. Also look at sites like TripAdvisor or the experiences listed on Airbnb to find unique tours and guided experiences doing things and seeing stuff you might never have known existed. By the way, I have just scheduled a trip to Cuba this summer which will be country number 92 that I have visited!